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Sep 9, 2026, 4:15 PM ETTechnology

Research Solutions — Fiscal Year 2026 Earnings Summary

RSSSRESEARCH SOLUTIONS INC
Source

Financial Performance

  • Total revenue for fiscal 2026 was $48.3 million, a 1.5% decrease from $49.1 million in fiscal 2025; Q4 2026 revenue was $12.1 million, down 2.9% from $12.4 million in the prior-year quarter.
  • Net income for fiscal 2026 was $2.8 million ($0.09 per diluted share), compared to $1.3 million ($0.04 per diluted share) in fiscal 2025; Q4 2026 net income was $666,000 ($0.02 per diluted share), compared to $2.4 million ($0.07 per diluted share) in the prior-year quarter.
  • Adjusted EBITDA for fiscal 2026 reached a record $5.8 million, up 10.6% from $5.3 million in fiscal 2025; Q4 2026 Adjusted EBITDA was $1.4 million, down 11.4% from $1.6 million in the prior-year quarter.
  • Total gross profit for fiscal 2026 was $25.1 million, up 3.6% from fiscal 2025, with total gross margin improving 260 basis points to 51.9%; Q4 2026 gross profit was $6.4 million, with gross margin improving 200 basis points to 53.0%.
  • Cash flow from operations for fiscal 2026 was $5.3 million, down from $7.0 million in fiscal 2025; Q4 2026 cash flow from operations was $1.8 million, down from $2.3 million in the prior-year quarter.
  • The company ended fiscal 2026 with $12.6 million in cash and cash equivalents.
  • Operating expenses for fiscal 2026 were $21.5 million, down 1.0% from $21.7 million in fiscal 2025; Q4 2026 operating expenses were $5.6 million, up 8.2% from $5.1 million in the prior-year quarter.

Business Segments and Product Lines

  • Platform revenue for fiscal 2026 was $20.8 million, up 9.8% year-over-year, representing 43% of total revenue compared to 39% in fiscal 2025; Q4 2026 platform revenue was $5.3 million, up 2.5% from the prior-year quarter.
  • Transaction revenue for fiscal 2026 was $27.5 million, down 8.7% from $30.1 million in fiscal 2025; Q4 2026 transaction revenue was $6.8 million, down 6.7% from the prior-year quarter.
  • Total Annual Recurring Revenue (ARR) for fiscal 2026 was $22.5 million, up 7.8% year-over-year, comprising $16.2 million in B2B ARR and $6.3 million in B2C ARR.
  • B2B ARR grew $2.0 million (14.1%) year-over-year to $16.2 million; Q4 2026 B2B ARR growth included $0.8 million in AI-related ARR, which grew 125% sequentially from Q3 2026.
  • B2C ARR declined to $6.3 million at year-end, down 5.6% from the prior year, offsetting B2B growth in the total ARR figure.
  • The company added 105 net new B2B platform deployments during fiscal 2026, bringing the total to 1,276; Q4 2026 saw 29 incremental deployments.
  • Transaction active customer count for Q4 2026 was 1,323, down 1.1% from 1,338 in the prior-year quarter, with corporate customers declining 4.2% and academic customers increasing 9.0%.
  • New AI products launched in fiscal 2026 include Scite MCP and Article Galaxy MCP, enabling functionality within ChatGPT, Claude, Copilot, and other AI tools.

Management Commentary and Tone

  • CEO Roy W. Olivier stated the company "more than doubled net income for the full year in a challenging market" driven by the shift to higher-margin platforms.
  • Management highlighted a "strong cash position and Adjusted EBITDA posture" as enabling continued investment in internally developed tools and strategic M&A.
  • The CEO noted the strategy of supporting users where they work has resulted in a "large pipeline of AI related revenue opportunities in FY27."

Other Key Points

  • The company paid $4.95 million in contingent acquisition consideration for Scite and FIZ during fiscal 2026.
  • In Q4 2025, net income included a $1.1 million favorable adjustment for the finalization of the Scite earnout; fiscal 2025 results included $1.7 million of net other expense related to the Scite earn-out.
  • Stock-based compensation for fiscal 2026 was $928,516, a 46.1% decrease from $1.72 million in fiscal 2025.
  • The company repurchased $53,039 of common stock during fiscal 2026, compared to $934,577 in fiscal 2025.
  • Deferred revenue increased to $11.47 million (current portion) and $17,245 (long-term portion) at June 30, 2026, compared to $10.70 million (current) and $0 (long-term) in the prior year.
  • A contingent earnout liability of $7.32 million remains on the balance sheet as of June 30, 2026, down from $7.36 million in the prior year.