ACCS

Financial Performance

• Q2 2026 total revenue hit $5.6 million, up 5% sequentially from Q1 2026 and flat year-over-year
• Gross margin was 73% in Q2 2026, down from 76% in Q2 2025 due to higher press release distribution costs from new partners and existing partner price increases
• Operating loss was $307,000 in Q2 2026, up from $249,000 in Q2 2025; adjusted EBITDA was $0.6 million (11% of revenue) in Q2 2026, down from $0.8 million (15% of revenue) in Q2 2025
• Ended Q2 2026 with just under $3 million in cash; 12-month deferred revenue was $5.1 million as of June 30, 2026, down from $5.3 million at end-2025

Product and Innovation Updates

• Two new products, the social monitoring platform and Insight and Analytics report, launched in Q2 2026 with encouraging early adoption; several hundred customers have upgraded to the Insight and Analytics dashboard
• A full product pipeline is planned for H2 2026: Access Verified for Financials (launching the week of the call) which provides automated accuracy assurance for public company financial releases; upgraded Access Events platform for seamless end-to-end earnings event scheduling; new integrated content distribution tools; and the initial version of AI-powered Access Content Studio launching in early Q4 2026
• The company follows a consistent quarterly product cadence: one free workflow/feature upgrade for all customers, and one paid incremental value add-on to drive ARR growth

Customer and Subscription Metrics

• Total customers increased 24% year-over-year in Q2 2026, up 6% sequentially from Q1 2026, with strong growth in private/SMB customers driven by e-commerce initiatives
• Average ARR per subscription customer hit $12,718 at end-Q2 2026, up 15% year-over-year; total subscriber revenue increased 23% year-over-year
• Customer retention reached 94% in Q2 2026, up 3% year-over-year; net revenue retention hit 124% at end-Q2 2026
• Total subscriptions stood at 1,162 at end-Q2 2026, up 4% year-over-year

Capital Allocation and Cost Discipline

• Repurchased 40,000 shares for ~$300,000 in Q2 2026, bringing total repurchases since December 2025 to 90,000 shares ($700,000), with ~$300,000 remaining in the current authorization
• G&A expenses decreased 23% year-over-year in Q2 2026 following the sale of the compliance business and shift to full remote work; total operating expenses decreased 2% year-over-year in Q2 2026
• Cost reduction initiatives are expected to cut cost of revenue by ~$150,000 in H2 2026, with savings reallocated to sales and marketing to fuel customer acquisition

Market Opportunity

• Gartner projects the PR industry will double by 2027, driven primarily by AI enablement; management expects the market to return to double-digit growth by 2027 and beyond, supported by rising new business formation among the

• Management expects gross margins to return to the high 70% range in H2 2026, driven by cost of revenue savings and incremental revenue from new product add-ons
• The company targets growing recurring ARR revenue to ~80% of total revenue by this time next year, up from the current 60% recurring revenue share
• Management plans to continue pushing average ARR per customer to the previously guided $15,000 level via incremental paid product add-ons
• For H2 2026, the primary strategic focus is growing new customer subscriptions while maintaining current high retention and net revenue retention thresholds
• The company expects the global PR industry to return to double-digit annual growth by 2027 and beyond, in line with recent Gartner industry projections

Access Newswire reports two core revenue segments: core press release (including subscription) and webcasting. In Q2 2026, total company revenue was $5.6 million, up 5% sequentially from Q1 2026 and flat year-over-year versus Q2 2025. Core press release revenue increased 2% year-over-year in Q2 2026, representing ~80% of total revenue when combined with subscription products, driven by a 10% sequential volume increase following typical seasonal Q1 patterns. Webcasting revenue was lower year-over-year in Q2 2026 due to fewer virtual annual meetings and reduced reseller activity, making up the remaining ~20% of total Q2 revenue. For the first half of 2026, total revenue was $10.9 million, down 1% year-over-year, with core press release revenue up 1% year-over-year, and the decline driven by lower webcasting and pro-plan revenue. Non-subscription revenue currently accounts for approximately 40% of total overall revenue.

