EX-99.1 2 tm2614691d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

  

 

Research Solutions Reports Third Quarter Fiscal Year 2026 Results

 

Reports 8.5% Increase in ARR to $22.1 Million, Net Income of $860,000 and 14% Year-over-Year Growth in Adjusted EBITDA

 

HENDERSON, Nev., May 14, 2026 — Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal third quarter ended March 31, 2026.

 

Fiscal Third Quarter 2026 Summary (compared to prior-year quarter)

 

·Total revenue of $12.1 million, compared to $12.7 million in the prior-year period.

 

·Annual Recurring Revenue (“ARR”) up 8.5% to $22.1 million, which includes approximately $15.7 million of B2B recurring revenue and $6.4 million of B2C recurring revenue.

 

·Net income of $860,000 increased 297%, or $0.03 per diluted share, compared to $216,000 or $0.01 per diluted share.

 

·Adjusted EBITDA increased 14% to $1.6 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $6.0 million, which represents a 12.3% margin.

 

·Platform revenue increased 6.6% to $5.2 million. Platform revenue accounted for 43% of total revenue as compared to 38% in the prior-year quarter.

 

·Fifteen net new deployments in the quarter and 10% deployment growth over past 12 months.

 

·Cash flow from operations was $1.0 million, compared to $2.9 million in the prior-year period, reflecting timing of billings and changes in working capital. On a trailing twelve-month basis, the Company has generated $5.7 million in cash flow from operations.

 

·Total gross margin improved 220 basis points to 51.7% on gross profit of $6.3 million.

 

“We introduced a pair of new AI-based products in recent months, giving Article Galaxy and Scite users the ability to search, review and acquire scientific literature within their existing AI tools. Simplifying the process is critical in an ever-changing research environment, and these tools help us remain an integral partner with researchers. We remain focused on executing over the long term to drive value for our shareholders.” said Roy W. Olivier, President and CEO of Research Solutions. “Our third quarter results reflect the improving profitability and growth prospects of our business, even within a softer operating environment. The continued focus across our Platform business is expanding consolidated gross margin and our strategic investment in sales and marketing is helping drive upsells for existing customers and signing larger deals with new logos.”

 

 

 

 

Fiscal Third Quarter 2026 Results

 

Total revenue was $12.1 million, compared to $12.7 million in the year-ago quarter. Platform revenue growth was more than offset by a decline in lower margins transactions revenue.

 

Platform subscription revenue for the quarter was $5.2 million, a 6.69% increase from the prior-year period. The increase was primarily due to organic growth in the core B2B platform, due to a mix of new logo generation as well as upsells and cross-selling into existing customers. The quarter ended with annual recurring revenue of $22.1 million, up 8.5% year-over-year (see the Company’s definition of annual recurring revenue below).

 

Transaction revenue was $7.0 million, compared to $7.8 million in the third quarter of fiscal 2025. The decrease was due to lower volume from a known churned customer and a few large customers. The transaction active customer count for the quarter was 1,346, compared to 1,380 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

 

Total gross margin improved 220 basis points from the prior-year quarter to 51.7%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business.

 

Total operating expenses were $5.2 million, compared to $5.7 million in the third quarter of 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses.

 

Net income in the third quarter was $860,000, or $0.03 per diluted share, compared to net income of $216,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.6 million, compared to $1.4 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).

 

Conference Call

Management will host the conference call, followed by a question-and-answer period.

 

Date: Thursday, May 14, 2026

Time: 5:00 p.m. ET (2:00 p.m. PT)

Dial-in number: 1-203-518-9708

Conference ID: RESEARCH

 

The conference call will be broadcast live and available for replay until June 14, 2026 by dialing 1-412-317-6671 and using the replay ID 11160801, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

 

 

 

 

 

Fiscal Third Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter

 

   Quarter Ended March 31,   Nine Months Ended March 31, 
   2026   2025   Change   % Change   2026   2025   Change   % Change 
Revenue:                                        
Platforms  $5,160,565   $4,839,929   $320,636    6.6%  $15,506,250   $13,770,831   $1,735,419    12.6%
Transactions   6,960,996    7,821,434    (860,438)   -11.0%   20,720,147    22,849,233    (2,129,086)   -9.3%
Total Revenue   12,121,561    12,661,363    (539,802)   -4.3%   36,226,397    36,620,064    (393,667)   -1.1%
                                         
