ACCESS NEWSWIRE INC (NYSEARCA:ACCS) Stock Surges 28% on Strong Q3 Earnings Beat

ACCESS NEWSWIRE INC (NYSEARCA:ACCS) reported its third-quarter 2025 financial results, delivering a performance characterized by a slight revenue miss but a significant earnings beat, which appears to be fueling a substantial positive reaction in the stock during pre-market trading.

Earnings and Revenue Versus Estimates

The communications company posted revenue of $5.7 million for the quarter, which fell short of analyst expectations of $5.79 million. This represents a modest 2% increase compared to both the prior year and the previous quarter.

The standout figure from the report was the non-GAAP earnings per share (EPS). ACCESS NEWSWIRE reported EPS of $0.20, dramatically surpassing the analyst consensus estimate of $0.12. This earnings beat of over 66% seems to be the primary driver behind the market's initial enthusiastic response.

Key financial comparisons from the quarter include:

• Reported Revenue: $5.7M
• Estimated Revenue: $5.79M
• Reported Non-GAAP EPS: $0.20
• Estimated Non-GAAP EPS: $0.12

Market Reaction

The market's immediate response has been decisively positive. In pre-market trading, the stock is indicating an opening gain of approximately 28%. This sharp upward move suggests that investors are focusing heavily on the substantial earnings beat and improved profitability metrics, overshadowing the slight revenue shortfall.

Operational and Financial Highlights

Beyond the headline EPS and revenue figures, the earnings release highlighted several areas of operational strength and improvement.

Profitability Metrics The company demonstrated significant progress on profitability. Adjusted EBITDA saw a remarkable 71% increase year-over-year, rising to $933,000 from $546,000 in Q3 2024. The company also narrowed its GAAP net loss from continuing operations to $45,000, or $0.01 per diluted share, a substantial improvement from a loss of $870,000, or $0.23 per share, in the same period last year. Gross margin remained robust at 75%.

Key Performance Indicators (KPIs) The company's subscription model showed positive momentum, with the number of subscription customers increasing to 972 during the quarter. A key metric, the Average Annual Recurring Revenue (ARR) per subscription customer, grew to $11,651, up from $10,189 a year ago, indicating the company is successfully driving more value from its customer base.

Outlook and Analyst Expectations

The press release did not provide specific quantitative financial guidance for the upcoming quarter or the full year. CEO Brian R. Balbirnie expressed confidence in the company's positioning, stating, "we believe we are well-positioned to capture additional market-share," and highlighted planned product enhancements before year-end designed to enhance customer experience and support growth.

For context, analysts are currently estimating the following for ACCESS NEWSWIRE:

• Q4 2025 Revenue Estimate: $5.95 million
• Q4 2025 EPS Estimate: $0.16
• Full-Year 2025 EPS Estimate: $0.48
• Full-Year 2025 Revenue Estimate: $23.06 million

Conclusion

ACCESS NEWSWIRE's third-quarter results paint a picture of a company achieving stronger-than-expected profitability despite nearly flat revenue growth. The market's powerful positive reaction underscores the weight investors are placing on the company's improved earnings and operational efficiency. The focus now shifts to whether the company can leverage its product advancements to accelerate top-line growth and meet analyst expectations for the final quarter of the year.

For a detailed look at historical earnings, future estimates, and analyst projections for ACCESS NEWSWIRE, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All data is sourced from publicly available information. Investors should conduct their own research before making any investment decisions.