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Access Newswire Inc. (ACCS)
:ACCS
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ACCESS Newswire
(NYSE MKT:ACCS)
Rating:54Neutral
Price Target:―
ACCESS Newswire Business Overview & Revenue Model
Company DescriptionACCESS Newswire (ACCS) is a prominent player in the media and communications industry, specializing in the distribution of press releases and multimedia content for businesses and organizations globally. The company provides a comprehensive suite of services that ensures clients' news reaches targeted audiences through various channels, including online platforms, news agencies, and social media networks. ACCS caters to a diverse range of sectors, including finance, healthcare, technology, and consumer goods, offering tailored solutions to meet the unique needs of each industry.
How the Company Makes MoneyACCESS Newswire generates revenue primarily through subscription-based services and pay-per-release models. Clients pay for access to the company's distribution network, which ensures their press releases reach a wide and relevant audience. Revenue is also derived from value-added services such as multimedia content creation, analytics, and targeted distribution options that enhance the visibility and impact of clients' communications. Strategic partnerships with media outlets and digital platforms enhance ACCS's reach and credibility, further attracting businesses seeking effective news dissemination solutions. Additionally, the company may earn from sponsorships and advertising placements within its distribution channels, leveraging its extensive audience base.
ACCESS Newswire Financial Statement Overview
Summary
Issuer Direct's financial statements present a blend of strengths and challenges. The company showcases efficient cash flow management and a solid equity base, yet struggles with profitability issues and revenue contraction. Addressing revenue volatility and returning to profitability will be key to enhancing overall financial health.Income Statement
Issuer Direct's income statement reflects a mixed performance. While the company has maintained a decent gross profit margin of 67.7% in the TTM, the net profit margin is negative due to a net loss indicating potential profitability challenges. Revenue growth has been volatile, with a recent decline to $29.1M from $33.4M, suggesting the need for revenue stabilization strategies. However, the company has a healthy EBITDA margin of 7.2%, highlighting operational efficiency.65
Positive
Balance Sheet
The balance sheet of Issuer Direct shows a strong equity position with an equity ratio of 57.1%, indicative of a stable capital structure. However, the debt-to-equity ratio is 0.49, which suggests a moderate level of leverage but still within manageable limits. The return on equity has turned negative due to recent losses, highlighting a concern for shareholders.72
Positive
Cash Flow
Issuer Direct demonstrates robust cash flow management with an operating cash flow to net income ratio of -2.31, indicating strong cash generation relative to earnings. However, the free cash flow growth rate remains positive at 12.9%, showcasing effective cash management despite net losses. The company's ability to generate cash flow is a notable strength.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 29.14M | 33.38M | 23.51M | 21.88M | 18.53M | 16.30M | Gross Profit |
| 19.72M | 25.45M | 17.83M | 16.14M | 13.11M | 11.21M | EBIT |
| 556.00K | 2.82M | 2.67M | 3.74M | 2.69M | 474.00K | EBITDA |
| 2.10M | 5.38M | 3.70M | 4.89M | 4.04M | 2.14M | Net Income Common Stockholders |
| -1.32M | 766.00K | 1.93M | 3.29M | 2.11M | 686.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.71M | 5.71M | 4.83M | 23.85M | 19.56M | 15.77M | Total Assets |
| 66.77M | 65.15M | 66.33M | 39.26M | 34.89M | 32.39M | Total Debt |
| 21.30M | 20.92M | 23.34M | 1.66M | 1.97M | 2.61M | Net Debt |
| 15.59M | 15.21M | 18.51M | -22.19M | -17.59M | -13.16M | Total Liabilities |
| 31.35M | 29.73M | 33.10M | 7.64M | 6.75M | 6.29M | Stockholders Equity |
| 35.42M | 35.42M | 33.22M | 31.62M | 28.14M | 26.10M |
| Cash Flow | Free Cash Flow | ||||
| 2.89M | 2.56M | 3.95M | 4.45M | 4.36M | 2.42M | Operating Cash Flow |
| 3.06M | 3.06M | 4.02M | 4.73M | 4.39M | 2.86M | Investing Cash Flow |
| -714.00K | -153.00K | -18.03M | -277.00K | -27.00K | -3.23M | Financing Cash Flow |
| -3.31M | -2.08M | -4.91M | -146.00K | -574.00K | -1.09M |
ACCESS Newswire Technical Analysis
Positive
9.00
Price Trends
8.82
Positive
9.13
Negative
9.61
Negative
Market Momentum
0.09
Negative
56.34
Neutral
49.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACCS, the sentiment is Positive. The current price of 9 is above the 20-day moving average (MA) of 8.75, above the 50-day MA of 8.82, and below the 200-day MA of 9.61, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 49.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACCS.
