ACCESS Newswire reported lower third-quarter revenue as a softer press-release market reduced core distribution volume. Higher revenue per release and growth in its newer products helped cushion the decline, while gross margin improved from the prior quarter and operating cash flow turned positive.
The company also announced organizational changes made in October that it expects to generate more than $1.5 million in annualized savings. It says the savings will partly benefit the fourth quarter, with the full effect beginning in the first quarter of 2027.
Third-quarter results
- Revenue was $5.5 million, down 2% from the second quarter and 4% from the year-earlier quarter. ACCESS Newswire attributed the decline mainly to lower press-release revenue: core volume fell 15% from Q2 and 12% from Q3 2025 as the market softened.
- Higher revenue per release and other offerings partly offset the volume drop. The company cited contributions from social monitoring, Insight & Analytics and its PRO offerings.
- Gross margin was $4.2 million, or 75% of revenue, compared with 73% in Q2 and 75% a year earlier. The sequential improvement was primarily due to lower distribution costs associated with lower volumes from variable-rate partners.
- Adjusted EBITDA was $829,000, versus $933,000 in Q3 2025. Adjusted EBITDA margin was 15%, the target management said it had set for the second half of 2026.
- Operating loss narrowed to $142,000 from $184,000 a year earlier. Operating expenses fell to $4.3 million from $4.5 million, with lower general and administrative costs and product-development expenses partly offset by increased marketing spending.
- Net loss from continuing operations was $80,000, or 2 cents per diluted share, compared with $45,000, or 1 cent per share, a year earlier.
- Cash flow from operations was positive $469,000, up from $173,000 in Q2 and a cash outflow of $582,000 in Q3 2025.
- Customer metrics improved: active customers increased 14% year over year, and average subscription ARR per customer at quarter-end rose to $12,331 from $11,651 a year earlier.
Cost savings and direction
- In October, ACCESS Newswire streamlined its sales, development, editorial and operations teams. Management expects the changes to produce more than $1.5 million in annualized savings, with some benefit in Q4 2026 and the full benefit starting in Q1 2027.
- Management said it is sharpening its product roadmap around customer priorities and aims to return to top-line growth in 2027. It cited gross margins of 75%, positive cash flow and minimal debt as strengths.
The quarter showed a contrast between weaker core press-release volume and improved cash generation and sequential margins. The planned cost reductions are expected to contribute more fully to results beginning in 2027.