ACCESS Newswire (NYSE American: ACCS) reported fourth-quarter and full-year 2025 results on March 19, 2026, capping what Founder and CEO Brian Balbirnie called a transformational year. Fourth-quarter revenue was $5.8 million, essentially flat year-over-year, while full-year revenue fell 2% to $22.6 million from $23.1 million. The recurring-revenue transition advanced as subscription revenue reached 53% of total (up from 45% a year earlier), ARR per subscriber rose 16% to $12,534, and total active customers grew 4% to 12,802. Profitability improved on cost discipline: gross margin expanded to 77% and full-year adjusted EBITDA climbed to $3.2 million from $1.8 million, with non-GAAP net income up to $2.2 million ($0.57 per share). During the year the company rebranded to ACCESS Newswire, divested its compliance business, reduced debt by over 83%, and launched pressrelease.com. CFO Steve Knerr noted the prior-year loss reflected a $14.15 million Newswire trade-name impairment. Management was candid that churn ran high, ending the year at 974 subscribers versus a 1,200 target, with 70% of churn from payment failures now addressed via quarterly and annual billing. Looking to 2026, the company targets 1,500 subscribers, expects a roughly 25% ARR lift from new social monitoring beginning in Q2, and plans OpEx at or below 2025 levels while expanding from PR/IR into marketing through products like ACCESS Verified, #KillTheReport, and a Hootsuite-integrated Marketplace.
Welcome to ACCESS Newswire's fourth quarter and year-ended 2025 earnings conference call. My name is Charlie Terenzio and I lead product in our PR Optimizer team here at ACCESS Newswire. I joined in 2019 from the Newswire.com business, where I led the PR Optimizer team along with marketing, brand, and product strategy. I'm fortunate that many of the talented people I worked alongside then are still building with us today. Their passion and commitment have been a driving force behind everything we've accomplished. From day one, the ACCESS Newswire team welcomed us as partners, and bringing our teams together has made us a stronger, more innovative company. This past year has been transformational, from our rebrand to the product advancements we've brought to market, and I can tell you, we're just getting started.
Our focus is clear: give the world's largest brands the tools they need to lead in public relations, storytelling, and investor relations communications. We're building that future right now. Before we begin, I'd like to remind everyone that statements made in this conference call concerning future revenues, results from operations, financial position, markets, economic conditions, product releases, partnerships, and any other statements that may be construed as predictions of future performance or events are forward-looking statements. These statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements. We will also discuss certain non-GAAP financial measures, which are provided for informational purposes and should be considered in addition to, not as a substitute for, GAAP results.
With that said, I'll turn the call over to our founder and Chief Executive Officer, Brian Balbirnie, and our Chief Financial Officer, Steve Knerr.
Thank you, Charlie. Not only has it been a pleasure getting to know you since the Newswire acquisition, but having you as part of the team in the product leadership capacity has ignited so many things that we wanted to do here for years. For those of you that do not know, along with our development team, Charlie is leading the transformation of our subscription product innovation, putting us in an amazing place not only to compete for wallet share, but also have a seat at the table in a first to market innovation. Good morning, everyone, and thank you for joining us today to review ACCESS Newswire's fourth quarter and full year 2025 results. Steve and I are grateful for your continued engagement and support as we close out what has been a truly transformational year for this company.
Our fourth quarter results cap off a year defined by strategic focus, operational improvement, and meaningful progress in building a subscription-first business. We deliver consistent year-over-year revenue, meaningful expansion and profitability, and continued operational discipline, all while investing in the platform innovations that position us for an exciting 2026. Revenue for the quarter came in at $5.8 million, up approximately $100,000 sequentially and essentially flat year-over-year. Adjusted EBITDA increased slightly to $881,000 from $871,000, representing 15% of revenue. Gross margin continued to be strong at 77%, up from 75% in the same quarter of last year. Before I hand it to Steve, I wanted to highlight a few metrics that demonstrate the continued health of our business.
Total active customers grew to 12,802, up from 12,445 in Q3, and up 4% year-over-year. Average recurring revenue per subscription customer also increased year-over-year from $10,844 to $12,534. That's up 16% year-over-year, reflecting continued upsell success and platform adoption. Looking at the prior quarter, we still saw an 8% increase in ARR sequentially. Steve will now discuss the fourth quarter and year-end in 2025 for you. I'd like to come back on and discuss what we've been up to in Q4 and what we've been doing here in Q1 about our product enhancements and what is in store for our customers into 2026. Steve, I'll hand it over to you, sir.
