HENDERSON, Nev., May 14, 2026 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ:RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal third quarter ended March 31, 2026.
Fiscal Third Quarter 2026 Summary (compared to prior-year quarter)
Total revenue of $12.1 million, compared to $12.7 million in the prior-year period.
Annual Recurring Revenue ("ARR") up 8.5% to $22.1 million, which includes approximately $15.7 million of B2B recurring revenue and $6.4 million of B2C recurring revenue.
Net income of $860,000 increased 297%, or $0.03 per diluted share, compared to $216,000 or $0.01 per diluted share.
Adjusted EBITDA increased 14% to $1.6 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $6.0 million, which represents a 12.3% margin.
Platform revenue increased 6.6% to $5.2 million. Platform revenue accounted for 43% of total revenue as compared to 38% in the prior-year quarter.
Fifteen net new deployments in the quarter and 10% deployment growth over past 12 months.
Cash flow from operations was $1.0 million, compared to $2.9 million in the prior-year period, reflecting timing of billings and changes in working capital. On a trailing twelve-month basis, the Company has generated $5.7 million in cash flow from operations.
Total gross margin improved 220 basis points to 51.7% on gross profit of $6.3 million.
"We introduced a pair of new AI-based products in recent months, giving Article Galaxy and Scite users the ability to search, review and acquire scientific literature within their existing AI tools. Simplifying the process is critical in an ever-changing research environment, and these tools help us remain an integral partner with researchers. We remain focused on executing over the long term to drive value for our shareholders." said Roy W. Olivier, President and CEO of Research Solutions. "Our third quarter results reflect the improving profitability and growth prospects of our business, even within a softer operating environment. The continued focus across our Platform business is expanding consolidated gross margin and our strategic investment in sales and marketing is helping drive upsells for existing customers and signing larger deals with new logos."
Fiscal Third Quarter 2026 Results
Total revenue was $12.1 million, compared to $12.7 million in the year-ago quarter. Platform revenue growth was more than offset by a decline in lower margins transactions revenue.
Platform subscription revenue for the quarter was $5.2 million, a 6.69% increase from the prior-year period. The increase was primarily due to organic growth in the core B2B platform, due to a mix of new logo generation as well as upsells and cross-selling into existing customers. The quarter ended with annual recurring revenue of $22.1 million, up 8.5% year-over-year (see the Company's definition of annual recurring revenue below).
Transaction revenue was $7.0 million, compared to $7.8 million in the third quarter of fiscal 2025. The decrease was due to lower volume from a known churned customer and a few large customers. The transaction active customer count for the quarter was 1,346, compared to 1,380 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).
Total gross margin improved 220 basis points from the prior-year quarter to 51.7%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.
Total operating expenses were $5.2 million, compared to $5.7 million in the third quarter of 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses.
Net income in the third quarter was $860,000, or $0.03 per diluted share, compared to net income of $216,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.6 million, compared to $1.4 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference CallManagement will host the conference call, followed by a question-and-answer period.
Date: Thursday, May 14, 2026Time: 5:00 p.m. ET (2:00 p.m. PT)Dial-in number: 1-203-518-9708Conference ID: RESEARCH
The conference call will be broadcast live and available for replay until June 14, 2026 by dialing 1-412-317-6671 and using the replay ID 11160801, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.
