Research Solutions aims for ongoing growth in ARR and EBITDA through AI-powered B2B initiatives.
Management Insights: Research Solutions, Inc. reported a record 21% increase in total Annual Recurring Revenue (ARR) for Q1 2026, driven by significant B2B deals and a strategic shift towards comprehensive SaaS and AI solutions. The company also noted a decline in transaction revenue due to churn from a few large customers.
Financial Performance: Total revenue for Q1 2026 was $12.3 million, up from $12 million in the previous year, with platform subscription revenue increasing by 18% to $5.1 million. The gross profit was $6.2 million, reflecting a gross margin improvement to 50.6%.
Outlook and Strategy: Management anticipates continued growth in ARR and average selling prices (ASPs) through enhanced product offerings and improved sales execution. They are also focusing on stabilizing the transaction segment and leveraging AI for operational efficiency.
Analyst Sentiment: Analysts expressed a cautiously optimistic view, highlighting the company's B2B growth and profitability while seeking clarity on product attach rates and the stabilization of the transaction segment amid competitive pressures.
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- Earnings Call Schedule: Research Solutions will hold a conference call on February 12, 2026, at 5:00 p.m. ET to discuss its Q2 fiscal 2026 financial results, which is expected to significantly impact investor sentiment.
- Market Release Information: A press release containing the financial results will follow the call, reflecting the company's commitment to transparency and information disclosure, potentially influencing investor decisions.
- Participation Instructions: Investors are advised to dial in at least 5-10 minutes prior to the start time at 1-203-518-9708 to register, ensuring smooth participation in the Q&A session and enhancing interaction with management.
- Replay Availability: The call will be available for replay after 8:00 p.m. ET on the same day until March 12, 2026, allowing investors who cannot attend live to access the information, thereby improving communication efficiency between the company and its investors.
- Earnings Call Scheduled: Research Solutions will hold a conference call on February 12, 2026, at 5:00 p.m. ET to discuss its Q2 fiscal 2026 financial results, which is expected to significantly impact investor sentiment.
- Financial Results Release: A press release detailing the financial results will be issued after market close, providing critical financial data and performance metrics that will help investors assess the company's financial health.
- Participation Details: Investors are advised to dial in at least 5-10 minutes prior to the start time at 1-203-518-9708 using Conference ID RESEARCH to register, enhancing interaction with management during the Q&A session.
- Replay Availability: The conference call will be available for replay after 8:00 p.m. ET on the same day until March 12, 2026, allowing investors who cannot attend live to access the information by dialing 1-412-317-6671.
Stock Highlights: The article discusses four stocks—Interface, Inc. (TILE), Research Solutions Inc. (RSSS), Northrim BanCorp, Inc. (NRIM), and Dave Inc. (DAVE)—noting their solid net profit margins and positive earnings revisions.
Net Profit Margin Importance: A higher net profit margin indicates a company's efficiency in converting sales into profits, attracting investors and skilled employees, while also providing a competitive edge.
Investment Considerations: While net profit margin is a valuable metric, it varies by industry and can be influenced by factors like accounting treatments and debt levels, making comparisons challenging.
Research Tools: The article promotes the Research Wizard stock picking and backtesting software as a resource for investors to analyze stocks and enhance returns.

- Executive Transition: Research Solutions' CFO Bill Nurthen departed on December 10, 2025, with Dave Kutil appointed as interim CFO, ensuring continuity in financial leadership as Kutil has served as Controller since 2023 and brings over 15 years of financial leadership experience.
- Strategic Alignment: Kutil has worked closely with Nurthen, sharing the company's long-term financial vision, which is expected to facilitate a seamless transition to maintain financial stability and productivity within the organization.
- Industry Background: Prior to joining Research Solutions, Kutil held positions as Controller for Lesaffre's North American subsidiary and Director of Accounting for Badger Meter, and his extensive industry experience will help the company remain competitive in a rapidly changing market.
- Leadership Acknowledgment: CEO Roy W. Olivier expressed gratitude for Nurthen's contributions and confidence in Kutil's appointment, emphasizing his capability to fulfill the new responsibilities without impacting company operations.
Zacks Rank Upgrade: Research Solutions Inc. (RSSS) has been upgraded to a Zacks Rank #1 (Strong Buy), indicating a positive outlook on its earnings estimates, which could lead to increased stock prices.
Earnings Estimate Revisions: The Zacks Consensus Estimate for RSSS has risen by 16.7% over the past three months, reflecting analysts' growing confidence in the company's earnings potential.
Correlation with Stock Movement: There is a strong correlation between earnings estimate revisions and near-term stock movements, suggesting that tracking these revisions can be beneficial for investment decisions.
Zacks Rating System: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 5% receiving a "Strong Buy" rating, positioning RSSS as a strong candidate for market-beating returns.

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