Research Solutions Reports Impressive Preliminary Results for Q4 and Fiscal Year 2025
Research Solutions Reports Impressive Preliminary Results for Q4 and Fiscal Year 2025
HENDERSON, Nev., Aug. 19, 2025 - Research Solutions, Inc. (NASDAQ: RSSS), recognized as the leading AI-powered research workflow platform, has unveiled preliminary financial outcomes for its fourth quarter and the completed fiscal year 2025. With ambitions to generate record revenues, the company has embraced a year of robust growth.
Key Financial Highlights from Q4 2025
According to preliminary unaudited figures, Research Solutions anticipates that its platform revenue has surged by 21% year-on-year, totaling around $5.2 million. Additionally, the Annual Recurring Revenue (ARR) is predicted to grow by approximately 20% compared to the previous year, reaching $20.9 million. The overall total revenue is expected to show a 3% increase from the prior-year quarter, amounting to $12.4 million.
The company achieved a positive operating income of approximately $1.2 million, with a net income exceeding $2.3 million. This net income includes a favorable adjustment of $1.1 million related to the earn-out calculation tied to the Scite acquisition. The Adjusted EBITDA is projected to be around $1.6 million, reflecting a 15% increase from the same quarter last year. Furthermore, cash flow from operations is estimated at about $2.3 million, while the company's cash balance is expected to remain above $12.2 million.
Full Fiscal Year 2025 Overview
For the entire fiscal year 2025, Research Solutions expects a remarkable growth in platform revenue, projected to climb by approximately 36% from fiscal 2024 to nearly $19 million. The total revenue for the year is likely to reflect a 10% increase from fiscal 2024, estimating around $49.1 million. The corporate gross margin is anticipated to be more than 49%, compared to 44% in fiscal 2024.
The company's GAAP net income for the year is estimated at around $1.3 million, inclusive of the aforementioned earn-out adjustment, with an Adjusted EBITDA projected at about $5.3 million. Cash flow from operations is expected to exceed $7.0 million, nearly double the previous year's performance.
Insights into Scite Earn-out Payments
Research Solutions provided an update regarding the Scite earn-out, which has been finalized at approximately $15.4 million. As per the merger agreement, this earn-out is scheduled to be compensated by 50% cash and 50% stock over a span of eight quarters. After an offer to Scite’s former shareholders, the actual distribution will be roughly 62% cash and 38% stock. The first payment was made earlier this month, with seven additional payments planned quarterly until completion in May 2027.
Positive Outlook for Future Growth
Roy W. Olivier, President and CEO of Research Solutions, expressed optimism about the company's performance: “As we execute our strategic plan, we continue to observe strong results in both our revenue and earnings. Our preliminary results for Q4 and fiscal year 2025 are indicative of our sustained growth, particularly within our Platforms business. Our ARR has expanded by 20% this year, nearing $21 million.” He further stated that the solid Adjusted EBITDA and cash flow figures would enable the company to reduce the equity portion of the Scite earn-out, reflecting a positive outlook for business sustainability.
Olivier also highlighted the company’s goal to enhance the weighted “rule of 40” metric, which considers both ARR growth and Adjusted EBITDA margin. For fiscal year 2025, this metric stood at 34%, with aspirations for further improvement in fiscal year 2026.
The complete financial results for Q4 and fiscal year 2025 will be released on September 18, 2025, along with details regarding the accompanying conference call.
About Research Solutions, Inc.
Founded in 2006, Research Solutions, Inc. (NASDAQ: RSSS) specializes in providing cloud-based technologies that streamline the acquisition, management, and development of intellectual property. The company offers the Article Galaxy SaaS platform, which is relied upon by over 70% of leading pharmaceutical companies, esteemed universities, and growing enterprises, ensuring seamless access to critical scientific research with 24/7 support.
For more details, interested parties are encouraged to visit Research Solutions' official website.
Topics Business Technology）
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