Business Overview - Research Solutions provides an end-to-end AI platform for research, aiming to advance the world's knowledge by simplifying research[31, 34] - The company's mission is to simplify research in a market with exploding research volume and AI inaccuracies[34, 51] - The company serves over 1,500 leading research organizations across 70 countries[40] Market Opportunity - The total addressable market is $15 billion, split between $11 billion for B2B customers and $4 billion for B2C customers[70, 71] - Research-focused SaaS is projected to grow at a CAGR of 18.7%, from $273.55 billion in 2023 to $908.21 billion by 2030[73] Financial Performance - The company's total revenue is $48.8 million (TTM as of 03/31/25)[134] - The company's adjusted EBITDA is $5.1 million (TTM)[134] - The company's annual recurring revenue has grown consistently, reaching $20.4 million in Q3 FY25[125] - The company's cash and equivalents as of March 31, 2025, were $0.9 million[132] - The company's total assets as of March 31, 2025, were $45.2 million[132] Business Model - The company operates with a platform and transactions business model, with transactions accounting for 63% of revenue and the platform accounting for 37% of revenue[92, 96]

Business Overview - Research Solutions operates a SaaS platform and a legacy article (transactions) business, serving primarily North America, EMEA, and Japan[11] - The company's platform business boasts nearly 4x the gross margin of the traditional transaction business, with a SaaS growth rate exceeding 30%+[36] - The company has a strong balance sheet with $10.6 million in cash and no outstanding debt[12] Market Opportunity - The company estimates a total addressable market (TAM) of approximately 700,000 SMBs worldwide, with current penetration less than 1%[12] - The company estimates that ~4% penetration into the SMB market would equate to ~$280 million in annual recurring revenue[26] - The company estimates the platform market to be ~$7 billion[26] Financial Performance - The company's annual recurring revenue (ARR) from platform subscriptions is approximately $7.9 million[20,30] - The company's platform business has a high retention rate and over 100% net retention[20,48] - The company's TTM revenue is $32.9 million[40] - The company's TTM gross margin for the platform business is 86.2%[20,40] - The company's TTM gross margin for the transaction business is 23.6%[40] Key Stats - The company's stock price as of 9/23/22 was $1.86[50] - The company's market capitalization is $50.4 million[50] - The company's enterprise value is $39.8 million[50]

Core Insights - Research Solutions has announced a strategic integration with Third Iron's LibKey platform to enhance access to scholarly content for researchers [1][2] - The integration simplifies the process of accessing articles not available through library holdings, providing direct access to over 34,000 journals [2][6] - The partnership aims to improve library services by streamlining access and providing insights into research demand patterns [3][5] Company Overview - Research Solutions (NASDAQ: RSSS) is a vertical SaaS and AI company focused on simplifying research workflows for academic institutions and research organizations [8] - Third Iron, LLC develops innovative services for libraries, with its LibKey and BrowZine services used by over 2,000 libraries globally [9] Integration Details - The LibKey-AGS integration operates within LibKey's linking hierarchy, checking various sources for access before utilizing AGS [3][4] - The integration offers features such as 98% instant delivery of articles, 24/7 availability, and permanent article retention for ongoing research [6] - The integration is currently being piloted and will be more widely available in the coming months, with additional services receiving AGS capabilities in Summer 2025 [7]

Core Insights - Research Solutions' Scite platform has signed an indexing agreement with the American Society for Microbiology (ASM), enhancing its position in the competitive AI research landscape [1][2] - The partnership adds ASM's extensive portfolio of peer-reviewed journals to Scite's network, which now includes over 30 major publishers and provides access to more than 1.3 billion indexed citations [2][5] - Scite's Smart Citations technology offers deeper insights into citation patterns, allowing researchers to understand how microbiology research is referenced and utilized [3][5] Company Overview - Research Solutions is a vertical SaaS and AI company that simplifies research workflows for academic institutions and life science companies globally, combining AI-powered tools with access to both open access and paywalled research [7] - The company emphasizes ethical sourcing of information through direct partnerships with publishers, distinguishing itself from competitors that scrape content [5] Industry Context - The indexing agreement with ASM reflects the growing importance of citation intelligence in modern research evaluation, providing a richer framework for understanding scholarly impact [4][5] - ASM, established in 1899, is a leading organization in microbiological research, advocating for open science and evidence-based public policies [8]

Research Solutions (RSSS) FY Conference June 11, 2025 11:30 AM ET Speaker0 Our next presenting company is Research Solutions. Trades on the Nasdaq under the symbol RSSS. Company is involved in a very vital component of the research process, helping researchers obtain documents that are necessary, helping them create the research that is necessary in the world. Here to speak on the company is Roy Olivier, company's CEO. With him, Bill Nerthen, the company's CFO. And in the audience, the chief strategy office ...

