Financial Performance - Total revenue for Q3 2025 increased by $84,000, or 1%, to $5,723,000 compared to $5,639,000 in Q3 2024, while total revenue for the nine months ended September 30, 2025, decreased by $411,000, or 2%, to $16,820,000 compared to $17,231,000 in the same period of 2024[117]. - Operating loss for Q3 2025 was $(184,000), an improvement from $(604,000) in Q3 2024, while the nine-month operating loss was $(1,110,000) compared to $(1,997,000) in the same period of 2024[117]. - Net loss from continuing operations for Q3 2025 was $(45,000), compared to $(870,000) in Q3 2024, and for the nine months ended September 30, 2025, it was $(1,049,000) compared to $(2,336,000) in the same period of 2024[117]. - For the three months ended September 30, 2025, adjusted EBITDA from continuing operations was $933,000, a 70.6% increase from $546,000 in 2024[140]. - For the nine months ended September 30, 2025, adjusted EBITDA from continuing operations was $2,333,000, up 142.5% from $961,000 in 2024[140]. - The net loss from continuing operations for the three months ended September 30, 2025, was $45,000, a significant improvement compared to a loss of $870,000 in 2024[141]. - The net loss from continuing operations for the nine months ended September 30, 2025, was $1,049,000, reduced from a loss of $2,336,000 in 2024[141]. - Free cash flow from continuing operations for the three months ended September 30, 2025, was $(590,000), compared to $1,358,000 in 2024[142]. - Adjusted free cash flow from continuing operations for the three months ended September 30, 2025, was $(418,000), down from $1,369,000 in 2024[142]. Revenue and Subscriptions - As of September 30, 2025, the company has 972 subscriptions with an annual recurring revenue (ARR) of approximately $11.3 million[93]. - The company completed the sale of its Compliance business on February 28, 2025, categorizing related revenue and expenses as discontinued operations for the three and nine months ended September 30, 2025 and 2024[94]. - The company launched a new subscription platform in late 2024, officially rebranding to ACCESS Newswire at the beginning of 2025[93]. - The company maintains high gross margins while offering flexible pricing options for its press release distribution service, which is integrated into all three ACCESS subscription plans[100]. - Deferred revenue balance as of September 30, 2025, was $5,020,000, an increase of 6% from $4,743,000 at December 31, 2024, expected to be recognized over the next twelve months[118]. Expenses and Cost Management - Cost of revenues increased by $44,000, or 3%, in Q3 2025, while it decreased by $178,000, or 4%, for the nine months ended September 30, 2025, compared to the same periods in 2024[119]. - General and administrative expenses decreased by $409,000, or 22%, in Q3 2025, and by $185,000, or 3%, for the nine months ended September 30, 2025, compared to the same periods in 2024[120]. - Sales and marketing expenses decreased by $924,000, or 16%, for the nine months ended September 30, 2025, compared to the same period in 2024[122]. - Product development expenses increased by $13,000, or 2%, in Q3 2025, and by $28,000, or 1%, for the nine months ended September 30, 2025, compared to the same periods in 2024[124]. - Interest expense decreased to $57,000 in Q3 2025 from $280,000 in Q3 2024, due to reduced debt from the sale of the compliance business[126]. Product and Service Development - The company’s communications platform includes ACCESS PR and ACCESS IR subscriptions, which integrate various services such as press release distribution and investor relations[96]. - The company has expanded its distribution network and enhanced analytics reporting for its press release distribution products, anticipating continued growth in this area[99]. - The investor relations website offering received significant upgrades in 2023, including ADA and AODA compliance features[113]. - The company offers a professional conference and events software that integrates with its other services, providing a unique offering for conference organizers[111]. - The company’s media monitoring solution aims to be comprehensive within the next year, expanding across various media types[104]. - The company’s Incident Hotline, a whistleblower hotline offering, is a supported product of the NYSE, introducing the company to new IPO customers[114]. Market Outlook and Strategic Initiatives - The company anticipates stable demand for its platforms and services despite global economic uncertainties[145]. - The transition to a platform subscription model is expected to be key for the company's long-term sustainable growth[147]. - The company has no off-balance sheet arrangements that could materially affect its financial condition[147]. - Market factors such as military conflicts and global inflation have contributed to significant volatility in financial markets, impacting many industries[145].
Issuer Direct (ISDR) - 2025 Q3 - Quarterly Report