Research Solutions Reports Third Quarter Fiscal Year 2026 Results

Published: 2026-05-14 16:06:12 ET RSSS

Published on 05/14/2026 at 04:06 pm EDT

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)

"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 CallManagement will host the conference call, followed by a question-and-answer period.

Date: Thursday, May 14, 2026Time: 5:00 p.m. ET (2:00 p.m. PT)Dial-in number: 1-203-518-9708Conference 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 %

-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

(28)

-65.1 %

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)

(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

5.3 %

336

323

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 EBITDAResearch 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)

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 SubsidiariesCondensed 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

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 and32,479,993 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 SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive Income (Loss)(Unaudited)

Three Months Ended

Nine Months Ended

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 SubsidiariesCondensed 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.