Company Overview - Research Solutions, Inc. (NASDAQ: RSSS) provides software and AI solutions for enterprise R&D teams and academic institutions, enabling researchers to find, trust, and act on scientific research more efficiently [5] Event Participation - Research Solutions will participate in the 38th Annual ROTH Conference, scheduled for March 22-24, 2026, in Dana Point, CA, offering 1-on-1 and small group investor meetings [1] - The company will showcase its new agentic research toolkit at the conference, encouraging attendees to schedule meetings to learn more [1] Conference Details - The ROTH Conference will feature various formats including 1-on-1 meetings, analyst-selected fireside chats, and panels with executive management from numerous growth sector companies [2] - The event will also include networking, entertainment, and athletic charity events, enhancing the overall experience for attendees [2]

Long Cast Advisers, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, the Portfolio’s cumulative net return increased by 1%, but the cumulative portfolio for the year remained flat. Since its inception in November 2015, the portfolio has delivered a cumulative return of 271% net of fees, outperforming major indices such as the Russell 2000 Index, the iShares US MicroCap ETF, and the iShares SmallCap EAFE (ex-N. Am) ETF ...

Research Solutions Expands Into Africa With University Of Pretoria As First Partner Accessibility Statement Skip NavigationThe Continent's Leading Research-Intensive University Signs A Three-Year Agreement with Research Solutions' AI Platform, SciteHENDERSON, Nev., March 12, 2026 /PRNewswire/ -- Research Solutions (NASDAQ: RSSS), a leading provider of AI-powered scientific research tools, announced that the University of Pretoria has become the first South African institution to adopt Scite, the company's A ...

A downtrend has been apparent in Research Solutions Inc. (RSSS) lately with too much selling pressure. The stock has declined 18.6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...

Core Insights - Research Solutions has launched Scite MCP, a new platform that connects directly to leading AI tools, allowing researchers to access evidence-backed answers from over 250 million scientific articles [1] Company Overview - Research Solutions (NASDAQ: RSSS) is recognized as a leading provider of AI-powered scientific research tools, enhancing the research process for users [1] Product Features - Scite MCP enables researchers and developers to search scientific literature seamlessly while evaluating the trustworthiness of research findings [1]

