from ACCESSWIRE (NASDAQ:ISDR)
ACCESS Newswire Reports Fourth Quarter and Full Year 2025 Results
Increased ARR Leads to Higher Gross Margins and Adjusted EBITDA
Q4 2025 revenue grew modestly to $5.8M compared to $5.7M in Q3 2025 and was unchanged compared to Q4 2024
Gross margin increased to 77% compared to 75% in Q4 2024
Q4 2025 Adjusted EBITDA increased to $881,000 compared to $871,000 in Q4 2024
Average ARR for subscriptions per customer at the end of the quarter was $12,534, which does not include EDU customers, up from $10,844 as of December 31, 2024.
RALEIGH, NC / ACCESS Newswire / March 19, 2026 / ACCESS Newswire Inc. (NYSE American:ACCS), a leading communications company, today reported its operating results for the three months and full year ended December 31, 2025.
"Our Q4 results reflect strong operational discipline as gross margins expanded to 77% and adjusted EBITDA amounted to $0.9M, or 15% of revenue. While we focused on a leaner business, we simultaneously launched Access Verified, our AI-powered optimizer, and we expect to launch our social monitoring platform, with our industry-leading AI Interactive Distribution Report before the end of March. Beginning in Q2 2026, we anticipate generating incremental revenue through premium subscription tiers and per-release pricing for these new offerings," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer.
Mr. Balbirnie continued, "As the only publicly traded independent newswire, we believe our agility and lean corporate structure are among our greatest competitive advantages. Combined with our momentum from our university program, where over 1,800 students across 60-plus universities have been trained on our ACCESS PR platform in just the past 90 days, we are positioning ourselves to be where we believe the market is going. We entered 2026 with clear product roadmap and a stronger margin profile and plan to focus on turning operational discipline into innovation, growth and sustained profitability."
Fourth Quarter 2025 Highlights:
Revenue - Total revenue for Q4 2025 was $5.8M, consistent with Q4 2024 and an increase of 1% compared to $5.7M in Q3 2025. The increase in revenue compared to the prior quarter is primarily due to an increase in average revenue per release due to the mix of releases disseminated as well as an increase in revenue from our webcasting business.
Gross Margin - Gross margin for Q4 2025 was $4.5M, or 77% of revenue, compared to $4.4M, or 75% of revenue, in Q4 2024 and $4.3M, also 75% of revenue in Q3 2025. The increase in gross margin is primarily due to lower employee costs due to optimization of our operational teams.
Operating Loss - Operating loss was $0.8M for Q4 2025, as compared to $14.3M during Q4 2024. The primary reason for the decrease in operating loss was due to an impairment charge recorded in Q4 2024 related to the Newswire tradename of $14.15M. Absent the impairment charge, operating expenses increased $0.4M, or 10%. This increase is primarily due to one-time charges related to a contract settlement as well as increased advertising and tradeshow expenses to promote our new branding.
Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $0.5M, or $0.13 per diluted share, for Q4 2025, compared to $10.9M, or $2.85 per diluted share, for Q4 2024. As noted, the primary reason for the decrease in loss from continuing operations was due to the impairment charge recorded in Q4 2024, which was $10.7M, net of income tax expense.
Non-GAAP Measures - Q4 2025 EBITDA was $0.3M, or 4% of revenue, compared to $0.8M, or 13% of revenue, during Q4 2024. Adjusted EBITDA was $0.9M, or 15% of revenue, for Q4 2025 consistent with Q4 2024. Non-GAAP net income for Q4 2025 was $0.7M, or $0.17 per diluted share, compared to $0.8M, or $0.21 per diluted share, during Q4 2024. Adjusted free-cash flow was $0.5M for Q4 2025 compared to $0.4M for Q4 2024.
Full year 2025 Highlights:
Revenue - Total revenue was $22.6M for the full year of 2025, a 2% decrease from $23.1M during the full year of 2024. The decrease is primarily related to a decrease in revenue from our PRO plan products and webcasting and events business, partially offset by an increase in revenue from our core press release business driven by increases in subscriptions.
Gross Margin - Gross margin for the full year of 2025 was $17.3M, or 77% of revenue, compared to $17.4M, or 76% of revenue, during the full year of 2024. As noted for the quarter, gross margin was impacted by lower employee costs due to optimization of our operational teams, partially offset by increased distribution costs as we continue to invest in our distribution partners.
