Technology
Research Solutions Reports Fourth Quarter and Fiscal Year 2026 Results
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Reports Record Fiscal Year Net Income of $2.8 Million, 14% YoY B2B ARR Increase and ARR of $22.5 Million
HENDERSON, Nev., Sept. 9, 2026 /PRNewswire/ — Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fourth quarter and full fiscal year ended June 30, 2026.
Fiscal Fourth Quarter 2026 Summary (compared to prior-year quarter)
Total gross profit of $6.4 million improved the Company’s gross margin percentage 200 basis points versus the prior year quarter to 53% driven by the continued Platform mix shift.B2B ARR grew $2.0 million or 14.1% compared to the fourth quarter of fiscal 2025 resulting in $16.2 million of ARR. This included AI related ARR of $0.8 million which grew 125% sequentially from the third quarter of fiscal 2026. Net income of $666,000, or $0.02 per diluted share, compared to $2.4 million or $0.07 per diluted share. The prior year included a $1.1 million favorable adjustment for the finalization of the Scite earnout.Adjusted EBITDA of $1.4 million and Adjusted EBITDA margin of 11.8%.Total revenue of $12.1 million, compared to $12.4 million in the prior year.Cash flow from operations of $1.8 million, compared to $2.3 million on the timing of working capital payments.
Fiscal Year 2026 Summary (compared to Fiscal 2025)
Gross profit up 3.6% to $25.1 million. Total gross margin improved 260 basis points to 51.9% with the continued Platform mix shift as the main catalyst. Platforms revenue was 43% of total revenue compared to 39% in the prior year.B2B ARR grew $2.0 million or 14.1% versus the year ago period to $16.2 million. This included incremental AI related ARR of $0.8 million. Net income of $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share. The prior-year results included $1.7 million of net other expense related to the Scite earn-out. Platform revenue up approximately 10% to $20.8 million. Annual Recurring Revenue (“ARR”) up 7.8% to $22.5 million, which includes approximately $16.2 million of B2B recurring revenue and $6.3 million of B2C recurring revenue.Adjusted EBITDA of $5.8 million, a Company record, compared to $5.3 million.Total revenue of $48.3 million, compared to $49.1 million.Cash flow from operations of $5.3 million compared to $7.0 million on the timing of working capital payments. The Company ended the fiscal year with $12.6 million in cash and cash equivalents.
“We launched multiple products in fiscal 2026, including new AI based products. Two of the AI products, Scite MCP and Article Galaxy MCP, allow researchers to utilize the unique functionality of Scite and Article Galaxy inside ChatGPT, Claude, Copilot, and any AI tools researchers already use. This is part of our strategy to support our users where they work and has resulted in us building a large pipeline of AI related revenue opportunities in FY27.” said Roy W. Olivier, President and CEO of Research Solutions. “Platform revenue grew to 43% of total revenue, up from 39% in fiscal 2025. That mix shift expanded gross margin and helped us more than double net income for the full year in a challenging market. With a strong cash position and Adjusted EBITDA posture, we’re well-positioned to continue investing in internally developed tools and to pursue strategic M&A that complements our current offerings.”
Fiscal Fourth Quarter 2026 Results
Total revenue was $12.1 million, compared to $12.4 million in the year-ago quarter, as increased platform revenue was more than offset by a decrease in transaction revenue.
Platform subscription revenue for the quarter was $5.3 million, compared to $5.2 million in the prior-year period. The increase was driven by a 14% increase in B2B platform ARR, due to a mix of new logo generation and upsell and cross-sells into the existing customer base, partially offset by a decline in B2C ARR.
The quarter ended with ARR of $22.5 million, up 7.8% year-over-year as B2B ARR increases more than offset a modest decline in B2C ARR (see the Company’s definition of annual recurring revenue below).
Transaction revenue was $6.8 million, compared to $7.3 million in the fourth quarter of fiscal 2025. The decrease was due to lower paid order volume. The transaction active customer count for the quarter was 1,323, compared to 1,338 customers in the prior-year quarter (see the Company’s definition of active customer accounts and transactions below).
Total gross margin improved 200 basis points from the prior-year quarter to 53.0%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, including the expansion of the gross margin for that business.
Total operating expenses were $5.6 million, compared to $5.1 million in the fourth quarter of 2025. The increase was primarily related to higher sales expenses and up front investments in AI that were partially offset by reduced general and administrative expense.
