Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 was approximately $49.1 million, a 10% increase from fiscal year 2024 [19] - Platform subscription revenue increased 36% to roughly $19 million [19] - Annual recurring revenue (ARR) reached $20.9 million, up 20% year over year [12][19] - Net income for the quarter was $2.4 million or $0.07 per diluted share, compared to a net loss of $2.8 million or $0.09 per diluted share in the prior year quarter [18] - Adjusted EBITDA for the year was $5.3 million, a company record compared to $2.2 million in fiscal year 2024 [21] Business Line Data and Key Metrics Changes - Platform subscription revenue accounted for over 40% of total revenue in the quarter, increasing from 35% in the prior year quarter [12] - B2B ARR was $14.2 million, while normalized ARR associated with B2C subscribers was approximately $6.7 million [13] - Transaction revenue for fiscal year 2025 was $30.1 million, a 2% decrease from the prior year [19] Market Data and Key Metrics Changes - The company experienced a modest sequential decline in B2C ARR due to seasonal challenges [13] - The total active customer count decreased to 1,338 from 1,398 in the same period a year ago [14] - The company noted competitive pressures in the B2C space that may affect near-term growth [25] Company Strategy and Development Direction - The company aims to reach a $30 million platform ARR target by the end of fiscal year 2027, focusing on product development and unique value delivery [5] - A shift from a transaction-based model to a vertical SaaS model is underway, with an emphasis on AI's impact on research workflows [8] - The company is pursuing a headless strategy, allowing customers to integrate services into their own systems and workflows [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about B2B ARR growth momentum and the potential for a return to low levels of growth in transaction revenue [25] - The company is focused on improving conversion rates in the transaction business and enhancing customer experience [79] - Management expects to continue investing in sales and marketing while aiming to reduce general and administrative expenses [25] Other Important Information - The company has a strong acquisition pipeline and is exploring opportunities to enhance its product offerings [5][29] - The final earn-out for the SITE acquisition was determined to be $15.4 million, with a cash mix increased to approximately 62% [22] - Cash flow from operations for fiscal year 2025 was over $7 million, nearly double the previous year's result [24] Q&A Session Summary Question: What drove the sequential uptick in ASP? - The increase in ASP was attributed to larger deals and improved sales execution under the new Chief Revenue Officer [44] Question: How is the Resolute software adapting to the new strategy? - Resolute's strong API aligns well with the headless strategy, allowing for better integration into customer workflows [46][48] Question: What is the competitive landscape for the API strategy? - Other publishers are beginning to open up their articles to LLM providers, but the company believes it is uniquely positioned due to its relationships with various publishers [50][51] Question: How do you see margins expanding in fiscal year 2026? - The company expects to maintain EBITDA margins above 10% while continuing to invest in growth [74] Question: What strategies are in place to stem the decline in the transactions business? - The focus is on product improvements and enhancing the customer experience to increase conversion rates [79]

[Form 8-K General Information](index=1&type=section&id=Form%208-K%20General%20Information) This section details the registrant, filing date, trading symbol, market listing, and operational status of Research Solutions, Inc - The registrant is **Research Solutions, Inc.**, incorporated in Nevada, with Commission File Number **1-39256** and IRS Employer Identification No. **11-3797644**[1](index=1&type=chunk) - The report date is **August 19, 2025**[1](index=1&type=chunk) Trading Information | Title of each Class | Trading Symbol(s) | Name of each Exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common stock, $0.001 par value | RSSS | The Nasdaq Capital Market | - The company became **fully remote** in November 2019 and does not currently have principal executive offices; its mailing address is **10624 E. Eastern Ave., Ste. A-614, Henderson, NV 89052**[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section announces Research Solutions, Inc.'s financial results for Q4 and FY2025, furnished as Exhibit 99.1, and clarifies its legal status - On **August 19, 2025**, the Registrant announced its financial results for the fourth quarter and fiscal year ended **June 30, 2025**[4](index=4&type=chunk) - A copy of the press release is being furnished as **Exhibit 99.1** to this Current Report on Form 8-K[4](index=4&type=chunk) - The information in this Item 2.02 and Exhibit 99.1 is intended to be furnished and shall **not be deemed 'filed'** for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, including the press release and interactive data file Exhibits | Exhibit Number | Description | | :------------- | :--------------------------------------------------------------------------------------------------- | | 99.1 | Press Release issued August 19, 2025 entitled "Research Solutions Reports Preliminary Fourth Quarter and Fiscal Year 2025 Results" | | 104 | Cover Page Interactive Data File (embedded as Inline XBRL document) | [Signature](index=3&type=section&id=SIGNATURE) This section formally concludes the Form 8-K filing, confirming its authorization and signature by the Chief Financial Officer - The report was signed on behalf of **Research Solutions, Inc.** by **William Nurthen, Chief Financial Officer**[10](index=10&type=chunk)[11](index=11&type=chunk) - The signing date is **August 19, 2025**[11](index=11&type=chunk)

Core Insights - Research Solutions, Inc. reported a 36% year-over-year increase in platform revenue [1] - The company achieved an Annual Recurring Revenue (ARR) of $20.9 million [1] - The fiscal year ended June 30, 2025, marked a record net income and adjusted EBITDA for the company [1] Financial Performance - The fourth quarter and full fiscal year results indicate strong financial growth [1] - The significant revenue increase reflects the effectiveness of the AI-powered research workflow platform [1] - The record net income and adjusted EBITDA highlight the company's operational efficiency and profitability [1]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Research Solutions Inc. (RSSS) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on September 18, with a consensus EPS estimate of $0.04 per share, reflecting a 300% increase year-over-year. Revenues are projected at $12.39 million, a 2.1% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The stock holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12][13]. Historical Performance - Research Solutions has not exceeded consensus EPS estimates in the last four quarters, with the last reported quarter matching expectations at $0.03 per share, resulting in no surprise [14][15]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment. Stocks may decline despite an earnings beat or rise despite a miss [16][18].