Gross Profit:                                        
Platforms   4,456,896    4,229,623    227,273    5.4%   13,569,545    11,993,516    1,576,029    13.1%
Transactions   1,808,636    2,037,457    (228,821)   -11.2%   5,098,235    5,860,533    (762,298)   -13.0%
Total Gross Profit   6,265,532    6,267,080    (1,548)   0.0%   18,667,780    17,854,049    813,731    4.6%
                                         
Gross profit as a % of revenue:                                        
Platforms   86.4%   87.4%   -1.0%        87.5%   87.1%   0.4%     
Transactions   26.0%   26.0%   -0.1%        24.6%   25.6%   -1.0%     
Total Gross Profit   51.7%   49.5%   2.2%        51.5%   48.8%   2.8%     
                                         
Operating Expenses:                                        
Sales and marketing   1,508,897    1,607,678    (98,781)   -6.1%   4,824,319    4,141,172    683,147    16.5%
Technology and product development   1,513,074    1,394,936    118,138    8.5%   4,525,646    4,274,543    251,103    5.9%
General and administrative   1,625,042    1,845,412    (220,370)   -11.9%   4,920,996    5,783,789    (862,794)   -14.9%
Depreciation and amortization   312,402    312,013    389    0.1%   944,893    930,341    14,552    1.6%
Stock-based compensation   248,608    594,639    (346,031)   -58.2%   674,539    1,546,950    (872,411)   -56.4%
Foreign currency translation loss (gain)   12,529    (44,519)   57,048    -128.1%   31,385    (119,205)   150,590    126.3%
Total Operating Expenses   5,220,552    5,710,159    (489,607)   -8.6%   15,921,778    16,557,590    (635,813)   -3.8%
Income from operations   1,044,980    556,921    488,059    87.6%   2,746,002    1,296,459    1,449,544    111.8%
                                         
Other Income (Expenses):                                        
Other expenses   (162,607)   (327,042)   164,435    50.3%   (537,232)   (2,316,404)   1,779,172    76.8%
Provision for income taxes   (22,168)   (13,410)   (8,758)   -65.3%   (52,258)   (74,816)   22,558    30.2%
Total Other Expenses:   (184,775)   (340,452)   155,677    45.7%   (589,490)   (2,391,220)   1,801,730    75.3%
Net income (loss)  $860,205   $216,469    643,736    297.4%  $2,156,512   $(1,094,761)   3,251,274    297.0%
Adjusted EBITDA  $1,618,519   $1,419,054   $199,465    14.1%  $4,396,819   $3,654,545   $742,274    20.3%

 

   Quarter Ended March 31,   Nine Months Ended March 31, 
   2026   2025   Change   % Change   2026   2025   Change   % Change 
Platforms:                                
B2B ARR (Annual recurring revenue):                                        
  Beginning of Period  $15,318,954   $12,738,256   $2,580,697    20.3%  $14,197,598   $12,060,201   $2,137,397    17.7%
  Incremental ARR   397,970    735,818    (337,848)   -45.9%   1,519,326    1,413,873    105,453    7.5%
  End of Period  $15,716,923   $13,474,074   $2,242,849    16.6%  $15,716,923   $13,474,074   $2,242,849    16.6%
                                         
Deployments:                                        
  Beginning of Period   1,232    1,090    142    13.0%   1,171    1,021    150    14.7%
  Incremental Deployments   15    43    (28)   -65.1%   76    112    (36)   -32.1%
  End of Period   1,247    1,133    114    10.1%   1,247    1,133    114    10.1%
                                         
ASP (Average sales price):                                        
  Beginning of Period  $12,434   $11,686   $748    6.4%  $12,124   $11,812   $312    2.6%
  End of Period  $12,604   $11,892   $711    6.0%  $12,604   $11,892   $711    6.0%
                                         
B2C ARR (Annual recurring revenue):                                        
  Beginning of Period  $6,441,416   $6,371,381   $70,035    1.1%  $6,721,356   $5,363,129   $1,358,227    25.3%
  Incremental ARR   (80,748)   506,545    (587,293)   NM    (360,688)   1,514,797    (1,875,485)   -123.8%
  End of Period  $6,360,668   $6,877,926   $(517,258)   -7.5%  $6,360,668   $6,877,926   $(517,258)   -7.5%
                                         
Total ARR (Annualized recurring revenue):  $22,077,591   $20,352,000   $1,725,591    8.5%  $22,077,591   $20,352,000   $1,725,591    8.5%
                                         
Transaction Customers:                                        
Corporate customers   1,009    1,060    (51)   -4.8%   995    1,062    (67)   -6.3%
Academic customers   337    320    17    5.3%   336    323    13    4.0%
Total customers   1,346    1,380    (34)   -2.5%   1,331    1,385    (54)   -3.9%

  

Active Customer Accounts, Transactions and Annual Recurring Revenue

 

The Company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month.