Other expense for the quarter was approximately $0.2 million compared to other income of $1.2 million in the fourth quarter of fiscal 2025. Prior year results included a $1.1 million favorable adjustment related to the final determination of the Scite earnout.
Net income in the fourth quarter was $666,000 or $0.02 per diluted share, compared to $2.4 million, or $0.07 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.4 million, compared to $1.6 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Full-Year Fiscal 2026 Results
Total revenue was $48.3 million compared to $49.1 million in fiscal 2025.
Platform subscription revenue for fiscal 2026 was $20.8 million, a 9.8% year-over-year increase. The increase was primarily due to organic growth in the core B2B platforms, including 105 net new B2B platform deployments. The increase included incremental AI related ARR of $0.8 million.
Transaction revenue was $27.5 million, compared to $30.1 million in fiscal 2025. The decrease was due to lower paid order volume, particularly in the second and third quarters of fiscal 2026.
Total gross margin improved 260 basis points from the prior year to 51.9%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.
Total operating expenses for the year were $21.5 million, compared to $21.7 million in fiscal 2025. The decrease was primarily related to reduced general and administrative and stock compensation expenses, partially offset by higher sales and marketing expenses.
Net income for fiscal 2026 was $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share, in the prior year. Adjusted EBITDA was $5.8 million, compared to $5.3 million in fiscal 2025 (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO David Kutil will host the conference call, followed by a question-and-answer period.
Date: Wednesday, September 9, 2026
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-203-518-9708
Conference ID: RESEARCH
The conference call will be broadcast live and available for replay until October 9, 2026, by dialing 1-412-317-6671 and using the replay ID 11160802, and via the investor relations section of the Company’s website at http://researchsolutions.investorroom.com/.
Fiscal Fourth Quarter and Full Year Financial and Operational Summary Tables vs. Prior-Year Quarter and Full Prior-Year
Quarter Ended June 30,
Twelve Months Ended June 30,
2026
2025
Change
% Change
2026
2025
Change
% Change
Revenue:
Platforms
$ 5,314,724
$ 5,184,864
$ 129,860
2.5 %
$ 20,820,974
$ 18,955,695
$ 1,865,279
9.8 %
Transactions
6,765,836
7,253,053
(487,217)
-6.7 %
27,485,983
30,102,286
(2,616,303)
-8.7 %
Total Revenue
12,080,560
12,437,917
(357,357)
-2.9 %
48,306,957
49,057,981
(751,024)
-1.5 %
Gross Profit:
Platforms
4,642,008
4,590,639
51,369
1.1 %
18,211,553
16,584,155
1,627,398
9.8 %
Transactions
1,760,720
1,751,263
9,457
0.5 %
6,858,955
7,611,796
(752,841)
-9.9 %
Total Gross Profit
6,402,728
6,341,902
60,826
1.0 %
25,070,508
24,195,951
874,557
3.6 %
Gross profit as a % of revenue:
Platforms
87.3 %
88.5 %
-1.2 %
87.5 %
87.5 %
0.0 %
Transactions
26.0 %
24.1 %
1.9 %
25.0 %
25.3 %
-0.3 %
Total Gross Profit
53.0 %
51.0 %
2.0 %
51.9 %
49.3 %
2.6 %
Operating Expenses:
Sales and marketing
1,573,580
1,219,184
354,396
29.1 %
6,397,899
5,360,356
1,037,543
19.4 %
Technology and product development
1,596,001
1,356,801
239,200
17.6 %
6,121,647
5,631,344
490,303
8.7 %
General and administrative
1,803,403
2,152,855
(349,452)
-16.2 %
6,724,399
7,936,644
(1,212,246)
-15.3 %
Depreciation and amortization
310,080
315,021
(4,941)
-1.6 %
1,254,973
1,245,362
9,611
0.8 %
Stock-based compensation
253,977
176,611
77,366
43.8 %
928,516
1,723,561
(795,045)
-46.1 %
Foreign currency translation loss (gain)
23,312
(83,322)
106,634
-128.0 %
54,697
(202,527)
257,224
127.0 %
Total Operating Expenses
5,560,353
5,137,150
423,203
8.2 %
