Research Solutions Reports Third Quarter Fiscal Year 2026 Results

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Rhea-AI Sentiment

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Rhea-AI Summary

Research Solutions (NASDAQ: RSSS) reported fiscal Q3 2026 results for the quarter ended March 31, 2026.

Total revenue $12.1M, down 4.3% year-over-year
ARR up 8.5% to $22.1M
Net income $860K, or $0.03 per diluted share
Adjusted EBITDA $1.6M, up 14%; TTM Adjusted EBITDA $6.0M (12.3% margin)
Platform revenue $5.2M, up 6.6% and 43% of total revenue
Transaction revenue $7.0M, down 11.0%
Gross margin 51.7%, up 220 bps; gross profit $6.3M
Operating cash flow $1.0M in Q3; $5.7M TTM

AI-generated analysis. Not financial advice.

Positive

ARR increased 8.5% year-over-year to $22.1 million
Net income rose to $860,000, or $0.03 per diluted share
Adjusted EBITDA grew 14.1% year-over-year to $1.6 million
TTM Adjusted EBITDA reached $6.0 million with a 12.3% margin
Platform revenue grew 6.6% to $5.16 million and 43% of revenue
Total gross margin expanded 220 basis points to 51.7%
Total operating expenses declined 8.6% to $5.2 million
Income from operations increased 87.6% to $1.0 million

Negative

Total revenue declined 4.3% year-over-year to $12.1 million
Transaction revenue fell 11.0% to $7.0 million
Transaction customer count decreased 2.5% to 1,346
B2C ARR declined 7.5% year-over-year to $6.36 million
Quarterly operating cash flow decreased to $1.0 million from $2.9 million
Nine-month sales and marketing expense increased 16.5% to $4.8 million

Key Figures

Total revenue: $12.1M ARR: $22.1M Net income: $860,000 ($0.03/share) +5 more

8 metrics

Total revenue $12.1M Q3 FY2026 vs $12.7M prior-year quarter

ARR $22.1M Up 8.5% year-over-year; includes $15.7M B2B and $6.4M B2C

Net income $860,000 ($0.03/share) Q3 FY2026 vs $216,000 ($0.01/share) prior year

Adjusted EBITDA $1.6M Q3 FY2026, up 14% from $1.4M prior year

TTM Adjusted EBITDA $6.0M (12.3% margin) Trailing twelve months through Q3 FY2026

Platform revenue $5.2M Q3 FY2026, up 6.6%, 43% of total revenue

Transactions revenue $7.0M Q3 FY2026 vs $7.8M in Q3 FY2025

Gross margin 51.7% Q3 FY2026, up 220 bps vs prior-year quarter

Market Reality Check

Price: $2.51 Vol: Volume 353,354 is 5.28x t...

high vol

$2.51 Last Close

Volume Volume 353,354 is 5.28x the 20-day average of 66,977, indicating elevated trading interest ahead of and after earnings. high

Technical Shares at $2.51 are trading below the 200-day MA of $2.86 and about 39.08% under the 52-week high.

Peers on Argus

RSSS fell 4.56% while key peers showed mixed moves: IDN -26.08%, LPSN -2.71%, PS...

1 Up

RSSS fell 4.56% while key peers showed mixed moves: IDN -26.08%, LPSN -2.71%, PSQH -11.07%, offset by gains in ILLR +9.27% and RDZN +5.62%. Only one peer appeared in the momentum scanner, suggesting stock-specific trading around earnings.

Previous Earnings Reports

5 past events · Latest: Feb 12 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Q2 2026 earnings	Positive	-0.4%	Reported ARR growth to $21.8M and margin expansion with higher EBITDA.
Nov 13	Q1 2026 earnings	Positive	+2.9%	Showed ARR up 21% to $21.3M and strong platform revenue growth.
Sep 18	FY2025 results	Positive	-6.9%	Reported 36% platform growth, record ARR $20.9M and higher EBITDA.
Aug 19	Prelim FY2025 results	Positive	-1.1%	Announced Q4 ARR of $20.9M and revenue growth with higher margins.
May 08	Q3 2025 earnings	Positive	+9.6%	Delivered revenue growth, 23% ARR increase, and record EBITDA and cash flow.

