Research Solutions, Inc. (NASDAQ:RSSS) Reports Strong Q4 Earnings

Core Insights - Research Solutions, Inc. (RSSS) reported strong Q4 2025 earnings with an EPS of $0.07, exceeding the estimated $0.04 and significantly up from $0.01 in the same quarter last year [1][6] - The company's revenue for the quarter was approximately $12.44 million, slightly above the estimated $12.41 million, marking a 0.39% increase over the Zacks Consensus Estimate and an increase from $12.13 million in the same period last year [2][6] - RSSS achieved a 36% year-over-year increase in platform revenue, with annual recurring revenue (ARR) reaching $20.9 million, indicating a strategic shift towards SaaS and AI solutions [4][6] Financial Performance - The company has consistently outperformed consensus revenue estimates in three of the last four quarters, demonstrating a strong market position [2] - Platform revenue now constitutes nearly 40% of total revenue for the year, up from 31% in fiscal 2024, contributing to substantial improvements in gross margin, adjusted EBITDA, and operating cash flow [4] - Despite the strong performance, RSSS has a high price-to-earnings (P/E) ratio of approximately 88.50, indicating a high valuation relative to its earnings [5][6] Management Discussion - During the Q4 2025 earnings call, key executives including President and CEO Roy Olivier and CFO William Nurthen discussed the company's financial and operational results, emphasizing the transition to a SaaS software and AI solution set [3]