Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 30

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 2025, as compared to $17,231,000 for the same period
in 2024. The increase in revenue during the quarter is due to an increase in core press release revenue of approximately 7% as compared
to the same period of the prior year, due to an increase in press release volume. Although core press release revenue increased 1% for
the nine months ended September 30, 2025, total revenue decreased due to declines among our other product lines.

Revenue Backlog

As of September 30, 2025,
our deferred revenue balance was $5,020,000, which we expect to recognize over the next twelve months, compared to $4,743,000 at December
31, 2024, an increase of 6%. Deferred revenue primarily consists of advance billings for pre-paid packages of our news distribution products
as well as advance billings for subscriptions of our cloud-based products.

Cost of Revenues

Cost of revenues consist primarily
of direct labor costs, newswire distribution costs, teleconferencing costs, and third-party licensing costs. Cost of revenues increased
$44,000, or 3%, and decreased $178,000, or 4%, during the three and nine months ended September 30, 2025, respectively, as compared to
the same periods of 2024. The increase for the three months ended September 30, 2025 was primarily due to increases in distribution costs
as we continue to improve our distribution network, partially offset by a reduction in headcount and optimization of our operations teams.
Overall gross margin increased $40,000, or 1%, and decreased $233,000, or 2%, during the three and nine months ended September 30, 2025,
respectively, as compared to the same periods of 2024. As a result, gross margin percentage remained consistent at 75% and 76% during
the three and nine months ended September 30, 2025, respectively, as compared to the same periods of 2024.

General and Administrative Expenses

General and administrative
expenses consist primarily of salaries, bonuses, stock-based compensation, insurance, fees for professional services, general corporate
expenses (including bad debt expense) and facility and equipment expenses. General and administrative expenses decreased $409,000 or 22%,
and $185,000, or 3%, during the three and nine months ended September 30, 2025, respectively, as