Research Solutions FY26 profit doubles to $2.8M
RSSS grew higher-margin platform and AI-driven recurring revenue, more than doubled annual net income, but saw modest declines in total and transaction revenue.
Rhea-AI Filing Summary
Research Solutions, Inc. (RSSS) reported mixed fourth quarter and strong full-year results for the fiscal year ended June 30, 2026. Fiscal 2026 revenue was $48.3 million, down 1.5% from 2025, as an 8.7% decline in transaction revenue to $27.5 million offset a 9.8% increase in higher-margin platform subscription revenue to $20.8 million. Total annual recurring revenue (ARR) reached $22.5 million, up 7.8%, driven by a 14.1% increase in B2B ARR and incremental AI-related ARR of $0.8 million, partially offset by lower B2C ARR.
Profitability improved significantly. Net income more than doubled to $2.8 million, or $0.09 per diluted share, compared with $1.3 million, or $0.04 per diluted share, in 2025. Gross margin expanded 260 basis points to 51.9%, reflecting a greater contribution from the platforms business. Adjusted EBITDA rose 10.6% to $5.8 million. The company ended the year with $12.6 million in cash and cash equivalents and total stockholders’ equity of $20.7 million.
In the fourth quarter, revenue was $12.1 million, down 2.9% year over year, as transaction revenue fell 6.7% while platform revenue grew 2.5%. Q4 net income was $0.7 million, compared with $2.4 million in the prior-year quarter, which included a $1.1 million favorable Scite earnout adjustment. Management highlighted new AI-based products and a growing AI-related revenue pipeline for fiscal 2027.
Positive
- Net income for fiscal 2026 rose 123% to $2.8 million, or $0.09 per diluted share, from $1.3 million, or $0.04 per diluted share, in fiscal 2025.
- Platform subscription revenue grew 9.8% to $20.8 million for fiscal 2026, supported by 105 net new B2B deployments and $0.8 million of incremental AI-related ARR.
- Total ARR increased 7.8% year over year to $22.5 million, with B2B ARR up 14.1%, indicating continued expansion in recurring revenue.
- Gross margin expanded 260 basis points to 51.9% for fiscal 2026, reflecting a favorable shift toward the higher-margin platforms business.
- Adjusted EBITDA improved 10.6% to $5.8 million for fiscal 2026, showing stronger underlying operating performance.
- Total stockholders’ equity increased to $20.7 million from $13.9 million, supported by higher earnings and additional paid-in capital.
Negative
- Total revenue declined 1.5% in fiscal 2026 to $48.3 million, as growth in platform revenue did not fully offset lower transaction revenue.
- Transaction revenue fell 8.7% year over year to $27.5 million, driven by lower paid order volume, particularly in the second and third quarters.
- Net cash provided by operating activities decreased to $5.3 million from $7.0 million in the prior year, reflecting changes in working capital and other items.
- Fourth quarter net income declined to $0.7 million from $2.4 million in the prior-year quarter, which benefited from a $1.1 million favorable Scite earnout adjustment.
- B2C ARR decreased 5.6% year over year to $6.3 million, partially offsetting growth in B2B ARR within total ARR.
Filing Explained
At June 30, 2026, common shares outstanding were 33,513,551 versus 32,479,993, alongside stock issued for a Scite earnout payment.
As of June 30, 2026, the company reported
The cash-flow statement also reports
Cash consideration included
8-K Event Classification
Key Figures
Key Terms
Annual recurring revenue financial
Adjusted EBITDA financial
contingent earnout liability financial
accreted interest expense financial
publisher-independent marketplaces technical
Earnings Snapshot
FAQ
How did Research Solutions (RSSS) perform financially in fiscal year 2026?
What were Research Solutions’ key revenue drivers in 2026?
How much annual recurring revenue (ARR) did RSSS report?
What happened to Research Solutions’ profitability and margins?
What was Research Solutions’ cash position at June 30, 2026?
How did Research Solutions’ fourth quarter 2026 results compare to the prior year?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
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(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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| The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
1 In November 2019, we became a fully
remote company. Accordingly, we do not currently have principal executive offices. Our mailing address is
Item 2.02 Results of Operations and Financial Condition.
On September 9, 2026, the Registrant announced its financial results for the fourth quarter and fiscal year ended June 30, 2026. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
| (d) | Exhibits. |
| Exhibit Number | Description |
| 99.1 | Press Release issued September 9, 2026 entitled “Research Solutions Reports Fourth Quarter and Fiscal Year 2026 Results”. |
| 104 | Cover Page Interactive Data File (embedded as Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RESEARCH SOLUTIONS, INC. | ||
| Date: September 9, 2026 | By: | /s/ David Kutil |
| David Kutil | ||
| Chief Financial Officer | ||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Research Solutions Reports Fourth Quarter and Fiscal Year 2026 Results
Reports Record Fiscal Year Net Income of $2.8 Million, 14% YoY B2B ARR Increase and ARR of $22.5 Million
HENDERSON, Nev., September 9, 2026 — 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 (Unaudited)
| 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
(Unaudited)
| 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
(Unaudited)
| 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 | $ | — | ||||
Contact
Steven Hooser or John Beisler
Three Part Advisors
(214) 872-2710
shooser@threepa.com; jbeisler@threepa.com
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