Company Overview - Research Solutions (NASDAQ: RSSS) is a leading provider of AI-powered scientific research tools, focusing on simplifying research workflows for academic institutions, life science companies, and research organizations globally [3]. - The company operates as a vertical SaaS and AI firm, offering a unique marketplace for scientific, technical, and medical (STM) content that is independent of publishers [3]. - Research Solutions combines AI-powered tools, including an intelligent research assistant and full-text search capabilities, with access to both open access and paywalled research, enhancing the efficiency of scientific literature discovery and analysis [3]. Event Participation - The CEO, Roy W. Olivier, and CFO, Bill Nurthen, will participate in the "2025 Virtual Tech Conference: Discover the Innovations Reshaping Tomorrow," hosted by Maxim Group LLC on June 3rd at 3:30 p.m. EDT [1]. - The conference will be available live on M-Vest, requiring investors to sign up for membership to view the session [2]. Industry Context - Maxim Group LLC is a full-service investment banking, securities, and wealth management firm that provides a wide range of financial services, including investment banking and equity research [4]. - The participation of Research Solutions in this conference highlights the growing intersection of technology and finance within the scientific research sector [1][4].

PART I — FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) These unaudited statements present the company's financial position, operations, and cash flows, highlighting $45.2 million in assets and a $1.1 million net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $45.2 million and liabilities $34.0 million, driven by cash and acquisition-related liabilities Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,852,007 | $6,100,031 | | Total current assets | $18,837,091 | $14,690,621 | | Goodwill | $16,372,979 | $16,315,888 | | Total assets | $45,227,380 | $41,859,762 | | **Liabilities & Equity** | | | | Deferred revenue | $10,355,768 | $9,023,848 | | Contingent earnout liability (current & long-term) | $15,110,910 | $12,298,114 | | Total liabilities | $33,996,250 | $30,165,574 | | Total stockholders' equity | $11,231,130 | $11,694,188 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Total revenue increased to $36.6 million for the nine months ended March 31, 2025, with a $1.1 million net loss due to a non-cash earnout liability charge Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$12,661,363** | **$12,115,672** | **$36,620,064** | **$32,490,385** | | Platform Revenue | $4,839,929 | $3,953,403 | $13,770,831 | $9,679,179 | | Gross Profit | $6,267,080 | $5,481,932 | $17,854,049 | $13,997,300 | | Income (Loss) from Operations | $556,922 | $87,663 | $1,296,460 | ($1,431,286) | | **Net Income (Loss)** | **$216,470** | **$76,301** | **($1,094,760)** | **($965,370)** | | Basic EPS | $0.01 | $0.00 | ($0.04) | ($0.03) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to $4.8 million for the nine months ended March 31, 2025, primarily due to non-cash adjustments and deferred revenue Cash Flow Summary (Unaudited, Nine Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,764,251 | $1,589,791 | | Net cash used in investing activities | ($11,571) | ($10,081,507) | | Net cash used in financing activities | ($999,567) | ($836,984) | | **Net increase (decrease) in cash** | **$3,751,976** | **($9,323,909)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business, accounting policies, and key financial events, including acquisitions, contingent liabilities, and stock repurchases - The company is a vertical software-as-a-service (SaaS) and artificial intelligence (AI) company offering platforms for research-intensive organizations, which include Discovery Tools (Scite.ai, Resolute.ai), Access (Article Galaxy), and Manage (References solution)[17](index=17&type=chunk)[19](index=19&type=chunk)[22](index=22&type=chunk) - The acquisition of Scite on December 1, 2023, involved a total purchase consideration of approximately **$21.1 million**, including cash, stock, and a contingent earnout. The fair value of this earnout liability increased from an initial **$7.2 million** to **$15.1 million** as of March 31, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) - The company has a stock repurchase program, authorized by the Board's Compensation Committee, to satisfy employee tax obligations on vested stock awards. As of March 31, 2025, **$188,500** remained under the current authorization[86](index=86&type=chunk)[87](index=87&type=chunk) Revenue by Geographical Region (Nine Months Ended March 31) | Region | 2025 Revenue | 2025 % | 2024 Revenue | 2024 % | | :--- | :--- | :--- | :--- | :--- | | United States | $21,271,525 | 58.1% | $19,220,592 | 59.1% | | Europe | $11,619,759 | 31.7% | $10,225,116 | 31.5% | | Rest of World | $3,728,780 | 10.2% | $3,044,677 | 9.4% | | **Total** | **$36,620,064** | **100%** | **$32,490,385** | **100%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 12.7% revenue increase to $36.6 million for the nine months ended March 31, 2025, a $1.1 million net loss, and a significant rise in Adjusted EBITDA [Results of Operations](index=45&type=section&id=Results%20of%20Operations) For the nine months ended March 31, 2025, total revenue grew 12.7% to $36.6 million, gross profit increased to $17.9 million, and the net loss widened to $1.1 million Revenue Comparison (Nine Months Ended March 31) | Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $13,770,831 | $9,679,179 | $4,091,652 | 42.3% | | Transactions | $22,849,233 | $22,811,206 | $38,027 | 0.2% | | **Total revenue** | **$36,620,064** | **$32,490,385** | **$4,129,679** | **12.7%** | Gross Profit Comparison (Nine Months Ended March 31) | Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $11,993,516 | $8,239,028 | $3,754,488 | 45.6% | | Transactions | $5,860,533 | $5,758,272 | $102,261 | 1.8% | | **Total gross profit** | **$17,854,049** | **$13,997,300** | **$3,856,749** | **27.6%** | - Sales and marketing expenses for the nine-month period increased by **$1.5 million** (**58.5%**), primarily due to greater personnel costs, consulting expenses, and advertising spend associated with the Scite acquisition[142](index=142&type=chunk) - The net loss for the nine months ended March 31, 2025 increased by **13.4%** to **$1.1 million**, mainly due to charges from increasing the estimated earnout liability for the Scite acquisition, which offset the growth in gross profit[145](index=145&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, cash and cash equivalents increased to **$9.9 million**, driven by **$4.8 million** in operating cash flow, with a **$500,000** revolving credit line available - Cash and cash equivalents increased by **$3.75 million** during the nine months ended March 31, 2025, ending the period at **$9,852,007**[147](index=147&type=chunk) - Net cash from operating activities was **$4.8 million**, primarily resulting from a non-cash adjustment to contingent earnout liability (**$2.8M**), an increase in deferred revenue (**$1.3M**), and stock-based compensation (**$1.4M**)[148](index=148&type=chunk) - The company has a **$500,000** secured revolving line of credit with PNC Bank, maturing April 15, 2026. There were no outstanding borrowings as of March 31, 2025[152](index=152&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=55&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, significantly increased to **$3.7 million** for the nine months ended March 31, 2025, reflecting improved operational performance Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $216,470 | $76,301 | ($1,094,760) | ($965,370) | | Adjustments | $1,202,585 | $884,439 | $4,749,306 | $1,803,681 | | **Adjusted EBITDA** | **$1,419,055** | **$960,740** | **$3,654,546** | **$838,311** | [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for smaller reporting companies - Disclosure is not required for this item[157](index=157&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[161](index=161&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[164](index=164&type=chunk) PART II — OTHER INFORMATION [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended June 30, 2024[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 246,707 shares for approximately **$703,115** during the quarter ended March 31, 2025, under its stock repurchase program, with **$188,500** remaining available Common Stock Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | January 2025 | — | — | $891,615 | | February 2025 | — | — | $891,615 | | March 2025 | 246,707 | $2.85 | $188,500 | - For the nine months ended March 31, 2025, the company repurchased a total of **300,596** shares for an aggregate amount of **$908,393**[168](index=168&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including acquisition agreements, corporate bylaws, and officer certifications