 

A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform.

 

The Company defines annual recurring revenue (“ARR”) as the value of contracted Platform subscription recurring revenue normalized to a one-year period. For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.

 

 

 

 

Use of Non-GAAP Measure – Adjusted EBITDA

 

Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to the Company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company’s operating results.

 

The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other (income) expense, foreign currency transaction (gain) loss, provision for income taxes, depreciation and amortization, stock-based compensation, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):

 

   Quarter Ended March 31,   Nine Months Ended March 31, 
   2026   2025   Change   % Change   2026   2025   Change   % Change 
                                 
Net Income (loss)  $860,205   $216,469   $643,736    297.4%  $2,156,512   $(1,094,761)  $3,251,274    297.0%
 Add (deduct):                                        
Other (income) expense   162,607    327,042    (164,435)   NM    537,232    2,316,404    (1,779,172)   -76.8%
Foreign currency translation loss (gain)   12,529    (44,519)   57,048    -128.1%   31,385    (119,205)   150,590    126.3%
Provision for income taxes   22,168    13,410    8,758    65.3%   52,258    74,816    (22,558)   -30.2%
Depreciation and amortization   312,402    312,013    389    0.1%   944,893    930,341    14,552    1.6%
Stock-based compensation   248,608    594,639    (346,031)   -58.2%   674,539    1,546,950    (872,411)   -56.4%
 Adjusted EBITDA  $1,618,519   $1,419,054   $199,465    14.1%  $4,396,819   $3,654,545   $742,275    20.3%

 

About Research Solutions

 

Research Solutions, Inc. (NASDAQ: RSSS) is a vertical SaaS and AI Company that simplifies research workflow for academic institutions, life science companies, and research organizations worldwide. As one of the only publisher-independent marketplaces for scientific, technical, and medical (STM) content, the Company uniquely combines AI-powered tools—including an intelligent research assistant and full-text search capabilities—with seamless access to both open access and paywalled research. The platform enables organizations to discover, access, manage and analyze scientific literature more efficiently, accelerating the pace of scientific discovery. For more information and details, please visit www.researchsolutions.com

 

Important Cautions Regarding Forward-Looking Statements

 

Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, creating long-term value for shareholders and the Company’s prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.

 

 

 

 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

   March 31,   June 30, 
   2026   2025 
Assets          
Current assets:          
Cash and cash equivalents  $12,050,396   $12,227,312 
Accounts receivable, net of allowance of $94,234 and $182,324, respectively   7,601,477    7,191,234 
Prepaid expenses and other current assets   893,176    580,257 
Prepaid royalties   132,426    925 
Total current assets   20,677,475    19,999,728 
           
Non-current assets:          
Property and equipment, net of accumulated depreciation of $1,003,915 and $964,883, respectively   57,859    60,769 
Intangible assets, net of accumulated amortization of $3,648,497 and $2,736,773, respectively   8,836,604    9,686,241 
Goodwill   16,372,979    16,372,979 
Deposits and other assets   998    957 
Total assets  $45,945,915   $46,120,674 
           
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable and accrued expenses  $6,687,477   $7,443,757 
Deferred revenue, current portion   11,105,272    10,702,120 
Contingent earnout liability, current portion   7,310,763    7,363,152 
Total current liabilities   25,103,512    25,509,029 
           
Non-current liabilities:          
Deferred revenue, long-term portion   56,508    — 
Contingent earnout liability, long-term portion   1,726,046    6,683,488 
Total liabilities   26,886,066    32,192,517 
           
Commitments and contingencies          
           
Stockholders’ equity:          
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding   —    — 
Common stock; $0.001 par value; 100,000,000 shares authorized; 33,154,273 and 32,479,993 shares issued and outstanding, respectively   33,154    32,480 
Additional paid-in capital   42,023,679    39,059,557 
Accumulated deficit   (22,887,181)   (25,043,693)
Accumulated other comprehensive loss   (109,803)   (120,187)
Total stockholders’ equity   19,059,849    13,928,157 
Total liabilities and stockholders’ equity  $45,945,915   $46,120,674 