Thank you, Brian, and good morning, everyone. As Brian mentioned, this has been a transformational year for us and Q4 was another quarter of generating solid operating margins and cash flow. I will now discuss some of the details which led to these results. Total revenue for the fourth quarter of 2025 was $5.8 million, a decrease of $27,000 compared to the same period of 2024, making revenue for the full year of 2025, $22.6 million, a decrease of $438,000 or 2% from $23.1 million in 2024. Core press release revenue is up approximately 2% from the same quarter of the prior year and 1% for the full year of 2025 compared to 2024. The increase for the quarter is due to higher volume.
However, volume was slightly lower on a full year basis compared to the prior year. The increase in press release volume was more than offset by decreases in pro plan revenue, webcasting, and IR website revenue. Overall revenue from subscriptions increased to 53% during the quarter, compared to 45% during the same quarter of the prior year. Gross margin percentages improved during the fourth quarter and full year of 2025, increasing to 77% for both periods, compared to 75% and 76% for the fourth quarter and full year of 2024, respectively. The increase in gross margin percentage is primarily due to lower headcount due to increased efficiency within our operational teams and systems, partially offset by increased distribution costs as we continue to expand our distribution footprint.
Gross margin for the fourth quarter of 2025 increased $107,000 or 2% to $4.5 million, and gross margin for the full year decreased $126,000 or 1% to $17.3 million, primarily due to the decline in revenue for the year. Moving down the income statement to operating loss, we posted an operating loss of $761,000 for the fourth quarter of 2025 and $1.9 million for the full year of 2025. Compared to operating losses of $14.3 million and $16.3 million during the same periods of 2024.
The primary reason for the decrease in operating loss is related to an impairment loss of $14.15 million recorded during the fourth quarter of 2024, related to reducing the estimated useful life of the Newswire trade name as a result of our rebranding during the first quarter of 2025. Removing impairment losses, total operating expenses increased $446 thousand, or 10% during the fourth quarter of 2025 as compared to the same quarter of the prior year. This increase is primarily the result of a one-time cost associated with the settlement of a contract of approximately $336 thousand and an increase in advertising and trade show expenses as we launched pressrelease.com and focused on our new branding.
For the full year of 2025, total operating expenses decreased $674,000, or 3% as compared to 2024, primarily due to a decrease in headcount in our sales and marketing teams earlier in the year, as well as lower product and development consulting expenses. Operating expenses for the full year of 2024 also included a benefit to stock compensation expense of $340,000 related to the resignation of an executive officer. During the fourth quarter of 2025, we recorded an impairment charge of $250,000 related to our right of use asset and leasehold improvements due to a sublease we executed in December. Execution of the sublease will save us approximately $80,000 per quarter.
As previously noted, in Q4 of 2024, we recorded an impairment charge of $14.15 million associated with the Newswire trade name. On a GAAP basis, we reported a loss from continuing operations of $509,000 or $0.13 per diluted share during the fourth quarter of 2025, compared to a net loss of $11 million or $2.85 per diluted share during the fourth quarter of 2024. For the full year of 2025, net loss from continuing operations was $1.6 million or $0.40 per diluted share, compared to a net loss of $13.3 million or $3.47 per diluted share in 2024. Again, the decrease in loss from continuing operations was primarily a result of the impairment charge recorded during the fourth quarter of 2024.
There was no activity for discontinued operations during the fourth quarter of 2025 other than adjusting income tax expense related to the sale of the compliance business. During the fourth quarter of 2024, we recorded income from the compliance business of $750,000 net of taxes, which was approximately $0.19 per diluted share. For the full year of 2025, net income from discontinued operations was almost $6 million or $1.51 per diluted share, compared to $2.5 million or $0.65 per diluted share for 2024. Looking to some non-GAAP metrics, Q4 2025 EBITDA was $251,000 or 4% of revenue, compared to $770,000 or 13% of revenue for the fourth quarter of 2024.
