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Research Solutions Reports Fourth Quarter and Fiscal Year 2025 Results

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Research Solutions (NASDAQ: RSSS) reported strong financial results for Q4 and fiscal year 2025, highlighted by significant platform revenue growth and improved profitability. The company achieved 36% year-over-year platform revenue growth to $19.0 million and reached record Annual Recurring Revenue (ARR) of $20.9 million.

Key financial highlights include: total revenue increased 10% to $49.1 million for FY2025, gross margin improved 530 basis points to 49.3%, and the company reported net income of $1.3 million ($0.04 per diluted share) compared to a net loss in the previous year. The company achieved record Adjusted EBITDA of $5.3 million and record operating cash flow of $7.0 million.

The company's strategic shift towards SaaS software and AI solutions is showing success, with platform revenue now representing nearly 40% of total revenue, up from 31% in fiscal 2024. The AI-based Scite product demonstrated strong growth of over 40%.

Research Solutions (NASDAQ: RSSS) ha riportato solidi risultati finanziari nel quarto trimestre e nell'anno fiscale 2025, evidenziati da una crescita significativa delle entrate della piattaforma e da una redditività migliorata. L'azienda ha registrato una crescita delle entrate della piattaforma del 36% anno su anno a 19,0 milioni di dollari e ha raggiunto un ARR annuale record di 20,9 milioni.

Tra i principali indicatori finanziari: i ricavi totali sono aumentati del 10% a 49,1 milioni per FY2025, il margine lordo è migliorato di 530 punti base al 49,3%, e l'azienda ha riportato un utile netto di 1,3 milioni di dollari (0,04 dollari per azione diluita) rispetto a una perdita netta nell'anno precedente. Ha registrato un EBITDA rettificato record di 5,3 milioni e un flusso di cassa operativo record di 7,0 milioni.

Lo shift strategico dell'azienda verso soluzioni SaaS software e AI sta dando i suoi frutti, con i ricavi della piattaforma che ora rappresentano quasi il 40% del totale, rispetto al 31% nel 2024. Il prodotto basato sull'AI Scite ha mostrato una crescita forte di oltre 40%.

Research Solutions (NASDAQ: RSSS) informó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2025, destacando un crecimiento significativo de los ingresos de la plataforma y una rentabilidad mejorada. La empresa logró un crecimiento interanual de los ingresos de la plataforma del 36% a 19,0 millones de dólares y alcanzó un ARR anual récord de 20,9 millones.

Los puntos clave incluyen: los ingresos totales aumentaron un 10% a 49,1 millones para FY2025, el margen bruto mejoró 530 puntos base a 49,3%, y la empresa reportó un beneficio neto de 1,3 millones de dólares (0,04 por acción diluida) frente a una pérdida neta en el año anterior. Se logró un EBITDA ajustado récord de 5,3 millones y un flujo de caja operativo récord de 7,0 millones.

El cambio estratégico hacia software SaaS y soluciones de IA está dando resultados, con los ingresos de la plataforma representando ahora casi el 40% del total, frente al 31% en 2024. El producto AI-based Scite mostró un crecimiento sólido de más del 40%.

Research Solutions (NASDAQ: RSSS)는 2025년 4분기와 회계연도 전체에 대해 플랫폼 매출의 큰 성장과 수익성 개선을 강조하는 강력한 재무 실적을 발표했습니다. 회사는 플랫폼 매출이 전년 대비 36% 증가한 1900만 달러를 달성했고, 연간 반복 매출(ARR) 2090만 달러의 사상 최고치를 기록했습니다.

주요 재무 하이라이트로는 FY2025 총매출이 전년 대비 10% 증가한 4910만 달러, 매출총이익률이 530bp 개선되어 49.3%를 기록했고, 순이익 130만 달러를 보고했으며 희석 주당 0.04달러였습니다(전년 대비 흑자 전환). 또한 조정 EBITDA 530만 달러의 기록적 수치를 달성했고 영업현금흐름 700만 달러의 기록도 달성했습니다.

