ACCESS Newswire Reports Q1 2025 Financial Results with Revenue of $5.476 Million

ACCESS Newswire Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $5.476 million, a decrease of 2% from $5.572 million in the same period of 2024. The company experienced a slight decline across various product lines, although revenue from its core press release business increased by 1% due to higher volume. The cost of revenues also decreased by 13% to $1.203 million, primarily due to a reduction in headcount and operational optimizations, resulting in a gross profit of $4.273 million and a gross margin of 78%, up from 75% year-over-year.

In terms of operating expenses, ACCESS Newswire reported a total of $4.950 million, down slightly from $5.046 million in the previous year. General and administrative expenses rose by 19% to $1.953 million, largely due to a prior year benefit from stock compensation expenses related to an executive resignation. Conversely, sales and marketing expenses decreased by 23% to $1.594 million, reflecting lower employee-related and advertising costs. The company recorded an operating loss of $677,000, an improvement from a loss of $862,000 in the prior year.

A significant operational change occurred with the sale of ACCESS's compliance business to Equiniti Trust Company on February 28, 2025. This transaction resulted in a net income from discontinued operations of $6.152 million for the quarter, compared to $644,000 in the same period last year. The sale allowed ACCESS to streamline its focus on its core communications business, which is expected to enhance future profitability.

As of March 31, 2025, ACCESS Newswire had 955 subscriptions with an annual recurring revenue (ARR) of approximately $10.6 million. The company reported a deferred revenue balance of $5.021 million, indicating a 6% increase from the previous quarter, which is expected to be recognized over the next twelve months. The company’s cash and cash equivalents stood at $4.1 million, with current liabilities exceeding current assets by $3.336 million, prompting management to express confidence in renegotiating its credit agreement to improve liquidity.

Looking ahead, ACCESS Newswire aims to expand its product offerings and customer base while investing in technology advancements. The company anticipates stable demand for its services despite ongoing global economic uncertainties. Management remains focused on generating sustainable growth and cash flows from operations, positioning itself for future opportunities in the evolving communications landscape.