ACCESS Newswire Risk Analysis
ACCESS Newswire disclosed 29 risk factors in its most recent earnings report. ACCESS Newswire reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACCESS Newswire Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% | |
58 Neutral | $76.02M | ― | -34.39% | ― | 18.20% | 50.14% | |
56 Neutral | $23.26M | ― | -12.15% | ― | 17.04% | -2188.42% | |
55 Neutral | $75.51M | ― | -16.55% | ― | -2.67% | 21.65% | |
54 Neutral | $34.92M | ― | -36.83% | ― | -18.22% | -773.82% | |
45 Neutral | $34.76M | ― | -147.49% | ― | -4.46% | -3053.30% | |
41 Neutral | $43.83M | ― | -123.16% | ― | -15.07% | 33.40% |
* Technology Sector Average
Performance Comparison
ACCS
ACCESS Newswire
9.10
-0.81
-8.17%
HHS
Harte-Hanks
4.78
-2.76
-36.60%
INUV
Inuvo
0.46
0.18
64.29%
MCHX
Marchex
1.64
0.27
19.71%
FLNT
Fluent
1.99
-1.43
-41.81%
SWAG
Stran & Company
1.21
0.08
7.08%
ACCESS Newswire Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. While there was significant improvement in gross margin, subscription revenue, adjusted EBITDA, and a substantial debt reduction, the company still faced challenges with a decrease in total revenue, operating losses, and negative EBITDA. The highlights suggest operational improvements and strategic alignments are progressing well, but financial performance in terms of revenue and profitability remains a concern.Q1-2025 Updates
Positive Updates
Increase in Gross Margin
Gross margins improved to 78% in Q1 2025, up from 75% in Q1 2024, attributed to operational optimization and lower headcount.
Growth in Subscription Revenue
Average recurring revenue for new subscriptions increased by 20%, moving from $9,300 in Q1 2024 to $11,139 in Q1 2025.
Strong Non-GAAP Financials
Adjusted EBITDA increased to $564,000 (10% of revenue) in Q1 2025 from $61,000 (1% of revenue) in Q1 2024.
Debt Reduction
Debt on the balance sheet was reduced by 78% due to the sale of the compliance business.
Deferred Revenue Increase
Deferred revenue balance increased by 6% to $5 million as of March 31, 2025, compared to $4.7 million as of December 31, 2024.
Negative Updates
Decrease in Total Revenue
Total revenue was $5.5 million in Q1 2025, a decrease of $96,000 or 2% compared to the same period in 2024.
Operating Loss
The company posted an operating loss of $677,000 for Q1 2025, though improved from a loss of $862,000 in Q1 2024.
Negative EBITDA
EBITDA was negative $4,000 for Q1 2025 compared to $245,000 in Q1 2024.
Company Guidance
During the ACCESS Newswire first quarter 2025 earnings call, significant metrics and guidance were provided. The company reported a revenue of $5.476 million for Q1 2025, reflecting a 1.7% decrease compared to the same period last year due to decreased public company activity. However, their core press release business saw revenue growth of 1% and a volume increase of 2%. Gross margins improved to 78%, up from 75% the previous year. New subscriptions averaged $14,059, increasing the average recurring revenue (ARR) from $9,300 to $11,139, marking a 20% rise. The total number of communications subscriptions was 955, a 9% increase from the previous year. The company aims to reach 1,500 subscriptions by year-end. Additionally, the sale of the compliance business led to a 78% debt reduction, aiding the financial restructuring. Non-GAAP net income for Q1 2025 increased to $206,000 from a net loss of $365,000 in Q1 2024. Adjusted EBITDA rose significantly to $564,000 from $61,000 the previous year. Access Newswire anticipates achieving a 75% revenue share from recurring subscriptions by the end of 2026, aiming to surpass this target sooner, highlighting strong strategic positioning and focus on growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.