SaaS 소프트웨어 및 AI 솔루션으로의 전략적 전환이 성과를 보이고 있으며, 플랫폼 매출이 총매출의 거의 40%를 차지하고 있습니다(2024년 31%에서 상승). AI 기반 Scite 제품은 40% 이상의 강력한 성장을 보였습니다.

Research Solutions (NASDAQ: RSSS) a publié des résultats financiers solides pour le quatrième trimestre et l'exercice 2025, mis en évidence par une forte croissance des revenus de la plateforme et une rentabilité améliorée. L'entreprise a enregistré une croissance des revenus de la plateforme de 36% en glissement annuel à 19,0 millions de dollars et a atteint un ARR annuel record de 20,9 millions.

Les points financiers clés incluent : un chiffre d'affaires total en hausse de 10% à 49,1 millions pour l'exercice 2025, une marge brute améliorée de 530 points de base à 49,3%, et l'entreprise a déclaré un résultat net de 1,3 million de dollars (0,04 dollar par action diluée) contre une perte nette l'année précédente. EBITDA ajusté record de 5,3 millions et flux de trésorerie opérationnel record de 7,0 millions.

La transition stratégique vers les solutions SaaS et l'IA porte ses fruits, les revenus de la plateforme représentant désormais près de 40% du chiffre d'affaires total, contre 31% en 2024. Le produit Scite basé sur l'IA a affiché une forte croissance de plus de 40%.

Research Solutions (NASDAQ: RSSS) meldete starke Finanzergebnisse für Q4 und das Geschäftsjahr 2025, hervorgehoben durch signifikantes Plattformumsatzwachstum und verbesserte Rentabilität. Das Unternehmen verzeichnete ein plattformumsatzwachstum von 36% year over year auf 19,0 Mio. USD und erreichte einen rekordverdächtigen Annual Recurring Revenue (ARR) von 20,9 Mio. USD.

Zu den wichtigsten finanziellen Highlights gehören: Der Gesamtumsatz stieg im FY2025 um 10% auf 49,1 Mio. USD, die Bruttomarge verbesserte sich um 530 Basispunkte auf 49,3%, und das Unternehmen meldete einen Nettogewinn von 1,3 Mio. USD (0,04 USD pro verwässerter Aktie) gegenüber einem Nettoverlust im Vorjahr. Rekord-Adjusted EBITDA von 5,3 Mio. USD und Rekord-operativer Cashflow von 7,0 Mio. USD.

Die strategische Verschiebung hin zu SaaS-Software und KI-Lösungen zahlt sich aus, wobei der Plattformumsatz nun nahezu 40% des Gesamtumsatzes ausmacht, gegenüber 31% im Geschäftsjahr 2024. Das KI-basierte Scite-Produkt verzeichnete ein starkes Wachstum von über 40%.

Research Solutions (NASDAQ: RSSS) أعلنت عن نتائج مالية قوية للربع الرابع وللسنة المالية 2025، مع إبراز نمو كبير في إيرادات المنصة وتحسن الربحية. حققت الشركة نموًا في إيرادات المنصة بنسبة 36% على أساس سنوي لتصل إلى 19.0 مليون دولار وبلغ إيرادات متكررة سنوية (ARR) قياسية قدرها 20.9 مليون دولار.

أبرز النقاط المالية تشمل: إجمال الإيرادات ارتفع بنسبة 10% إلى 49.1 مليون دولار للسنة المالية 2025، وتحسن الهامش الإجمالي بمقدار 530 نقطة أساس ليصل إلى 49.3%، وحققت الشركة صافي ربح قدره 1.3 مليون دولار (0.04 دولار للسهم المخفف) مقارنة بخسارة صافية في العام السابق. حققت EBITDA المعدل القياسي 5.3 مليون دولار وتدفق نقدي تشغيلي قياسي قدره 7.0 مليون دولار.

