RALEIGH, NC / ACCESS Newswire / November 10, 2026 / ACCESS Newswire Inc. (NYSE American:ACCS), a leading business communications company, today reported its operating results for the three and nine months ended September 30, 2026. Highlights for the quarter include an increase in gross margin, increase in average ARR per customer, and positive cash flow from operations.

"Our third quarter demonstrated the resilience of our business model in a rapidly evolving news distribution market," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer. "We increased the number of active customers by 14% year-over-year, expanded gross margin to 75%, grew average revenue per release, and built continued momentum and revenue contribution from our Insight & Analytics, social monitoring and PRO offerings. In the third quarter, we also delivered on the margin goals we set for the second half of the year, achieving Adjusted EBITDA margin of 15% and narrowed our operating loss compared to the prior-year quarter, while continuing to generate cash."

Mr. Balbirnie added, "We believe we are moving decisively to position ACCESS Newswire for its next phase of growth. In October we streamlined our organization across sales, development, editorial and operations, which we expect to generate annualized savings over $1.5 million, with a partial benefit in the fourth quarter and the full benefit beginning in the first quarter of 2027 and beyond. We are also sharpening our product roadmap around the outcomes our customers value most. With 75% gross margins, double-digit Adjusted EBITDA margins, positive cash flow and minimal debt, we believe we are in a strong financial position and are focused on returning to top-line growth in 2027."

Third Quarter 2026 Highlights:

• Revenue - Total revenue for Q3 2026 was $5.5M, a decrease of 2% compared to $5.6M in Q2 2026 and 4% compared to $5.7M in Q3 2025. The decrease in revenue is primarily the result of lower press release revenue resulting from a decrease in core volume of 15% and 12%, compared to Q2 2026 and Q3 2025, respectively, because of a softer press release market. The decrease in volume was partially offset by higher revenue per release, aided by our new social monitoring and insight and analytics products, as well as an increase in revenue from our PRO offerings.
• Gross Margin - Gross margin for Q3 2026 was $4.2M, or 75% of revenue, compared to $4.1M, or 73% of revenue, in Q2 2026 and $4.3M, or 75% of revenue in Q3 2025. The increase in gross margin percentage compared to prior quarter is primarily related to lower distribution costs resulting from lower volumes from variable rate partners.
• Operating Loss - Operating loss was $142,000 for Q3 2026, a decrease compared to $184,000 in Q3 2025. The decrease in operating loss resulted from a decrease in operating expenses to $4.3M in Q3 2026 compared to $4.5M in Q3 2025. Savings in general and administrative expenses, from lower non-recurring and bad debt expenses, and product development expenses, resulting from higher capitalized costs, 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 $80,000, or $0.02 per diluted share, for Q3 2026 compared to $45,000, or $0.01 per diluted share, in Q3 2025.
• Non-GAAP Measures - EBITDA was $0.7M, or 12% of revenue, for Q3 2026 compared to $0.5M, or 9% of revenue for Q3 2025. Adjusted EBITDA was $0.8M, or 15% of revenue, for Q3 2026 compared to $0.9M, or 16% of revenue, for Q3 2025. Non-GAAP net income for Q3 2026 was $0.5M, or $0.14 per diluted share, compared to $0.8M, or $0.20 per diluted share, during Q3 2025. Adjusted free cash flow was $0.4M for Q3 2026 compared to $(0.4)M in Q3 2025.

Year to date Q3 2026 Highlights:

• Revenue - Total revenue for the first nine months of 2026 was $16.5M, a decrease of 2% compared to $16.8M during the same period of 2025. The decrease is threefold: 1) a decrease in core press release revenue of 1%, primarily due to lower average revenue per release in the first half of the year and lower volumes during Q3 2026; 2) a decrease in revenue from our webcasting products due to lower revenue from resellers and virtual annual meetings and; 3) a decrease in PRO offerings due to customer attrition.
• Gross Margin - Gross margin for the first nine months of 2026 was $12.2M, or 74% of revenue, as compared to $12.8M, or 76% of revenue during the same period of 2025. The decrease in gross margin is partially 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 as well as decreased revenue.
• Operating Loss - Operating loss was $1.2M for the first nine months of 2026 compared to $1.1M during the same period of 2025. Partially offsetting the $0.6M decrease in gross margin, operating expenses decreased $0.5M. The decrease in operating expenses is primarily due to lower non-recurring and 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 consistent at $1.0M, or $0.27 per diluted share, for the first nine months of 2026 and 2025.
• Non-GAAP Measures - EBITDA was $1.2M, or 7% of revenue, for the first nine months of 2026, compared to $1.0M, or 6% of revenue, for the same period of 2025. Adjusted EBITDA was $2.0M, or 12% of revenue, for the first nine months of 2026 compared to $2.3M, or 14% of revenue for the same period of 2025. Non-GAAP net income for the first nine months of 2026 was $1.2M, or $0.32 per diluted share, compared to $1.5M, or $0.39 per diluted share, for the same period of 2025. Adjusted free cash flow was $1.4M for the first nine months of 2026 compared to $0.8M during the same period of 2025.

Key Performance Indicators:

• Subscriptions: Subscription revenue for Q3 2026 was $3.2M or 60% of total revenue. Subscription customers increased during the quarter to 1,213, inclusive of 118 subscribers from our EDU platform as of September 30, 2026. Average ARR for subscriptions per customer was $12,331 (excluding EDU customers), an increase of 6% from $11,651 as of September 30, 2025.
• Customers: As of September 30, 2026, we had 14,134 customers who had an active contract during the past twelve months, an increase of 14% from 12,445 as of September 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 stock-based compensation expense, acquisition and integration costs, 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

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