Research Solutions Reports Fourth Quarter and Fiscal Year 2026 Results

Revenue declined modestly in 2026, but higher-margin platforms and AI offerings drove record Adjusted EBITDA and more than doubled net income.

Rhea-AI Summary

Research Solutions (RSSS) reported fiscal 2026 net income of $2.8 million, up from $1.3 million, on revenue of $48.3 million, down 1.5% year-over-year.

Gross profit rose 3.6% to $25.1 million, lifting total gross margin 260 basis points to 51.9% as higher-margin Platform revenue increased to 43% of total revenue. Platform revenue grew 9.8% to $20.8 million, while transaction revenue declined 8.7% to $27.5 million. ARR reached $22.5 million, up 7.8%, including $16.2 million of B2B ARR (up 14.1%) and $6.3 million of B2C ARR (down 5.6%). AI-related ARR contributed $0.8 million.

Adjusted EBITDA hit a company record $5.8 million versus $5.3 million. Cash from operations was $5.3 million, down from $7.0 million, and cash and equivalents totaled $12.6 million at year-end. In Q4, revenue was $12.1 million, net income $0.7 million and Adjusted EBITDA $1.4 million.

Positive

• Net income $2.8M vs. $1.3M, up 123.0% year-over-year
• Adjusted EBITDA record $5.8M vs. $5.3M, up 10.6%
• Total gross margin 51.9%, up 260 bps vs. prior year
• Platform revenue $20.8M, up 9.8% and 43% of total revenue
• Total ARR $22.5M, up 7.8%; B2B ARR $16.2M, up 14.1%
• AI-related ARR $0.8M, with 125% sequential growth in Q4

Negative

• Total revenue $48.3M, down 1.5% year-over-year
• Transaction revenue $27.5M, down 8.7% year-over-year
• Cash from operations $5.3M vs. $7.0M, down 24.3%
• Q4 net income $0.7M vs. $2.4M prior-year quarter
• B2C ARR $6.3M, down 5.6% year-over-year
• Q4 Adjusted EBITDA $1.4M, down 11.4% vs. prior-year quarter

News Explained

At June 30, 2026, common shares outstanding were higher than a year earlier, indicating dilution absent offsetting changes.

Research Solutions reported fiscal 2026 results for the year ended June 30, 2026; its balance sheet shows a larger common share base for existing holders.

Because issuing additional shares increases total share count and reduces an existing holder’s percentage ownership absent offsetting changes, the reported increase is dilutive on that basis.

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Market Reaction – RSSS

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Following this news, RSSS has gained 8.88%, reflecting a notable positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $2.33. Trading volume is elevated at 2.1x the average, suggesting notable buying interest.

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Market Context

The May 14 earnings release was followed by a -11.81% 24-hour decline after reporting ARR and gross-...

Analysis

The May 14 earnings release was followed by a -11.81% 24-hour decline after reporting ARR and gross-margin gains alongside lower revenue; the current FY26 release disclosed the same platform-growth and transaction-revenue divergence.

Key Figures

Fiscal year revenue: $48.3 million Gross margin: 51.9% Net income: $2.8 million +5 more

Fiscal year revenue

$48.3 million

Fiscal 2026, compared to $49.1 million in fiscal 2025

Gross margin

51.9%

Fiscal 2026, up 260 basis points year over year

Net income

$2.8 million

Fiscal 2026, compared to $1.3 million in fiscal 2025

Annual recurring revenue

$22.5 million

Fiscal year-end, up 7.8% year over year

B2B ARR

$16.2 million

Fiscal year-end, up 14.1% year over year

AI-related ARR

$0.8 million

Fiscal 2026

Adjusted EBITDA

$5.8 million

Fiscal 2026, compared to $5.3 million in fiscal 2025

Cash and cash equivalents

$12.6 million

At fiscal year-end

Previous Earnings Reports

1 past event · Latest: May 14

Same Type 1 event

1. May 14

   Q3 earnings results

   24h Move

   -11.8%

   ARR and gross margin increased while revenue and transaction revenue declined

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

arr, annual recurring revenue, adjusted ebitda, non-gaap measure

4 terms

arr financial

"ARR of $22.5 Million"