التحوّل الاستراتيجي نحو برامج SaaS وحلول الذكاء الاصطناعي يثبت نجاحه، حيث يمثل إيرادات المنصة الآن نحو 40% من إجمالي الإيرادات، مرتفعًا من 31% في السنة المالية 2024. أظهر منتج Scite القائم على AI نموًا قويًا يفوق 40%.

Research Solutions(纳斯达克股票代码:RSSS)在第四季度和2025财年实现强劲业绩,重点在于平台收入的显著增长及盈利能力的改善。公司实现平台收入同比增长36%,至1900万美元,并达到创纪录的年度经常性收入ARR:2090万美元

主要财务亮点包括:全年总收入同比增长10%,达到4910万美元;毛利率提升530个基点至49.3%;并实现净利润<最大化>1.3百万美元(摊薄后每股0.04美元),相较于上年净亏损。调整后EBITDA创纪录的530万美元,经营现金流创纪录的700万美元。

向SaaS软件和AI解决方案的战略转型正在带来成效,平台收入现已约占总收入的40%,较2024财年的31%有所提升。基于AI的Scite产品实现超过40%的强劲增长。

Positive
  • Platform revenue grew 36% year-over-year to $19.0 million
  • Record Annual Recurring Revenue (ARR) of $20.9 million, up 20% year-over-year
  • Gross margin improved 530 basis points to 49.3%
  • Record Adjusted EBITDA of $5.3 million, up 134.8% from previous year
  • Record operating cash flow of $7.0 million, nearly double from previous year
  • AI-based Scite product showing over 40% growth rate
  • Strong cash position of $12.2 million at fiscal year-end
Negative
  • Transaction revenue declined 7.7% in Q4 and 1.8% for the full year
  • Transaction customer count decreased 4.3% to 1,338 customers
  • Operating expenses increased 6.3% to $21.7 million for the full year
  • Sales and marketing expenses increased significantly by 55.7%

Insights

Research Solutions delivered record profits with strong platform revenue growth and improving margins, reflecting successful SaaS transition.

Research Solutions reported impressive fourth quarter and full-year results that demonstrate the company's successful transition to a higher-margin SaaS business model. Platform revenue, which represents the company's subscription-based services, grew 36% year-over-year to $19.0 million for fiscal 2025, now accounting for nearly 40% of total revenue compared to 31% in the previous year.

This strategic shift has significantly enhanced the company's profitability metrics. Gross margins crossed the 50% threshold in Q4 for the first time in company history, reaching 51% for the quarter and 49.3% for the full year—a substantial 530 basis point improvement year-over-year. The company achieved record annual Adjusted EBITDA of $5.3 million, more than doubling the previous year's $2.2 million.

The Annual Recurring Revenue (ARR) metric, which indicates the predictability of future revenue streams, grew 20% to $20.9 million, comprising $14.2 million from B2B customers and $6.7 million from B2C subscribers. This growth comes despite a slight decline in transaction revenue, which decreased 1.8% to $30.1 million for the year.

Particularly noteworthy is the performance of the company's AI capabilities, specifically the Scite product, which is growing at over 40%. This validates management's strategic focus on artificial intelligence as a growth driver. The strong cash generation is equally impressive, with operating cash flow reaching a record $7.0 million for the year, nearly double the $3.6 million generated in fiscal 2024.

The company ended the fiscal year with $12.2 million in cash and cash equivalents, providing financial flexibility for potential future acquisitions to enhance its product offerings. Management's stated focus on the "Rule of 40" principle (where growth rate plus profit margin exceeds 40%) with a slight bias toward growth suggests a balanced approach to creating long-term shareholder value while maintaining profitability.

Reports 36% YoY Platform Revenue Increase, ARR of $20.9 Million and Record Fiscal Year Net Income and Adjusted EBITDA

HENDERSON, Nev., Sept. 18, 2025 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fourth quarter and full fiscal year ended June 30, 2025.

