Research Solutions, Inc. (RSSS) Q1 2026 Earnings Call Transcript
Total Revenue $12.3 million, up from $12 million in the first quarter of fiscal 2025, representing a year-over-year increase. The growth was driven by a net increase in platform deployments, upsells, and cross-sells into the existing customer base.
Platform Subscription Revenue $5.1 million, an 18% increase year-over-year. This growth was primarily due to a net increase in platform deployments and upsells/cross-sells into the existing customer base.
Annual Recurring Revenue (ARR) $21.3 million, up 21% year-over-year. This includes $14.8 million in B2B ARR and $6.5 million in normalized ARR from Scite's B2C subscribers. The growth was driven by strong B2B performance and incremental ARR growth.
Incremental ARR $375,000, a 92% increase compared to $195,000 in the prior year quarter. B2B growth was especially strong at $561,000, up from $128,000 last year. The increase was attributed to improved sales execution and new platform sales.
Transaction Revenue $7.2 million, down from $7.7 million in the prior year quarter, reflecting a decline of approximately 6.5%. The decline was attributed to economic conditions, changes in research priorities, and reduced revenue from specific large customers.
Gross Profit $6.2 million, an 8% increase year-over-year. Gross margin improved to 50.6%, a 270 basis point increase, driven by a revenue mix shift towards higher-margin platform business and expanding gross margins in the platform segment.
Platform Business Gross Margin 88.1%, a 70 basis point increase year-over-year. The improvement was due to slower growth in labor and hosting costs compared to revenue growth.
Transaction Business Gross Margin 23.8%, down from 25.7% in the prior year quarter. The decline was due to lower copyright margins and reduced fixed cost leverage from a smaller revenue base.
Operating Expenses $5.3 million, up from $5.1 million in the prior year quarter. The increase was driven by higher sales and marketing expenses, partially offset by lower general and administrative and stock-based compensation expenses.
Net Income $749,000 or $0.02 per diluted share, compared to $669,000 or $0.02 per diluted share in the prior year quarter. The increase was attributed to improved operational performance.
Adjusted EBITDA $1.5 million, a 16% increase from $1.3 million in the prior year quarter. This was the second-best adjusted EBITDA performance in company history, driven by strong revenue growth and cost management.
Cash and Cash Equivalents $12 million as of September 30, 2025, compared to $12.2 million on June 30, 2025. Despite a $1.3 million cash outlay for the Scite earnout, operational cash flow remained strong.
Cash Flow from Operations $1.1 million, a 31% increase from $843,000 in the first quarter of fiscal 2025. The increase was due to healthy operational cash flow.
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Research Solutions to Host Q2 2026 Earnings Call
- 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.
Research Solutions to Host Q2 2026 Earnings Call
- 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.
Zacks.com Spotlights Interface, Research Solutions, Northrim, and Dave
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.
Research Solutions Appoints Interim CFO Dave Kutil Following Departure of Bill Nurthen
- 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.
Research Solutions (RSSS) Receives Strong Buy Upgrade: Reasons Explained
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.
Roth Capital Affirms Buy Rating for Research Solutions, Keeps $5 Price Target Intact
Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts to stay updated on market movements.
Exclusive Stories: The platform provides unique stories generated by Benzinga reporters, enhancing trading insights.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and strategies.
Market Winning Tools: Benzinga Pro equips traders with essential tools to improve their chances of success in the stock market.
Research Solutions to Host Q2 2026 Earnings Call
- 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.
Research Solutions to Host Q2 2026 Earnings Call
- 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.
Zacks.com Spotlights Interface, Research Solutions, Northrim, and Dave
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.
Research Solutions Appoints Interim CFO Dave Kutil Following Departure of Bill Nurthen
- 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.
Research Solutions (RSSS) Receives Strong Buy Upgrade: Reasons Explained
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.
Roth Capital Affirms Buy Rating for Research Solutions, Keeps $5 Price Target Intact
Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts to stay updated on market movements.
Exclusive Stories: The platform provides unique stories generated by Benzinga reporters, enhancing trading insights.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and strategies.
Market Winning Tools: Benzinga Pro equips traders with essential tools to improve their chances of success in the stock market.