Operating Loss - Operating loss was $1.9M, for 2025, as compared to $16.3M during 2024. The decrease in the operating loss is primarily due to the previously noted impairment charge of $14.15M recorded during 2024.
Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $1.6M, or $0.40 per diluted share during 2025, compared to $13.3M, or $3.47 per diluted share during 2024.
Non-GAAP Measures - EBITDA for full year of 2025 was $1.3M, or 6% of revenue, compared to $0.8M, or 4% of revenue, during 2024. Adjusted EBITDA was $3.2M, or 14% of revenue, for the full year of 2025 compared to $1.8M, or 8% of revenue, for 2024. Non-GAAP net income for the full year of 2025 was $2.2M, or $0.57 per diluted share, compared to $0.7M, or $0.19 per diluted share, during 2024. Adjusted free-cash flow was $1.3M for the full year of 2025 compared to $2.8M for 2024. Adjusted free-cash flow for 2025 included $2.2M of tax payments primarily related to gain on sale of the compliance business.
Key Performance Indicators:
As of December 31, 2025, we had 12,802 customers who had an active contract during the past twelve months.
Subscription customers increased during the quarter to 1,019, of which, 45 new subscribers came from our EDU platform as of December 31, 2025.
Average ARR for subscriptions per customer at the end of the quarter was $12,534, which does not include EDU customers, up from $10,844 as of December 31, 2024.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced below and herein relate to the exclusion of stock-based compensation, amortization of acquisition-related intangible assets. and other expenses the Company believes to be non-recurring. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in the tables at the end of this press release.
Management believes that the use of EBITDA from continuing operations, Adjusted EBITDA from continuing operations, non-GAAP net income (loss) from continuing operations, non-GAAP net income (loss) from continuing operations per share, free cash flow and adjusted free cash flow is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Our management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating our own operating results over different periods of time.
EBITDA from continuing operations is calculated by excluding depreciation and amortization, interest expense, net, and income taxes from the loss from continuing operations. Adjusted EBITDA also excludes certain other expenses which the Company believes to be non-recurring as well as the gain or loss on the change in fair value of our interest rate swap. Non-GAAP net income (loss) from continuing operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from continuing operations and certain other adjustments noted in the tables below. Non-GAAP net income (loss) from continuing operations per share is calculated by dividing non-GAAP net income (loss) from continuing operations by the weighted-average diluted shares outstanding as presented in the calculation of GAAP net income (loss) from continuing operations per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, management believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, management generally allocates a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus management does not believe they are reflective of ongoing operations.
Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment and capitalized software. Adjusted free cash flow also deducts certain cash payments which the Company believe to be non-recurring in nature. Management considers free cash flow and adjusted free cash flow to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on our reported financial results.
The presentation of non-GAAP financial information below and herein are not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below and not rely on any single financial measure to evaluate our business.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
($ in '000's, except per share amounts)
CALCULATION OF EBITDA & ADJUSTED EBITDA
Three Months Ended December 31, | ||||||||
2025 | 2024 | |||||||
Amount | Amount | |||||||
Net loss from continuing operations: | $ | (509 | ) | $ | (10,945 | ) | ||
Adjustments: | ||||||||
Impairment | 250 | 14,150 | ||||||
Depreciation and amortization | 762 | 737 | ||||||
Interest expense, net | 16 | 250 | ||||||
Income tax benefit | (268 | ) | (3,422 | ) | ||||
EBITDA from continuing operations | 251 | 770 | ||||||
Acquisition and/or integration costs (1) | 13 | 39 | ||||||
Other non-recurring expenses (income), net (2) | 358 | (198 | ) | |||||
Stock-based compensation expense (3) | 259 | 260 | ||||||
Adjusted EBITDA from continuing operations: | $ | 881 | $ | 871 | ||||
Year Ended December 31, | ||||||||
