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1. Company Snapshot

1.a. Company Description

Issuer Direct Corporation provides shareholder communications and compliance platforms, technologies, and services in the United States and internationally.The company provides Platform id., a platform that manages the events of customers to distribute their messages to constituents, investors, markets, and regulatory systems; whistleblower hotline, which delivers secure notifications and basic incident workflow management processes that align with a company's corporate governance whistleblower policy; proxy module, a real-time voting platform for customers and their shareholders of record; and stock transfer module, a cloud-based platform, which provides access to real-time information about their shareholders, stock ledgers, and reports, as well as issues new shares.It also offers ACCESSWIRE, a news dissemination and media outreach service; and VisualWebcaster Platform, a cloud-based webcast, webinar, and virtual meeting platform that delivers live and on-demand streaming of events to audiences of various sizes, as well as allows customers to create, produce, and deliver events.


In addition, the company provides investor relations content network, a series of data feeds, which include news feeds, stock feeds, fundamentals, regulatory filings, corporate governance, and other components; and professional conference and events software, a mobile app that offers organizers, issuers, and investors to register, request, and approve one-on-one meetings, as well as manage schedules, perform event promotion and sponsorship, print attendee badges, and manage lodging.It serves individuals, corporate issuers, public and private companies, law firms, brokerage firms, investment banks, and mutual funds; and professional firms, such as investor relations and public relations firms, as well as the accounting and legal communities.Issuer Direct Corporation was incorporated in 1988 and is headquartered in Raleigh, North Carolina.

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1.b. Last Insights on ISDR

Issuer Direct Corporation's recent performance was driven by its rebranding to ACCESS Newswire Inc., effective January 27, 2025, marking a significant step towards a more comprehensive investor relations and public relations customer experience. This strategic move is expected to enhance the company's offerings and appeal to a broader customer base. Additionally, Issuer Direct Corporation's strong focus on innovation and customer satisfaction, as seen in its recent product development and expansion efforts, has been a key driver of its growth. The company's commitment to investing in its infrastructure and personnel has also contributed to its success. Furthermore, the company's share buyback program has been a positive catalyst for shareholder value.

1.c. Company Highlights

2. ACCESS Newswire's Q3 2025 Earnings: A Step in the Right Direction

ACCESS Newswire reported its third-quarter 2025 earnings, with revenue reaching $5.7 million, up 2% sequentially and year-over-year. Adjusted EBITDA increased to $933,000, representing 16% of revenue, up from $546,000 or 10% in the same quarter of last year. The company's loss from continuing operations narrowed to $0.01 per diluted share, a significant improvement from the net loss of $0.23 per diluted share during 2024. Notably, the actual EPS came out at $0.08. Gross margins remained steady at 75%, indicating a stable operational performance.

Publication Date: Nov -26

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $5.7M, up 2% sequentially and year-over-year from $5.6M.
  • Improved Adjusted EBITDA:: Adjusted EBITDA rose to $933K (16% of revenue) in Q3 2025, up from $546K (10% of revenue) in Q3 2024.
  • Subscription Customer Growth:: Subscription customers grew to 972, with average recurring revenue per subscriber up 14% YoY to $11,601.
  • Reduced Operating Loss:: Operating loss narrowed to $184K in Q3 2025, compared to $604K in the same quarter last year.
  • Cash Reserves and Future Confidence:: Ended Q3 with $3.3M cash on hand, with plans to expand margins and launch AI-driven features in 2026.

Customer Growth and Revenue Retention

The company had 12,445 active customers, with subscription customers growing to 972, representing modest sequential growth and continued retention strength. Average recurring revenue per subscribing customer rose to $11,601, up 14% year-over-year, indicating a strong ability to retain and grow revenue from existing customers. As the company highlighted, "the majority of growth to come from existing public companies and enterprise brands," which is a positive sign for future revenue growth.

Operational Efficiency and Cost Management

The company achieved cost savings through a sublease of a corporate office and expects additional small savings from infrastructure consolidation. However, they plan to reinvest these savings in growth initiatives rather than driving down OpEx. This strategic decision is expected to drive future growth and expansion. The company's operational expenses are well-managed, supporting long-term margin expansion.

Valuation and Future Outlook

ACCESS Newswire's current valuation metrics indicate a 'P/S Ratio' of 1.64 and an 'EV/EBITDA' of -2.16. Analysts estimate next year's revenue growth at -19.6%, which may impact the stock's performance. However, the company's focus on scaling recurring revenue, driving product-led growth, and expanding its subscription base is expected to drive future growth. With a robust pipeline of new product releases and deeper customer engagement, the company is well-positioned to achieve continued improvement throughout the rest of the year.

