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Research Solutions Reports Third Quarter Fiscal Year 2026 Results

On May 14, 2026, Research Solutions, Inc. (NASDAQ: RSSS) announced its financial results for the third quarter of fiscal year 2026, highlighting the firm’s resilience and strategic advancements in a competitive landscape. The report showcases a remarkable increase in key financial metrics, indicating the company's strong market position as a leading AI-driven research workflow platform.

Key Financial Highlights

• - Total Revenue: The company posted a total revenue of $12.1 million, a slight decline from $12.7 million recorded in the same quarter last year. This decrease was primarily influenced by a reduction in lower-margin transaction revenue.
• - Annual Recurring Revenue (ARR): Research Solutions achieved an impressive 8.5% growth in ARR, reaching $22.1 million. This figure includes approximately $15.7 million from B2B recurring revenue and $6.4 million from B2C recurring revenue, indicating a balanced diversification in income sources.
• - Net Income: The company registered a net income of $860,000, reflecting a staggering 297% increase compared to the previous year’s net income of $216,000.
• - Adjusted EBITDA: A key indicator of operational profitability, adjusted EBITDA rose 14% to $1.6 million, solidifying the company’s ongoing operational efficiency.
• - Platform Revenue: Revenue from the company's platform increased by 6.6%, equating to $5.2 million, which represented 43% of total revenue compared to 38% from the previous year. This shift signifies a favorable movement towards higher-margin business segments.

Operational Developments

During the third quarter, Research Solutions made notable operational advancements, including the introduction of two new AI-based products tailored for Article Galaxy and Scite users. These products enhance the functionality of existing AI tools, streamlining the processes involved in accessing and acquiring scientific literature. The CEO, Roy W. Olivier, emphasized the importance of innovation in maintaining partnerships with researchers and improving the efficiency of research workflows.

According to Olivier, “Simplifying the research process is essential in a rapidly evolving environment, and these tools reinforce our commitment to being a valuable partner for researchers.” He also acknowledged that the third-quarter results reflect sustained profitability and growth prospects, even within a fluctuating market landscape.

The company achieved fifteen new deployments during the quarter, marking a 10% growth in overall deployments over the last year. Despite fluctuations in transaction revenue, Research Solutions continues to expand its customer base and generate consistent cash flow, evidenced by $1.0 million in cash flow from operations for Q3.

Cost Management and Margins

Research Solutions effectively managed its operating expenses during the quarter, lowering total operating costs by 8.6% compared to the previous year, amounting to $5.2 million. Significant reductions in general and administrative expenses contributed to this decrease. Notably, gross margin performance saw improvement, climbing 220 basis points to 51.7%, driven by the company’s focus on enhancing its higher-margin platform business.

Looking Ahead

The strategic direction for Research Solutions aims at sustaining growth and maximizing shareholder value. Continued investments in sales and marketing are expected to drive additional upsells to existing customers and attract larger deals with new clients.

A conference call will be conducted following this announcement for a deeper discussion of the results, offering investors a platform for questions and answers. The commitment to building on these achievements reflects Research Solutions’ adaptability and dedication to its mission in the research community.

For stakeholders keen on monitoring future developments, details regarding the conference call will be available on the Investor Relations section of the company’s website.

In conclusion, Research Solutions, Inc.'s Q3 results illustrate a robust growth trajectory, underscored by increases in ARR, net income, and adjusted EBITDA, even amid operational challenges. With innovation at the forefront, the company is positioned to maintain its competitive edge in the evolving research landscape.