Average ARR and cashflow from operations continue to increase over PY, as Adjusted EBITDA remains positive

• Average ARR for subscriptions per customer at the end of Q2 2026 increased to $12,718, up from $11,039 at the end of Q2 2025

• Q2 2026 Adjusted EBITDA was $642,000 compared to $836,000 for Q2 2025

• Q2 2026 revenue increased to $5.6M compared to $5.3M in Q1 2026 and consistent with Q2 2025

• Gross margin decreased to 73% compared to 76% in Q2 2025

• Cash flow from operations was $173,000 compared to $871,000 in Q1 2026 and $135,000 in Q2 2025

RALEIGH, NC / ACCESS Newswire / August 11, 2026 / ACCESS Newswire Inc. (NYSE American:ACCS), a leading business communications company, today reported its operating results for the three and six months ended June 30, 2026.

"As we enter the second half of the year, we continue to lay the groundwork for long-term growth at ACCESS. We're encouraged by the momentum from our Social Monitoring platform and Insight & Analytics Report, two new products we released in the last 90 days. As we focus on product innovation, we are on track to release several more product enhancements before year-end. Our sales and marketing efforts are working to turn that innovation into customer and revenue growth in our subscription business," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer. "We believe we have entered a new phase of the business communications marketplace, as we deliver one of the most comprehensive Investor Relations and Public Relations platforms in the industry. We are confident in our ability to continue strengthening our competitive position."

Mr. Balbirnie added, "We executed well on our operational goals for this quarter. First, we continued our buyback of common shares, with aggregate repurchases totaling 62,000 for approximately $0.5 million at quarter-end. Second, we increased our investment in sales and marketing this quarter as we believe our industry is positioned for renewed growth and we intend to have the team capture it. Third, we drove operational efficiencies across the business by reducing general and administrative expenses by 23% for the quarter and have implemented initiatives to bring down costs of revenues by approximately $150 thousand in the back half of the year."

Second Quarter 2026 Highlights:

• Revenue - Total revenue for Q2 2026 was $5.6M, an increase of 5% compared to $5.3M in Q1 2026 and consistent with Q2 2025. The increase in revenue compared to the prior quarter is primarily due to a 10% increase in volume from our core press release business due to the seasonal nature of press release volume being lower during the first quarter. Core press release revenue for Q2 2026 increased 2% compared to Q2 2025, however was offset by lower revenue from our webcasting business, due to less virtual annual meetings and activity from resellers, and lower revenue from our ProPlan product.

• Gross Margin - Gross margin for Q2 2026 was $4.1M, or 73% of revenue, compared to $4.0M, or 74% of revenue, in Q1 2026 and $4.3M, or 76% of revenue in Q2 2025. The decrease in gross margin is primarily due to an increase in press release distribution costs due to a combination of new partners, increased prices from current partners and additional usage under variable contracts.

• Operating Loss - Operating loss was $0.3M for Q2 2026, an increase compared to $0.2M in Q2 2025, primarily due to the decrease in gross margin. However, total operating expenses decreased slightly to $4.4M from $4.5M as savings in general and administrative and product development expenses were partially offset by additional marketing investments made in advertising and tradeshows.

• Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $0.4M, or $0.09 per diluted share, for Q2 2026 compared to $0.2M, or $0.06 per diluted share in Q2 2025.

• Non-GAAP Measures - EBITDA was $0.5M, or 8% of revenue, for Q2 2026 compared to $0.5M, or 9% of revenue for Q2 2025. Adjusted EBITDA was $0.6M, or 11% of revenue, for Q2 2026 compared to $0.8M, or 15% of revenue, for Q2 2025. Non-GAAP net income for Q2 2026 was $0.3M, or $0.08 per diluted share, compared to $0.6M, or $0.14 per diluted share, during Q2 2025. Adjusted free cash flow was $50,000 for Q2 2026 compared to $250,000 in Q2 2025.