Core Insights - Research Solutions has launched the AI Rights add-on for Article Galaxy, enabling corporate researchers to use generative AI tools with scientific journal content while ensuring compliance with copyright laws [1][2][3] - The solution addresses a significant compliance gap, as 76% of researchers currently using AI tools lack clear guidance on copyright permissions [1][2] - The AI Rights add-on provides instant clarity on usage permissions and seamless access to acquire necessary rights, transforming Article Galaxy into a comprehensive solution for AI rights verification [2][5] Company Overview - Research Solutions (NASDAQ: RSSS) is a vertical SaaS and AI company that simplifies research workflows for academic institutions, life science companies, and research organizations globally [4] - The company offers a unique marketplace for scientific, technical, and medical (STM) content, combining AI-powered tools with access to both open access and paywalled research [4] Key Innovations - Comprehensive Rights Management allows users to manage all AI rights sources through a single interface, including open access licenses and direct publisher relationships [5] - Instant Rights Verification provides immediate visibility on AI usage permissions for any article, eliminating compliance uncertainty [5] - One-Click Rights Acquisition enables users to purchase missing permissions directly through the Article Galaxy interface with transparent pricing [5] - Retroactive Rights Purchase allows organizations to acquire AI rights for previously purchased articles, ensuring compliance for existing content libraries [5] - Organization-Wide Licensing applies acquired AI rights across the entire organization, removing per-use restrictions [5]

Group 1 - Research Solutions, Inc. will hold a conference call to discuss its financial results for the fourth quarter and full year fiscal 2025 on September 18, 2025, at 5:00 p.m. ET [1][2] - The conference call will be hosted by President and CEO Roy W. Olivier and CFO Bill Nurthen, followed by a question and answer session [2] - A press release with the financial results will be issued after market close prior to the call [1] Group 2 - Research Solutions, Inc. is a vertical SaaS and AI company that simplifies research workflows for academic institutions, life science companies, and research organizations globally [4] - The company offers a unique marketplace for scientific, technical, and medical content, combining AI-powered tools with access to both open access and paywalled research [4] - The platform aims to enhance the efficiency of discovering, accessing, managing, and analyzing scientific literature, thereby accelerating scientific discovery [4]

Company Overview - Research Solutions, Inc. (NASDAQ: RSSS) is a leading AI-powered research workflow platform that provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property [3] - The company was founded in 2006 as Reprints Desk and has become a pioneer in developing solutions for researchers [3] - More than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on the company's SaaS research platform, Article Galaxy, for access to scientific research and data [3] Upcoming Events - Management will present at the Midwest IDEAS Investor Conference on August 27, 2025, at The InterContinental in Chicago, IL, with the presentation scheduled to begin at 9:15 am CT [1] - The presentation will be webcast and accessible through the conference host's main website [1]

Core Insights - Research Solutions, Inc. anticipates record fiscal year revenue, net income, adjusted EBITDA, and cash flow for the fiscal year ended June 30, 2025 [1][2] - The company reported a 20% growth in Annual Recurring Revenue (ARR) for its Platforms business, reaching nearly $21 million [2][4] - The company expects to finalize its full fiscal year results on September 18, 2025 [2] Financial Performance - For the fiscal fourth quarter 2025, platform revenue is expected to increase by 21% year-over-year to approximately $5.2 million [4] - Total revenue is projected to rise by 3% year-over-year to around $12.4 million [4] - Positive income from operations is estimated at approximately $1.2 million, with net income exceeding $2.3 million, including a $1.1 million adjustment related to the Scite acquisition [4] - Adjusted EBITDA is expected to be around $1.6 million, reflecting a 15% increase from the prior year [4] - Cash flow from operations is projected to be approximately $2.3 million, with an ending cash balance above $12.2 million [4] Annual Recurring Revenue (ARR) - ARR is defined as the value of contracted platform subscription recurring revenue normalized to a one-year period [3] - The company reported a total ARR increase of approximately 20% from the prior year to $20.9 million [4] Scite Acquisition and Earn-Out - The Scite earn-out has been finalized at approximately $15.4 million, to be paid 50% in cash and 50% in stock over eight quarters [4] - Due to an offer to Scite's former shareholders, the earn-out payments will be approximately 62% in cash and 38% in stock [4] Future Outlook - The company aims to improve its weighted "rule of 40" metric, which was 34% for fiscal year 2025, for fiscal year 2026 [2] - Management expresses optimism regarding the business's growth trajectory and operational performance [2]

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]