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

annual recurring revenue financial

"Annual Recurring Revenue (“ARR”) up 7.8% to $22.5 million"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

adjusted ebitda financial

"Adjusted EBITDA of $1.4 million and Adjusted EBITDA margin of 11.8%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap measure financial

"In addition to the Company's GAAP results, management also considers the non-GAAP measure"

A non-GAAP measure is a company-crafted financial metric that adjusts or excludes items from standard accounting numbers to highlight what management sees as the business’s core performance. Investors use these figures like a filtered photo to reveal trends or cash flow drivers that raw accounting totals might hide, but because companies decide which items to remove, these measures should be compared with standard statements to avoid being misled.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Reports Record Fiscal Year Net Income of $2.8 Million, 14% YoY B2B ARR Increase and ARR of $22.5 Million

HENDERSON, Nev., Sept. 9, 2026 /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, 2026.

Fiscal Fourth Quarter 2026 Summary (compared to prior-year quarter)

• Total gross profit of $6.4 million improved the Company’s gross margin percentage 200 basis points versus the prior year quarter to 53% driven by the continued Platform mix shift.
• B2B ARR grew $2.0 million or 14.1% compared to the fourth quarter of fiscal 2025 resulting in $16.2 million of ARR.  This included AI related ARR of $0.8 million which grew 125% sequentially from the third quarter of fiscal 2026. 
• Net income of $666,000, or $0.02 per diluted share, compared to $2.4 million or $0.07 per diluted share.  The prior year included a $1.1 million favorable adjustment for the finalization of the Scite earnout.
• Adjusted EBITDA of $1.4 million and Adjusted EBITDA margin of 11.8%.
• Total revenue of $12.1 million, compared to $12.4 million in the prior year.
• Cash flow from operations of $1.8 million, compared to $2.3 million on the timing of working capital payments.

Fiscal Year 2026 Summary (compared to Fiscal 2025) 

• Gross profit up 3.6% to $25.1 million. Total gross margin improved 260 basis points to 51.9% with the continued Platform mix shift as the main catalyst. Platforms revenue was 43% of total revenue compared to 39% in the prior year.
• B2B ARR grew $2.0 million or 14.1% versus the year ago period to $16.2 million.  This included incremental AI related ARR of $0.8 million. 
• Net income of $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share.  The prior-year results included $1.7 million of net other expense related to the Scite earn-out. 
• Platform revenue up approximately 10% to $20.8 million. Annual Recurring Revenue (“ARR”) up 7.8% to $22.5 million, which includes approximately $16.2 million of B2B recurring revenue and $6.3 million of B2C recurring revenue.
• Adjusted EBITDA of $5.8 million, a Company record, compared to $5.3 million.
• Total revenue of $48.3 million, compared to $49.1 million.
• Cash flow from operations of $5.3 million compared to $7.0 million on the timing of working capital payments.  The Company ended the fiscal year with $12.6 million in cash and cash equivalents.

“We launched multiple products in fiscal 2026, including new AI based products.  Two of the AI products, Scite MCP and Article Galaxy MCP, allow researchers to utilize the unique functionality of Scite and Article Galaxy inside ChatGPT, Claude, Copilot, and any AI tools researchers already use.  This is part of our strategy to support our users where they work and has resulted in us building a large pipeline of AI related revenue opportunities in FY27." said Roy W. Olivier, President and CEO of Research Solutions. "Platform revenue grew to 43% of total revenue, up from 39% in fiscal 2025. That mix shift expanded gross margin and helped us more than double net income for the full year in a challenging market. With a strong cash position and Adjusted EBITDA posture, we're well-positioned to continue investing in internally developed tools and to pursue strategic M&A that complements our current offerings.”

Fiscal Fourth Quarter 2026 Results

Total revenue was $12.1 million, compared to $12.4 million in the year-ago quarter, as increased platform revenue was more than offset by a decrease in transaction revenue.

