ACCESS Newswire Q2 2025 Earnings: Revenue Down 7%, Subscription Customers Up 12%

ACCESS Newswire reported Q2 2025 revenue of $5.6 million, down 7% YoY. However, subscription customers increased 12% to 971. Gross margin was 76%, down from 77% in Q2 2024. Operating loss was $249,000, compared to $531,000 in Q2 2024. Adjusted EBITDA increased to $836,000, or 15% of revenue, up from 9% in Q2 2024.

ACCESS Newswire Inc. (NYSE American: ACCS) reported its financial results for the second quarter of 2025, highlighting a mixed performance with both increases and decreases in key financial metrics. The company reported revenue of $5.6 million, down 7% year-over-year (YoY) from $6.0 million in Q2 2024, but up 3% from $5.5 million in Q1 2025. This decline can be attributed to slight decreases across all product lines, including a 4% decrease in revenue per release from the core press release business, despite an increase in volume [1].

Despite the revenue decrease, the company experienced a 12% increase in subscription customers, reaching 971 at the end of Q2 2025 compared to 955 at the end of Q1 2025 and 867 in Q2 2024. This growth in subscription customers is a positive sign for the company's transition to a subscription-based model. The average annual recurring revenue (ARR) per subscription customer also increased to $11,039, up from $10,068 as of June 30, 2024 [1].

Gross margin for Q2 2025 was $4.285 million, or 76% of revenue, compared to $4.647 million, or 77% of revenue, during Q2 2024. The decrease in gross margin is primarily due to lower revenue, as costs of revenue remained consistent. However, operating expenses decreased by $644,000, or 12%, to $4.5 million, primarily due to a reduction in headcount and other operational efficiencies [1].

Operating loss for Q2 2025 was $249,000, compared to $531,000 in Q2 2024. This reduction in operating loss is a significant improvement, driven by cost reductions and operational efficiencies. On a GAAP basis, net loss from continuing operations was $239,000, or $0.06 per diluted share, for the three months ended June 30, 2025, compared to $683,000, or $0.18 per diluted share, for the same period in 2024 [1].

Adjusted EBITDA increased to $836,000, or 15% of revenue, up from 9% in Q2 2024. This improvement is largely due to the cost improvements and operational efficiencies made in the business. Cash flows from operations for Q2 2025 were $135,000, compared to $(190,000) in Q2 2024, indicating a significant improvement in cash flow generation [1].

Overall, while ACCESS Newswire reported a decrease in revenue and gross margin, the company's operational efficiencies and cost reductions have led to improvements in adjusted EBITDA, operating loss, and cash flows. The company's focus on a subscription-based model and operational improvements continues to be a key driver of its financial performance.

References:
[1] https://finance.yahoo.com/news/access-newswire-reports-second-quarter-121500944.html