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    ACCS
    Earnings call· Jun 2026(Q2 FY26)

    ACCESS Newswire Q2 FY26 earnings call ACCS

    Aug 11, 2026 Source

    Executive summary

    ACCESS Newswire Q2 FY26 — Strong ARR Growth and Product Innovation Drive Future Strategy

    ACCESS Newswire delivered strong subscription metrics in Q2 FY26, with significant growth in average ARR per customer and net revenue retention, driven by new product releases. While overall revenue remained flat year-over-year due to declines in webcasting, the company is strategically investing in sales and marketing and product development to convert innovation into new customer acquisition and higher-value subscriptions, aiming for higher gross margins and an 80% recurring revenue mix by next year.

    Highlights

    5

    • Average ARR per subscription customer increased 15% year-over-year to $12,718, demonstrating successful platform strategy.

    • Total subscriptions grew 4% quarter-over-quarter to 1,162, with private customer growth up 24% year-over-year.

    • Net revenue retention (NRR) ended Q2 at 124%, indicating strong customer value expansion.

    • Operating expenses decreased 4% for the first half of 2026, with G&A down 23% year-over-year due to cost discipline.

    • Company repurchased 40,000 shares for over $300,000 in Q2, returning over 2% of common shares outstanding.

    Concerns

    4

    • Total revenue for Q2 2026 was essentially unchanged year-over-year at $5.6 million, impacted by lower webcasting revenue.

    • Gross margin percentage declined to 73% in Q2 2026 from 76% in Q2 2025, due to higher press release distribution costs.

    • Adjusted EBITDA decreased to $0.6 million (11% of revenue) in Q2 2026 from $0.8 million (15% of revenue) in Q2 2025.

    • Non-GAAP net income decreased to $0.3 million ($0.08 per diluted share) in Q2 2026 from $0.6 million ($0.14 per diluted share) in Q2 2025.

    Guidance & targets

    4
    CategoryTargetConfidence
    Cost of revenue reduction
    approximately $150,000
    medium materiality
    High
    Gross margin
    higher 70% range
    medium materiality
    Medium
    Recurring revenue (ARR) mix of total revenue
    closer to 80%
    high materiality
    Medium
    Average ARR per subscription customer
    $15,000
    high materiality
    High

    Operational metrics

    31
    Total revenue
    $5.6 millionup 5% sequentially from Q1 FY26
    Q2 FY26

    Essentially consistent with Q2 FY25.

    Total revenue
    $10.9 milliondown $152,000 or 1% from $11.1 million in H1 FY25
    H1 FY26

    Year-over-year decline primarily attributable to lower webcasting and Pro Plan revenue.

    Core press release revenue growth
    2%year-over-year
    Q2 FY26

    Underlying engine of the business remains healthy, offset by lower webcasting revenue.

    Core press release revenue growth
    1%year-over-year
    H1 FY26

    Compared to the same period last year.

    Webcasting revenue
    lowercompared to Q2 FY25
    Q2 FY26

    Due to fewer virtual annual meetings and reseller activity.

    Revenue sequential increase
    $291,000compared to Q1 FY26
    Q2 FY26

    Primarily driven by a 10% increase in volume from the core press release business.

    Gross margin
    $4.1 millioncompared to $4.3 million or 76% in Q2 FY25
    Q2 FY26

    Compared to $4 million or 74% of revenue in Q1 2026.

    Gross margin
    $8.1 millioncompared to $8.6 million or 77% in H1 FY25
    H1 FY26

    Year-over-year decline in gross margin percentage primarily reflects higher press release distribution costs.

    Gross margin percentage change
    300 bps declineyear-over-year
    Q2 FY26

    Primarily reflects higher press release distribution costs from new partners, price increases from existing partners, and additional usage under variable contracts.

    Total operating expenses
    $4.4 milliondown slightly from $4.5 million in Q2 FY25
    Q2 FY26

    Company continues to balance cost discipline with targeted investment.

    Total operating expenses
    $9.1 milliondown $0.4 million or 4% from $9.5 million in H1 FY25
    H1 FY26

    Company continues to balance cost discipline with targeted investment.