User Base and Content Access - Research Solutions reported a significant increase in its user base, with over 200 million existing STM journal articles available for instant download, and an addition of 2 to 4 million newly published STM articles each year[111]. - The company’s Platforms enable researchers to access and manage content efficiently, with single article delivery typically completed in under an hour, often in seconds[113]. - The company has established arrangements with hundreds of content publishers, allowing for rapid electronic delivery of articles, which is a key competitive advantage[113]. - The Platforms facilitate rights and permissions for various reuse cases, including AI applications, ensuring compliance with copyright laws[106]. - The company utilizes advanced AI models, including generative AI assistants, to enhance user experience and streamline research workflows across its Platforms[108]. Revenue and Financial Performance - Revenue is derived from two main sources: annual licenses for accessing premium features and transactional sales of STM content, with revenue recognized upon delivery of articles[117][119]. - Research Solutions operates under a subscription model, with revenue recognized ratably over the term of the subscription agreement, typically one year[118]. - Total revenue for the three months ended December 31, 2025, decreased by $121,568, or 1.0%, compared to the prior year, primarily due to a $745,156 decrease in transaction revenue[131]. - Platforms revenue increased by $623,588, or 13.6%, for the three months ended December 31, 2025, driven by additional deployments and cross-sell revenue[131]. - Gross profit for the three months ended December 31, 2025, increased by $355,857, or 6.1%, with platforms gross profit rising by 15.6%[136]. - Total revenue for the six months ended December 31, 2025, increased by $146,135, or 0.6%, with platforms revenue up by 15.8%[130]. - Total cost of revenue decreased by $669,144, or 5.4%, for the six months ended December 31, 2025, contributing to improved profitability[134]. - The total gross profit margin for the six months ended December 31, 2025, improved to 51.5%, up from 48.4% in the prior year[136]. - Net income for the three months ended December 31, 2025, was $546,919, a significant improvement from a net loss of $1,980,234 in the prior year[129]. - Net income for the six months ended December 31, 2025, was $1,296,306, an increase of $2,607,536 or 198.9% compared to a net loss of $(1,311,230) in 2024[141]. Operating Expenses and Cash Flow - Operating expenses decreased by $290,646, or 5.1%, for the three months ended December 31, 2025, with significant reductions in general and administrative expenses by 19.3%[131]. - Operating expenses for the three months ended December 31, 2025, totaled $5,437,600, a decrease of $290,646 or 5.1% compared to the same period in 2024[138]. - Total operating expenses for the six months ended December 31, 2025, were $10,701,227, a decrease of $146,204 or 1.3% compared to $10,847,431 in 2024[139]. - Net cash provided by operating activities for the six months ended December 31, 2025, was $2,491,176, primarily driven by net income and adjustments to contingent earnout liability[145]. - Cash and cash equivalents at the end of the period on December 31, 2025, were $12,262,780, an increase of $35,468 from $12,227,312 at the beginning of the period[144]. - Net cash used in financing activities for the six months ended December 31, 2025, was $(2,436,443), mainly due to the payment of contingent acquisition consideration[148]. Strategic Focus and Adjustments - Sales and marketing expenses increased by $781,929, or 30.9%, for the six months ended December 31, 2025, indicating a strategic focus on growth initiatives[130]. - The change in fair value of contingent earnout liability improved significantly, resulting in a gain of $1,810,283 for the six months ended December 31, 2025[130]. - Adjusted EBITDA for the three months ended December 31, 2025, was $1,305,336, reflecting an increase of $342,380 or 35.6% from $962,956 in 2024[153]. - Stock-based compensation expense decreased by $320,873 or 60.1% for the three months ended December 31, 2025, compared to the same period in 2024[139]. - Foreign currency transaction loss increased by $6,558 or 22.2% for the three months ended December 31, 2025, compared to the same period in 2024[139]. Credit Management - As of December 31, 2025, the allowance for doubtful accounts was recorded at $79,869, a decrease from $182,234 as of June 30, 2025, indicating improved credit management[125]. - The company does not engage in currency hedging activities, which may expose it to fluctuations in exchange rates, particularly for operations in Mexico[126].

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Research Solutions Inc. (RSSS) came out with quarterly earnings of $0.03 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.03, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Research Solutions, which belong ...

Financial Data and Key Metrics Changes - Total revenue for Q2 fiscal 2026 was $11.8 million, a slight decrease from $11.9 million in Q2 fiscal 2025 [7] - Platform subscription revenue increased by approximately 14% to $5.2 million, driven by a net increase of 47 platform deployments [7] - Annual recurring revenue (ARR) reached $21.8 million, up 14% year-over-year, with B2B ARR at approximately $15.3 million and B2C ARR at about $6.4 million [7][8] - Gross profit for the quarter was $6.2 million, a 6% increase from the prior year, with a gross margin of 52.4%, reflecting a 350 basis point improvement [9] - Net income for the quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million in the prior year [11] Business Line Data and Key Metrics Changes - The B2B segment saw strong results with 47 net new deployments, indicating customer excitement about product development [5] - B2C ARR experienced softness due to a pullback in marketing channels, impacting trial-to-subscriber conversion rates [8] - Transaction revenue for Q2 was $6.6 million, down from $7.3 million in the prior year, primarily due to churned accounts and volume reductions from larger customers [8] Market Data and Key Metrics Changes - The company noted increased competition in the B2C segment, which is expected to continue as digital marketing spend becomes more competitive [4] - The total active customer count decreased to 1,321 from 1,384 year-over-year [8] Company Strategy and Development Direction - The company is focusing on B2B annual and multiyear agreements as the primary growth driver, while also making product and sales process improvements [5] - A strategic shift is underway from a document delivery model to an "answers and access" platform, integrating API and AI capabilities [20][25] - The company aims to leverage its unique capabilities in data and rights management to support AI tools and enhance research efficiency [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger B2B and transaction performance compared to the first half [16] - The company is focused on maintaining balance sheet flexibility to fund high-return growth initiatives while managing operating expenses [15] - Management acknowledged the potential disruption from AI but believes their unique data capabilities will insulate them from direct competition [16][30] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $12.3 million, reflecting disciplined working capital management [12] - The company has no outstanding borrowings on its revolving line of credit, providing additional balance sheet flexibility [13] Q&A Session Summary Question: Can you discuss the pipeline for B2B deals, particularly related to the API model? - Management noted consistent growth in the pipeline, with many deals now being API integrations, leading to larger contracts [32] Question: What are the trends in B2C business growth? - Management indicated uncertainty about B2C growth, citing increased competition and lower conversion rates from trials to subscribers [33][34] Question: What are the top priorities for improvement? - Key focuses include operating expense management, understanding churn causes, and enhancing working capital management [39] Question: How is AI being utilized internally to improve efficiency? - AI is being leveraged for software development and productivity improvements, with ongoing training for staff [45][51] Question: What is the market opportunity for the infrastructure model? - Management believes the ASP could increase by 20%-30%, with new pricing models being explored for API usage [55] Question: How is the relationship with smaller publishers evolving? - There is a growing interest from smaller publishers in AI rights and collaboration, which could strengthen the company's position [77][80]