Fiscal Fourth Quarter 2025 Summary (compared to prior-year quarter)

  • Platform revenue up 21% to $5.2 million. Annual Recurring Revenue ("ARR") up 20% to $20.9 million, which includes approximately $14.2 million of B2B recurring revenue and $6.7 million of B2C recurring revenue.
  • Total revenue of $12.4 million, a 3% increase.
  • Gross profit up 12%. Total gross margin improved 450 basis points to 51%, crossing 50% on a blended basis for the first time in the Company's history.
  • Net income of $2.4 million, or $0.07 per diluted share, compared to net loss of $2.8 million or ($0.09) per share. This quarter's result includes a $1.1 million favorable adjustment related to the final earnout adjustment for Scite.  Last year's result included a negative adjustment charge in other expense of approximately $4.3 million related to the projected earnout for Scite.
  • Adjusted EBITDA increased 15% to a Company record of $1.6 million.
  • Cash flow from operations of $2.3 million, compared to $2.0 million.

Fiscal Year 2025 Summary (compared to Fiscal 2024) 

  • Platform revenue up 36% to $19.0 million.
  • Total revenue of $49.1 million, a 10% increase.
  • Gross profit up 23%. Total gross margin improved 530 basis points to 49.3%.
  • Net income of $1.3 million, or $0.04 per diluted share, compared to a net loss of $3.8 million, or ($0.13) per share.  This year's result includes $1.7 million of net other expense related to the Scite earn-out compared to $5.1 million of net other expense related to the Scite earnout in fiscal 2024.
  • Adjusted EBITDA of $5.3 million, a Company record, compared to $2.2 million.
  • Cash flow from operations of $7.0 million, a Company record, compared to $3.6 million.  The Company ended the fiscal year with $12.2 million in cash and cash equivalents.

"Fiscal 2025 reflects a year of significant progress in our ongoing SaaS software and AI solution set transition, with our platform revenue now representing nearly 40% of total revenue for the year compared to 31% in fiscal 2024.  As expected, this strategic shift and continued focus on recurring revenue has also translated into meaningful increases in gross margin, Adjusted EBITDA and operating cash flow," said Roy W. Olivier, President and CEO of Research Solutions. "Following the final earnout calculation for Scite, we proactively adjusted the payout structure, offering more cash and reducing dilution to current shareholders. We remain focused on improving on our 'Rule of 40' goal, with a slight bias towards increased growth versus profitability, which in turn should create long-term value for our shareholders.  In addition, we used the Scite acquisition to help build out the AI capabilities in our product set and we continue to actively pursue additional opportunities that enhance, complement and strengthen our current product offerings.  The growth rate of our AI-based Scite product is over 40%, which I view as a good indication that we are on the right track.  Lastly, from a cash and Adjusted EBITDA perspective, we are better positioned than we ever have been to execute on these opportunities."

Fiscal Fourth Quarter 2025 Results

Total revenue was $12.4 million, compared to $12.1 million in the year-ago quarter driven by increased platform revenue versus the prior-year period.

Platform subscription revenue for the quarter was $5.2 million, a 21% year-over-year increase from the prior-year period. The increase was due to organic growth in the core B2C and B2B platforms, with the latter increasing due to a mix of new logo generation and upsell and cross sell into existing customers. The quarter ended with annual recurring revenue of $20.9 million, up 20% year-over-year (see the Company's definition of annual recurring revenue below).

Transaction revenue was $7.3 million, compared to $7.9 million in the fourth quarter of fiscal 2024. The decrease was due to lower paid order volume.  The transaction active customer count for the quarter was 1,338, compared to 1,398 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

Total gross margin improved 450 basis points from the prior-year quarter to 51.0%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, including the expansion of the gross margin for that business.

Total operating expenses were $5.1 million, compared to $5.0 million in the fourth quarter of 2024. The increase was primarily related to higher sales and marketing expenses offset by reduced stock compensation expense.

Other income for the quarter was approximately $1.2 million compared to other expense of approximately $3.5 million in the fourth quarter of fiscal 2024.  This quarter's result includes a $1.1 million favorable adjustment related to the final determination of the Scite earnout.  Last year's result included a negative adjustment in other expense of approximately $4.3 million related to the projected earnout for Scite.