    General and administrative expenses
    $1.35 milliondown $402,000 or 23% year-over-year
    Q2 FY26

    Reflects lower nonrecurring expenses, stock-based compensation, bad debt expense, and lower insurance/office costs post-compliance business sale and remote work transition.

    General and administrative expenses
    $3.1 milliondown $574,000 or 15%
    H1 FY26

    Reflects lower nonrecurring expenses, stock-based compensation, bad debt expense, and lower insurance/office costs post-compliance business sale and remote work transition.

    Sales and marketing expense
    $1.9 millionup $427,000 or 29% compared to Q2 FY25
    Q2 FY26

    Reflects deliberate investment in advertising and trade shows to convert product innovation into customer and revenue growth.

    Sales and marketing expense
    $3.6 millionup $514,000 or 17%
    H1 FY26

    Reflects deliberate investment in advertising and trade shows to convert product innovation into customer and revenue growth.

    Product development expense
    $533,000down $122,000 or 19% year-over-year
    Q2 FY26

    Decrease primarily due to higher capitalized software costs.

    Product development expense
    $1.1 milliondown $295,000 or 21%
    H1 FY26

    Decrease primarily due to higher capitalized software costs.

    Capitalized software costs
    $110,000compared to $0 in Q2 FY25
    Q2 FY26

    Reflects investment in social monitoring and insight and analytics enhancements.

    Capitalized software costs
    $209,000compared to $23,000 in H1 FY25
    H1 FY26

    Reflects investment in social monitoring and insight and analytics enhancements.

    EBITDA
    $0.5 millioncompared to $0.5 million or 9% of revenue during Q2 FY25
    Q2 FY26

    Non-GAAP measure.

    EBITDA
    $0.5 millionconsistent with H1 FY25
    H1 FY26

    Non-GAAP measure.

    Adjusted EBITDA
    $0.6 millioncompared to $0.8 million or 15% of revenue in Q2 FY25
    Q2 FY26

    Non-GAAP measure.

    Adjusted EBITDA
    $1.2 millioncompared to $1.4 million or 13% of revenue in H1 FY25
    H1 FY26

    Non-GAAP measure.

    Non-GAAP net income
    $0.3 millioncompared to $0.6 million or $0.14 per diluted share in Q2 FY25
    Q2 FY26

    Non-GAAP measure.

    Non-GAAP net income
    $0.7 millioncompared to $0.8 million or $0.20 per diluted share last year
    H1 FY26

    Non-GAAP measure.

    Cash and investments balance
    just under $3 million
    Q2 FY26

    Amount in the bank at quarter end.

    Shares repurchased
    40,000 shares
    Q2 FY26

    Part of an ongoing share repurchase plan.

    Total shares repurchased
    90,000 shares
    since Dec FY25

    Total repurchase results as of Q2 FY26.

    Remaining share repurchase authorization
    $300,000
    Q3 FY26

    Amount remaining in the current plan to be used this quarter.

    Common shares outstanding returned
    over 2%
    to date

    Result of the share repurchase plan.

    Cost of revenue savings initiatives
    $150,000
    H2 FY26

    Expected to reduce cost of revenues by approximately $150,000 in the back half of this year or 125 to 150 basis point improvement.

    Industry KPIs

    13
    MetricValueDetails
    Capacity CAPEX$110,000USD
    Revenue growth$5.6 millionUSD
    Arr net new arr$12,718USD
    Rpo current rpo$5.1 millionUSD
    Bookings billings$5.1 millionUSD
    Pricing model mix10% to 15%%
    Customer account count1,162customers
    Large deal new logo metrics24%%
    Gross retention renewal rate94%%
    Multi product platform attachseveral hundred customerscustomers
    Operating FCF margin rule of 4011%%
    Ai product adoption monetization600-plusreports
    Net revenue net dollar retention124%%

    Orderbook & backlog

    1
    Deferred revenue balance$5.1 millionJune 30, 2026

    compared to $5.3 million at December 31, 2025

    Expected to recognize over the next 12 months.