Pattern Detected

Earnings releases have generally highlighted ARR and margin growth, but price reactions have been mixed, with slightly more divergences than alignments.

Recent Company History

Over the past year, RSSS earnings reports have emphasized SaaS transition and ARR growth. Q3 FY2025 delivered $12.7M revenue and $1.4M Adjusted EBITDA with ARR at $20.4M. FY2025 results showed record ARR of $20.9M and Adjusted EBITDA of $5.3M. Q1 and Q2 FY2026 continued this theme with ARR around $21.3–21.8M, expanding gross margins above 50%, and consistent profitability. The current Q3 FY2026 report, with ARR of $22.1M and higher net income, extends that trend despite modest revenue pressure.

Historical Comparison

+0.8% avg move · Past earnings headlines for RSSS led to an average move of about 0.84%. Today’s -4.56% reaction to Q...

earnings

+0.8%

Average Historical Move earnings

Past earnings headlines for RSSS led to an average move of about 0.84%. Today’s -4.56% reaction to Q3 FY2026 results is larger in magnitude than typical same-tag events.

Earnings releases over the last five quarters show a progression from FY2025 record ARR of $20.9M to FY2026 quarters with ARR around $21–22M, expanding gross margins above 50%, and consistent profitability as platform revenue becomes a larger share of total.

Market Pulse Summary

This announcement highlights steady progress in recurring revenue and profitability. Q3 FY2026 ARR r...

Analysis

This announcement highlights steady progress in recurring revenue and profitability. Q3 FY2026 ARR reached $22.1M, net income rose to $860,000, and Adjusted EBITDA was $1.6M with a 51.7% gross margin, even as total revenue eased to $12.1M on softer transaction volumes. Historically, earnings updates have focused on platform mix, ARR growth, and margin expansion. Investors may watch future quarters for transaction trends, deployment growth, and sustained cash generation.

Key Terms

annual recurring revenue, adjusted ebitda, basis points, gross margin, +4 more

8 terms

annual recurring revenue financial

"Annual Recurring Revenue ("ARR") up 8.5% to $22.1 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 increased 14% to $1.6 million."

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.

basis points financial

"Total gross margin improved 220 basis points to 51.7%..."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

gross margin financial

"Total gross margin improved 220 basis points to 51.7%..."

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

cash flow from operations financial

"Cash flow from operations was $1.0 million, compared to $2.9 million..."

Cash flow from operations is the money a company actually generates from its core business activities—sales, services and day-to-day operations—after paying routine costs like wages and suppliers. Investors watch it like a company’s operating “paycheck” because it shows whether the business can fund growth, pay debts and return cash to shareholders without relying on loans or one-time asset sales; steady positive cash flow is a sign of financial health.

stock-based compensation financial

"The decrease was primarily related to reduced general and administrative and stock-based compensation expenses."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

foreign currency translation financial

"Foreign currency translation loss (gain) | 12,529 | (44,519)..."

Foreign currency translation is the process of converting financial statements prepared in one currency into another currency so they can be combined or compared. Investors care because exchange rate swings can change reported revenue, profit and asset values even when a company’s underlying business hasn’t changed — like converting vacation spending back to your home money and seeing the total rise or fall depending on the day’s exchange rate.

non-gaap financial

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

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

05/14/2026 - 04:05 PM

Reports 8.5% Increase in ARR to $22.1 Million, Net Income of $860,000 and 14% Year-over-Year Growth in Adjusted EBITDA

HENDERSON, Nev., May 14, 2026 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal third quarter ended March 31, 2026.

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

Total revenue of $12.1 million, compared to $12.7 million in the prior-year period.
Annual Recurring Revenue ("ARR") up 8.5% to $22.1 million, which includes approximately $15.7 million of B2B recurring revenue and $6.4 million of B2C recurring revenue.
Net income of $860,000 increased 297%, or $0.03 per diluted share, compared to $216,000 or $0.01 per diluted share.
Adjusted EBITDA increased 14% to $1.6 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $6.0 million, which represents a 12.3% margin.
Platform revenue increased 6.6% to $5.2 million. Platform revenue accounted for 43% of total revenue as compared to 38% in the prior-year quarter.
Fifteen net new deployments in the quarter and 10% deployment growth over past 12 months.
Cash flow from operations was $1.0 million, compared to $2.9 million in the prior-year period, reflecting timing of billings and changes in working capital. On a trailing twelve-month basis, the Company has generated $5.7 million in cash flow from operations.
Total gross margin improved 220 basis points to 51.7% on gross profit of $6.3 million.