Net income in the fourth quarter was $2.4 million, or $0.07 per diluted share, compared to net loss of $2.8 million, or ($0.09) per share, in the prior-year quarter. Adjusted EBITDA was $1.6 million, compared to $1.4 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Full-Year Fiscal 2025 Results

Total revenue was $49.1 million, a 10% increase from fiscal 2024, driven by increased platform revenue.

Platform subscription revenue for fiscal 2025 was $19.0 million, a 36% year-over-year increase. The increase was primarily due to organic growth in the core B2C and B2B platforms, including 150 net new B2B platform deployments, as well as having a full fiscal year of Scite revenue (versus seven months in fiscal 2024).

Transaction revenue was $30.1 million, compared to $30.7 million in fiscal 2024.  The decrease was due to lower paid order volume in the second half of fiscal 2025.

Total gross margin improved 530 basis points from the prior-year to 49.3%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.

Total operating expenses for the year were $21.7 million, compared to $20.4 million in fiscal 2024.  The increase was primarily related to higher sales and marketing expenses offset by reduced general and administrative and stock compensation expenses.

Net income for fiscal 2025 was $1.3 million, or $0.04 per diluted share, compared to net loss of $3.8 million, or ($0.13) per share, in the prior year. Adjusted EBITDA was $5.3 million, compared to $2.2 million in fiscal 2024 (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period.

Date: Thursday, September 18, 2025
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-203-518-9783
Conference ID: RESEARCH

The conference call will be broadcast live and available for replay until October 18, 2025 by dialing  1-412-317-6671 and using the replay ID 11159860, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

Fiscal Fourth Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter



Quarter Ended June 30, 


Twelve Months Ended June 30, 



2025

2024

Change 

% Change 


2025

2024

 Change 

 % Change 

Revenue:











Platforms

$     5,184,864

$     4,277,338

$       907,526

21.2 %


$   18,955,695

$   13,956,517

$    4,999,178

35.8 %


Transactions

$     7,253,053

$     7,856,176

(603,123)

-7.7 %


$   30,102,286

$   30,667,382

(565,096)

-1.8 %

Total Revenue

12,437,917

12,133,514

304,403

2.5 %


49,057,981

44,623,899

4,434,082

9.9 %











Gross Profit:











Platforms

4,590,639

3,650,286

940,353

25.8 %


16,584,155

11,889,314

4,694,841

39.5 %


Transactions

1,751,263

1,992,580

(241,317)

-12.1 %


7,611,796

7,750,852

(139,056)

-1.8 %

Total Gross Profit

6,341,902

5,642,866

699,036

12.4 %


24,195,951

19,640,166

4,555,785

23.2 %











Gross profit as a % of revenue:











Platforms

88.5 %

85.3 %

3.2 %



87.5 %

85.2 %

2.3 %



Transactions

24.1 %

25.4 %

-1.2 %



25.3 %

25.3 %

0.0 %


Total Gross Profit

51.0 %

46.5 %

4.5 %



49.3 %

44.0 %

5.3 %












Operating Expenses:











Sales and marketing

1,219,184

830,195

388,989

46.9 %


5,360,356

3,442,503

1,917,853

55.7 %


Technology and product development

1,356,801

1,489,491

(132,690)

-8.9 %


5,631,344

5,442,382

188,962

3.5 %


General and administrative

2,152,855

1,917,907

234,948

12.3 %


7,936,644

8,511,697

(575,053)

-6.8 %


Depreciation and amortization

315,021

311,004

4,017

1.3 %


1,245,362

836,271

409,091

48.9 %


Stock-based compensation

176,611

426,190

(249,579)

-58.6 %


1,723,561

2,155,461

(431,900)

-20.0 %


Foreign currency translation loss (gain)

(83,322)

6,336

(89,658)

NM


(202,527)

21,395

(223,922)

NM

Total Operating Expenses

5,137,150

4,981,123

156,027

3.1 %


21,694,740

20,409,709

1,285,031

6.3 %

Income (loss) from operations

1,204,752

661,743

543,009

82.1 %


2,501,211

(769,543)