Platform subscription revenue for the quarter was $5.3 million, compared to $5.2 million in the prior-year period. The increase was driven by a 14% increase in B2B platform ARR, due to a mix of new logo generation and upsell and cross-sells into the existing customer base, partially offset by a decline in B2C ARR.

The quarter ended with ARR of $22.5 million, up 7.8% year-over-year as B2B ARR increases more than offset a modest decline in B2C ARR (see the Company’s definition of annual recurring revenue below).

Transaction revenue was $6.8 million, compared to $7.3 million in the fourth quarter of fiscal 2025. The decrease was due to lower paid order volume.  The transaction active customer count for the quarter was 1,323, compared to 1,338 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

Total gross margin improved 200 basis points from the prior-year quarter to 53.0%. 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 $5.6 million, compared to $5.1 million in the fourth quarter of 2025. The increase was primarily related to higher sales expenses and up front investments in AI that were partially offset by reduced general and administrative expense. 

Other expense for the quarter was approximately $0.2 million compared to other income of $1.2 million in the fourth quarter of fiscal 2025.  Prior year results included a $1.1 million favorable adjustment related to the final determination of the Scite earnout.

Net income in the fourth quarter was $666,000 or $0.02 per diluted share, compared to $2.4 million, or $0.07 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.4 million, compared to $1.6 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 2026 Results

Total revenue was $48.3 million compared to $49.1 million in fiscal 2025.

Platform subscription revenue for fiscal 2026 was $20.8 million, a 9.8% year-over-year increase. The increase was primarily due to organic growth in the core B2B platforms, including 105 net new B2B platform deployments. The increase included incremental AI related ARR of $0.8 million.

Transaction revenue was $27.5 million, compared to $30.1 million in fiscal 2025.  The decrease was due to lower paid order volume, particularly in the second and third quarters of fiscal 2026.

Total gross margin improved 260 basis points from the prior year to 51.9%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.

Total operating expenses for the year were $21.5 million, compared to $21.7 million in fiscal 2025.  The decrease was primarily related to reduced general and administrative and stock compensation expenses, partially offset by higher sales and marketing expenses.

Net income for fiscal 2026 was $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share, in the prior year. Adjusted EBITDA was $5.8 million, compared to $5.3 million in fiscal 2025 (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 David Kutil will host the conference call, followed by a question-and-answer period.

Date: Wednesday, September 9, 2026
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-203-518-9708
Conference ID: RESEARCH

The conference call will be broadcast live and available for replay until October 9, 2026, by dialing  1-412-317-6671 and using the replay ID 11160802, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