"We introduced a pair of new AI-based products in recent months, giving Article Galaxy and Scite users the ability to search, review and acquire scientific literature within their existing AI tools. Simplifying the process is critical in an ever-changing research environment, and these tools help us remain an integral partner with researchers. We remain focused on executing over the long term to drive value for our shareholders." said Roy W. Olivier, President and CEO of Research Solutions. "Our third quarter results reflect the improving profitability and growth prospects of our business, even within a softer operating environment. The continued focus across our Platform business is expanding consolidated gross margin and our strategic investment in sales and marketing is helping drive upsells for existing customers and signing larger deals with new logos."

Fiscal Third Quarter 2026 Results

Total revenue was $12.1 million, compared to $12.7 million in the year-ago quarter. Platform revenue growth was more than offset by a decline in lower margins transactions revenue.

Platform subscription revenue for the quarter was $5.2 million, a 6.69% increase from the prior-year period. The increase was primarily due to organic growth in the core B2B platform, due to a mix of new logo generation as well as upsells and cross-selling into existing customers. The quarter ended with annual recurring revenue of $22.1 million, up 8.5% year-over-year (see the Company's definition of annual recurring revenue below).

Transaction revenue was $7.0 million, compared to $7.8 million in the third quarter of fiscal 2025. The decrease was due to lower volume from a known churned customer and a few large customers. The transaction active customer count for the quarter was 1,346, compared to 1,380 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

Total gross margin improved 220 basis points from the prior-year quarter to 51.7%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.

Total operating expenses were $5.2 million, compared to $5.7 million in the third quarter of 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses.

Net income in the third quarter was $860,000, or $0.03 per diluted share, compared to net income of $216,000, or $0.01 per diluted 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).

Conference Call
Management will host the conference call, followed by a question-and-answer period.

Date: Thursday, May 14, 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 June 14, 2026 by dialing 1-412-317-6671 and using the replay ID 11160801, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

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

		Quarter Ended March 31,				Nine Months Ended March 31,
		2026	2025	Change	% Change	2026	2025	Change	% Change
Revenue:
	Platforms	$ 5,160,565	$ 4,839,929	$ 320,636	6.6 %	$ 15,506,250	$ 13,770,831	$ 1,735,419	12.6 %
	Transactions	6,960,996	7,821,434	(860,438)	-11.0 %	20,720,147	22,849,233	(2,129,086)	-9.3 %
Total Revenue		12,121,561	12,661,363	(539,802)	-4.3 %	36,226,397	36,620,064	(393,667)	-1.1 %

Gross Profit:
	Platforms	4,456,896	4,229,623	227,273	5.4 %	13,569,545	11,993,516	1,576,029	13.1 %
	Transactions	1,808,636	2,037,457	(228,821)	-11.2 %	5,098,235	5,860,533	(762,298)	-13.0 %
Total Gross Profit		6,265,532	6,267,080	(1,548)	0.0 %	18,667,780	17,854,049	813,731	4.6 %

Gross profit as a % of revenue:
	Platforms	86.4 %	87.4 %	-1.0 %		87.5 %	87.1 %	0.4 %
	Transactions	26.0 %	26.0 %	-0.1 %		24.6 %	25.6 %	-1.0 %
Total Gross Profit		51.7 %	49.5 %	2.2 %		51.5 %	48.8 %	2.8 %

Operating Expenses:
	Sales and marketing	1,508,897	1,607,678	(98,781)	-6.1 %	4,824,319	4,141,172	683,147	16.5 %
	Technology and product development	1,513,074	1,394,936	118,138	8.5 %	4,525,646	4,274,543	251,103	5.9 %
	General and administrative	1,625,042	1,845,412	(220,370)	-11.9 %	4,920,996	5,783,789	(862,794)	-14.9 %
	Depreciation and amortization	312,402	312,013	389	0.1 %	944,893	930,341	14,552	1.6 %
	Stock-based compensation	248,608	594,639	(346,031)	-58.2 %	674,539	1,546,950	(872,411)	-56.4 %
	Foreign currency translation loss (gain)	12,529	(44,519)	57,048	-128.1 %	31,385	(119,205)	150,590	126.3 %
Total Operating Expenses		5,220,552	5,710,159	(489,607)	-8.6 %	15,921,778	16,557,590	(635,813)	-3.8 %
Income from operations		1,044,980	556,921	488,059	87.6 %	2,746,002	1,296,459	1,449,544	111.8 %

