Frequency Holdings Shifts ReachOut to High-Margin SaaS Cybersecurity Model

Frequency Holdings Inc. (OTC: FRQN), a publicly traded technology holding company, has announced a transformative strategic shift for its wholly owned subsidiary ReachOut Digital Intelligence. The company is moving away from the traditional managed services provider (MSP) model toward a high-margin SaaS-driven licensing framework designed to improve recurring revenue predictability and long-term gross margins. This transition represents a significant step in ReachOut's broader 2026 strategic roadmap, positioning the company as a cybersecurity-first provider focused on AI automation, cybersecurity protection licensing, and AI-enabled compliance readiness rather than the legacy labor-driven approach that has dominated the industry for over a decade.

Under the new model, ReachOut is implementing a suite of proprietary and third-party technology tools under a monthly licensing structure that includes AI-powered cybersecurity protection, automated compliance readiness tooling for standards like CMMC, HIPAA, and NIST, AI-enabled business intelligence and automation modules, endpoint and cloud security platforms, and predictive support automation. CEO Rick Jordan, who has a longstanding mission of "Cybersecurity for All," emphasized that "the MSP model is fundamentally broken" and that labor-heavy service delivery has reached scalability limits. The shift to a SaaS licensing subscription model, backed by human support, aligns the business with the future of the industry where revenue quality, automation, and protection are the true value drivers. This approach democratizes protection, enabling small and medium businesses (SMBs) to adopt modern cyber defense capabilities without hiring large teams or deploying complex infrastructure.

The strategic transformation positions ReachOut to operate with significantly reduced direct labor load, higher gross margins from recurring monthly licensing, less operational variability, and more predictable revenue cycles with higher lifetime values. 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, potentially expanding revenue bases by 2-5X within 24 months post-acquisition. The company maintains that while the model shifts toward automation and SaaS licensing, it preserves a critical layer of human-backed support to ensure enterprise-grade reliability for SMB clients. This hybrid approach ensures that SMBs receive protection historically reserved for large enterprises without the cost burden of traditional MSP relationships. For more information, visit www.newmediawire.com and frequencyhold.com.