• Higher press release distribution costs from new partners, existing partner price increases, and variable contract usage have reduced gross margins year-over-year, creating pressure to hit cost savings targets in H2 2026
• The company faces competitive pressure from multiple point solutions that have entered the PR/IR market in recent years, requiring continued product innovation to retain market share
• New lower-tier ARR customer expansion in the private/SMB segment puts near-term moderate downward pressure on average ARR per customer, even as it drives total customer growth
• Successfully converting new trial and lower-tier customers to full-priced annual subscriptions over the next 12 months is critical to hitting long-term ARR and revenue growth targets, and conversion rates are still uncertain
• Forward-looking product and market growth projections are dependent on continued new business formation trends and AI adoption that may not materialize as expected

Q: How does management price new product enhancements, and what is the overall pricing strategy for new offerings?

A: Management follows a consistent two-product quarterly cadence. One product upgrade is offered free to all existing customers to build platform moat and improve customer stickiness, while the second new offering is a paid incremental add-on with tiered pricing. Current paid add-ons include Insight and Analytics (available for incremental purchase per press release for non-subscribers) and social monitoring (a $200/month add-on for subscribers, with a new 30-day trial option for smaller customers coming). Upcoming Access Content Studio will be priced at a $200-$300 monthly incremental add-on, which is expected to help push average ARR to the company's 15,000 target over time.

Q: Is current sales and marketing investment focused on growing existing customers or acquiring new customers, and how do these efforts split?

A: Over the past year, the primary focus was expanding ARR within the existing customer base and converting pay-as-you-go customers to subscription models, which was achieved with strong retention and net revenue retention. Today, with that progress in hand, half of the increased sales and marketing investment is going to trade shows and in-person industry events to build new customer pipeline, and half is going to additional sales headcount to handle growing inbound leads. Going forward, the vast majority of growth over the next 6-12 months is expected to come from new customer acquisition, while maintaining the existing customer base.

Q: What CAC payback period does management target for new subscriptions, and is this expected to improve in H2 2026?

A: CAC differs by customer type: pay-as-you-go press release customers essentially pay back their acquisition cost after their first purchase, while subscription customer CAC is higher due to a typical 3-6 month conversion timeline. Management reports that subscription CAC has already fallen over the past two quarters, and expects it to continue declining in coming quarters. Recent industry research from Gartner and U.S. census data on new business formation give management confidence they can grow the subscription base without increasing CAC, while still maintaining a competitive advantage by not disclosing full detailed CAC metrics publicly to competitors.

Q: Why did average ARR per customer see a small sequential decrease in Q2 2026, and will this trend continue?

A: The small sequential dip is intentional and expected: management is actively pursuing entry into new lower price-point ARR tiers to capture scale in the fast-growing private small business market. While average ARR dips slightly from this expansion, existing higher-value public company customers continue to see growing ARR, keeping overall net revenue retention strong. Management expects the sequential decline to stop in Q3 2026, and ARR to resume growth in Q4 2026 as new paid product add-ons roll out to the customer base.

Q: What gives management confidence the PR industry will return to double-digit growth by 2027, and how will the company address the growing market of small new startups and side businesses?

A: After years of industry contraction driven by market confusion from the flood of new point solutions, management is seeing customers consolidate back to comprehensive platforms, and AI is driving new demand for integrated PR tools from both large enterprises and small businesses. Gartner's projection of industry doubling by 2027 is supported by U.S. census data showing a 14% increase in new business incorporations, driven by growth in side hustles among younger generations of new business owners. The company is adapting to this market by attending small business expos (not just traditional public company IR events) and building low-risk trial options for lower-priced entry products, positioning the platform to serve small new businesses that need integrated communication tools with minimal time investment.