ACCESS Newswire (NYSEAMERICAN:ACCS) Posts Quarterly Earnings Results

ACCESS Newswire (NYSEAMERICAN:ACCS) posted its earnings results on Tuesday. The company reported $0.08 EPS for the quarter, FiscalAI reports. ACCESS Newswire had a positive return on equity of 5.57% and a negative net margin of 7.60%.The company had revenue of $5.62 million for the quarter.

Here are the key takeaways from ACCESS Newswire’s conference call:

• Q2 revenue was $5.6 million, up 5% sequentially but essentially flat year over year, as 2% growth in core press-release revenue was offset by weaker webcasting and ProPlan revenue.
• Gross margin declined to 73% from 76% a year earlier, while adjusted EBITDA fell to $0.6 million from $0.8 million and the GAAP net loss widened to $354,000. Higher distribution costs, including partner pricing and variable usage, pressured profitability.
• Subscription metrics continued to improve: average ARR per customer rose 15% year over year to $12,718, subscriptions increased 4% to 1,162, retention reached 94%, and net revenue retention rose to 124%. Subscriber revenue was up 23% year over year.
• Management plans approximately $150,000 in cost-of-revenue savings during the second half, targeting a return to gross margins in the higher 70% range while reallocating savings toward sales and marketing and new-customer acquisition.
• The company reported encouraging early adoption of Social Monitoring and Insight & Analytics and outlined additional products, including ACCESS Verified for Financials, an upgraded ACCESS Events platform, and Content Studio. Management expects these add-ons to support higher pricing, subscription growth, and a potential 10%–15% subscription uplift for Content Studio.

ACCESS Newswire Trading Down 6.5%

ACCESS Newswire stock traded down $0.42 during mid-day trading on Tuesday, hitting $6.08. The company’s stock had a trading volume of 1,793 shares, compared to its average volume of 17,298. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.88 and a current ratio of 0.88. The company has a 50 day moving average of $6.59 and a 200-day moving average of $7.30. ACCESS Newswire has a one year low of $5.80 and a one year high of $12.20. The stock has a market cap of $23.59 million, a PE ratio of -13.82 and a beta of 0.40.

Insider Buying and Selling at ACCESS Newswire

In other news, CEO Brian R. Balbirnie purchased 10,000 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was purchased at an average price of $6.46 per share, for a total transaction of $64,600.00. Following the completion of the acquisition, the chief executive officer owned 632,917 shares of the company’s stock, valued at approximately $4,088,643.82. This trade represents a 1.61% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders have purchased a total of 13,750 shares of company stock worth $89,575 over the last ninety days. Insiders own 25.03% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Punch & Associates Investment Management Inc. lifted its holdings in ACCESS Newswire by 7.8% during the third quarter. Punch & Associates Investment Management Inc. now owns 138,260 shares of the company’s stock worth $1,484,000 after buying an additional 9,960 shares during the period. Topline Capital Management LLC acquired a new stake in shares of ACCESS Newswire during the second quarter worth $8,724,000. DRW Securities LLC purchased a new stake in shares of ACCESS Newswire during the fourth quarter valued at $117,000. Bridgeway Capital Management LLC acquired a new position in ACCESS Newswire in the 2nd quarter worth approximately $163,000. Finally, Geode Capital Management LLC purchased a new position in ACCESS Newswire during the 2nd quarter worth approximately $362,000. 50.02% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Separately, Lake Street Capital reduced their price objective on ACCESS Newswire from $14.00 to $12.00 and set a “buy” rating on the stock in a research note on Wednesday, May 13th. One analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $12.00.

About ACCESS Newswire

Issuer Direct Corporation operates as a communications and compliance company, provides solutions for both public relations and investor relations professionals in the United States and internationally. The company provides press release distribution, media databases, media monitoring, and newsrooms through media advantage platform; ACCESSWIRE, a news dissemination and media outreach service; and Webcaster Platform, a cloud-based webcast, webinar, and virtual meeting platform that delivers live and on-demand streaming of events to audiences of various sizes, as well as allows customers to create, produce, and deliver events.