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Research Solutions Reports Second Quarter Fiscal Year 2026 Results

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February 12, 2026 4:05 PM EST

Reports 14% Increase in ARR to $21.8 Million, Net Income of $547,000 and 36% Year-over-Year Growth in Adjusted EBITDA

HENDERSON, Nev., Feb. 12, 2026 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal second quarter ended December 31, 2025.

Fiscal Second Quarter 2026 Summary (compared to prior-year quarter)

  • Annual Recurring Revenue ("ARR") up 14% to $21.8 million, which includes approximately $15.3 million of B2B ARR and $6.4 million of B2C ARR.
  • Forty-seven net new deployments in the quarter reflect one of our best results and sustained momentum in new B2B customer acquisition.
  • Net income of $547,000, or $0.02 per diluted share, compared to net loss of $2.0 million or ($0.07) per share.
  • Adjusted EBITDA increased 36% to $1.3 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $5.8 million or 11.8% of revenue for the same period.
  • Net B2B ARR growth of $560,000 represents the best organic second quarter performance in Company history.
  • Gross profit up 6% to $6.2 million. Total gross margin improved 350 basis points to 52.4%.
  • Platform revenue up 14% to $5.2 million. Platform revenue accounted for 44% of total revenue as compared to 39% in the prior-year quarter.
  • Total revenue was $11.8 million compared to $11.9 million in the prior year, as strong B2B revenue growth has not yet fully offset softness in transactions revenue.

"Our second quarter results reflect strong growth within our B2B Platforms business through forty-seven net new deployments in the quarter and Platforms continues to represent a larger portion of our total revenue mix. In addition, the average sales price for our Platform increased more than six percent year-over-year as we signed larger deals and as existing customers adopt more of our SaaS and AI solutions," said Roy W. Olivier, President and CEO of Research Solutions. "Our business continues to generate strong operating cash flow and Adjusted EBITDA, allowing us to reinvest in sales and marketing to accelerate growth while maintaining financial flexibility. We continue to manage the business with a long-term focus to drive value for our shareholders."

Fiscal Second Quarter 2026 Results

Total revenue was $11.8 million, compared to $11.9 million in the year-ago quarter. Platform revenue growth was offset by a decline in transactions revenue.

Platform subscription revenue for the quarter was $5.2 million, a 14% year-over-year 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 $21.8 million, up 14% year-over-year (see the Company's definition of annual recurring revenue below).

Transaction revenue was $6.6 million, compared to $7.3 million in the second quarter of fiscal 2025. The decrease was due to the impact of a known customer that churned earlier and a few larger customers that saw significant declines in volume. The transaction active customer count for the quarter was 1,321, compared to 1,384 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

Total gross margin improved 350 basis points from the prior-year quarter to 52.4%. 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 $5.4 million, compared to $5.7 million in the second quarter of fiscal 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses offset in part by increased sales and marketing expenses. 

Net income in the fiscal second quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million, or ($0.07) per share, in the prior-year quarter. Adjusted EBITDA was $1.3 million, compared to $963,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

Conference Call
Management will host the conference call, followed by a question-and-answer period.

Date: Thursday, February 12, 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 March 12, 2026 by dialing 1-412-317-6671 and using the replay ID 11160799, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

Fiscal Second Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter
















Quarter Ended December 31,


Six Months Ended December 31,




2025

2024

Change

% Change


2025

2024

Change

% Change


Revenue:












Platforms

$     5,224,845

$     4,601,257

$      623,588

13.6 %


$   10,345,685

$     8,930,902

$     1,414,783

15.8 %



Transactions

6,567,806

7,312,962

(745,156)

-10.2 %


13,759,151

15,027,799

(1,268,648)

-8.4 %


Total Revenue

11,792,651

11,914,219

(121,568)

-1.0 %


24,104,836

23,958,701

146,135

0.6 %













Gross Profit:












Platforms

4,602,184

3,981,415

620,769

15.6 %


9,112,649

7,763,893

1,348,756

17.4 %



Transactions

1,574,766

1,839,678

(264,912)

