Research Solutions Reports Second Quarter Fiscal Year 2026 Results

Core Insights - Research Solutions, Inc. reported a 14% increase in Annual Recurring Revenue (ARR) to $21.8 million, with a net income of $547,000 and a 36% year-over-year growth in Adjusted EBITDA for the fiscal second quarter of 2026 [1][2] Financial Performance - Total revenue for the second quarter was $11.8 million, slightly down from $11.9 million in the prior year, primarily due to a decline in transaction revenue [1] - Platform revenue increased by 14% to $5.2 million, accounting for 44% of total revenue compared to 39% in the prior-year quarter [1] - Gross profit rose by 6% to $6.2 million, with total gross margin improving by 350 basis points to 52.4% [1] - Net B2B ARR growth was $560,000, marking the best organic second quarter performance in the company's history [1] - Adjusted EBITDA reached $1.3 million, up 36% from the previous year, with a trailing twelve-month Adjusted EBITDA of $5.8 million, representing 11.8% of revenue [1] Customer Metrics - The company achieved 47 net new deployments in the quarter, reflecting strong momentum in B2B customer acquisition [1] - The total number of active transaction customers decreased to 1,321 from 1,384 in the prior-year quarter [1] Operating Expenses - Total operating expenses decreased to $5.4 million from $5.7 million in the prior-year quarter, driven by reduced general and administrative costs [1] - Sales and marketing expenses increased by 22.7% year-over-year, indicating a focus on growth initiatives [1] Market Position - Research Solutions is positioned as a leading AI-powered research workflow platform, serving academic institutions, life science companies, and research organizations globally [2] - The company combines AI tools with access to both open access and paywalled research, enhancing the efficiency of scientific literature management [2]