2025 | 2024 | |||||||
Amount | Amount | |||||||
Net loss from continuing operations: | $ | (1,558 | ) | $ | (13,281 | ) | ||
Adjustments: | ||||||||
Impairment loss | 250 | 14,150 | ||||||
Depreciation and amortization | 2,965 | 2,928 | ||||||
Interest expense, net | 2 | 1,107 | ||||||
Income tax benefit | (395 | ) | (4,064 | ) | ||||
EBITDA from continuing operations | 1,264 | 840 | ||||||
Acquisition and/or integration costs (1) | 256 | 189 | ||||||
Other non-recurring expenses (2) | 863 | 138 | ||||||
Stock-based compensation expense (3) | 831 | 639 | ||||||
Adjusted EBITDA from continuing operations: | $ | 3,214 | $ | 1,806 | ||||
(1) | This adjustment gives effect to one-time corporate projects, including acquisition, divestiture and integration related expenses, incurred during the periods. |
(2) | For the three months ended December 31, 2025, this adjustment gives effect to non-recurring fees of $358,000. For the year ended December 31, 2025, this adjustment gives effect to a loss recorded on the change in fair value of our interest rate swap of $80,000, as well as corporate re-brand costs of $154,000 and non-recurring fees of $629,000. For the three months ended December, 31, 2024, this adjustment primarily gives effect to a gain or loss recorded on the change in fair value of our interest rate swap. For the year ended December 31, 2024, this adjustment gives effect to one-time accounting fees, termination benefits and other non-recurring or unusual expenses of $219,000, partially offset by a gain recorded on the change in fair value of our interest rate swap of $81,000. |
(3) | The adjustments represent stock-based compensation expense from continuing operations related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects. |
CALCULATION OF NON-GAAP NET INCOME (LOSS)
Three Months Ended December 31, | ||||||||||||||||
2025 | 2024 | |||||||||||||||
Amount | Per diluted share | Amount | Per diluted share | |||||||||||||
Net loss from continuing operations: | $ | (509 | ) | $ | (0.13 | ) | $ | (10,945 | ) | $ | (2.85 | ) | ||||
Adjustments: | ||||||||||||||||
Impairment loss (1) | 250 | 0.06 | 14,150 | 3.69 | ||||||||||||
Amortization of intangible assets (2) | 619 | 0.16 | 640 | 0.17 | ||||||||||||
Stock-based compensation expense (3) | 259 | 0.07 | 260 | 0.06 | ||||||||||||
Other unusual items (4) | 371 | 0.09 | (159 | ) | (0.04 | ) | ||||||||||
Tax impact of adjustments (5) | (315 | ) | (0.08 | ) | (3,127 | ) | (0.82 | ) | ||||||||
Non-GAAP net income from continuing operations: | $ | 675 | $ | 0.17 | $ | 819 | $ | 0.21 | ||||||||
Weighted average number of common shares outstanding - diluted | 3,865 | 3,838 | ||||||||||||||
Year Ended December 31, | ||||||||||||||||
2025 | 2024 | |||||||||||||||
Amount | Per diluted share | Amount | Per diluted share | |||||||||||||
Net loss from continuing operations: | $ | (1,558 | ) | $ | (0.40 | ) | $ | (13,281 | ) | $ | (3.47 | ) | ||||
Adjustments: | ||||||||||||||||
Impairment loss (1) | 250 | 0.06 | 14,150 | 3.70 | ||||||||||||
Amortization of intangible assets (2) | 2,501 | 0.65 | 2,559 | 0.67 | ||||||||||||
Stock-based compensation expense (3) | 831 | 0.21 | 639 | 0.16 | ||||||||||||
Other unusual items (4) | 1,119 | 0.29 | 327 | 0.08 | ||||||||||||
Discrete items impacting income tax expense (6) | 41 | 0.01 | 38 | 0.01 | ||||||||||||
Tax impact of adjustments (5) | (987 | ) | (0.25 | ) | (3,712 | ) | (0.96 | ) | ||||||||
Non-GAAP net income (loss) from continuing operations: | $ | 2,197 | $ | 0.57 | $ | 720 | $ | 0.19 | ||||||||
Weighted average number of common shares outstanding - diluted | 3,859 | 3,829 | ||||||||||||||
(1) | The adjustment represents the impairment loss on right-of-use asset and leasehold improvements due to the Company's sublease for the year ended December 31, 2025, and intangible assets for the year ended December 31, 2024. |
(2) | The adjustments represent the amortization of intangible assets related to acquired assets and companies. |
(3) | The adjustments represent stock-based compensation expense from continuing operations related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects. |
(4) | For the three months ended December 31, 2025, this adjustment gives effect to non-recurring fees, including acquisition, integration and divestiture costs of $371,000. For the year ended December 31, 2025, this adjustment gives effect to a loss recorded on the change in fair value of our interest rate swap of $80,000, as well as corporate re-brand costs of $154,000 and one-time non-recurring expenses, including acquisition and/or integration expenses of $885,000. For the three months and full year ended December 31, 2024, this adjustment gives effe |