Growth Initiatives and Industry Trends

The company is executing its plan, achieving measurable improvement each quarter, with ARR per employee and per subscriber continuing to rise. The rebranding under the ACCESS Newswire brand has been successful, with increased traffic and engagement. Industry volumes have slowed, but the company has continued to grow, and believes AI will drive more volume in the industry and give them a competitive advantage.

3. NewsRoom

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Issuer Direct Corp Re-names and Re-brands as ACCESS Newswire Inc.: A Bold Step Toward the Future of Communications

Jan -16

Source: accessnewswire.com

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Issuer Direct Corporation (ISDR) Q3 2024 Results - Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Issuer Direct Corporation (ISDR) Q3 Earnings and Revenues Lag Estimates

Nov -07

Source: zacks.com

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Issuer Direct Corporation to Host Third Quarter and Earnings Conference Call on November 7, 2024

Nov -01

Source: accesswire.com

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Issuer Direct Corporation (ISDR) Q2 2024 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

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Issuer Direct Corporation (ISDR) Tops Q2 Earnings and Revenue Estimates

Aug -08

Source: zacks.com

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Issuer Direct Reports Second Quarter 2024 Results

Aug -08

Source: accesswire.com

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Issuer Direct Corporation to Host Second Quarter and Earnings Conference Call on August 8, 2024

Aug -01

Source: accesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Communications

Expected Growth: 9.9%

Issuer Direct Corporation's 9.9% growth is driven by increasing demand for cloud-based compliance and disclosure solutions, expansion into new markets, and strategic partnerships. The company's platform-agnostic approach and ability to provide customized solutions have also contributed to its growth, as well as the rising need for transparency and regulatory compliance in the financial industry.

Compliance

Expected Growth: 10.27%

Issuer Direct Corporation's 10.27% growth is driven by increasing demand for cloud-based compliance solutions, expansion into new markets, and strategic partnerships. The company's ability to provide cost-effective and efficient compliance services has led to a rise in customer adoption, resulting in revenue growth. Additionally, the company's investment in technology and innovation has enabled it to stay ahead of the competition and capitalize on emerging trends in the compliance industry.

7. Detailed Products

Platform id.

A cloud-based platform that enables users to create, manage, and distribute content across various channels.

ARDirect

A disclosure management and compliance platform that helps companies with regulatory filings and reporting.

Issuer Direct Communications

A suite of services that provides investor relations, corporate communications, and shareholder engagement solutions.

Platform id. Analytics

A data analytics platform that provides insights and metrics on investor engagement and shareholder behavior.

8. Issuer Direct Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Issuer Direct Corporation operates in a niche market, providing a unique platform for corporate issuers. While there are some substitutes available, they are not as comprehensive as Issuer Direct's platform, reducing the threat of substitutes.

Bargaining Power Of Customers

Issuer Direct Corporation's customers are primarily corporate issuers, who have limited bargaining power due to the specialized nature of the services provided.

Bargaining Power Of Suppliers

Issuer Direct Corporation has a diversified supplier base, reducing the bargaining power of individual suppliers. Additionally, the company's technology-driven platform reduces its reliance on suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant investment in technology and expertise.

Intensity Of Rivalry

The industry in which Issuer Direct Corporation operates is moderately competitive, with a few established players. However, the company's unique platform and strong customer relationships help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.42%
Debt Cost 8.36%
Equity Weight 63.58%
Equity Cost 8.36%
WACC 8.36%
Leverage 57.29%

11. Quality Control: Issuer Direct Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fastly

A-Score: 4.2/10

Value: 6.5

Growth: 5.9

Quality: 3.7

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Rubicon Technologies

A-Score: 4.1/10

Value: 10.0

Growth: 4.4

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
SmartRent

A-Score: 3.9/10

Value: 8.6

Growth: 5.2

Quality: 4.0

Yield: 0.0

Momentum: 3.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
8x8

A-Score: 3.8/10

Value: 7.1

Growth: 5.6

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Issuer Direct

A-Score: 3.6/10

Value: 7.3

Growth: 2.1

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Model N

A-Score: 3.2/10

Value: 2.4

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.65$

Current Price

9.65$

Potential

-0.00%

Expected Cash-Flows