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

		Quarter Ended June 30,					Twelve Months Ended June 30,
		2026	2025	Change	% Change		2026	2025	Change	% Change
Revenue:
	Platforms	$      5,314,724	$         5,184,864	$      129,860	2.5 %		$   20,820,974	$    18,955,695	$   1,865,279	9.8 %
	Transactions	6,765,836	7,253,053	(487,217)	-6.7 %		27,485,983	30,102,286	(2,616,303)	-8.7 %
Total Revenue		12,080,560	12,437,917	(357,357)	-2.9 %		48,306,957	49,057,981	(751,024)	-1.5 %
Gross Profit:
	Platforms	4,642,008	4,590,639	51,369	1.1 %		18,211,553	16,584,155	1,627,398	9.8 %
	Transactions	1,760,720	1,751,263	9,457	0.5 %		6,858,955	7,611,796	(752,841)	-9.9 %
Total Gross Profit		6,402,728	6,341,902	60,826	1.0 %		25,070,508	24,195,951	874,557	3.6 %
Gross profit as a % of revenue:
	Platforms	87.3 %	88.5 %	-1.2 %			87.5 %	87.5 %	0.0 %
	Transactions	26.0 %	24.1 %	1.9 %			25.0 %	25.3 %	-0.3 %
Total Gross Profit		53.0 %	51.0 %	2.0 %			51.9 %	49.3 %	2.6 %
Operating Expenses:
	Sales and marketing	1,573,580	1,219,184	354,396	29.1 %		6,397,899	5,360,356	1,037,543	19.4 %
	Technology and product development	1,596,001	1,356,801	239,200	17.6 %		6,121,647	5,631,344	490,303	8.7 %
	General and administrative	1,803,403	2,152,855	(349,452)	-16.2 %		6,724,399	7,936,644	(1,212,246)	-15.3 %
	Depreciation and amortization	310,080	315,021	(4,941)	-1.6 %		1,254,973	1,245,362	9,611	0.8 %
	Stock-based compensation	253,977	176,611	77,366	43.8 %		928,516	1,723,561	(795,045)	-46.1 %
	Foreign currency translation loss (gain)	23,312	(83,322)	106,634	-128.0 %		54,697	(202,527)	257,224	127.0 %
Total Operating Expenses		5,560,353	5,137,150	423,203	8.2 %		21,482,131	21,694,740	(212,610)	-1.0 %
Income from operations		842,375	1,204,752	(362,377)	-30.1 %		3,588,377	2,501,211	1,087,167	43.5 %
Other Income (Expenses):
	Other expenses	(96,035)	1,163,557	(1,259,592)	108.3 %		(633,267)	(1,152,847)	519,580	45.1 %
	Provision for income taxes	(80,784)	(7,995)	(72,789)	-910.4 %		(133,042)	(82,811)	(50,231)	-60.7 %
Total Other Expenses:		(176,819)	1,155,562	(1,332,381)	115.3 %		(766,309)	(1,235,658)	469,349	38.0 %
Net income (loss)		$          665,556	$         2,360,314	(1,694,758)	71.8 %		$      2,822,068	$      1,265,553	1,556,516	123.0 %
Adjusted EBITDA		$      1,429,744	$         1,613,062	$    (183,318)	-11.4 %		$      5,826,563	$      5,267,607	$      558,956	10.6 %
		Quarter Ended June 30,					Twelve Months Ended June 30,
		2026	2025	Change	% Change		2026	2025	Change	% Change
Platforms:
	B2B ARR (Annual recurring revenue):
	Beginning of Period	$    15,716,923	$       13,474,074	$  2,242,849	16.6 %		$   14,197,598	$    12,060,201	$   2,137,397	17.7 %
	Incremental ARR	485,818	723,524	(237,706)	-32.9 %		2,005,143	2,137,397	(132,253)	-6.2 %
	End of Period	$    16,202,741	$       14,197,598	$  2,005,143	14.1 %		$   16,202,741	$    14,197,598	$   2,005,143	14.1 %
	Deployments:
	Beginning of Period	1,247	1,133	114	10.1 %		1,171	1,021	150	14.7 %
	Incremental Deployments	29	38	(9)	-23.7 %		105	150	(45)	-30.0 %
	End of Period	1,276	1,171	105	9.0 %		1,276	1,171	105	9.0 %
	ASP (Average sales price):
	Beginning of Period	$            12,604	$               11,892	$             711	6.0 %		$           12,124	$            11,812	$              312	2.6 %
	End of Period	$            12,698	$               12,124	$             574	4.7 %		$           12,698	$            12,124	$              574	4.7 %
	B2C ARR (Annual recurring revenue):
	Beginning of Period	$      6,360,666	$         6,877,926	$    (517,260)	-7.5 %		$      6,721,356	$      5,363,129	$   1,358,227	25.3 %
	Incremental ARR	(18,316)	(156,570)	138,254	NM		(379,006)	1,358,227	(1,737,233)	-127.9 %
	End of Period	$      6,342,350	$         6,721,356	$    (379,006)	-5.6 %		$      6,342,350	$      6,721,356	$     (379,006)	-5.6 %
	Total ARR (Annualized recurring revenue):	$    22,545,091	$       20,918,954	$  1,626,137	7.8 %		$   22,545,091	$    20,918,954	$   1,626,137	7.8 %
Transaction Customers:
	Corporate customers	985	1,028	(43)	-4.2 %		993	1,053	(60)	-5.7 %
	Academic customers	338	310	28	9.0 %		337	320	17	5.3 %
	Total customers	1,323	1,338	(15)	-1.1 %		1,330	1,373	(43)	-3.1 %

