ACCESS Newswire Reports Second Quarter 2025 Results

About this update from Access Newswire Inc.

Operational Efficiencies Improve, Increasing EBITDA and Cash Flow RALEIGH, NC / ACCESS Newswire / August 12, 2025 / ACCESS Newswire Inc . (NYSE American:ACCS) (the "Company"), a leading communications company, today reported its operating results for the three and six months ended June 30, 2025. "We're pleased to report another quarter of sequential growth, highlighting the continued momentum of our business as we execute on our long-term strategy," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer. "We continue to transition the business to a subscription-based model and remain confident this shift is delivering greater value to our customers while building a sustainable, predictable business that will be best for all stakeholders. We continue to see strong gross margins, an increase in the number of subscription customers and a return of adjusted EBITDA to mid-teen percentages of revenue, at 15% for the quarter. Along with increasing revenue, all of these remain key areas of focus through the remainder of the year." Mr. Balbirnie added, "Based on the breadth of our product functionality and our subscription-based approach, we are in a unique position to capture growth in the communications market and are excited about the upcoming product enhancements we will release as we approach the end of the year. Alongside our focus on continued operational efficiencies, we believe our initiatives will further strengthen our performance and drive improved results in both the near and long term." Second Quarter 2025 Highlights: First Half 2025 Highlights: Key Performance Indicators: 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 (LOSS) CALCULATION OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW   Conference Call Information To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call. Conference Call Replay Information The replay will be available beginning approximately 1 hour after the completion of the live event. 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 confidence that our shift from pay-as-you-go to a subscription-based model is building the sustainable, predictable business we have been working toward and our belief that our various initiatives will further strengthen our performance and drive improved results in both the near and long-term. 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, 2024, 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] ACCESS NEWSWIRE INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) ACCESS NEWSWIRE INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except share and per share amounts) ACCESS NEWSWIRE INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) SOURCE: ACCESS Newswire Inc. View the original press release on ACCESS Newswire

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