-14.4 %


3,289,599

3,823,076

(533,477)

-14.0 %


Total Gross Profit

6,176,950

5,821,093

355,857

6.1 %


12,402,248

11,586,969

815,279

7.0 %













Gross profit as a % of revenue:












Platforms

88.1 %

86.5 %

1.6 %



88.1 %

86.9 %

1.1 %




Transactions

24.0 %

25.2 %

-1.2 %



23.9 %

25.4 %

-1.5 %



Total Gross Profit

52.4 %

48.9 %

3.5 %



51.5 %

48.4 %

3.1 %














Operating Expenses:












Sales and marketing

1,648,597

1,343,087

305,510

22.7 %


3,315,422

2,533,494

781,928

30.9 %



Technology and product development

1,602,421

1,506,849

95,572

6.3 %


3,012,572

2,879,607

132,965

4.6 %



General and administrative

1,620,595

2,008,201

(387,606)

-19.3 %


3,295,954

3,938,377

(642,423)

-16.3 %



Depreciation and amortization

316,425

306,233

10,192

3.3 %


632,491

618,328

14,163

2.3 %



Stock-based compensation

213,449

534,322

(320,873)

-60.1 %


425,931

952,311

(526,380)

-55.3 %



Foreign currency translation loss (gain)

36,112

29,554

6,558

22.2 %


18,856

(74,686)

93,542

-125.2 %


Total Operating Expenses

5,437,599

5,728,246

(290,647)

-5.1 %


10,701,226

10,847,431

(146,205)

-1.3 %


Income from operations

739,351

92,847

646,504

696.3 %


1,701,022

739,538

961,484

-130.0 %













Other expense:












Other expense

(183,572)

(2,057,887)

1,874,315

-91.1 %


(374,625)

(1,989,362)

1,614,737

-81.2 %



Provision for income taxes

(8,859)

(15,194)

6,335

-41.7 %


(30,090)

(61,406)

31,316

-51.0 %


Total Other Expense:

(192,431)

(2,073,081)

1,880,650

-90.7 %


(404,715)

(2,050,768)

1,646,053

-80.3 %


Net income (loss)

$        546,920

$    (1,980,234)

2,527,154

-127.6 %


$     1,296,307

$    (1,311,230)

2,607,537

-198.9 %


Adjusted EBITDA

$     1,305,337

$        962,956

$      342,381

35.6 %


$     2,778,300

$     2,235,491

$        542,809

24.3 %
















Quarter Ended December 31,


Six Months Ended December 31,




2025

2024

Change

% Change


2025

2024

Change

% Change


Platforms:












B2B ARR (Annual recurring revenue*):












  Beginning of Period

$   14,758,472

$   12,187,834

$   2,570,637

21.1 %


$   14,197,598

$   12,060,201

$     2,137,397

17.7 %



   Incremental ARR

560,482

550,422

10,060

1.8 %


1,121,356

678,055

443,301

65.4 %



  End of Period

$   15,318,954

$   12,738,256

$   2,580,697

20.3 %


$   15,318,954

$   12,738,256

$     2,580,698

20.3 %














Deployments:












  Beginning of Period

1,185

1,029

156

15.2 %


1,171

1,021

150

14.7 %



   Incremental Deployments

47

61

(14)

-23.0 %


61

69

(8)

-11.6 %



  End of Period

1,232

1,090

142

13.0 %


1,232

1,090

142

13.0 %














ASP (Average sales price):












  Beginning of Period

$          12,454

$          11,844

$             610

5.2 %


$          12,124

$          11,812

$               312

2.6 %



  End of Period

$          12,434

$          11,686

$             748

6.4 %


$          12,434

$          11,686

$               748

6.4 %















B2C ARR (Annual recurring revenue*):












  Beginning of Period

$     6,535,197

$     5,430,795

$   1,104,402

20.3 %


$     6,721,356

$     5,363,129

$     1,358,227

25.3 %



   Incremental ARR

(93,781)