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,
		2026	2025	Change	% Change		2026	2025	Change	% Change
Net Income (loss)		$          665,556	$         2,360,314	$ (1,694,758)	71.8 %		$      2,822,068	$      1,265,553	$   1,556,516	123.0 %
Add (deduct):
	Other (income) expense	96,035	(1,163,557)	1,259,592	NM		633,267	1,152,847	(519,580)	-45.1 %
	Foreign currency translation loss (gain)	23,312	(83,322)	106,634	-128.0 %		54,697	(202,527)	257,224	127.0 %
	Provision for income taxes	80,784	7,995	72,789	910.4 %		133,042	82,811	50,231	60.7 %
	Depreciation and amortization	310,080	315,021	(4,941)	-1.6 %		1,254,973	1,245,362	9,611	0.8 %
	Stock-based compensation	253,977	176,611	77,366	43.8 %		928,516	1,723,561	(795,045)	-46.1 %
Adjusted EBITDA		$      1,429,744	$         1,613,062	$    (183,318)	-11.4 %		$      5,826,563	$      5,267,607	$      558,957	10.6 %

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 several 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
		June 30,			June 30,
		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	12,630,283		$	12,227,312
Accounts receivable, net of allowance of $103,217 and $182,324, respectively			6,963,040			7,191,234
Prepaid expenses and other current assets			689,548			580,257
Prepaid royalties			411,297			925
Total current assets			20,694,168			19,999,728
Non-current assets:
Property and equipment, net of accumulated depreciation of $1,020,241 and $964,883, respectively			58,671			60,769
Intangible assets, net of accumulated amortization of $3,947,231 and $2,736,773, respectively			8,537,870			9,686,241
Goodwill			16,372,979			16,372,979
Deposits and other assets			1,030			957
Total assets		$	45,664,718		$	46,120,674
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	6,149,480		$	7,443,757
Deferred revenue, current portion			11,467,832			10,702,120
Contingent earnout liability, current portion			7,323,314			7,363,152
Total current liabilities			24,940,626			25,509,029
Non-current liabilities:
Deferred revenue, long-term portion			17,245			—
Contingent earnout liability, long-term portion			—			6,683,488
Total liabilities			24,957,871			32,192,517
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; 33,513,551 and 32,479,993 shares issued and outstanding, respectively			33,513			32,480
Additional paid-in capital			42,998,357			39,059,557
Accumulated deficit			(22,221,625)			(25,043,693)
Accumulated other comprehensive loss			(103,398)			(120,187)
Total stockholders' equity			20,706,847			13,928,157
Total liabilities and stockholders' equity		$	45,664,718		$	46,120,674

 

Research Solutions, Inc. and Subsidiaries Consolidated Statements of Operations and Comprehensive Income
		Years Ended
		June 30,
		2026			2025
Revenue:
Platforms		$	20,820,974		$	18,955,695
Transactions			27,485,983			30,102,286
Total revenue			48,306,957			49,057,981
Cost of revenue:
Platforms			2,609,421			2,371,540
Transactions			20,627,028			22,490,490
Total cost of revenue			23,236,449			24,862,030
Gross profit			25,070,508			24,195,951
Operating expenses:
Selling, general and administrative			20,227,158			20,449,378
Depreciation and amortization			1,254,973			1,245,362
Total operating expenses			21,482,131			21,694,740
Income from operations			3,588,377			2,501,211
Other income			407,026			595,679
Accreted interest expense			(1,040,293)			—
Change in fair value of contingent earnout liability			—			(1,748,526)
Income before provision for income taxes			2,955,110			1,348,364
Provision for income taxes			(133,042)			(82,811)
Net income			2,822,068			1,265,553
Other comprehensive income (loss):
Foreign currency translation			16,789			(1,368)
Comprehensive income		$	2,838,857		$	1,264,185
Basic income per common share:
Net income per share		$	0.09		$	0.04
Weighted average common shares outstanding			31,788,992			30,681,187
Diluted income per common share:
Net income per share		$	0.09		$	0.04
Weighted average common shares outstanding			32,272,835			31,503,972

