Business Performance - Total revenue decreased by $399,000, or 7%, to $5,621,000 for the three months ended June 30, 2025, compared to $6,020,000 for the same period in 2024[124]. - Gross margin percentage was 76% for the three months ended June 30, 2025, down from 77% in the same period of 2024[126]. - Operating loss for the three months ended June 30, 2025, was $(249,000), improving from $(531,000) in the same period of 2024[124]. - Net loss from continuing operations was $(239,000) for the three months ended June 30, 2025, compared to $(683,000) for the same period in 2024[124]. - The net loss from continuing operations for the six months ended June 30, 2025, was $1,004,000, a reduction of 31.6% from a loss of $1,466,000 in the same period of 2024[150]. - Free cash flow for the three months ended June 30, 2025, was $135,000, compared to a negative free cash flow of $(345,000) in the same period of 2024[153]. - Adjusted free cash flow for the six months ended June 30, 2025, was $1,217,000, significantly higher than $491,000 in the same period of 2024[153]. Revenue and Subscriptions - As of June 30, 2025, ACCESS Newswire has 971 subscriptions generating an annual recurring revenue (ARR) of approximately $10.7 million[101]. - Deferred revenue balance as of June 30, 2025, was $4,741,000, expected to be recognized over the next twelve months[125]. Expenses and Costs - General and administrative expenses decreased by $90,000, or 5%, for the three months ended June 30, 2025, compared to the same period in 2024[127]. - Sales and marketing expenses decreased by $481,000, or 25%, for the three months ended June 30, 2025, compared to the same period in 2024[129]. - Interest expense decreased to $54,000 for the three months ended June 30, 2025, from $315,000 in the same period of 2024[133]. - The company incurred acquisition and integration costs of $72,000 for the three months ended June 30, 2025, compared to $42,000 in 2024, reflecting ongoing strategic initiatives[147]. - Stock-based compensation expense for the three months ended June 30, 2025, was $189,000, slightly lower than $237,000 in the same period of 2024[150]. Strategic Initiatives - The rebranding to ACCESS Newswire was officially launched at the beginning of 2025, consolidating product offerings for clarity and ease of subscription[103]. - The transition to a platform subscription model is viewed as key for the company's long-term sustainable growth[159]. - The Company focuses on small and mid-market private and public companies, defined as those with 2 to 2,000 employees[101]. - The Company’s media monitoring solution aims to expand across various mediums, with a goal of becoming a comprehensive monitoring solution within the next year[112]. - The professional conference and events software is a subscription offering that integrates with other services, providing a unique solution for conference organizers[118]. - The Incident Hotline, previously known as the whistleblower hotline, is an add-on product that aligns with corporate governance policies and is supported by NYSE offerings[121]. Financial Position - Current liabilities from continuing operations exceeded current assets by $2,609,000 as of June 30, 2025[137]. - The aggregate principal amount of the Revolving LOC was $1,500,000, set to expire on June 30, 2026, with no outstanding balance as of June 30, 2025[138]. Market Outlook - The company expects continued demand for its platforms and services despite global economic uncertainties, including military conflicts and inflation[155]. - Significant upgrades to the investor relations website were released in 2023, including ADA and AODA compliance, requiring a recurring annual subscription[120].
Issuer Direct (ISDR) - 2025 Q2 - Quarterly Report