Group 1: Earnings Performance - Research Solutions Inc. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, compared to break-even earnings per share a year ago [1] - The company had a loss of $0.07 per share in the previous quarter, resulting in a surprise of -450% against the expected earnings of $0.02 [1] - Over the last four quarters, the company has only surpassed consensus EPS estimates once [1] Group 2: Revenue Performance - For the quarter ended March 2025, Research Solutions posted revenues of $12.66 million, missing the Zacks Consensus Estimate by 2.46%, but up from $12.12 million year-over-year [2] - The company has exceeded consensus revenue estimates three times in the last four quarters [2] Group 3: Stock Performance and Outlook - Research Solutions shares have declined approximately 32.8% since the beginning of the year, while the S&P 500 has decreased by -4.3% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $12.75 million, and for the current fiscal year, it is $0.12 on revenues of $49.7 million [7] Group 4: Industry Context - The Commercial Printing industry, to which Research Solutions belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Research Solutions (RSSS) Q3 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants John Beisler - Investor RelationsRoy Olivier - CEO & PresidentWilliam Nurthen - CFOJosh Nicholson - Chief Strategy Officer Conference Call Participants Richard Baldry - MD & Senior Research AnalystJacob Stephan - Senior Research Analyst Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss Research Solutions' financial and operating results for its fiscal twenty tw ...

Research Solutions (RSSS) Q3 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants John Beisler - Investor RelationsRoy Olivier - CEO & PresidentWilliam Nurthen - CFOJosh Nicholson - Chief Strategy Officer Conference Call Participants Richard Baldry - MD & Senior Research AnalystJacob Stephan - Senior Research Analyst Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss Research Solutions' financial and operating results for its fiscal twenty tw ...