Fiscal Third Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter
Quarter Ended March 31,
Nine Months Ended March 31,
2026
2025
Change
% Change
2026
2025
Change
% Change
Revenue:
Platforms
$ 5,160,565
$ 4,839,929
$ 320,636
6.6 %
$ 15,506,250
$ 13,770,831
$ 1,735,419
12.6 %
Transactions
6,960,996
7,821,434
(860,438)
-11.0 %
20,720,147
22,849,233
(2,129,086)
-9.3 %
Total Revenue
12,121,561
12,661,363
(539,802)
-4.3 %
36,226,397
36,620,064
(393,667)
-1.1 %
Gross Profit:
Platforms
4,456,896
4,229,623
227,273
5.4 %
13,569,545
11,993,516
1,576,029
13.1 %
Transactions
1,808,636
2,037,457
(228,821)
-11.2 %
5,098,235
5,860,533
(762,298)
-13.0 %
Total Gross Profit
6,265,532
6,267,080
(1,548)
0.0 %
18,667,780
17,854,049
813,731
4.6 %
Gross profit as a % of revenue:
Platforms
86.4 %
87.4 %
-1.0 %
87.5 %
87.1 %
0.4 %
Transactions
26.0 %
26.0 %
-0.1 %
24.6 %
25.6 %
-1.0 %
Total Gross Profit
51.7 %
49.5 %
2.2 %
51.5 %
48.8 %
2.8 %
Operating Expenses:
Sales and marketing
1,508,897
1,607,678
(98,781)
-6.1 %
4,824,319
4,141,172
683,147
16.5 %
Technology and product development
1,513,074
1,394,936
118,138
8.5 %
4,525,646
4,274,543
251,103
5.9 %
General and administrative
1,625,042
1,845,412
(220,370)
-11.9 %
4,920,996
5,783,789
(862,794)
-14.9 %
Depreciation and amortization
312,402
312,013
389
0.1 %
944,893
930,341
14,552
1.6 %
Stock-based compensation
248,608
594,639
(346,031)
-58.2 %
674,539
1,546,950
(872,411)
-56.4 %
Foreign currency translation loss (gain)
12,529
(44,519)
57,048
-128.1 %
31,385
(119,205)
150,590
126.3 %
Total Operating Expenses
5,220,552
5,710,159
(489,607)
-8.6 %
15,921,778
16,557,590
(635,813)
-3.8 %
Income from operations
1,044,980
556,921
488,059
87.6 %
2,746,002
1,296,459
1,449,544
111.8 %
Other Income (Expenses):
Other expenses
(162,607)
(327,042)
164,435
50.3 %
(537,232)
(2,316,404)
1,779,172
76.8 %
Provision for income taxes
(22,168)
(13,410)
(8,758)
-65.3 %
(52,258)
(74,816)
22,558
30.2 %
Total Other Expenses:
(184,775)
(340,452)
155,677
45.7 %
(589,490)
(2,391,220)
1,801,730
75.3 %
Net income (loss)
$ 860,205
$ 216,469
643,736
297.4 %
$ 2,156,512
$ (1,094,761)
3,251,274
297.0 %
Adjusted EBITDA
$ 1,618,519
$ 1,419,054
$ 199,465
14.1 %
$ 4,396,819
$ 3,654,545
$ 742,274
20.3 %
Quarter Ended March 31,
Nine Months Ended March 31,
2026
2025
Change
% Change
2026
2025
Change
% Change
Platforms:
B2B ARR (Annual recurring revenue):
Beginning of Period
$ 15,318,954
$ 12,738,256
$ 2,580,697
20.3 %
$ 14,197,598
$ 12,060,201
$ 2,137,397
17.7 %
Incremental ARR
397,970
735,818
(337,848)
-45.9 %
1,519,326
1,413,873
105,453
7.5 %
End of Period
$ 15,716,923
$ 13,474,074
$ 2,242,849
16.6 %
$ 15,716,923
$ 13,474,074
$ 2,242,849
16.6 %
Deployments:
Beginning of Period
1,232
1,090
142
13.0 %
1,171
1,021
150
14.7 %
Incremental Deployments
15
43
(28)
-65.1 %
76
112
(36)
-32.1 %
End of Period
1,247
1,133
114
10.1 %
1,247
1,133
114
10.1 %
ASP (Average sales price):
Beginning of Period
$ 12,434
$ 11,686
$ 748
6.4 %
$ 12,124
$ 11,812
$ 312
2.6 %
End of Period
$ 12,604
$ 11,892
$ 711
6.0 %
$ 12,604
$ 11,892
$ 711
6.0 %
