CreditRiskMonitor Announces Third Quarter Results

Mike Flum, CEO of CreditRiskMonitor.com, Inc.

“Resolving our sales and income tax matter remains a top priority, and we are making real progress. Each VDA we close takes a piece of this off the table, and automating the underlying tax work gives us controls that are more systematic and repeatable. We will keep testing those controls and adjusting until the material weakness is closed for good. Operating expenses are expected to decline as the professional fees tied to our restatement and VDA work wind down. On the macroeconomic front, U.S. Courts data shows combined U.S. business Chapter 11 and Chapter 7 bankruptcy filings rose 12.8% in the trailing twelve months ended September 30, 2026, and while large corporate bankruptcies are down over the past year, they remain above the 2020 to 2025 average. Credit markets are already flashing trouble for 2027, and the AI infrastructure buildout that has carried so much of the equity market appears to be losing momentum. Strong employment and persistent inflation suggest a Fed rate increase, which further squeezes leveraged borrowers. The top ten stocks now make up roughly 40% of the S&P 500, a critical red flag preceding major market busts, and market-weighted ETFs make it worse by sending every new passive dollar to the biggest names. Concentration bubbles and claims that ‘this time is different' have a long history of ending badly, and we suspect this one won't be the exception. Add a divided Washington that we should not count on to cushion a downturn, increased European unrest, tech-led selloffs across Asian markets, and continued military conflicts, and there is a lot of dry tinder. We can't predict the spark, but our analytics are the smoke detectors that everyone wishes they had installed before the fire. Internally, retention is improving incrementally under the Customer Success plan, and growing interest in our new integrated workflow and supply chain solutions bodes well for more stickiness. New playbooks and support agent initiatives should improve the value we deliver, the cost to serve, and our responsiveness. We expect increased trade data contribution, thanks to easier connectivity from our new ERP integrations and deeper data security assurances under our SOC 2 Type II certification, which we anticipate in the coming weeks. Trade contribution is a focus and key to our growth. Participating subscribers renew at higher rates than non-contributors and prospects who trial with trade data close at higher rates than other trials. To complete the flywheel, the additional contributed data enhances our coverage, improving value for all subscribers and prospects. At the end of October, we attended credit and sourcing conferences where we saw real interest in our workflow initiatives and MCP product. The sourcing event also confirmed that continuous monitoring of supplier financial risk resonates with sourcing leaders, and frequently updated analytics that provide accurate, forward-looking predictions are a differentiator. A recent webinar with one of our Fortune 500 Europe clients cemented this point by focusing on how its Procurement team uses our Confidential Financial Statements Solution with SupplyChainMonitor™ to continuously monitor its strategic private suppliers, complementing our FRISK® and PAYCE® coverage of public and large private companies worldwide. We are also finding real cost and capacity unlocks from AI and automation across Quality Assurance, Engineering, Product, Data Science, Marketing, and Revenue, and the pace is accelerating. We keep moving workflows into production while improving the ones already running, and AI-assisted coding is now part of everyday development. As our teams become more fluent with the tools, we expect higher quality at lower unit costs. Finally, we are starting to see benefits from the restructuring of our Engineering team, with several longer-term roadmap items targeted for release at the end of January. We are most excited about our MCP Beta with plugins for Claude, ChatGPT, and Copilot; a rebuilt, enterprise-grade API with webhooks and a developer portal; a News mobile app for iOS and Android with a personalized credit news feed, portfolio view, AI summaries, and push alerts; improved Credit Limit Ranges alongside a major update to our Credit Limit Service that uses our bankruptcy analytics to deliver frictionless, customized, and accurate limit recommendations; and platform UI updates, including admin user management for subscribers and a modernized CreditRiskMonitor® interface. As always, we remain committed to reinvesting in the business to deliver subscription services whose value exceeds their cost.”