    Product announcements

    7
    ProductTypeDetails
    Social Monitoring Platformlaunch
    New Insights and Analytics Report (Kilda Report)launch
    ACCESS Verified for Financialslaunch
    Upgraded ACCESS Events Platformupdate
    New Content Distribution Componentlaunch
    ACCESS Content Studiolaunch
    Full Studio Toolbox Conceptroadmap

    Risks & headwinds

    3
    Lower revenues from webcast businessQ2 FY26

    offset core press release revenue growth

    Mitigation: Not explicitly stated, but focus on subscription growth and new products implies a shift away from reliance on this segment.

    Higher press release distribution costsQ2 FY26

    year-over-year decline in gross margin percentage (76% to 73%)

    Mitigation: Implemented initiatives designed to reduce cost of revenues by approximately $150,000 in H2 FY26.

    Overall industry contractionpast several years

    industry overall over the last several years, obviously, there's been a trend of contraction

    Mitigation: Positioning the company as a leader in AI-enabled PR, targeting the 'hustle generation' of new businesses, and expanding product offerings to address evolving customer needs.

    What to watch in Q3 FY26

    5

    Gross margin trajectory

    H2 FY26
    Current73% in Q2 FY26
    Targethigher 70% range

    Why it matters

    Indicates effectiveness of cost-saving initiatives and new product pricing in improving profitability.

    Having the incremental gross margin savings and anticipated customer revenue growth will help us also improve to move our gross margins back into the higher 70% range in the back half of the year.

    Q&A highlights

    5

    How will pricing increases and add-on pricing be implemented with the upcoming product enhancements?

    New products like Insight and Analytics offer incremental fees per press release, increasing average price. Social monitoring will be offered on a 'try before you commit' basis. The strategy is to release two products quarterly: one free workflow improvement and one value-add with an economic benefit. Future products like the content studio ($200-$300/month add-on) and toolkit will drive towards the long-term $15,000 ARR target.

    “So this always ties back to our strategic view a couple of years ago when we guided to $15,000 in ARR, we have a product pipeline that will get us there. So the content studio will be another incremental $200 to $300 a month.”

    asked by Luke Horton · answered by Brian Balbirnie

    2 min read4 chapters

    Detailed Narrative

    01

    Product Innovation and Roadmap

    ACCESS Newswire launched its social monitoring platform and new insights and analytics report in Q2 FY26, driving higher average purchases. The company plans to release several more products by year-end, including an "ACCESS Verified for Financials" platform for IR clients to ensure financial reporting consistency, and an upgraded "ACCESS events platform" for streamlined earnings call scheduling. On the PR side, a new content distribution component will allow tailored messaging across social platforms, and the "ACCESS content studio" will offer AI-powered content generation and distribution, expected to increase subscription revenue by 10% to 15%.

    02

    Market Opportunity and Growth Strategy

    Management believes the PR industry will return to double-digit growth by 2027, driven by AI and an increase in new business formations from the "hustle generation." The company is strategically targeting this demographic with lower-tier subscription products and e-commerce initiatives. Investments in sales and marketing are bifurcated, focusing on both existing customer expansion and new customer acquisition, with a goal to shift the revenue mix towards 80% recurring ARR by Q2 FY27.

    03

    Capital Allocation and Cost Discipline

    The company repurchased 40,000 shares for over $300,000 in Q2 FY26, bringing total repurchases to 90,000 shares or $700,000 since December 2025, returning over 2% of common shares outstanding. Management expects to complete the current buyback plan and potentially institute another. Cost-saving initiatives are expected to reduce cost of revenue by $150,000 in H2 FY26, improving gross margins, with savings reinvested into sales and marketing for customer acquisition.

    04

    Subscription Performance and Retention

    Average ARR per subscription customer increased 15% year-over-year to $12,718. Total subscriptions grew 4% quarter-over-quarter to 1,162, with private customer growth up 24% year-over-year. Retention for the quarter was 94%, up 2% from Q1, and net revenue retention (NRR) ended Q2 at 124%. The company aims to maintain these retention thresholds while focusing on new subscription growth in the second half of the year.

    AI-generated summary of the company’s earnings call. Not investment advice.