Research Solutions (RSSS) Company Report

Research Solutions reported net income of $547,000, or $0.02 per diluted share, for its fiscal second quarter ended December 31, 2025, a significant improvement from a net loss of $2.0 million, or ($0.07) per share, in the prior-year quarter.
Adjusted EBITDA increased 36% to $1.3 million in Q2 FY2026.
Total revenue for Q2 FY2026 was $11.8 million, a 1% decrease year-over-year, as a 10.2% decline in transaction revenue to $6.6 million offset a 14% increase in platform revenue to $5.2 million.
Annual Recurring Revenue (ARR) grew 14% to $21.8 million, comprising $15.3 million of B2B ARR and $6.4 million of B2C ARR, and the company achieved 47 net new B2B deployments.
Gross profit rose 6% to $6.2 million, with the total gross margin improving 350 basis points to 52.4%.

Feb 12, 2026, 10:17 PM

8-K

Research Solutions Reports Mixed Q2 2026 Results with Strong B2B Growth

RSSS

Earnings

Demand Weakening

New Projects/Investments

For Q2 2026, Research Solutions reported total revenue of $11.8 million, a slight decrease from $11.9 million in the prior year, but achieved net income of $547,000 ($0.02 per diluted share) compared to a net loss in Q2 2025, and Adjusted EBITDA increased 36% to $1.3 million.
Platform subscription revenue, primarily from the B2B segment, increased roughly 14% to $5.2 million, driven by 47 net new deployments. Conversely, transaction revenue and B2C Annual Recurring Revenue (ARR) experienced softness due to churned accounts, volume reductions, and a strategic pullback in B2C marketing channels.
The company is strategically evolving from a document delivery business to an "answers and access platform" with a strong focus on API and AI integration sales, which are yielding larger and stickier contracts, typically 2x-5x larger than traditional seat-based sales.
Management expects transaction declines to continue in the second half of the year but aims to exceed fiscal 2025 EBITDA levels in the remaining quarters, supported by ongoing platform subscription growth and disciplined operating expense management.

Feb 12, 2026, 10:00 PM

Transcript

Research Solutions Reports Q2 2026 Financial Results and Strategic Shift

RSSS

Earnings

New Projects/Investments

Demand Weakening

Research Solutions reported Q2 2026 total revenue of $11.8 million, a slight decrease from $11.9 million in Q2 2025, driven by a 14% increase in platform subscription revenue to $5.2 million offset by a decline in transaction revenue.
The company achieved net income of $547,000 ($0.02 per diluted share) and a 36% increase in Adjusted EBITDA to $1.3 million for Q2 2026, significantly improving from a net loss in the prior year.
A key strategic shift involves prioritizing B2B annual and multiyear agreements and evolving into an "answers and access platform" through API and AI integration, which is leading to larger and more stable contracts.
Despite strong B2B growth, the company experienced a decline in year-over-year transactions due to churned accounts and volume reductions, alongside increased competition and softness in the B2C segment, which are expected to be headwinds in the second half of the year.

Feb 12, 2026, 10:00 PM

Transcript

Research Solutions Reports Q2 2026 Results with Strong Platform Growth and Strategic Shift to AI Integration

RSSS

Earnings

New Projects/Investments

Demand Weakening

Research Solutions reported Q2 2026 total revenue of $11.8 million, a slight decrease from $11.9 million in Q2 2025, but saw platform subscription revenue increase by 14% to $5.2 million and Annual Recurring Revenue (ARR) grow 14% year-over-year to $21.8 million.
The company achieved net income of $547,000, or $0.02 per diluted share, a significant improvement from a net loss in the prior year quarter, and Adjusted EBITDA increased by 36% to $1.3 million.
Management highlighted a strategic shift towards B2B annual and multiyear agreements and an evolution from a document delivery company to an "answers and access platform" through API and AI integration, with API sales being typically 2x-5x larger and stickier than traditional seat-based sales.
While expecting continued declines in transaction revenue and headwinds in the B2C segment for the second half of the year, the company anticipates stronger performance in Q3 and Q4 due to historical seasonality and aims to return its SaaS growth rate to 20%+.

Feb 12, 2026, 10:00 PM

Transcript

Research Solutions Reports Fiscal Second Quarter 2026 Results

RSSS

Earnings

Revenue Acceleration/Inflection

Research Solutions reported a 14% increase in Annual Recurring Revenue (ARR) to $21.8 million for its fiscal second quarter ended December 31, 2025.
The company achieved net income of $547,000, or $0.02 per diluted share, a significant improvement from a net loss of $2.0 million in the prior-year quarter.
Adjusted EBITDA grew 36% to $1.3 million in the fiscal second quarter of 2026.
Total revenue was $11.8 million, a slight decrease from $11.9 million in the prior year, as strong B2B revenue growth did not fully offset softness in transactions revenue.

