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Research Solutions Reports Strong First Quarter Results for FY 2026

On November 13, 2025, Research Solutions, Inc. released its financial results for the first quarter of its fiscal year 2026, highlighting significant advancements in its annual recurring revenue (ARR) and overall growth metrics. The company, known for its AI-powered research workflow platform, reported an impressive 21% increase in ARR, reaching a total of $21.3 million. This growth is notably driven by robust performances across both B2B and B2C sectors.

Financial Highlights

Research Solutions' fiscal first-quarter results paint a promising picture:

• - Annual Recurring Revenue (ARR): Up by 21%, totaling $21.3 million, with approximately $14.8 million generated from business-to-business (B2B) activities and $6.5 million from business-to-consumer (B2C) revenues.
• - Net B2B ARR Growth: Achieving a significant 300% year-over-year increase, with net growth of $561,000 setting a record for organic performance in the company’s history.
• - Total Revenue: The company reported total revenue of $12.3 million, reflecting a marginal increase of 2% from the previous year.
• - Platform Revenue: Notably, platform revenue soared 18% to $5.1 million, constituting 42% of overall revenue, an uptick from 36% in the prior year.
• - Gross Profit: Improved by 8% to $6.2 million, with total gross margin enhancing by 270 basis points, reaching 50.6%.
• - Net Income: The company reported a net income of $749,000, yielding earnings of $0.02 per share, compared to $669,000 the prior year.
• - Adjusted EBITDA: Increased by 16%, amounting to $1.5 million, with an 11.1% profit margin on a trailing twelve-month basis. Cash flow from operations witnessed a 31% jump to $1.1 million.

Roy W. Olivier, President and CEO of Research Solutions, commented, "Our first quarter results demonstrate our continued progress towards becoming a leading provider of award-winning SaaS and AI solutions. We reached our strongest Q1 growth in B2B, driven by sizable contract wins, including our largest ever Scite AI deal, which reflect the enhanced capabilities our platforms now offer. Our ASP (Average Sales Price) is now at an all-time high."

Strategic Updates

The company continues to focus on enhancing its platform features, which have significantly contributed to its growth. Advances in the Article Galaxy and Scite platforms—such as API access, an AI rights add-on, and Scite rankings—are fueling sales growth and customer engagement. Olivier noted that they are making measurable strides toward their 'Rule of 40' ambition, thanks to the remarkable 21% annual increase in total ARR and achieving the second-best EBITDA quarter in the company’s history.

Operational Insights

Research Solutions reported operational expenses of $5.3 million for the quarter, reflecting a slight increase due to heightened sales and marketing investments aimed at scaling their outreach and clientele. However, general administrative expenses saw a reduction. The company's strategy to reinvest profits into growth avenues is fundamental to its ongoing success.

Conference Call

Following the announcement of these results, Research Solutions will host a conference call at 5 p.m. ET on November 13, 2025, to discuss their financial performance in further detail. Interested parties can join the call or access the recorded version through the investor relations section of the company's website.

Conclusion

With a demonstrated capability to adapt and grow in a competitive landscape, Research Solutions appears well-positioned to leverage emerging opportunities in the research workflow sector. The company’s integration of AI technologies is fundamentally changing how scientific literature is accessed and analyzed, promising continued acceleration in the pace of scientific discovery.

For more details about Research Solutions and their offerings, visit www.researchsolutions.com.