First Half 2026 Highlights:

• Revenue - Total revenue for the first half of 2026 was $10.9M, a decrease of 1% compared to $11.1M during the first half of 2025. The decrease is primarily due to a decrease in revenue from our webcasting products due to lower revenue from resellers and virtual annual meetings and ProPlan products due to customer attrition. Revenue from our core press release business increased 1% during the first half of 2026 as compared to the same periods of the prior year.

• Gross Margin - Gross margin for the first half of 2026 was $8.1M, or 74% of revenue, as compared to $8.6M, or 77% of revenue during the first half of 2025. The decrease in gross margin is primarily due to an increase in press release distribution costs due to a combination of new partners, increased prices from current partners and additional usage under variable contracts.

• Operating Loss - Operating loss was $1.0M for the first half of 2026 compared to $0.9M during the first half of 2025. This increase is primarily due to the decrease in gross margin, partially offset by a decrease in operating expenses of $0.4M. The decrease in operating expenses is primarily due to lower stock compensation expense, bad debt expense and higher capitalized software costs, partially offset by an increase in our marketing investment with an increase in advertising and tradeshow expenses.

• Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $1.0M, or $0.25 per diluted share, for the first half of 2026, compared to $1.0M, or $0.26 per share, for the first half of 2025.

• Non-GAAP Measures - EBITDA was consistent at $0.5M, or 4% of revenue, for both the first half of 2026 and 2025. Adjusted EBITDA was $1.2M, or 11% of revenue, for the first half of 2026 compared to $1.4M, or 13% of revenue for the first half of 2025. Non-GAAP net income for the first half of 2026 was $0.7M, or $0.18 per diluted share, compared to $0.8M, or $0.20 per diluted share, for the first half of 2025. Adjusted free cash flow was $1.0M for the first half of 2026 compared to $1.2M during the first half of 2025.

Key Performance Indicators:

• As of June 30, 2026, we had 14,583 customers who had an active contract during the past twelve months.

• Subscription customers increased during the quarter to 1,162, inclusive of 115 subscribers from our EDU platform as of June 30, 2026.

• Average ARR for subscriptions per customer at the end of the quarter was $12,718 which does not include EDU customers, up from $11,039 as of June 30, 2025.

Non-GAAP Financial Measures

The non-GAAP adjustments referenced below and herein relate to the exclusion of stock-based compensation, amortization of acquisition-related intangible assets and other expenses the Company believes to be non-recurring. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in the tables at the end of this press release.

Management believes that the use of EBITDA from continuing operations, Adjusted EBITDA from continuing operations, non-GAAP net income from continuing operations, non-GAAP net income from continuing operations per share, free cash flow and adjusted free cash flow is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Our management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating our own operating results over different periods of time.

EBITDA from continuing operations is calculated by excluding depreciation and amortization, interest expense, net, and income taxes from the loss from continuing operations. Adjusted EBITDA also excludes certain other expenses which the Company believes to be non-recurring as well as the gain or loss on the change in fair value of our interest rate swap. Non-GAAP net income from continuing operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from continuing operations and certain other adjustments noted in the tables below. Non-GAAP net income from continuing operations per share is calculated by dividing non-GAAP net income from continuing operations by the weighted-average diluted shares outstanding as presented in the calculation of GAAP net loss from continuing operations per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, management believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, management generally allocates a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus management does not believe they are reflective of ongoing operations.

Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment and capitalized software. Adjusted free cash flow also deducts certain cash payments which the Company believe to be non-recurring in nature. Management considers free cash flow and adjusted free cash flow to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on our reported financial results.

The presentation of non-GAAP financial information below and herein are not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below and not rely on any single financial measure to evaluate our business.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
($ in '000's, except per share amounts)
CALCULATION OF EBITDA & ADJUSTED EBITDA

CALCULATION OF NON-GAAP NET INCOME

CALCULATION OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW