Research Solutions Reports First Quarter Fiscal Year 2026 Results

Reports 21% Increase in ARR to $21.3 Million, Strong Growth in Net Income, Adjusted EBITDA and Operating Cash Flow

HENDERSON, Nev., Nov. 13, 2025 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal first quarter ended September 30, 2025.

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

"Our first quarter results show the continued progress of our transformation toward award winning SaaS and AI solutions. We posted the strongest organic Q1 growth on record within our B2B business, aided by winning multiple six-figure deals, including our largest ever Scite AI deal, which are being driven in part by the new capabilities offered within our Article Galaxy and Scite platforms, including API access, an AI rights add-on and the launch of Scite rankings. With these deals our Average Sales Price ("ASP") is now near all-time high levels," said Roy W. Olivier, President and CEO of Research Solutions. "We also continue to make incremental progress towards our 'Rule of 40' target, thanks to a 21% year-over-year increase in total ARR and our second-best EBITDA quarter in Company history. Lastly, the business continues to generate strong cash flow, placing us in a very strong position to reinvest into our sales and marketing efforts to further drive better execution and deliver for our shareholders."

Fiscal First Quarter 2026 Results

Total revenue was $12.3 million, compared to $12.0 million in the year-ago quarter, driven by increased platform revenue versus the prior-year period.

Platform subscription revenue for the quarter was $5.1 million, an 18% year-over-year increase from the prior-year period. The increase was due to organic growth in the core B2C and B2B platforms, with the latter increasing due to a mix of new logo generation as well as upsells and cross sells into existing customers. The quarter ended with annual recurring revenue of $21.3 million, up 21% year-over-year (see the Company's definition of annual recurring revenue below).

Transaction revenue was $7.2 million, compared to $7.7 million in the first quarter of fiscal 2025. The decrease was due to lower per article fees on paid orders. The transaction active customer count for the quarter was 1,326, compared to 1,390 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

Total gross margin improved 270 basis points from the prior-year quarter to 50.6%. 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 $5.3 million, compared to $5.1 million in the first quarter of 2025. The increase was primarily related to higher sales and marketing expenses offset by reduced general and administrative and stock-based compensation expenses.

Net income in the first quarter was $749,000, or $0.02 per diluted share, compared to $669,000, or $0.02 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.5 million, compared to $1.3 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Conference Call

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

Date: Thursday, November 13, 2025

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 December 13, 2025 by dialing 1-412-317-6671 and using the replay ID 11160315, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

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

Quarter Ended September 30,

2025

2024

Change

% Change

Revenue:

Platforms

$ 5,120,840

$ 4,329,645

$ 791,195

18.3 %

Transactions

7,191,345

7,714,837

(523,492)

-6.8 %

Total Revenue

12,312,185

12,044,482

267,703

2.2 %

Gross Profit:

Platforms

4,510,465

3,782,478

727,987

19.2 %

Transactions

1,714,833

1,983,398

(268,565)

-13.5 %

Total Gross Profit

6,225,298

5,765,876

459,422

8.0 %

Gross profit as a % of revenue:

Platforms

88.1 %

87.4 %

0.7 %

Transactions

23.8 %

25.7 %

-1.9 %

Total Gross Profit

50.6 %

47.9 %

2.7 %

Operating Expenses:

Sales and marketing

1,666,825

1,190,407

476,418

40.0 %

Technology and product development

1,410,151

1,372,758

37,393

2.7 %

General and administrative

1,675,359

1,930,176

(254,817)

-13.2 %

Depreciation and amortization

316,066

312,095

3,971

1.3 %

Stock-based compensation

212,482

417,989

(205,507)

-49.2 %

Foreign currency translation loss (gain)

(17,256)

(104,240)

86,984

-83.4 %

Total Operating Expenses

5,263,627

5,119,185

144,442

2.8 %

Income (loss) from operations

961,671

646,691

314,980

48.7 %

Other Income (Expenses):

Other income (expenses)

(191,053)

68,525

(259,578)

Provision for income taxes

(21,231)

(46,212)

24,981

-54.1 %

Total Other Income (Expenses):

(212,284)

22,313

(234,597)

Net income

$ 749,387

$ 669,004

$ 80,383

12.0 %

Adjusted EBITDA

$ 1,472,963

$ 1,272,535

$ 200,428

15.8 %

Quarter Ended September 30,

2025

2024

Change

% Change

Platforms:

B2B ARR (Annual recurring revenue*):

Beginning of Period

$ 14,197,598

$ 12,060,201

$ 2,137,397

17.7 %

Incremental ARR

560,874

127,633

433,241

339.4 %

End of Period

$ 14,758,472

$ 12,187,834

$ 2,570,637

21.1 %

Deployments:

Beginning of Period

1,171

1,021

150

14.7 %

Incremental Deployments

75.0 %

End of Period

1,185

1,029

156

15.2 %

ASP (Average sales price):

Beginning of Period

$ 12,124

$ 11,812

$ 312

2.6 %

End of Period

$ 12,454

$ 11,844

$ 610

5.2 %

B2C ARR (Annual recurring revenue*):

Beginning of Period

$ 6,721,356

$ 5,363,129

$ 1,358,227

25.3 %

Incremental ARR

(186,159)

67,666

(253,825)