  

 

 

 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

 

   Three Months Ended   Nine Months Ended 
   March 31,   March 31, 
   2026   2025   2026   2025 
                 
Revenue:                    
Platforms  $5,160,565   $4,839,929   $15,506,250   $13,770,831 
Transactions   6,960,996    7,821,434    20,720,147    22,849,233 
Total revenue   12,121,561    12,661,363    36,226,397    36,620,064 
                     
Cost of revenue:                    
Platforms   703,669    610,306    1,936,705    1,777,315 
Transactions   5,152,360    5,783,977    15,621,912    16,988,700 
Total cost of revenue   5,856,029    6,394,283    17,558,617    18,766,015 
Gross profit   6,265,532    6,267,080    18,667,780    17,854,049 
                     
Operating expenses:                    
Selling, general and administrative   4,908,149    5,398,145    14,976,885    15,627,248 
Depreciation and amortization   312,402    312,013    944,893    930,341 
Total operating expenses   5,220,551    5,710,158    15,921,778    16,557,589 
                     
Income from operations   1,044,981    556,922    2,746,002    1,296,460 
                     
Other income   83,919    78,868    305,897    496,392 
Accreted interest expense   (246,526)   —    (843,129)   — 
Change in fair value of contingent earnout liability   —    (405,910)   —    (2,812,796)
                     
Income (loss) before provision for income taxes   882,374    229,880    2,208,770    (1,019,944)
Provision for income taxes   (22,168)   (13,410)   (52,258)   (74,816)
                     
Net income (loss)   860,206    216,470    2,156,512    (1,094,760)
                     
Other comprehensive income (loss):                    
Foreign currency translation   3,558    (3,324)   10,384    (6,855)
Comprehensive income (loss)  $863,764   $213,146   $2,166,896   $(1,101,615)
                     
Basic income (loss) per common share:                    
Net income (loss) per share  $0.03   $0.01   $0.07   $(0.04)
Weighted average common shares outstanding   31,999,813    31,033,022    31,619,417    30,597,410 
                     
Diluted income (loss) per common share:                    
Net income (loss) per share  $0.03   $0.01   $0.07   $(0.04)
Weighted average common shares outstanding   32,435,370    32,139,935    32,154,594    30,597,410 

   

 

 

 

 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended 
   March 31, 
   2026   2025 
         
Cash flow from operating activities:          
Net income (loss)  $2,156,512   $(1,094,760)
Adjustment to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and amortization   944,893    930,341 
Stock options expense   239,818    146,751 
Restricted common stock expense   434,721    1,400,199 
Accreted interest expense   843,129    — 
Adjustment to contingent earnout liability   —    2,812,796 
Changes in operating assets and liabilities:          
Accounts receivable   (410,243)   (754,258)
Prepaid expenses and other current assets   (312,919)   17,826 
Prepaid royalties   (131,501)   311,938 
Accounts payable and accrued expenses   (724,921)   (338,502)
Deferred revenue   459,660    1,331,920 
Net cash provided by operating activities   3,499,149    4,764,251 
           
Cash flow from investing activities:          
Purchase of property and equipment   (28,609)   (11,571)
Net cash used in investing activities   (28,609)   (11,571)
           
Cash flow from financing activities:          
Proceeds from the exercise of stock options   157,500    — 
Common stock repurchase   (47,385)   (908,393)
Payment of contingent acquisition consideration - Scite and FIZ   (3,766,263)   (91,174)
Net cash used in financing activities   (3,656,148)   (999,567)
           
Effect of exchange rate changes   8,692    (1,137)
Net increase (decrease) in cash and cash equivalents   (176,916)   3,751,976 
Cash and cash equivalents, beginning of period   12,227,312    6,100,031 
Cash and cash equivalents, end of period  $12,050,396   $9,852,007 
           
Supplemental disclosures of cash flow information:          
Cash paid for income taxes  $52,258   $74,816 
           
Non-cash investing and financing activities:          
Contingent consideration accrual on asset acquisition  $—   $29,394 
Common stock issued for Scite earnout payment  $2,180,142   $— 

 

Contact

Steven Hooser or John Beisler

Three Part Advisors

(214) 872-2710

[email protected]; [email protected]

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