ACCESS Newswire Inc. reported third‑quarter 2025 results on November 11, 2025, with revenue of $5.7 million, a 2% year‑over‑year increase and essentially flat quarter‑over‑quarter growth. Non‑GAAP earnings per share rose to $0.20, beating the consensus estimate of $0.12–$0.15 by $0.05–$0.08, or 33–66%. Adjusted EBITDA climbed 71% to $933,000 from $546,000 in the same quarter a year earlier, while the company’s operating loss narrowed to $184,000 from $604,000. Gross margin held steady at 75%, slightly below the 76% margin recorded for the nine‑month period ended September 30, 2025.
The revenue increase was driven primarily by a 7% rise in core press‑release volume, which offset declines in pro‑webcasting and IR‑website‑solutions revenue. Annual recurring revenue per customer grew to $11,651 from $10,189, reflecting the company’s shift toward subscription‑first pricing and higher‑margin contracts.
The EPS beat was largely a result of disciplined cost management and operational leverage. The company’s focus on subscription revenue has improved margin stability, while the reduction in employee costs from operational realignment helped offset higher distribution expenses. These measures allowed ACCESS to convert a modest revenue gain into a substantial earnings improvement.
Gross margin remained stable at 75%, but the slight dip from the nine‑month period was attributed to higher distribution costs that were partially counterbalanced by lower employee expenses. The company’s margin profile indicates that pricing power in its core press‑release business is holding, even as it navigates cost pressures in other segments.
CEO Brian R. Balbirnie highlighted the quarter as a “positive milestone” driven by operational discipline and customer growth. He emphasized confidence in the company’s product roadmap and upcoming enhancements that are expected to sustain top‑line momentum and profitability.
Investors reacted favorably to the earnings, with the EPS beat serving as the primary catalyst for the positive market sentiment. Analysts noted the company’s improved profitability metrics and the steady gross margin as evidence of effective cost control and a successful shift toward subscription revenue.
The company did not provide explicit guidance for the next quarter or the full year, but management expressed confidence in continued growth through product innovation and operational efficiency. Headwinds include a decline in pro‑webcasting revenue, while tailwinds are driven by the growing subscription base and higher ARR per customer. These dynamics suggest a company that is solidifying its core business while navigating transitional challenges in ancillary segments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.