Research Solutions(RSSS) - 2026 Q1 - Quarterly Results

Revenue Performance - Annual Recurring Revenue (ARR) increased by 21% to $21.3 million, with B2B recurring revenue at approximately $14.8 million and B2C recurring revenue at $6.5 million[5]. - Total revenue reached $12.3 million, a 2% increase compared to the prior-year quarter, driven by an 18% rise in platform revenue to $5.1 million[6][5]. - Total revenue for the three months ended September 30, 2025, was $12,312,185, an increase of 2.2% compared to $12,044,482 for the same period in 2024[21]. Profitability - Net income for the quarter was $749,000, or $0.02 per diluted share, representing a 12% increase from $669,000 in the prior-year quarter[10][12]. - Adjusted EBITDA rose by 16% to $1.5 million, with a trailing twelve-month Adjusted EBITDA of $5.5 million, reflecting an 11.1% margin[5][10]. - Gross profit increased by 8% to $6.2 million, with total gross margin improving by 270 basis points to 50.6%[5][9]. - Gross profit for the same period was $6,225,298, representing a gross margin of approximately 50.5%[21]. - Net income for the three months ended September 30, 2025, was $749,387, compared to $669,004 for the same period in 2024, reflecting a year-over-year increase of 12%[21]. Cash Flow and Financial Health - Cash flow from operations grew by 31% to $1.1 million, with a trailing twelve-month cash flow from operations of $7.3 million[5]. - The company reported a net cash provided by operating activities of $1,107,119 for the three months ended September 30, 2025, compared to $843,119 for the same period in 2024[23]. - Cash and cash equivalents at the end of the period were $11,955,763, down from $12,227,312 at the end of the previous quarter[20]. - Total assets decreased to $45,509,620 from $46,120,674 in the previous quarter[20]. - Total liabilities decreased to $29,915,300 from $32,192,517 in the previous quarter, indicating improved financial health[20]. Customer Metrics - The company achieved its best organic Q1 performance in history, with net B2B ARR growth of $561,000, up over 300% from last year[5][4]. - The total active customer count decreased to 1,326 from 1,390 in the prior-year quarter, reflecting a 4.6% decline[12]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $5,263,627, slightly higher than $5,119,185 for the same period in 2024[21]. Transaction Revenue - Transaction revenue was $7.2 million, a decrease from $7.7 million in the first quarter of fiscal 2025, attributed to lower per article fees[8]. Average Sales Price - The average sales price (ASP) reached near all-time high levels, ending the period at $12,454, a 5.2% increase from the beginning of the period[12]. Share Information - The weighted average common shares outstanding for diluted income per share was 32,070,121 for the three months ended September 30, 2025[21]. Acquisition Consideration - The company incurred a payment of $1,337,857 related to contingent acquisition consideration during the financing activities[23].