ACCESS Newswire — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $5.5M, a 4% decrease year-over-year from $5.7M in Q3 2025 and a 2% decrease from $5.6M in Q2 2026.
• Gross margin increased to 75% in Q3 2026, consistent with Q3 2025 and up from 73% in Q2 2026.
• Adjusted EBITDA for Q3 2026 was $829,000 (15% margin), compared to $933,000 (16% margin) in Q3 2025.
• Operating loss narrowed to $142,000 in Q3 2026 from $184,000 in Q3 2025, driven by a decrease in operating expenses to $4.3M from $4.5M.
• GAAP net loss from continuing operations was $80,000 ($0.02 per diluted share) in Q3 2026, compared to a loss of $45,000 ($0.01 per diluted share) in Q3 2025.
• Cash flow from operations improved to $469,000 in Q3 2026, compared to $(582,000) in Q3 2025 and $173,000 in Q2 2026.
• For the nine months ended September 30, 2026, total revenue was $16.5M, a 2% decrease from $16.8M in the same period of 2025.
• Nine-month 2026 Adjusted EBITDA was $2.0M (12% margin), down from $2.3M (14% margin) in 2025.
• Nine-month 2026 Adjusted free cash flow was $1.4M, up from $0.8M in 2025.
• Deferred revenue decreased to $5.011M as of September 30, 2026, from $5.265M as of December 31, 2025.
• Long-term debt (net of discount) was $1.047M as of September 30, 2026, down from $1.686M as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to return to top-line growth in 2027.
• An organizational streamlining completed in October 2026 is expected to generate annualized savings over $1.5 million, with partial benefits in Q4 2026 and full benefits beginning in Q1 2027.
• The company aims to maintain double-digit Adjusted EBITDA margins and positive cash flow.

Business Segments and Product Lines:

• Subscription revenue was $3.2M in Q3 2026, representing 60% of total revenue.
• Average ARR per subscription customer (excluding EDU) increased 6% to $12,331 in Q3 2026 from $11,651 in Q3 2025.
• Total active customers increased 14% year-over-year to 14,134 as of September 30, 2026.
• Revenue growth in Insight & Analytics, social monitoring, and PRO offerings partially offset declines in core press release volumes.
• Core press release volume decreased 15% in Q3 2026 compared to Q2 2026 and 12% compared to Q3 2025.
• Revenue from webcasting products decreased due to lower reseller revenue and virtual annual meetings.
• Revenue from PRO offerings decreased due to customer attrition.

Market and Competitive Landscape:

• The press release cites a "softer press release market" as a primary driver for lower core volumes.
• The company describes the market as "rapidly evolving."
• Management notes that gross margin expansion in Q3 2026 was partially due to lower distribution costs resulting from lower volumes from variable rate partners.

Risks and Challenges:

• Continued softness in press release volumes remains a risk.
• Customer attrition, specifically in PRO offerings, poses a challenge.
• Realizing anticipated cost savings without adversely impacting sales, customer service, or product development is a key execution risk.
• Competition and general economic conditions are cited as factors that could cause actual results to differ from expectations.

Management Commentary and Tone:

• CEO Brian R. Balbirnie described the quarter as demonstrating "resilience" and noted the company delivered on margin goals for the second half of the year.
• Management expressed confidence in the company's financial position, citing 75% gross margins, double-digit Adjusted EBITDA margins, positive cash flow, and minimal debt.
• The tone indicates a strategic shift toward sharpening the product roadmap around customer-valued outcomes and positioning for the next phase of growth.

Other Key Points:

• The company streamlined its organization across sales, development, editorial, and operations in October 2026.
• Stock repurchases and retirement totaled $768,000 for the nine months ended September 30, 2026.
• Proceeds from the sale of the Compliance Business were $308,000 for the nine months ended September 30, 2026.
• Non-GAAP net income for Q3 2026 was $0.5M ($0.14 per diluted share), compared to $0.8M ($0.20 per diluted share) in Q3 2025.
• GAAP net loss from continuing operations for the nine months ended September 30, 2026, was $1.0M ($0.27 per diluted share), consistent with the prior year period.