Feb 12, 2026, 9:05 PM

Press Release

Research Solutions Highlights Business Transformation and Strong Financial Performance

RSSS

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Research Solutions (RSSS) is undergoing a significant business transformation, shifting towards a higher-margin platform (SaaS) business.
The platform business, now representing 40-42% of revenue (up from 26% two years ago), has an 85% gross margin and is growing 20% organically with over $21 million in ARR.
This strategic shift has driven corporate blended gross margin from 40% to over 50% in the last two years, with adjusted EBITDA reaching $5.5 million and cash flow from operations at $7.3 million.
The lower-margin transactional business (24.5% gross margin) faces headwinds, including a projected decline for the remainder of the fiscal year, largely due to one major customer churn.
The company's cash balance has grown to $12 million and it is seriously considering share buybacks.

Nov 20, 2025, 2:35 PM

Transcript

Research Solutions Details Business Transformation and Financial Performance

RSSS

Revenue Acceleration/Inflection

M&A

Share Buyback

Research Solutions is undergoing a significant business transformation, shifting from a lower-margin transactional document delivery business to a higher-margin vertical SaaS platform.
The platform business, with an 85% gross margin, is growing at 20% organically and now constitutes 40-42% of total revenue, driving the corporate blended gross margin from 40% to over 50% in the last two years.
The company reported $5.5 million in Adjusted EBITDA and $7.3 million in cash flow from operations, reflecting substantial growth from fiscal year 2023.
With a cash balance of $12 million, the company is considering share buybacks as its stock trades at two times revenue, making acquisitions at higher multiples challenging.
While the transactional business faces headwinds, the B2B platform business maintains a 100%+ net retention rate and strong renewal rates among top-tier customers.

Nov 20, 2025, 2:35 PM

Transcript

Research Solutions Details Business Transformation and Financial Performance

RSSS

Revenue Acceleration/Inflection

M&A

Share Buyback

Research Solutions (RSSS) is undergoing a significant business transformation, shifting from a lower-margin transactional document delivery (DocDel) business to a high-margin (85% gross margin) vertical SaaS platform.
The platform business, which includes products like Article Galaxy and Scite, is experiencing 20% organic Annual Recurring Revenue (ARR) growth and is now over $21 million.
This strategic shift has led to substantial improvements in profitability and cash flow, with adjusted EBITDA reaching $5.5 million and cash flow from operations at $7.3 million.
The company's cash balance has grown to $12 million, even after the Scite acquisition in December 2023 and a $1.3 million earnout payment, and management is seriously considering a share buyback program.

Nov 20, 2025, 2:35 PM

Transcript

Research Solutions Reports Strong Q1 Fiscal Year 2026 Results

RSSS

Earnings

Revenue Acceleration/Inflection

Research Solutions, Inc. reported a 2% increase in total revenue to $12.3 million for the first quarter of fiscal year 2026, driven by an 18% rise in Platform revenue to $5.1 million and a 21% increase in Annual Recurring Revenue (ARR) to $21.3 million.
The company's net income grew by 12% to $749,000, or $0.02 per diluted share, while Adjusted EBITDA increased by 16% to $1.5 million.
Total gross margin improved by 270 basis points to 50.6%, and cash flow from operations increased 31% to $1.1 million for the quarter ended September 30, 2025.

Nov 13, 2025, 10:04 PM

8-K

Research Solutions Announces Q1 Fiscal 2026 Earnings

RSSS

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Research Solutions (RSSS) reported Q1 fiscal year 2026 total revenue of $12.3 million and Adjusted EBITDA of $1.5 million, representing a 16% increase year-over-year, which was the second-highest quarterly Adjusted EBITDA in company history.
Annual Recurring Revenue (ARR) grew 21% year-over-year to $21.3 million, driven by strong B2B performance, including closing some of the largest deals in the company's history and a 92% increase in total incremental ARR to $375,000.
Platform subscription revenue increased 18% to $5.1 million, now accounting for 42% of total revenue, and contributed to an improved gross margin of 50.6%.
The company is advancing its AI strategy with the launch of RightsDel, an AI rights offering, and is working with publishers to offer an AI gateway product based on Site, aiming to monetize AI usage of content.
Transaction revenue for the quarter was $7.2 million, a decline from the prior year, primarily attributed to one churned account and reduced spending from two large customers, though the decline was less than the previous quarter.