940,586

(1,034,367)

-110.0 %


(279,940)

1,008,252

(1,288,192)

-127.8 %



  End of Period

$     6,441,416

$     6,371,381

$        70,035

1.1 %


$     6,441,416

$     6,371,381

$          70,035

1.1 %















Total ARR (Annualized recurring revenue):

$   21,760,370

$   19,109,637

$   2,650,732

13.9 %


$   21,760,370

$   19,109,637

$     2,650,733

13.9 %














Transaction Customers:












Corporate customers

1,326

1,051

275

26.2 %


1,200

1,063

137

12.9 %



Academic customers

324

333

(9)

-2.7 %


320

325

(5)

-1.5 %



Total customers

1,650

1,384

266

19.2 %


1,520

1,388

132

9.5 %













*

Annual Recurring Revenue (Non-GAAP Measure) - the value of contracted platform subscription recurring revenue normalized to a one year period. 



For B2C, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by 12.



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 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 December 31,


Six Months Ended December 31,




2025

2024

Change

% Change


2025

2024

Change

% Change


Net Income (loss)

$        546,920

$    (1,980,234)

$   2,527,154

-127.6 %


$     1,296,307

$    (1,311,230)

$     2,607,537

-198.9 %


 Add (deduct):








-




Other expense

183,572

2,057,887

(1,874,315)

-91.1 %


374,625

1,989,362

(1,614,737)

-81.2 %



Foreign currency translation loss (gain)

36,112

29,554

6,558

22.2 %


18,856

(74,686)

93,542

-125.2 %



Provision for income taxes

8,859

15,194

(6,335)

-41.7 %


30,090

61,406

(31,316)

-51.0 %



Depreciation and amortization

316,425

306,233

10,192

3.3 %


632,491

618,328

14,163

2.3 %



Stock-based compensation

213,449

534,322

(320,873)

-60.1 %


425,931

952,311

(526,380)

-55.3 %


 Adjusted EBITDA

$     1,305,337

$        962,956

$      342,381

35.6 %


$     2,778,300

$     2,235,491

$        542,809

-24.3 %













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 a number of 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 officially 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

Condensed Consolidated Balance Sheets (Unaudited)

 



December 31, 


June 30, 




2025


2025


Assets








Current assets:








Cash and cash equivalents


$

12,262,780


$

12,227,312


Accounts receivable, net of allowance of $79,869 and $182,324, respectively



5,661,171



7,191,234


Prepaid expenses and other current assets



708,075



580,257


Prepaid royalties



42,155



925


Total current assets



18,674,181



19,999,728










Non-current assets:








Property and equipment, net of accumulated depreciation of $992,832 and $964,883, respectively



65,236



60,769


Intangible assets, net of accumulated amortization of $3,347,683 and $2,736,773, respectively



9,130,484



9,686,241


Goodwill



16,372,979



16,372,979


Deposits and other assets



1,000



957


Total assets


$

44,243,880


$

46,120,674










Liabilities and Stockholders' Equity








Current liabilities:








Accounts payable and accrued expenses


$

6,397,476


$

7,443,757


Deferred revenue



9,916,853



10,702,120


Contingent earnout liability, current portion



7,295,596



7,363,152


Total current liabilities



23,609,925



25,509,029










Non-current liabilities:








Contingent earnout liability, long-term portion



3,405,356



6,683,488


Total liabilities



27,015,281



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; 32,875,476 and 32,479,993 shares issued and outstanding, respectively



32,875



32,480


Additional paid-in capital



41,056,472



39,059,557


Accumulated deficit



(23,747,387)



(25,043,693)


Accumulated other comprehensive loss



(113,361)



(120,187)


Total stockholders' equity



17,228,599



13,928,157


Total liabilities and stockholders' equity


$

44,243,880


$

46,120,674


 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)

(Unaudited)

















Three Months Ended


Six Months Ended




December 31, 


December 31, 




2025


2024


2025


2024
















Revenue:














