Issuer Direct’s Earnings Call Highlights Growth and Challenges

Issuer Direct ((ACCS)) has held its Q3 earnings call. Read on for the main highlights of the call.

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The latest earnings call from Issuer Direct reflects a positive trajectory in revenue growth, profitability, and operational efficiency. Despite facing challenges in specific segments and cash flow management, the company is strategically focusing on subscription-based revenue and product innovation, positioning itself well for future growth.

Sequential and Year-over-Year Revenue Growth

Revenue for the quarter was reported at $5.7 million, marking a 2% increase both sequentially and year-over-year from $5.6 million. This steady growth underscores the company’s ability to maintain its market position and expand its revenue base.

Improved Profitability

Issuer Direct saw a significant improvement in profitability, with adjusted EBITDA rising to $933,000, which represents 16% of revenue. This is a notable increase from $546,000 or 10% in the same quarter last year, highlighting the company’s enhanced financial performance.

Operational Realignment and Cost Control

The company made strides in operational realignment and cost control, with operating losses improving significantly to $184,000 compared to a loss of $604,000 in 2024. Additionally, general and administrative expenses decreased by $409,000 or 22% for 2025 compared to 2024.

Growth in Subscription-Based Revenue

Issuer Direct reported an increase in subscription customers to 972, with average recurring revenue per subscribing customer rising to $11,601, up 14% year-over-year. This growth indicates a successful upselling strategy and a strong focus on subscription-based revenue.

Strategic Product Enhancements

The introduction of AI agents for real-time content analysis and social media integrations aims to expand customer distribution capabilities. These strategic product enhancements are designed to drive future growth and improve customer engagement.

Decline in Revenue from Pro Webcasting and IR Website Solutions

Despite increases in core press release revenue, the company faced declines in other areas such as pro webcasting and IR website solutions, which offset overall growth. This highlights the need for continued focus on diversifying revenue streams.

Cash Flow Challenges

Issuer Direct experienced cash outflow from operating activities of $582,000 during 2025, primarily due to the payment of over $1.1 million in taxes related to the sale of the compliance business. This presents a challenge that the company needs to address moving forward.

Aggressive Subscription Target

The company has set an aggressive target of achieving 1,200 subscription customers, which may not be met by year-end. This ambitious goal reflects the company’s commitment to expanding its subscription base, despite potential challenges.

Forward-Looking Guidance

Looking ahead, Issuer Direct expects continued growth driven by its strategic focus on transitioning to a subscription-based revenue model and enhancing product offerings. The company anticipates maintaining steady gross margins and improving operating losses, with active customers growing to 12,445 and subscription customers showing modest sequential growth and continued retention strength.

In summary, Issuer Direct’s earnings call highlighted positive progress in revenue growth and profitability, despite facing challenges in specific segments and cash flow management. The company’s strategic focus on subscription-based revenue and product innovation positions it well for future growth, with an optimistic outlook for continued success.