Other Income (Expenses):
	Other expenses	(162,607)	(327,042)	164,435	50.3 %	(537,232)	(2,316,404)	1,779,172	76.8 %
	Provision for income taxes	(22,168)	(13,410)	(8,758)	-65.3 %	(52,258)	(74,816)	22,558	30.2 %
Total Other Expenses:		(184,775)	(340,452)	155,677	45.7 %	(589,490)	(2,391,220)	1,801,730	75.3 %
Net income (loss)		$ 860,205	$ 216,469	643,736	297.4 %	$ 2,156,512	$ (1,094,761)	3,251,274	297.0 %

Adjusted EBITDA		$ 1,618,519	$ 1,419,054	$ 199,465	14.1 %	$ 4,396,819	$ 3,654,545	$ 742,274	20.3 %

		Quarter Ended March 31,				Nine Months Ended March 31,
		2026	2025	Change	% Change	2026	2025	Change	% Change
Platforms:
	B2B ARR (Annual recurring revenue):
	Beginning of Period	$ 15,318,954	$ 12,738,256	$ 2,580,697	20.3 %	$ 14,197,598	$ 12,060,201	$ 2,137,397	17.7 %
	Incremental ARR	397,970	735,818	(337,848)	-45.9 %	1,519,326	1,413,873	105,453	7.5 %
	End of Period	$ 15,716,923	$ 13,474,074	$ 2,242,849	16.6 %	$ 15,716,923	$ 13,474,074	$ 2,242,849	16.6 %

	Deployments:
	Beginning of Period	1,232	1,090	142	13.0 %	1,171	1,021	150	14.7 %
	Incremental Deployments	15	43	(28)	-65.1 %	76	112	(36)	-32.1 %
	End of Period	1,247	1,133	114	10.1 %	1,247	1,133	114	10.1 %

	ASP (Average sales price):
	Beginning of Period	$ 12,434	$ 11,686	$ 748	6.4 %	$ 12,124	$ 11,812	$ 312	2.6 %
	End of Period	$ 12,604	$ 11,892	$ 711	6.0 %	$ 12,604	$ 11,892	$ 711	6.0 %

	B2C ARR (Annual recurring revenue):
	Beginning of Period	$ 6,441,416	$ 6,371,381	$ 70,035	1.1 %	$ 6,721,356	$ 5,363,129	$ 1,358,227	25.3 %
	Incremental ARR	(80,748)	506,545	(587,293)	NM	(360,688)	1,514,797	(1,875,485)	-123.8 %
	End of Period	$ 6,360,668	$ 6,877,926	$ (517,258)	-7.5 %	$ 6,360,668	$ 6,877,926	$ (517,258)	-7.5 %

	Total ARR (Annualized recurring revenue):	$ 22,077,591	$ 20,352,000	$ 1,725,591	8.5 %	$ 22,077,591	$ 20,352,000	$ 1,725,591	8.5 %

Transaction Customers:
	Corporate customers	1,009	1,060	(51)	-4.8 %	995	1,062	(67)	-6.3 %
	Academic customers	337	320	17	5.3 %	336	323	13	4.0 %
	Total customers	1,346	1,380	(34)	-2.5 %	1,331	1,385	(54)	-3.9 %

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 March 31,				Nine Months Ended March 31,
		2026	2025	Change	% Change	2026	2025	Change	% Change