 

Research Solutions, Inc. and Subsidiaries Consolidated Statements of Cash Flows
		Years Ended
		June 30,
		2026			2025
Cash flow from operating activities:
Net income		$	2,822,068		$	1,265,553
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			1,254,973			1,245,362
Stock options expense			330,374			205,457
Restricted common stock expense			598,142			1,518,104
Accreted interest expense			1,040,293			—
Adjustment to contingent earnout liability			—			1,748,526
Changes in operating assets and liabilities:
Accounts receivable			228,194			(341,434)
Prepaid expenses and other current assets			(109,291)			63,296
Prepaid royalties			(410,372)			1,066,312
Accounts payable and accrued expenses			(1,262,918)			(1,426,282)
Deferred revenue			782,957			1,678,272
Net cash provided by operating activities			5,274,420			7,023,166
Cash flow from investing activities:
Purchase of property and equipment			(39,771)			(19,261)
Net cash used in investing activities			(39,771)			(19,261)
Cash flow from financing activities:
Proceeds from the exercise of stock options			157,500			180,800
Common stock repurchase			(53,039)			(934,577)
Payment of contingent acquisition consideration - Scite and FIZ			(4,950,209)			(124,107)
Net cash used in financing activities			(4,845,748)			(877,884)
Effect of exchange rate changes			14,070			1,260
Net increase in cash and cash equivalents			402,971			6,127,281
Cash and cash equivalents, beginning of period			12,227,312			6,100,031
Cash and cash equivalents, end of period		$	12,630,283		$	12,227,312
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	71,213		$	82,811
Non-cash investing and financing activities:
Contingent consideration accrual on asset acquisition		$	—		$	31,359
Common stock issued for Scite earnout payment		$	2,906,856		$	—

 

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SOURCE Research Solutions, Inc.

FAQ

How did platform and transaction revenues trend for Research Solutions in fiscal 2026?

In fiscal 2026, platform subscription revenue was $20.8 million, a 9.8% year-over-year increase driven primarily by organic growth in core B2B platforms and 105 net new B2B deployments. Transaction revenue declined to $27.5 million from $30.1 million, an 8.7% decrease, due to lower paid order volume, particularly in the second and third quarters.

What were the main drivers of the improved gross margin in 2026?

Total gross margin improved to 51.9%, up 260 basis points from the prior year. The company attributes this primarily to a continued revenue mix shift toward the higher-margin Platforms business, along with gross margin expansion within that business.

How is Research Solutions’ annual recurring revenue (ARR) composed between B2B and B2C?

At June 30, 2026, total ARR was $22.5 million. This consisted of $16.2 million of B2B ARR, which increased 14.1% year-over-year, and $6.3 million of B2C ARR, which declined 5.6% year-over-year.

What AI-related products and revenue did Research Solutions highlight for fiscal 2026?

The company launched multiple AI-based products in fiscal 2026. Two offerings, Scite MCP and Article Galaxy MCP, allow researchers to use Scite and Article Galaxy capabilities inside tools such as ChatGPT, Claude, Copilot and other AI tools. AI-related ARR totaled $0.8 million, which grew 125% sequentially in the fourth quarter.

What is Research Solutions’ cash position and operating cash flow profile at year-end 2026?

For fiscal 2026, cash flow from operations was $5.3 million compared to $7.0 million in fiscal 2025, with the change attributed to the timing of working capital payments. The company ended the fiscal year with $12.6 million in cash and cash equivalents.

When is the conference call to discuss Research Solutions’ fiscal 2026 results and how can investors access it?

The company scheduled a conference call for Wednesday, September 9, 2026 at 5:00 p.m. ET (2:00 p.m. PT). Participants can dial 1-203-518-9708 using conference ID RESEARCH. A replay is available until October 9, 2026 by dialing 1-412-317-6671 with replay ID 11160802, and via the investor relations section of the company’s website.