The Albany Gazette - ACCESS Newswire Reports First Quarter 2026 Results

RALEIGH, NC / ACCESS Newswire / May 12, 2026 / ACCESS Newswire Inc. (NYSE American:ACCS), a leading communications company, today reported its operating results for the three months ended March 31, 2026.

"Our Q1 results demonstrated evidence of the strength of our subscription foundation," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer. "We closed the quarter with 1,119 total subscriptions, adding 180 new subscribers during the period pushing average ARR subscription revenue per customer to $12,803 and posting improvement to overall average ARR per subscriber for the seventh out of the last eight quarters. Customer subscription retention reached 92% - up from the high 80s just a year ago - reflecting the real and measurable value our platform is delivering. In April, our new Social Monitoring platform addition started to generate a 20% ARR increase per upgrading subscriber, and we believe this momentum is just beginning."

"Our financial discipline is translating into tangible results. Total operating costs not including depreciation and amortization declined $258,000, or 6%, year-over-year, and G&A expenses equaled $1.78 million in Q1 down $172,000 compared to the same period last year. This reduction didn't come at the expense of growth investment; our product roadmap remains fully intact. We believe the operational structure we've built over the past 18 months gives us the flexibility to continue driving efficiency while accelerating platform development," said Steven Knerr, ACCESS Newswire's Chief Financial Officer.

Mr. Balbirnie continued, "We entered Q1 with a full new product suite in commercialization and the early results are exactly what we anticipated. ACCESS Verified, our AI-powered editorial assistant, is live and receiving positive customer feedback, delivering meaningful time savings and content confidence that no other wire service can match. Our dynamic MCP (Model Context Protocol) analytics report is live and already showing customers the difference between real-time and transparent performance intelligence reports compared to the legacy reports they have relied on for years. And lastly, we believe our new Social Monitoring platform addition will help us deliver on our ARR goals by the end of 2026."

First Quarter 2026 Highlights:

• Revenue - Total revenue for Q1 2026 was $5.3M, a decrease of 8% compared to $5.8M in Q4 2025 and a decrease of 3% compared to $5.5M in Q1 2025. The decrease in revenue compared to the prior quarter is primarily due to a 2% decrease in volume from our core press release business and a decrease in revenue per release due to the type of release being issued. The decrease in revenue from Q1 2025 is due to a decrease in revenue from our ProPlan products due to customer attrition and webcasting and events business due to lower revenue from resellers.

• Gross Margin - Gross margin for Q1 2026 was $4.0M, or 74% of revenue, compared to $4.5M, or 77% of revenue, in Q4 2025 and $4.3M, or 78% of revenue in Q1 2025. The decrease in gross margin is primarily due to lower revenue in Q1 2026 as compared to the other periods as well as an increase in distribution costs compared to Q1 2025.

• Operating Loss - Operating loss was $0.7M for Q1 2026, consistent with Q1 2025. This was despite the decrease in gross margin and is due to lower operating expenses. The decrease in operating expenses is primarily due to lower bad debt expense, as well as, higher capitalized research and development costs related to the new products released during Q1 2026.

• Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $0.6M, or $0.16 per diluted share, for Q1 2026, compared to $0.8M, or $0.20 per diluted share, for Q1 2025. The decrease in net loss from continuing operations was primarily related to a decrease in interest expense as a result of the pay down of outstanding debt in February 2025, as a result of the sale of the compliance business.

• Non-GAAP Measures - EBITDA was breakeven for both Q1 2026 and 2025. Adjusted EBITDA was $0.6M, or 11% of revenue, for Q1 2026 compared to $0.6M, or 10% of revenue for Q1 2025. Non-GAAP net income for Q1 2026 was $0.4M, or $0.11 per diluted share, compared to $0.2M, or $0.05 per diluted share, during Q1 2025. Adjusted free cash flow was just under $1.0M for both Q1 2026 and Q1 2025.

Key Performance Indicators:

• As of March 31, 2026, we had 13,786 customers who had an active contract during the past twelve months.

• Subscription customers increased during the quarter to 1,119, inclusive of 115 subscribers from our EDU platform as of March 31, 2026.

• Average ARR for subscriptions per customer at the end of the quarter was $12,803 which does not include EDU customers, up from $11,139 as of March 31, 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 (loss) from continuing operations, non-GAAP net income (loss) 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 (loss) 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 (loss) from continuing operations per share is calculated by dividing non-GAAP net income (loss) from continuing operations by the weighted-average diluted shares outstanding as presented in the calculation of GAAP net income (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

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Conference Call Replay Information

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About ACCESS Newswire Inc.

We are ACCESS Newswire, a globally trusted Public Relations (PR) and Investor Relations (IR) solutions provider. With a focus on innovation, customer service, and value-driven offerings, ACCESS Newswire empowers brands to connect with their audiences where it matters most. From startups and scale-ups to multi-billion-dollar global brands, we ensure your most important moments make an impact and resonate with your audiences. To learn more visit www.accessnewswire.com.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "commit," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology. The forward-looking statements in this press release include, among other things, our belief that the momentum of our new Social Monitoring platform addition is just beginning, our belief the operational structure we've built over the past 18 months gives us the flexibility to continue driving efficiency while accelerating platform development and our belief our new Social Monitoring platform addition will help us deliver on our ARR goals by the end of 2026.

Please see the Company's documents filed or to be filed with the Securities and Exchange Commission at www.sec.gov, including the Company's Annual Reports filed on Form 10-K, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and Quarterly Reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For Further Information:

ACCESS Newswire Inc.
Brian R. Balbirnie
(919)-481-4000
[email protected]

Hayden IR
Brett Maas
(646)-536-7331
[email protected]

Hayden IR
James Carbonara
(646)-755-7412
[email protected]

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SOURCE: ACCESS Newswire Inc.

View the original press release on ACCESS Newswire

(T.Wright--TAG)