21,482,131
21,694,740
(212,610)
-1.0 %
Income from operations
842,375
1,204,752
(362,377)
-30.1 %
3,588,377
2,501,211
1,087,167
43.5 %
Other Income (Expenses):
Other expenses
(96,035)
1,163,557
(1,259,592)
108.3 %
(633,267)
(1,152,847)
519,580
45.1 %
Provision for income taxes
(80,784)
(7,995)
(72,789)
-910.4 %
(133,042)
(82,811)
(50,231)
-60.7 %
Total Other Expenses:
(176,819)
1,155,562
(1,332,381)
115.3 %
(766,309)
(1,235,658)
469,349
38.0 %
Net income (loss)
$ 665,556
$ 2,360,314
(1,694,758)
71.8 %
$ 2,822,068
$ 1,265,553
1,556,516
123.0 %
Adjusted EBITDA
$ 1,429,744
$ 1,613,062
$ (183,318)
-11.4 %
$ 5,826,563
$ 5,267,607
$ 558,956
10.6 %
Quarter Ended June 30,
Twelve Months Ended June 30,
2026
2025
Change
% Change
2026
2025
Change
% Change
Platforms:
B2B ARR (Annual recurring revenue):
Beginning of Period
$ 15,716,923
$ 13,474,074
$ 2,242,849
16.6 %
$ 14,197,598
$ 12,060,201
$ 2,137,397
17.7 %
Incremental ARR
485,818
723,524
(237,706)
-32.9 %
2,005,143
2,137,397
(132,253)
-6.2 %
End of Period
$ 16,202,741
$ 14,197,598
$ 2,005,143
14.1 %
$ 16,202,741
$ 14,197,598
$ 2,005,143
14.1 %
Deployments:
Beginning of Period
1,247
1,133
114
10.1 %
1,171
1,021
150
14.7 %
Incremental Deployments
29
38
(9)
-23.7 %
105
150
(45)
-30.0 %
End of Period
1,276
1,171
105
9.0 %
1,276
1,171
105
9.0 %
ASP (Average sales price):
Beginning of Period
$ 12,604
$ 11,892
$ 711
6.0 %
$ 12,124
$ 11,812
$ 312
2.6 %
End of Period
$ 12,698
$ 12,124
$ 574
4.7 %
$ 12,698
$ 12,124
$ 574
4.7 %
B2C ARR (Annual recurring revenue):
Beginning of Period
$ 6,360,666
$ 6,877,926
$ (517,260)
-7.5 %
$ 6,721,356
$ 5,363,129
$ 1,358,227
25.3 %
Incremental ARR
(18,316)
(156,570)
138,254
NM
(379,006)
1,358,227
(1,737,233)
-127.9 %
End of Period
$ 6,342,350
$ 6,721,356
$ (379,006)
-5.6 %
$ 6,342,350
$ 6,721,356
$ (379,006)
-5.6 %
Total ARR (Annualized recurring revenue):
$ 22,545,091
$ 20,918,954
$ 1,626,137
7.8 %
$ 22,545,091
$ 20,918,954
$ 1,626,137
7.8 %
Transaction Customers:
Corporate customers
985
1,028
(43)
-4.2 %
993
1,053
(60)
-5.7 %
Academic customers
338
310
28
9.0 %
337
320
17
5.3 %
Total customers
1,323
1,338
(15)
-1.1 %
1,330
1,373
(43)
-3.1 %
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 EBITDA
Research 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 June 30,
Twelve Months Ended June 30,
2026
2025
Change
% Change
2026
2025
Change
% Change
Net Income (loss)
$ 665,556
$ 2,360,314
$ (1,694,758)
71.8 %
$ 2,822,068
$ 1,265,553
$ 1,556,516
123.0 %
Add (deduct):
Other (income) expense
96,035
(1,163,557)
1,259,592
NM
633,267
1,152,847
(519,580)
-45.1 %
Foreign currency translation loss (gain)
23,312
(83,322)
106,634
-128.0 %
54,697
(202,527)
257,224
127.0 %
Provision for income taxes
80,784
7,995
72,789
910.4 %
133,042
82,811
50,231
60.7 %
Depreciation and amortization
310,080
315,021
(4,941)
-1.6 %
1,254,973
1,245,362
9,611
0.8 %
Stock-based compensation
253,977
176,611
77,366
43.8 %
928,516
1,723,561
(795,045)
-46.1 %
Adjusted EBITDA
$ 1,429,744
$ 1,613,062
$ (183,318)
-11.4 %
$ 5,826,563
$ 5,267,607
$ 558,957
10.6 %
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 several 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 Subsidiaries
Consolidated Balance Sheets
June 30,
June 30,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
12,630,283
$
12,227,312
Accounts receivable, net of allowance of $103,217 and $182,324, respectively
6,963,040
7,191,234
Prepaid expenses and other current assets
689,548
580,257
Prepaid royalties
411,297
925
Total current assets
20,694,168
19,999,728
Non-current assets:
Property and equipment, net of accumulated depreciation of $1,020,241 and $964,883, respectively
58,671
60,769
Intangible assets, net of accumulated amortization of $3,947,231 and $2,736,773, respectively
8,537,870
9,686,241
Goodwill
16,372,979
16,372,979
Deposits and other assets
1,030
957
