Core Insights - Research Solutions, Inc. reported a 23% increase in Annual Recurring Revenue (ARR) to $19.1 million and achieved 61 net new platform deployments, marking the best organic performance in a quarter [1][4][11] Financial Performance - Total revenue for the fiscal second quarter was $11.9 million, reflecting a 15.5% increase from $10.3 million in the same quarter last year [3][11] - Platform subscription revenue rose by 47% to $4.6 million, accounting for 39% of total revenue compared to 30% in the prior-year quarter [4][11] - Transaction revenue was $7.3 million, slightly up from $7.2 million in the previous year, primarily due to increased copyright revenues [5][11] - Total gross margin improved by 540 basis points to 48.9%, driven by a shift towards higher-margin platform business [6][11] Operating Expenses and Losses - Total operating expenses increased to $5.7 million from $4.9 million in the prior-year quarter, attributed to higher costs in Sales and Marketing and Technology and Product Development [7][11] - The net loss for the quarter was $2.0 million, or ($0.07) per share, compared to a net loss of ($54,000) in the prior-year quarter [8][11] - Adjusted EBITDA was $963,000, up from $318,000 in the year-ago quarter, indicating improved operational efficiency [8][11] Customer Metrics - The company ended the quarter with 1,090 total platform deployments, a 15.7% increase year-over-year [12] - The transaction customer count was 1,384, a slight decrease from 1,398 in the prior-year quarter [5][12] Cash Flow and Financial Position - Cash flow from operations exceeded $1 million in the quarter, compared to $0.3 million in the prior-year quarter [11] - Total assets as of December 31, 2024, were $42.79 million, with current assets amounting to $16.15 million [20]
Research Solutions Reports Fiscal Second Quarter 2025 Results