3,270,754

NM











Other Income (Expenses):











Other income (expenses)

1,163,557

(3,451,948)

4,615,505

NM


(1,152,847)

(2,903,983)

1,751,136

NM


Provision for income taxes

(7,995)

(31,022)

23,027

-74.2 %


(82,811)

(113,071)

30,260

-26.8 %

Total Other Income (Expenses):

1,155,562

(3,482,970)

4,638,532

NM


(1,235,658)

(3,017,054)

1,781,396

NM

Net income (loss)

$     2,360,314

$   (2,821,227)

5,181,541

NM


$     1,265,553

$   (3,786,597)

5,052,150

NM










NM

Adjusted EBITDA

$     1,613,062

$     1,405,273

$       207,789

14.8 %


$     5,267,607

$     2,243,584

$    3,024,023

134.8 %














Quarter Ended June 30, 


Twelve Months Ended June 30, 



2025

2024

 Change 

 % Change 


2025

2024

 Change 

 % Change 

 

Platforms:

 










B2B ARR (Annual recurring revenue*):











  Beginning of Period

$   13,474,074

$   11,653,062

$    1,821,012

15.6 %


$   12,060,201

$     9,444,129

$    2,616,072

27.7 %


   Incremental ARR

723,524

407,139

316,385

77.7 %


2,137,397

2,616,072

(478,675)

-18.3 %


  End of Period

$   14,197,598

$   12,060,201

$    2,137,397

17.7 %


$   14,197,598

$   12,060,201

$    2,137,397

17.7 %












Deployments:











  Beginning of Period

1,133

983

150

15.3 %


1,021

835

186

22.3 %


   Incremental Deployments

38

38

-

0.0 %


150

186

(36)

-19.4 %


  End of Period

1,171

1,021

150

14.7 %


1,171

1,021

150

14.7 %












ASP (Average sales price):











  Beginning of Period

$          11,892

$          11,855

$                38

0.3 %


$          11,812

$          11,310

$              502

4.4 %


  End of Period

$          12,124

$          11,812

$              312

2.6 %


$          12,124

$          11,812

$              312

2.6 %













B2C ARR (Annual recurring revenue*):











  Beginning of Period

$     6,877,926

$     4,902,975

$    1,974,951

NM


$     5,363,129

$                 -

$    5,363,129

NM


   Incremental ARR

(156,570)

460,154

(616,724)

NM


1,358,227

5,363,129

(4,004,902)

NM


  End of Period

$     6,721,356

$     5,363,129

$    1,358,227

25.3 %


$     6,721,356

$     5,363,129

$    1,358,227

25.3 %













Total ARR (Annualized recurring revenue):

$   20,918,954

$   17,423,330

$    3,495,624

20.1 %


$   20,918,954

$   17,423,330

$    3,495,624

20.1 %












 

Transaction Customers:

 










Corporate customers

1,028

1,093

(65)

-5.9 %


1,053

1,088

(35)

-3.2 %


Academic customers

310

305

5

1.6 %


320

316

4

1.3 %


Total customers

1,338

1,398

(60)

-4.3 %


1,373

1,404

(31)

-2.2 %

Active Customer Accounts, Transactions and Annual Recurring Revenue

The Company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month.

A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform.

The Company defines annual recurring revenue ("ARR") as the value of contracted Platform subscription recurring revenue normalized to a one-year period.  For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.

Use of Non-GAAP Measure – Adjusted EBITDA

Research Solutions' management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results.