Full year of 2025 EBITDA was $1.3 million or 6% of revenue, compared to $840 thousand or 4% of revenue for 2024. Adjusted EBITDA increased to $881 thousand or 15% of revenue for the fourth quarter of 2025, compared to $871 thousand, also 15% of revenue for the fourth quarter of 2024. For the full year of 2025, adjusted EBITDA increased to $3.2 million or 14% of revenue, compared to $1.8 million or 8% of revenue in 2024. Non-GAAP net income for the fourth quarter of 2025 was $675 thousand or $0.17 per diluted share, compared to $819 thousand or $0.21 per diluted share in the fourth quarter of 2024.
For the full year of 2025, non-GAAP net income increased to $2.2 million or $0.57 per diluted share, compared to $720,000 or $0.19 per diluted share during the full year of 2024. Turning our attention to the cash flow statement and balance sheet, we ended the quarter with $3 million of cash on hand. Adjusted free cash flow for the fourth quarter of 2025 was $467,000, compared to $413,000 for the fourth quarter of 2024. For the full year of 2025, adjusted free cash flow was $1.3 million, compared to $2.8 million during 2024.
The year-to-date amount for 2025 includes over $2.2 million paid in taxes, primarily related to the sale of the compliance business, compared to only $342,000 paid during the prior year. Our deferred revenue balance, which is revenue we generally expect to recognize over the subsequent year, increased $522,000 or 11% to $5.3 million as of December 31, 2025, compared to $4.7 million as of December 31, 2024. I will now turn it back over to Brian, who will provide some updates on the business, customers and subscriptions, and some new product development we have planned for 2026. Brian?
Thanks, Steve. Q4 capped off a year that I believe will define ACCESS Newswire's future. We did virtually everything that we said we would do. We transformed the business, redefined the core offerings, and moved the business to majority recurring subscriptions, emerging leaner, more profitable, and a more innovative company. Now it's time to grow. For the full year 2025, as most of you know, we accomplished the following. Completed the strategic rebrand to ACCESS Newswire, divested our legacy compliance business, sharpening our focus, reduced debt by over 83%, reduced OpEx, something we will continue to do into 2026. Retooled our entire back office system and processes end to end. Grew subscription revenue to approximately 53% of total revenue at the end of 2025. Increased ARR per subscriber by 16% year-over-year, as we talked about previously.
Deployed our AI editorial validation internally, saving 5% of editorial time per release. Launched our Axis Edu and the Bateman Case Study Competition. Launched a sister brand, pressrelease.com, with single circuit distribution that began marketing efforts here in Q1. This, coupled with the following updates here in Q1, have us hitting on virtually all cylinders, launching our AI validation that we previously released to our editors in a customer-facing environment now called ACCESS Verified. Social monitoring, a key new component of our subscription set that has set forth a path to see ARR increases at the beginning of Q2. This was initially released to thousands of EDU subscribers at the end of 2025. ARR increases of approximately 25% will be seen beginning Q2.
Marketplace, the beginning of several partnerships we believe will drive further awareness to our brand with companies like Hootsuite and many others to follow here in the coming quarters. Another one that I am a big fan of is Kill the Report. Our first version of this industry-leading news distribution report gives our customers the ability to see real insights into their stories by way of peer content comparisons, brand sentiment, engagement potential, LLM citation scores, and recommendations. We have several levels of advancements planned here for release throughout 2026, but the takeaways are twofold. Customers will get better insight, no BS reporting, as we will all see engagement in ARR lift and having an incremental add-on to this current customer subscription.
There is so much planned we will talk about in the coming months on our Q1 call, all of which are part of our 2026 strategic goals and continued product innovation and brand development as an industry leader, which we continue to believe will move us towards our double-digit growth and further ARR projections. Speaking of subscribers and ARR updates, we ended Q4 2025 with 974 subscribing customers, up from 972 at the end of Q3 and 965 from Q4 of last year. While we adjusted and corrected our targets to 1,200 subscribers at the end of the year after accounting for the compliance business divestiture, we're not pleased with our churn and where we are today. We saw a slow second half of 2025.
We sold 90 new customers in Q4 with an average ARR of $12,991. We're seeing ARR strong, and we're doing some things to change our subscription platforms pricing and what we believe will be go-to-market here, in the back half of the year. Equally important, our ARR per subscriber to end the year came in at $12,534, which represents meaningful value expansion per customer and speaks to the depth of our platform adoption and cross-selling ability. I think this is why it's vital for us to continue to innovate with things like social monitoring, #KillTheReport, and the marketplace I just discussed a few minutes ago. At the end of the prior quarter, we were $11,651.