Net Income (loss)		$ 860,205	$ 216,469	$ 643,736	-297.4 %	$ 2,156,512	$ (1,094,761)	$ 3,251,274	297.0 %
Add (deduct):
	Other (income) expense	162,607	327,042	(164,435)	NM	537,232	2,316,404	(1,779,172)	-76.8 %
	Foreign currency translation loss (gain)	12,529	(44,519)	57,048	-128.1 %	31,385	(119,205)	150,590	126.3 %
	Provision for income taxes	22,168	13,410	8,758	65.3 %	52,258	74,816	(22,558)	-30.2 %
	Depreciation and amortization	312,402	312,013	389	0.1 %	944,893	930,341	14,552	1.6 %
	Stock-based compensation	248,608	594,639	(346,031)	-58.2 %	674,539	1,546,950	(872,411)	-56.4 %
Adjusted EBITDA		$ 1,618,519	$ 1,419,054	$ 199,465	14.1 %	$ 4,396,819	$ 3,654,545	$ 742,275	20.3 %

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 Condensed Consolidated Balance Sheets (Unaudited)
	March 31,		June 30,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$	12,050,396	$	12,227,312
Accounts receivable, net of allowance of $94,234 and $182,324, respectively		7,601,477		7,191,234
Prepaid expenses and other current assets		893,176		580,257
Prepaid royalties		132,426		925
Total current assets		20,677,475		19,999,728

Non-current assets:
Property and equipment, net of accumulated depreciation of $1,003,915 and $964,883, respectively		57,859		60,769
Intangible assets, net of accumulated amortization of $3,648,497 and $2,736,773, respectively		8,836,604		9,686,241
Goodwill		16,372,979		16,372,979
Deposits and other assets		998		957
Total assets	$	45,945,915	$	46,120,674

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	6,687,477	$	7,443,757
Deferred revenue, current portion		11,105,272		10,702,120
Contingent earnout liability, current portion		7,310,763		7,363,152
Total current liabilities		25,103,512		25,509,029

Non-current liabilities:
Deferred revenue, long-term portion		56,508		—
Contingent earnout liability, long-term portion		1,726,046		6,683,488
Total liabilities		26,886,066		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; 33,154,273 and 32,479,993 shares issued and outstanding, respectively		33,154		32,480
Additional paid-in capital		42,023,679		39,059,557
Accumulated deficit		(22,887,181)		(25,043,693)
Accumulated other comprehensive loss		(109,803)		(120,187)
Total stockholders' equity		19,059,849		13,928,157
Total liabilities and stockholders' equity	$	45,945,915	$	46,120,674
See notes to condensed consolidated financial statements

Research Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2026		2025		2026		2025

Revenue:
Platforms	$	5,160,565	$	4,839,929	$	15,506,250	$	13,770,831
Transactions		6,960,996		7,821,434		20,720,147		22,849,233
Total revenue		12,121,561		12,661,363		36,226,397		36,620,064

Cost of revenue:
Platforms		703,669		610,306		1,936,705		1,777,315
Transactions		5,152,360		5,783,977		15,621,912		16,988,700
Total cost of revenue		5,856,029		6,394,283		17,558,617		18,766,015
Gross profit		6,265,532		6,267,080		18,667,780		17,854,049

Operating expenses:
Selling, general and administrative		4,908,149		5,398,145		14,976,885		15,627,248
Depreciation and amortization		312,402		312,013		944,893		930,341
Total operating expenses		5,220,551		5,710,158		15,921,778		16,557,589

Income from operations		1,044,981		556,922		2,746,002		1,296,460

Other income		83,919		78,868		305,897		496,392
Accreted interest expense		(246,526)		—		(843,129)		—
Change in fair value of contingent earnout liability		—		(405,910)		—		(2,812,796)

Income (loss) before provision for income taxes		882,374		229,880		2,208,770		(1,019,944)
Provision for income taxes		(22,168)		(13,410)		(52,258)		(74,816)

Net income (loss)		860,206		216,470		2,156,512		(1,094,760)

Other comprehensive income (loss):
Foreign currency translation		3,558		(3,324)		10,384		(6,855)
Comprehensive income (loss)	$	863,764	$	213,146	$	2,166,896	$	(1,101,615)

Basic income (loss) per common share:
Net income (loss) per share	$	0.03	$	0.01	$	0.07	$	(0.04)
Weighted average common shares outstanding		31,999,813		31,033,022		31,619,417		30,597,410

Diluted income (loss) per common share:
Net income (loss) per share	$	0.03	$	0.01	$	0.07	$	(0.04)
Weighted average common shares outstanding		32,435,370		32,139,935		32,154,594		30,597,410
See notes to condensed consolidated financial statements