The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other (income) expense, foreign currency transaction (gain) loss, provision for income taxes, depreciation and amortization, stock-based compensation, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):



Quarter Ended June 30, 


Twelve Months Ended June 30, 



2025

2024

Change 

 % Change 


2025

2024

Change 

 % Change 

 Net Income (loss) 

$     2,360,314

$   (2,821,227)

$    5,181,541

NM


$     1,265,553

$   (3,786,597)

$    5,052,150

NM

 Add (deduct):











Other (income) expense

(1,163,557)

3,451,948

(4,615,505)

NM


1,152,847

2,903,983

(1,751,136)

NM


Foreign currency translation loss (gain)

(83,322)

6,336

(89,658)

NM


(202,527)

21,395

(223,922)

NM


Provision for income taxes

7,995

31,022

(23,027)

-74.2 %


82,811

113,071

(30,260)

-26.8 %


Depreciation and amortization

315,021

311,004

4,017

1.3 %


1,245,362

836,271

409,091

48.9 %


Stock-based compensation

176,611

426,190

(249,579)

-58.6 %


1,723,561

2,155,461

(431,900)

-20.0 %

 Adjusted EBITDA

$     1,613,062

$     1,405,273

$       207,789

14.8 %


$     5,267,607

$     2,243,584

$    3,024,023

134.8 %












About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) is a vertical SaaS and AI Company that simplifies research workflow for academic institutions, life science companies, and research organizations worldwide. As one of the only publisher-independent marketplaces for scientific, technical, and medical (STM) content, the Company uniquely combines AI-powered tools—including an intelligent research assistant and full-text search capabilities—with seamless access to both open access and paywalled research. The platform enables organizations to discover, access, manage and analyze scientific literature more efficiently, accelerating the pace of scientific discovery. For more information and details, please visit www.researchsolutions.com. 

Important Cautions Regarding Forward-Looking Statements

Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, creating long-term value for shareholders and the Company's prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission. 

Research Solutions, Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)










June 30, 


June 30, 



2025


2024

Assets







Current assets:







Cash and cash equivalents


$

12,227,312


$

6,100,031

Accounts receivable, net of allowance of $182,324 and $68,579, respectively



7,191,234



6,879,800

Prepaid expenses and other current assets



580,257



643,553

Prepaid royalties



925



1,067,237

Total current assets



19,999,728



14,690,621








Non-current assets:







Property and equipment, net of accumulated depreciation of $964,883 and $922,558, respectively



60,769



88,011

Intangible assets, net of accumulated amortization of $2,736,773 and $1,535,310, respectively



9,686,241



10,764,261

Goodwill



16,372,979



16,315,888

Deposits and other assets



957



981

Total assets


$

46,120,674


$

41,859,762








Liabilities and Stockholders' Equity







Current liabilities:







Accounts payable and accrued expenses


$

7,443,757


$

8,843,612

Deferred revenue



10,702,120



9,023,848

Contingent earnout liability, current portion



7,363,152



Total current liabilities



25,509,029



17,867,460








Non-current liabilities:







Contingent earnout liability, long-term portion



6,683,488



12,298,114

Total liabilities



32,192,517



30,165,574








Commitments and contingencies














Stockholders' equity:







Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding





Common stock; $0.001 par value; 100,000,000 shares authorized; 32,479,993 and 32,295,373 shares
issued and outstanding, respectively



32,480



32,295

Additional paid-in capital



39,059,557



38,089,958

Accumulated deficit



(25,043,693)



(26,309,246)

Accumulated other comprehensive loss



(120,187)



(118,819)

Total stockholders' equity



13,928,157



11,694,188

Total liabilities and stockholders' equity


$

46,120,674


$

41,859,762

 

Research Solutions, Inc. and Subsidiaries

Consolidated Statements of Operations and Other Comprehensive Income (Loss)

(Unaudited)

 










Years Ended



June 30, 



2025


2024








Revenue:







Platforms


$

18,955,695


$

13,956,517

Transactions



30,102,286



30,667,382

Total revenue



49,057,981



44,623,899








Cost of revenue:







Platforms



2,371,540



2,067,203

Transactions



22,490,490



22,916,530

Total cost of revenue



24,862,030



24,983,733

Gross profit



24,195,951



19,640,166








Operating expenses:







Selling, general and administrative



20,449,378



19,573,438

Depreciation and amortization



1,245,362



836,271

Total operating expenses



21,694,740



20,409,709








Income (loss) from operations



2,501,211



(769,543)








Other income



595,679



333,088

Change in fair value of contingent earnout liability



(1,748,526)