This ultimately resulted in 8% sequential ARR growth and 16% year-over-year, as Steve and I said earlier. We expect subscription counts in the ARR per subscriber to both accelerate in 2026, driven by new product suites launched at the end of the year and into this year as we continue to focus on our trade-up and trade-in strategies. Additionally, as we monitor the economic landscape here in Q1, we are testing lower subscription commitments to see if scaled user adoption exists and what products resonate best with the market. Having virtually a fixed cost application and product offering allows us the flexibility to mix and match solutions that find the best fits for new businesses, scale-up brands, and enterprise. We think the first half of the year will tell us enough to understand the market and where we need to optimize as necessary.
We look at economic factors in the industry, and we use those economic factors to make decisions on budgets for our customers, and this is why we think there could be an opportunity for a differentiation in our subscription products. New product launches end of Q4 and into Q1 2026. To expand on what I said earlier, one of the most exciting chapters in ACCESS Newswire's story is now underway. The investments we have made throughout our 2025 year in platform infrastructure, AI, and integrations are now converting into customer-facing products. I want to walk you through what we've launched that I briefly talked about earlier and what is coming here in Q1 and into the rest of the year. Our ACCESS PR subscription platform now has real-time social monitoring.
In late Q4, we completed this major upgrade into our ACCESS PR subscription, integrating real-time monitoring and sentiment analysis across more than 30 social media platforms. Customers can now track mentions, measurements, earned media value, and understand brand sentiment impact not only for them, but the competitive core of what they're going to market against, all within the same dashboard they use to distribute their press releases today. This upgrade was launched here in Q1 and has defined ARR lift beginning in Q2 next month, as we talked about earlier. Really outside of prepared remarks, just for us to tell you something competitively as you look at this, if we think about the other three newswires, not any one of them in a single platform offers not only media pitching, monitoring database, but social all-in-one system.
They tend to allow you to log into different platforms, and we think that is a significant advantage for us as we go to market fully now after the total addressable opportunities for us. These key capabilities include real-time brand monitoring across 30-plus social media digital channels, sentiment scoring and automated alerts for brand and campaign activity, earned media value analytics tied directly to press release distribution, and our #KillTheReport functions. Marketplace add-ons to integrate one of the world's largest social media management platforms, Hootsuite, enabling customers to schedule, publish, analyze content across multiple networks, and distribute with Hootsuite in a matter of seconds, all automated through their ACCESS PR subscriptions. This product directly addresses one of the most requested features from our enterprise and scale-up customers, and we expect this to be a meaningful driver to our ARR expansion and new customer acquisition here this year.
To further expand on what I call Kill the Report, it is an AI-powered real-time prompting and alert-based brand activity content performance engine. It measures your distribution reach. This product is direct response to longstanding industry frustration, which is misleading distribution metrics that all of the press release service providers provide today and have for 80 years. We believe this is a differentiation that the market has never seen, and ACCESS Newswire is meaningfully passionate about having this competitive product replacement for a typical distribution report of something that will measure your brand in the future and beyond. It gives you a point-in-time report builder that executes real summaries by one click. It's full data transparency, all metrics surface directly from our customers, eliminating implied opaque reporting.
What this really means is there's no implied, "This is your traffic." There's no implied, "This is your total audience." It is real analysis done at the captured moment of the five days, at the one-week marker, 30 days, and custom reporting, if you wish. We made good on our commitment to kill the report. This agentic AI-driven reporting system replaces the outdated static distribution report that I just talked about with a living real-time intelligence layer for our customers. We're not only planning to make this product optional as an upgrade, but also anticipated several meaningful quarterly updates and advancements to drive further value to our customers. This is going to be done in our platform in real time with our agent builder solution that is a big competitive advantage for us that we'll talk about in the coming quarters.
Our AI editorial assistant, it became customer-facing. As many of you know, we've done it internally for a while. This gives our customer the ability to create and draft their story or press release and allow our ACCESS Verified systems in to analyze content, analyze compliance and market data trends to ensure that the press release adheres to all of our distribution partners' requirements as well as our editorial standards. It provides comments and suggestions to the customer on what they can do to improve, all in real time. Or they have the option to bypass. Still regardless, we will never, ever defer human editorial eyes at least twice on every press release. This ACCESS Verified system gives our customers the ability to scale and rank and understand the sentiment before submission. We think it's gonna be a significant driver.