As this begins to shape our business long term, this is an indicator of the sequential growth that we are now seeing from the first to the second quarter. As Brian mentioned, we had a solid quarter generating increased EBITDA, non-GAAP net income, and positive cash flow from operating activities. Total revenue for the second quarter of 2025 was $5.6 million, a decrease of $399,000 or 7% compared to $6 million for the same period of 2024. For the first half of 2025, total revenue was $11.1 million, a $495,000 or 4% decrease from $11.6 million.
However, we experienced an increase in volumes of 8% and 6% during these periods. During the quarter, our gross margin percentage decreased 1% from 77% of revenue to 76%. However, it increased overall for the first half of 2025 to 77% of revenue from 76%. The increase for the six-month period is primarily driven by optimization of our operational teams and lower headcount.
The quarterly results were impacted by higher distribution costs as we continue to enhance our distribution network, as well as lower revenue reported during the period. Gross margin decreased $362,000 or 8% and $273,000 or 3% for the three and six months ended June 30th, 2025, respectively, as compared to the same period of the prior year. The decrease in operating loss, despite the decrease in gross margin, is a result of lower operating expenses. Decreases in costs related to consultants were partially offset by declines in capitalized software.
| Metric | Period | Current guidance |
|---|---|---|
| Total subscribers | Year-end 2025 | Still targeting over 1,500 subscribers; management expects to come very close, with roughly 70% from new customers and 30% from existing upgrades and conversions |
| Recurring subscription revenue mix | Year-end 2025 | Aiming to move closer to 75% recurring subscription revenue by the end of the year |
| ARR per employee (FTE) | Year-end 2025 / 18-24 months | $216,000 as of June 30, expected to keep increasing by year-end, with confidence in reaching top SaaS performance (industry median ~$283,000; top performers over $300,000) within 18 to 24 months |
| Editorial time savings from AI | Second half 2025 | Customer-facing AI components expected to deliver a further 5% to 10% of editorial time efficiency |
| Infrastructure cost savings | Second half 2025 | Approximately $100,000 to $150,000 in savings expected within a quarter and a half from infrastructure cost reductions tied to the compliance separation |
| Operating margins and cash flow | Second half 2025 and beyond | Realized cost reductions plus higher-margin subscription mix expected to flow into improved operating margins and greater profitability without proportional cost increases, absent continued sales and marketing investment |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | -7% to $5.6M (Q2); -4% to $11.1M (H1) | Product-mix transformation from pay-as-you-go to subscription and lower revenue per release, partly offset by a 3% sequential increase from the first quarter's $5.5 million. |
| Core press release revenue | -4% (Q2); -2% (H1) | Lower revenue per release from product mix, even as distribution volumes rose 8% in the quarter and 6% for the first half. |
| Gross margin | 76% vs 77% (Q2); 77% vs 76% (H1) | Quarterly margin pressured by higher distribution costs and lower reported revenue; first-half margin improved on operational team optimization and lower headcount. |
| Operating loss from continuing operations | $249K vs $531K (Q2); $926K vs $1.4M (H1) | Narrower loss driven by lower operating expenses despite the decline in gross margin. |
| Total operating expenses | -12% ($644K) (Q2); -7% ($740K) (H1) | Sales and marketing down 25% ($481K) on lower employee-related and advertising spend, G&A down 5% ($90K) on reduced headcount, and product development down 9% ($64K). |
| EBITDA | $480K (9%) vs $211K (4%) (Q2) | Higher profitability from cost reductions and improved operating leverage; first-half EBITDA rose to $476,000 (4%) from $282,000 (2%). |
| Adjusted EBITDA | $836K (15%) vs $528K (9%) (Q2) | Cost discipline and higher-margin subscription mix; first-half adjusted EBITDA more than tripled to $1.4 million (13%) from $415,000 (4%). |
| Non-GAAP net income | $556K ($0.14) vs $101K ($0.03) (Q2) | Up $455,000 on lower operating expenses; first-half non-GAAP net income of $762,000 ($0.20) versus a $265,000 loss a year earlier. |
| GAAP loss from continuing operations | $239K ($0.06) vs $683K ($0.18) (Q2) | Reduced loss on lower operating expenses; first-half net loss from continuing operations of $1 million ($0.26) versus $1.5 million ($0.38). |
| Adjusted free cash flow | $250K vs -$491K (Q2); $1.2M vs $491K (H1) | Positive operating cash flow of $135,000 in the quarter (versus negative $190,000) driven by cost reductions and improved margins. |
| ARR per employee (FTE) | $216K vs $205K (early 2024) | Disciplined staffing levels, automation investment, and shedding the compliance business drove productivity and scalability. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Transition to a subscription and ARR model | Shift underway; new deals ~$14,000 in Q1 | Management is systematically repositioning offerings, sales process, and pricing to bundle services and lock in multi-period commitments; subscription ARR per customer rose about 12% year over year, average new-subscription ARR was roughly $12,039, and the goal is to move closer to 75% recurring revenue by year-end. | — |
| Sale of the compliance business and brand merger | — | The compliance business was sold, generating a first-half gain that lifted net income from discontinued operations to nearly $6 million ($1.54 per share), and the Newswire and ACCESSwire brands were merged into ACCESS Newswire; separation transition services took longer than expected and delayed some product development. | — |
| Operating leverage and cost efficiency | Committed to cost reductions earlier in the year | Realized operating-expense reductions are visible in Q2, with expected infrastructure savings of $100,000 to $150,000 in a quarter and a half; management expects savings and a higher-margin mix to flow into improved margins without proportional cost increases. | — |
| AI and automation | Signaled internal AI and proprietary language models coming | An internal press release validation tool is in production, saving about 5% of editorial time per article; a customer-facing version is planned for the second half, expected to add another 5% to 10% of editorial efficiency and steer customers deeper into the platform. | — |
| Product roadmap and platform expansion | — | Planned second-half releases include social media partnerships with top platforms via single-API sign-up, a relaunched pressrelease.com single-circuit platform, and a significant white-glove webcasting platform upgrade in about a month and a half to make earnings calls more interactive and scalable. | — |
| Subscriber growth and customer mix | 1,500 target set a year ago | The year-end target of over 1,500 subscribers is expected to be roughly 70% new and 30% existing upgrades; conversion has focused on customers with prior annual spend of $5,000 to $15,000, while larger-cap clients (such as Sherwin-Williams, BlackBerry, and Moderna) sign multi-year deals of $30,000 to $50,000. | — |
| Reinventing the distribution report (#KillTheReport) | — | The CEO is pushing to replace the dated five-day PR report with a customizable, real-time analytics interface covering distribution reach, media pitching, engagement, and peer benchmarking in a single platform, differentiating from competitors that force customers across multiple systems. | — |