Research Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)
	Nine Months Ended
	March 31,
	2026		2025

Cash flow from operating activities:
Net income (loss)	$	2,156,512	$	(1,094,760)
Adjustment to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		944,893		930,341
Stock options expense		239,818		146,751
Restricted common stock expense		434,721		1,400,199
Accreted interest expense		843,129		—
Adjustment to contingent earnout liability		—		2,812,796
Changes in operating assets and liabilities:
Accounts receivable		(410,243)		(754,258)
Prepaid expenses and other current assets		(312,919)		17,826
Prepaid royalties		(131,501)		311,938
Accounts payable and accrued expenses		(724,921)		(338,502)
Deferred revenue		459,660		1,331,920
Net cash provided by operating activities		3,499,149		4,764,251

Cash flow from investing activities:
Purchase of property and equipment		(28,609)		(11,571)
Net cash used in investing activities		(28,609)		(11,571)

Cash flow from financing activities:
Proceeds from the exercise of stock options		157,500		—
Common stock repurchase		(47,385)		(908,393)
Payment of contingent acquisition consideration - Scite andFIZ		(3,766,263)		(91,174)
Net cash used in financing activities		(3,656,148)		(999,567)

Effect of exchange rate changes		8,692		(1,137)
Net increase (decrease) in cash and cash equivalents		(176,916)		3,751,976
Cash and cash equivalents, beginning of period		12,227,312		6,100,031
Cash and cash equivalents, end of period	$	12,050,396	$	9,852,007

Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	52,258	$	74,816

Non-cash investing and financing activities:
Contingent consideration accrual on asset acquisition	$	—	$	29,394
Common stock issued for Sciteearnout payment	$	2,180,142	$	—
See notes to condensed consolidated financial statements

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SOURCE Research Solutions, Inc.

FAQ

How did Research Solutions (RSSS) perform in fiscal Q3 2026?

Research Solutions reported Q3 2026 revenue of $12.1 million and net income of $860,000. According to Research Solutions, ARR reached $22.1 million, Adjusted EBITDA was $1.6 million, and gross margin improved to 51.7% for the quarter ended March 31, 2026.

What were Research Solutions (RSSS) platform and transaction revenues in Q3 2026?

In fiscal Q3 2026, platform revenue was $5.2 million and transaction revenue was $7.0 million. According to Research Solutions, platform revenue grew 6.6% year-over-year and represented 43% of total revenue, while transaction revenue declined 11.0% versus the prior-year quarter.

How much annual recurring revenue did Research Solutions (RSSS) report for Q3 2026?

Research Solutions reported total ARR of $22.1 million for Q3 2026. According to Research Solutions, this included approximately $15.7 million of B2B ARR and $6.4 million of B2C ARR, reflecting an 8.5% year-over-year increase in total annual recurring revenue.

What was Research Solutions (RSSS) Adjusted EBITDA in fiscal Q3 2026?

Adjusted EBITDA for fiscal Q3 2026 was $1.6 million, up 14.1% year-over-year. According to Research Solutions, trailing twelve-month Adjusted EBITDA reached $6.0 million, representing a 12.3% margin, highlighting profitability on a non-GAAP basis for the period ended March 31, 2026.

How did Research Solutions (RSSS) cash flow from operations change in Q3 2026?

Cash flow from operations in Q3 2026 was $1.0 million, down from $2.9 million a year earlier. According to Research Solutions, this reflected timing of billings and working capital changes, while trailing twelve-month operating cash flow totaled $5.7 million.

What were the key margin trends for Research Solutions (RSSS) in Q3 2026?

Total gross margin improved to 51.7% in Q3 2026, up 220 basis points year-over-year. According to Research Solutions, gross profit was $6.3 million, supported by a continued revenue mix shift toward the higher-margin platform business during the quarter.

How did B2B and B2C ARR trend for Research Solutions (RSSS) in Q3 2026?

In Q3 2026, B2B ARR ended at $15.7 million, while B2C ARR was $6.36 million. According to Research Solutions, total ARR increased 8.5% year-over-year, with B2B ARR rising and B2C ARR declining 7.5% compared with the prior-year period.