Financial Data and Key Metrics Changes - Total revenue for Q2 fiscal 2026 was $11.8 million, a slight decrease from $11.9 million in Q2 fiscal 2025 [7] - Platform subscription revenue increased by approximately 14% to $5.2 million, driven by a net increase of 47 platform deployments [7] - Annual recurring revenue (ARR) reached $21.8 million, up 14% year-over-year, with B2B ARR at approximately $15.3 million and B2C ARR at about $6.4 million [7][8] - Gross profit for the quarter was $6.2 million, a 6% increase from the prior year, with a gross margin of 52.4%, reflecting a 350 basis point improvement [9] - Net income for the quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million in the prior year [11] Business Line Data and Key Metrics Changes - The B2B segment saw strong results in ARR bookings and net ARR bookings, with 47 net new deployments [5] - Transaction revenue for Q2 was $6.6 million, down from $7.3 million in the prior year, primarily due to churned accounts and volume reductions from larger customers [8] - The platform business recorded a gross margin of 88.1%, a 160 basis point increase compared to the prior year [10] Market Data and Key Metrics Changes - The total active customer count decreased to 1,321 from 1,384 year-over-year [8] - The company experienced increased competition in the B2C segment, impacting growth and conversion rates [4][8] Company Strategy and Development Direction - The company is focusing on B2B annual and multiyear agreements as the primary growth driver, while also making product and sales process improvements [5] - There is a strategic shift towards API and AI integration, evolving from a document delivery company to an answers and access platform [20][25] - The company aims to leverage its unique capabilities in data and rights management to support AI tools and enhance research efficiency [17][30] Management's Comments on Operating Environment and Future Outlook - Management expects continued pressure in B2C and transaction segments but anticipates stronger performance in B2B and overall profitability in the second half of the fiscal year [14][16] - The company is optimistic about its ability to grow cash balances while funding obligations from operating cash flow [12][14] - Management acknowledges the potential disruption from AI but believes their unique data capabilities will provide a competitive advantage [16][30] Other Important Information - The company has no outstanding borrowings on its revolving line of credit, providing additional balance sheet flexibility [13] - Cash flow from operations was $1.4 million, a 35% increase from the previous year, reflecting higher profitability and disciplined working capital management [12] Q&A Session Summary Question: Can you discuss the pipeline for B2B deals? - The pipeline has grown consistently, with many deals now being API integrations with larger customers, resulting in larger contracts [32] Question: What are the trends in B2C business? - There is increased competition in digital marketing, leading to lower conversion rates from trials to subscribers [33][34] Question: What are the top priorities for improvement? - Focus areas include operating expense management, understanding churn causes, and working capital management [38] Question: How is AI being utilized internally? - AI is being leveraged for software development and productivity improvements, enhancing efficiency across teams [44][50] Question: What is the market opportunity for infrastructure sales? - The ASP for infrastructure sales could be 20%-30% higher, with new pricing models being explored [53] Question: How is the relationship with smaller publishers developing? - There is a growing interest from smaller publishers in rights deals, with ongoing discussions to enhance collaboration [76][78]