(3,237,071)








Income (loss) before provision for income taxes



1,348,364



(3,673,526)

Provision for income taxes



(82,811)



(113,071)








Net income (loss)



1,265,553



(3,786,597)








Other comprehensive income (loss):







Foreign currency translation



(1,368)



(595)

Comprehensive income (loss)


$

1,264,185


$

(3,787,192)








Basic income (loss) per common share:







Net income (loss) per share


$

0.04


$

(0.13)

Weighted average common shares outstanding



30,681,187



28,863,949








Diluted income (loss) per common share:







Net income (loss) per share


$

0.04


$

(0.13)

Weighted average common shares outstanding



31,503,972



28,863,949

 

Research Solutions, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)










Years Ended



June 30, 



2025


2024








Cash flow from operating activities:







Net income (loss)


$

1,265,553


$

(3,786,597)

Adjustment to reconcile net income (loss) to net cash provided by operating activities:







Depreciation and amortization



1,245,362



836,271

Stock options expense



205,457



140,150

Restricted common stock expense



1,518,104



1,994,362

Modification cost of accelerated vesting of restricted common stock





20,949

Adjustment to contingent earnout liability



1,748,526



3,237,071

Changes in operating assets and liabilities:







Accounts receivable



(341,434)



(344,020)

Prepaid expenses and other current assets



63,296



(164,579)

Prepaid royalties



1,066,312



135,441

Accounts payable and accrued expenses



(1,426,282)



560,027

Deferred revenue



1,678,272



921,879

Net cash provided by operating activities



7,023,166



3,550,954








Cash flow from investing activities:







Purchase of property and equipment



(19,261)



(71,510)

Payment for acquisition of Resolute, net of cash acquired





(2,718,253)

Payment for acquisition of Scite, net of cash acquired





(7,305,493)

Net cash used in investing activities



(19,261)



(10,095,256)








Cash flow from financing activities:







Proceeds from the exercise of stock options



180,800



Common stock repurchase



(934,577)



(554,202)

Payment of contingent acquisition consideration



(124,107)



(351,649)

Net cash used in financing activities



(877,884)



(905,851)








Effect of exchange rate changes



1,260



4,851

Net increase (decrease) in cash and cash equivalents



6,127,281



(7,445,302)

Cash and cash equivalents, beginning of period



6,100,031



13,545,333

Cash and cash equivalents, end of period


$

12,227,312


$

6,100,031








Supplemental disclosures of cash flow information:







Cash paid for income taxes


$

82,811


$

113,071








Non-cash investing and financing activities:







Contingent consideration accrual on asset acquisition


$

31,359


$

32,022

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/research-solutions-reports-fourth-quarter-and-fiscal-year-2025-results-302560891.html

SOURCE Research Solutions, Inc.

FAQ

What were Research Solutions' (RSSS) key financial results for fiscal year 2025?

Research Solutions reported total revenue of $49.1 million (up 10%), platform revenue of $19.0 million (up 36%), net income of $1.3 million ($0.04 per share), and record Adjusted EBITDA of $5.3 million.

How much did Research Solutions' (RSSS) Annual Recurring Revenue grow in 2025?

Research Solutions' ARR grew 20% year-over-year to $20.9 million, including $14.2 million in B2B recurring revenue and $6.7 million in B2C recurring revenue.

What was Research Solutions' (RSSS) gross margin improvement in fiscal 2025?

The company's gross margin improved 530 basis points to 49.3%, crossing 50% on a blended basis for the first time in Q4 2025.

How much cash does Research Solutions (RSSS) have as of fiscal year 2025?

Research Solutions ended fiscal year 2025 with $12.2 million in cash and cash equivalents, supported by record operating cash flow of $7.0 million.

What is the growth rate of Research Solutions' (RSSS) AI-based Scite product?

Research Solutions reported that their AI-based Scite product is growing at over 40%, indicating strong market acceptance of their AI capabilities.
Research Solutions Inc

NASDAQ:RSSS

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118.80M
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Software - Application
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