Research Solutions(RSSS) - 2026 Q2 - Quarterly Results

Financial Performance - Annual Recurring Revenue (ARR) increased by 14% to $21.8 million, comprising approximately $15.3 million from B2B and $6.4 million from B2C[6] - Net income for the quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2.0 million, or ($0.07) per share in the prior year[11] - Adjusted EBITDA rose by 36% to $1.3 million, with a trailing twelve-month Adjusted EBITDA of $5.8 million, representing 11.8% of revenue[6] - Total revenue was $11.8 million, slightly down from $11.9 million in the prior year, with platform revenue growth offset by a decline in transaction revenue[5] - Gross profit increased by 6% to $6.2 million, with total gross margin improving by 350 basis points to 52.4%[6] - Adjusted EBITDA for the quarter was $1,305,337, a 35.6% increase from $962,956 in the previous year[18] - The company reported a net income of $546,920, a significant turnaround from a net loss of $(1,980,234) in the same quarter last year[18] - Total revenue for the three months ended December 31, 2025, was $11,792,651, a slight decrease of 1.0% compared to $11,914,219 for the same period in 2024[23] - Gross profit for the six months ended December 31, 2025, increased to $12,402,248, up 7.0% from $11,586,969 in 2024[23] - Net income for the six months ended December 31, 2025, was $1,296,306, compared to a net loss of $1,311,230 for the same period in 2024[25] Revenue Breakdown - Platform revenue grew by 14% to $5.2 million, accounting for 44% of total revenue, up from 39% in the prior-year quarter[6] - Transaction revenue decreased by 10.2% to $6.6 million, impacted by customer churn and volume declines from larger customers[8] - B2B Annual Recurring Revenue (ARR) increased to $15,318,954, a 20.3% growth compared to $12,738,256 in the previous year[14] - B2C ARR decreased to $6,441,416, reflecting a 1.1% increase from $6,371,381, with a significant decline in incremental ARR of -110.0%[14] - Total ARR reached $21,760,370, marking a 13.9% increase from $19,109,637[14] Customer Metrics - The number of corporate customers grew by 26.2% to 1,326, while total customers increased by 19.2% to 1,650[14] - Deployments at the end of the period totaled 1,232, reflecting a 13.0% increase from 1,090[14] - The company achieved forty-seven net new deployments in the quarter, reflecting strong momentum in B2B customer acquisition[6] Operating Expenses and Cash Flow - Total operating expenses decreased by 5.1% to $5.4 million, primarily due to reduced general and administrative expenses[10] - Operating expenses for the six months ended December 31, 2025, were $10,701,227, a decrease of 1.4% from $10,847,431 in 2024[23] - The company reported a cash flow from operating activities of $2,491,176 for the six months ended December 31, 2025, compared to $1,871,493 in 2024[25] Assets and Liabilities - Cash and cash equivalents at the end of the period were $12,262,780, an increase from $7,701,155 at the end of December 31, 2024[25] - Total assets decreased to $44,243,880 as of December 31, 2025, down from $46,120,674 as of June 30, 2025[22] - Total liabilities decreased to $27,015,281 as of December 31, 2025, compared to $32,192,517 as of June 30, 2025[22] Strategic Focus - The company continues to focus on long-term growth strategies, reinvesting in sales and marketing to accelerate growth while maintaining financial flexibility[4] - The company emphasizes its commitment to enhancing product offerings and expanding customer base as part of its growth strategy[20]