Research Solutions Reports Preliminary Fourth Quarter and Fiscal Year 2025 Results

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]