Total assets
$
45,664,718
$
46,120,674
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses
$
6,149,480
$
7,443,757
Deferred revenue, current portion
11,467,832
10,702,120
Contingent earnout liability, current portion
7,323,314
7,363,152
Total current liabilities
24,940,626
25,509,029
Non-current liabilities:
Deferred revenue, long-term portion
17,245
—
Contingent earnout liability, long-term portion
—
6,683,488
Total liabilities
24,957,871
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; 33,513,551 and
32,479,993 shares issued and outstanding, respectively
33,513
32,480
Additional paid-in capital
42,998,357
39,059,557
Accumulated deficit
(22,221,625)
(25,043,693)
Accumulated other comprehensive loss
(103,398)
(120,187)
Total stockholders’ equity
20,706,847
13,928,157
Total liabilities and stockholders’ equity
$
45,664,718
$
46,120,674
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
Years Ended
June 30,
2026
2025
Revenue:
Platforms
$
20,820,974
$
18,955,695
Transactions
27,485,983
30,102,286
Total revenue
48,306,957
49,057,981
Cost of revenue:
Platforms
2,609,421
2,371,540
Transactions
20,627,028
22,490,490
Total cost of revenue
23,236,449
24,862,030
Gross profit
25,070,508
24,195,951
Operating expenses:
Selling, general and administrative
20,227,158
20,449,378
Depreciation and amortization
1,254,973
1,245,362
Total operating expenses
21,482,131
21,694,740
Income from operations
3,588,377
2,501,211
Other income
407,026
595,679
Accreted interest expense
(1,040,293)
—
Change in fair value of contingent earnout liability
—
(1,748,526)
Income before provision for income taxes
2,955,110
1,348,364
Provision for income taxes
(133,042)
(82,811)
Net income
2,822,068
1,265,553
Other comprehensive income (loss):
Foreign currency translation
16,789
(1,368)
Comprehensive income
$
2,838,857
$
1,264,185
Basic income per common share:
Net income per share
$
0.09
$
0.04
Weighted average common shares outstanding
31,788,992
30,681,187
Diluted income per common share:
Net income per share
$
0.09
$
0.04
Weighted average common shares outstanding
32,272,835
31,503,972
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended
June 30,
2026
2025
Cash flow from operating activities:
Net income
$
2,822,068
$
1,265,553
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
1,254,973
1,245,362
Stock options expense
330,374
205,457
Restricted common stock expense
598,142
1,518,104
Accreted interest expense
1,040,293
—
Adjustment to contingent earnout liability
—
1,748,526
Changes in operating assets and liabilities:
Accounts receivable
228,194
(341,434)
Prepaid expenses and other current assets
(109,291)
63,296
Prepaid royalties
(410,372)
1,066,312
Accounts payable and accrued expenses
(1,262,918)
(1,426,282)
Deferred revenue
782,957
1,678,272
Net cash provided by operating activities
5,274,420
7,023,166
Cash flow from investing activities:
Purchase of property and equipment
(39,771)
(19,261)
Net cash used in investing activities
(39,771)
(19,261)
Cash flow from financing activities:
Proceeds from the exercise of stock options
157,500
180,800
Common stock repurchase
(53,039)
(934,577)
Payment of contingent acquisition consideration – Scite and FIZ
(4,950,209)
(124,107)
Net cash used in financing activities
(4,845,748)
(877,884)
Effect of exchange rate changes
14,070
1,260
Net increase in cash and cash equivalents
402,971
6,127,281
Cash and cash equivalents, beginning of period
12,227,312
6,100,031
Cash and cash equivalents, end of period
$
12,630,283
$
12,227,312
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$
71,213
$
82,811
Non-cash investing and financing activities:
Contingent consideration accrual on asset acquisition
$
—
$
31,359
Common stock issued for Scite earnout payment
$
2,906,856
$
—
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SOURCE Research Solutions, Inc.