End of Period

$ 6,535,197

$ 5,430,795

$ 1,104,402

20.3 %

Total ARR (Annualized recurring revenue):

$ 21,293,669

$ 17,618,629

$ 3,675,040

20.9 %

Transaction Customers:

Corporate customers

1,002

1,074

(72)

-6.7 %

Academic customers

324

316

2.5 %

Total customers

1,326

1,390

(64)

-4.6 %

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 September 30,

2025

2024

Change

% Change

Net Income (loss)

$ 749,387

$ 669,004

$ 80,383

12.0 %

Add (deduct):

Other (income) expense

191,053

(68,525)

259,578

Foreign currency translation loss (gain)

(17,256)

(104,240)

86,984

-83.4 %

Provision for income taxes

21,231

46,212

(24,981)

-54.1 %

Depreciation and amortization

316,066

312,095

3,971

1.3 %

Stock-based compensation

212,482

417,989

(205,507)

-49.2 %

Adjusted EBITDA

$ 1,472,963

$ 1,272,535

$ 200,428

15.8 %

About Research Solutions

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

Important Cautions Regarding Forward-Looking Statements

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

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

June 30,

2025

Assets

Current assets:

Cash and cash equivalents

11,955,763

12,227,312

Accounts receivable, net of allowance of $126,398 and $182,324, respectively

6,899,181

7,191,234

Prepaid expenses and other current assets

720,261

580,257

Prepaid royalties

80,438

925

Total current assets

19,655,643

19,999,728

Non-current assets:

Property and equipment, net of accumulated depreciation of $978,832 and $964,883, respectively

68,695

60,769

Intangible assets, net of accumulated amortization of $3,042,399 and $2,736,773, respectively

9,411,321

9,686,241

Goodwill

16,372,979

Deposits and other assets

982

957

Total assets

45,509,620

46,120,674

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

7,600,243

7,443,757

Deferred revenue

9,982,074

10,702,120

Contingent earnout liability, current portion

7,296,225

7,363,152

Total current liabilities

24,878,542

25,509,029

Non-current liabilities:

Contingent earnout liability, long-term portion

5,036,758

6,683,488

Total liabilities

29,915,300

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; 32,823,996 and

32,479,993 shares issued and outstanding, respectively

32,824

32,480

Additional paid-in capital

39,975,022

39,059,557

Accumulated deficit

(24,294,306)

(25,043,693)

Accumulated other comprehensive loss

(119,220)

(120,187)

Total stockholders' equity

15,594,320

13,928,157

Total liabilities and stockholders' equity

45,509,620

46,120,674

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)

(Unaudited)

Three Months Ended

September 30,

2025

2024

Revenue:

Platforms

5,120,840

4,329,645

Transactions

7,191,345

7,714,837

Total revenue

12,312,185

12,044,482

Cost of revenue:

Platforms

610,375

547,167

Transactions

5,476,512

5,731,439

Total cost of revenue

6,086,887

6,278,606

Gross profit

6,225,298

5,765,876

Operating expenses:

Selling, general and administrative

4,947,561

4,807,090

Depreciation and amortization

316,066

312,095

Total operating expenses

5,263,627

5,119,185

Income from operations

961,671

646,691

Other income

126,913

68,525

Change in fair value of contingent earnout liability

(317,966)

—

Income before provision for income taxes

770,618

715,216

Provision for income taxes

(21,231)

(46,212)

Net income

749,387

669,004

Other comprehensive income (loss):

Foreign currency translation

967

(6,168)

Comprehensive income

750,354

662,836

Basic income per common share:

Net income per share

0.02

Weighted average common shares outstanding

31,234,875

30,346,871

Diluted income per common share:

Net income per share

0.02

Weighted average common shares outstanding

32,070,121

31,200,917

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

September 30,

2025

2024

Cash flow from operating activities:

Net income

749,387

669,004

Adjustment to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

316,066

312,095

Stock options expense

58,706

28,856

Restricted common stock expense

153,776

389,133

Adjustment to contingent earnout liability

317,966

—

Changes in operating assets and liabilities:

Accounts receivable

292,053

566,194

Prepaid expenses and other current assets

(140,004)

(5,944)

Prepaid royalties

(79,513)

494,713

Accounts payable and accrued expenses

158,728

(618,140)

Deferred revenue

(720,046)

(992,792)

Net cash provided by operating activities

1,107,119

843,119

Cash flow from investing activities:

Purchase of property and equipment

(17,539)

—

Net cash used in investing activities

(17,539)

—

Cash flow from financing activities:

Common stock repurchase

(23,387)

(16,119)

Payment of contingent acquisition consideration - Scite and FIZ

(1,337,857)

—

Net cash used in financing activities

(1,361,244)

(16,119)

Effect of exchange rate changes

115

(2,258)

Net increase (decrease) in cash and cash equivalents

(271,549)

824,742

Cash and cash equivalents, beginning of period

12,227,312

6,100,031

Cash and cash equivalents, end of period

11,955,763

6,924,773

Supplemental disclosures of cash flow information:

Cash paid for income taxes

21,231

46,212

Non-cash investing and financing activities:

Contingent consideration accrual on asset acquisition

29,117

33,353

Common stock issued for Scite earnout payment

726,714

—

SOURCE Research Solutions, Inc.