NEW YORK, NY - November 20, 2025 (NEWMEDIAWIRE) - Frequency Holdings Inc. (OTC: FRQN), a publicly traded technology holding company and cybersecurity platform, today announced that its wholly owned subsidiary ReachOut Digital Intelligence is executing a strategic shift from the traditional managed services model to a high-margin, SaaS-driven licensing framework designed to improve recurring revenue predictability and long-term gross margins.
This transition marks a significant step in ReachOut's broader 2026 strategic roadmap, positioning ReachOut as a cybersecurity-first provider focused on AI automation, cybersecurity protection licensing, and AI-enabled compliance readiness... rather than the legacy MSP labor-driven approach.
A Shift Toward Scalable, High-Margin Monthly SaaS Licensing with Life-Time-Value (LTV)
Under the new model, ReachOut is implementing a suite of proprietary and third-party technology tools under a monthly licensing structure, including:
- AI-powered cybersecurity protection
- Automated compliance readiness tooling (CMMC, HIPAA, NIST)
- AI-enabled business intelligence and automation modules
- Endpoint and cloud security platforms
- Predictive support automation
These offerings will be delivered under a unified “Licensed Protection” framework, replacing the low-margin, service-heavy MSP structure that has dominated the industry for over a decade.
“The MSP model is fundamentally broken,” said Rick Jordan, CEO of Frequency and ReachOut. “Labor-heavy service delivery has reached the limits of scalability, while cybersecurity and AI require a productized, predictable, and technology-first approach. By shifting ReachOut to a SaaS licensing subscription model, backed by human support, we’re aligning the business with the future of the industry. Where revenue quality, automation, and protection are the true value drivers.”
Rick Jordan’s Vision: “Cybersecurity for All”
This strategic shift also reflects CEO Rick Jordan’s longstanding mission... Cybersecurity for All. For more than a decade, Jordan has pushed to close the protection gap between large enterprises and the SMBs that form the backbone of the U.S. economy. By transforming ReachOut into a SaaS-driven, AI-powered platform, the Company is making advanced cybersecurity, and the compliance readiness that goes with it... accessible, affordable, and operationally realistic for smaller businesses. This approach democratizes protection, enabling SMBs to adopt modern cyber defense capabilities without hiring large teams or deploying complex infrastructure, while giving ReachOut a scalable model with stronger recurring margins.
Productizing Managed Services for Modern Scalability
By converting traditional managed services into clearly defined, technology-driven products, ReachOut is eliminating the legacy unpredictability of hourly labor, ticket volume, and reactive support models. Each component of the company’s former MSP offering has now been re-engineered into a repeatable, automated, and consistently delivered product - from endpoint protection and cloud management to compliance workflows and business intelligence automation. This productization strategy enables ReachOut to deliver uniform results at scale, reduce operational overhead, and create a customer experience that is defined by outcomes rather than billable hours. The shift positions ReachOut to operate like a modern SaaS company, where innovation, automation, and standardized delivery replace the fragmented service bundles that have historically constrained MSP growth.
Human-Backed Support That Scales With Technology
While ReachOut’s model is shifting toward automation and SaaS licensing, the company is maintaining a critical layer of human-backed support to ensure enterprise-grade reliability for SMB clients. ReachOut’s engineers and security analysts remain embedded behind every productized service, providing rapid response, expert oversight, and guidance when customers need it most. This hybrid approach... Automation for speed and efficiency, human expertise for complex scenarios... Ensures that SMBs receive the kind of protection historically reserved for large enterprises, without the cost burden or operational complexity of a traditional MSP relationship.
Strategic Acquisitions Enhanced by ReachOut’s Platform Advantage
As ReachOut evaluates future MSP acquisitions, it plans to leverage its technology stack as a force multiplier by injecting the SaaS licensing model directly into each acquired company. Management believes this creates a significant uplift opportunity, enabling the business to expand the revenue base of any acquisition by an estimated 2–5X within 24 months post-acquisition. This acceleration is driven by transforming low-margin service contracts into high-margin, recurring licensing agreements and deploying AI-driven cybersecurity and automation tools across the acquired customer base. By standardizing all acquired MSPs on ReachOut’s platform, ReachOut expects to unlock compounding efficiencies, unified pricing models, and rapid margin expansion while maintaining strong customer retention across each integration.
Improved Margins and Predictable Revenue
The transition positions ReachOut to operate with:
- Significantly reduced direct labor load
- Higher gross margins from recurring monthly licensing
- Less operational variability
- More predictable revenue cycles with higher Life-time-Values
- A scalable foundation for enterprise and federal expansion
The Company expects the model shift to materially benefit long-term margin structure as adoption grows throughout 2026 and beyond.
Strengthening the Frequency Platform
By repositioning ReachOut under a SaaS-first model, Frequency is aligning its subsidiary architecture with its core vision. Building a technology-led platform that uses AI, automation, and cybersecurity intelligence to solve modern operational and compliance challenges.
Jordan continued, "Everything we’re doing at Frequency is about modernization and scalability. As we bring new AI-driven capabilities online, transitioning ReachOut into a licensing-first subscription model is a natural evolution that creates far greater long-term enterprise value for our shareholders.”
Frequency Holdings Inc. (OTC:FRQN)
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Investor Relations Contact:
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Phone: 312-288-8008
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ABOUT REACHOUT DIGITAL INTELLIGENCE (REACHOUT)
ReachOut is a cybersecurity-first SaaS company redefining what it means to protect modern businesses, especially in regulated and high-risk sectors. Operating under a post-MSP model, ReachOut delivers outcome-based Licensed Protection through a unified, ReachOut-owned software architecture combining AI-driven cybersecurity, compliance enforcement, and expert advisory. The company’s solutions are delivered as intellectual property, not piecemeal tools, and backed by IT support where it serves the outcome. ReachOut exists to prove that support doesn’t solve risk... Ownership does. The MSP model is dead. This is what comes next.
ABOUT FREQUENCY HOLDINGS INC. (OTC: FRQN f/k/a Yuengling's Ice Cream Corp. YCRM)
Frequency Holdings is a modern holding company focused on high-growth ventures in cybersecurity, AI, digital identity, and IT infrastructure. Through its lead operating brand, ReachOut, Frequency is building the first nationally recognized name in cybersecurity-first protection and IT services for SMBs. Additional holdings, including TRUSTLESS, are structured to contribute long-term equity value via independent growth and strategic alignment.
ABOUT RICK JORDAN
Rick Jordan is a resilient entrepreneur, cybersecurity expert, and media personality known for leading companies through high-growth transformations. He founded ReachOut Technology and is the architect of Frequency Holdings Inc., a multi-brand technology holding company focused on scaling ventures in cybersecurity, digital identity, and AI. Rick has advised in the White House on national cyber policy, appeared on major networks including Bloomberg and NewsNation, and hosts the globally ranked podcast ALL IN with Rick Jordan, soon to be renamed FREQUENCY. His leadership bridges bold vision with operational precision, in addition to bringing clear signal and communication to the public markets.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events, performance, and financial expectations. These statements are based on current beliefs and assumptions, and are subject to risks and uncertainties--many of which are beyond the Company's control--that could cause actual results to differ materially from those projected. Factors that may affect results include the Company's need for capital, changes in regulatory environments, market competition, demand for services, and other risks detailed in the Company's filings with the Securities and Exchange Commission at www.sec.gov. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update them except as required by law.
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