Platforms


$

5,224,845


$

4,601,257


$

10,345,685


$

8,930,902


Transactions



6,567,806



7,312,962



13,759,151



15,027,799


Total revenue



11,792,651



11,914,219



24,104,836



23,958,701
















Cost of revenue:














Platforms



622,661



619,842



1,233,036



1,167,009


Transactions



4,993,040



5,473,284



10,469,552



11,204,723


Total cost of revenue



5,615,701



6,093,126



11,702,588



12,371,732


Gross profit



6,176,950



5,821,093



12,402,248



11,586,969
















Operating expenses:














Selling, general and administrative



5,121,175



5,422,013



10,068,736



10,229,103


Depreciation and amortization



316,425



306,233



632,491



618,328


Total operating expenses



5,437,600



5,728,246



10,701,227



10,847,431
















Income from operations



739,350



92,847



1,701,021



739,538
















Other income



95,065



348,999



221,978



417,524


Change in fair value of contingent earnout liability



(278,637)



(2,406,886)



(596,603)



(2,406,886)
















Income (loss) before provision for income taxes



555,778



(1,965,040)



1,326,396



(1,249,824)


Provision for income taxes



(8,859)



(15,194)



(30,090)



(61,406)
















Net income (loss)



546,919



(1,980,234)



1,296,306



(1,311,230)
















Other comprehensive income (loss):














Foreign currency translation



5,859



2,637



6,826



(3,531)


Comprehensive income (loss)


$

552,778


$

(1,977,597)


$

1,303,132


$

(1,314,761)
















Basic income (loss) per common share:














Net income (loss) per share


$

0.02


$

(0.07)


$

0.04


$

(0.04)


Weighted average common shares outstanding



31,634,575



30,421,808



31,434,725



30,384,339
















Diluted income (loss) per common share:














Net income (loss) per share


$

0.02


$

(0.07)


$

0.04


$

(0.04)


Weighted average common shares outstanding



32,333,657



30,421,808



32,113,408



30,384,339


 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)











Six Months Ended




December 31, 




2025


2024










Cash flow from operating activities:








Net income (loss)


$

1,296,306


$

(1,311,230)


Adjustment to reconcile net income (loss) to net cash provided by operating activities:








Depreciation and amortization



632,491



618,328


Stock options expense



149,262



88,045


Restricted common stock expense



276,669



864,266


Adjustment to contingent earnout liability



596,603



2,406,886


Changes in operating assets and liabilities:








Accounts receivable



1,530,063



(266,255)


Prepaid expenses and other current assets



(127,818)



(98,613)


Prepaid royalties



(41,230)



478,169


Accounts payable and accrued expenses



(1,035,903)



(737,670)


Deferred revenue



(785,267)



(170,433)


Net cash provided by operating activities



2,491,176



1,871,493










Cash flow from investing activities:








Purchase of property and equipment



(24,561)



(5,404)


Net cash used in investing activities



(24,561)



(5,404)










Cash flow from financing activities:








Proceeds from the exercise of stock options



157,500



—


Common stock repurchases



(39,549)



(205,278)


Payment of contingent acquisition consideration - Scite and FIZ



(2,554,394)



(62,560)


Net cash used in financing activities



(2,436,443)



(267,838)










Effect of exchange rate changes



5,296



2,873


Net increase in cash and cash equivalents



35,468



1,601,124


Cash and cash equivalents, beginning of period



12,227,312



6,100,031


Cash and cash equivalents, end of period


$

12,262,780


$

7,701,155










Supplemental disclosures of cash flow information:








Cash paid for income taxes


$

30,090


$

61,406










Non-cash investing and financing activities:








Contingent consideration accrual on asset acquisition


$

20,981


$

30,198


Common stock issued for Scite earnout payment


$

1,453,428


$

—


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/research-solutions-reports-second-quarter-fiscal-year-2026-results-302686897.html

SOURCE Research Solutions, Inc.


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