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.