EX-99.1 2 tm266147d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

 

Research Solutions Reports Second Quarter Fiscal Year 2026 Results

 

Reports 14% Increase in ARR to $21.8 Million, Net Income of $547,000 and 36% Year-over-Year Growth in Adjusted EBITDA 

 

HENDERSON, Nev., February 12, 2026 — Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal second quarter ended December 31, 2025.

 

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

 

·Annual Recurring Revenue (“ARR”) up 14% to $21.8 million, which includes approximately $15.3 million of B2B ARR and $6.4 million of B2C ARR.

 

·Forty-seven net new deployments in the quarter reflect one of our best results and sustained momentum in new B2B customer acquisition.

 

·Net income of $547,000, or $0.02 per diluted share, compared to net loss of $2.0 million or ($0.07) per share.

 

·Adjusted EBITDA increased 36% to $1.3 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $5.8 million or 11.8% of revenue for the same period.

 

·Net B2B ARR growth of $560,000 represents the best organic second quarter performance in Company history.

 

·Gross profit up 6% to $6.2 million. Total gross margin improved 350 basis points to 52.4%.

 

·Platform revenue up 14% to $5.2 million. Platform revenue accounted for 44% of total revenue as compared to 39% in the prior-year quarter.

 

·Total revenue was $11.8 million compared to $11.9 million in the prior year, as strong B2B revenue growth has not yet fully offset softness in transactions revenue.

 

“Our second quarter results reflect strong growth within our B2B Platforms business through forty-seven net new deployments in the quarter and Platforms continues to represent a larger portion of our total revenue mix. In addition, the average sales price for our Platform increased more than six percent year-over-year as we signed larger deals and as existing customers adopt more of our SaaS and AI solutions,” said Roy W. Olivier, President and CEO of Research Solutions. “Our business continues to generate strong operating cash flow and Adjusted EBITDA, allowing us to reinvest in sales and marketing to accelerate growth while maintaining financial flexibility. We continue to manage the business with a long-term focus to drive value for our shareholders.”

 

Fiscal Second Quarter 2026 Results

 

Total revenue was $11.8 million, compared to $11.9 million in the year-ago quarter. Platform revenue growth was offset by a decline in transactions revenue.

 

 

 

 

Platform subscription revenue for the quarter was $5.2 million, a 14% year-over-year 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 $21.8 million, up 14% year-over-year (see the Company’s definition of annual recurring revenue below).

 

Transaction revenue was $6.6 million, compared to $7.3 million in the second quarter of fiscal 2025. The decrease was due to the impact of a known customer that churned earlier and a few larger customers that saw significant declines in volume. The transaction active customer count for the quarter was 1,321, compared to 1,384 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).

 

Total gross margin improved 350 basis points from the prior-year quarter to 52.4%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, including the expansion of the gross margin for that business.

 

Total operating expenses were $5.4 million, compared to $5.7 million in the second quarter of fiscal 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses offset in part by increased sales and marketing expenses.

 

Net income in the fiscal second quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million, or ($0.07) per share, in the prior-year quarter. Adjusted EBITDA was $1.3 million, compared to $963,000 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, February 12, 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 March 12, 2026 by dialing 1-412-317-6671 and using the replay ID 11160799, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.

 

 

 

 

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

 

   Quarter Ended December 31,   Six Months Ended December 31, 
   2025   2024   Change   % Change   2025   2024   Change   % Change 
Revenue:                                
Platforms  $5,224,845   $4,601,257   $623,588    13.6%  $10,345,685   $8,930,902   $1,414,783    15.8%
Transactions   6,567,806    7,312,962    (745,156)   -10.2%   13,759,151    15,027,799    (1,268,648)   -8.4%
Total Revenue   11,792,651    11,914,219    (121,568)   -1.0%   24,104,836    23,958,701    146,135    0.6%
Gross Profit:                                        
Platforms   4,602,184    3,981,415    620,769    15.6%   9,112,649    7,763,893    1,348,756    17.4%
Transactions   1,574,766    1,839,678    (264,912)   -14.4%   3,289,599    3,823,076    (533,477)   -14.0%
Total Gross Profit   6,176,950    5,821,093    355,857    6.1%   12,402,248    11,586,969    815,279    7.0%
Gross profit as a % of revenue:                                        
Platforms   88.1%   86.5%   1.6%        88.1%   86.9%   1.1%     
Transactions   24.0%   25.2%   -1.2%        23.9%   25.4%   -1.5%     
Total Gross Profit   52.4%   48.9%   3.5%        51.5%   48.4%   3.1%     
Operating Expenses:                                        
Sales and marketing   1,648,597    1,343,087    305,510    22.7%   3,315,422    2,533,494    781,928    30.9%
Technology and product development   1,602,421    1,506,849    95,572    6.3%   3,012,572    2,879,607    132,965    4.6%
General and administrative   1,620,595    2,008,201    (387,606)   -19.3%   3,295,954    3,938,377    (642,423)   -16.3%
Depreciation and amortization   316,425    306,233    10,192    3.3%   632,491    618,328    14,163    2.3%
Stock-based compensation   213,449    534,322    (320,873)   -60.1%   425,931    952,311    (526,380)   -55.3%
Foreign currency translation loss (gain)   36,112    29,554    6,558    22.2%   18,856    (74,686)   93,542    -125.2%
Total Operating Expenses   5,437,599    5,728,246    (290,647)   -5.1%   10,701,226    10,847,431    (146,205)   -1.3%
Income from operations   739,351    92,847    646,504    696.3%   1,701,022    739,538    961,484    -130.0%
Other expense:                                        
Other expense   (183,572)   (2,057,887)   1,874,315    -91.1%   (374,625)   (1,989,362)   1,614,737    -81.2%
Provision for income taxes   (8,859)   (15,194)   6,335    -41.7%   (30,090)   (61,406)   31,316    -51.0%
Total Other Expense:   (192,431)   (2,073,081)   1,880,650    -90.7%   (404,715)   (2,050,768)   1,646,053    -80.3%
Net income (loss)  $546,920   $(1,980,234)   2,527,154    -127.6%  $1,296,307   $(1,311,230)   2,607,537    -198.9%
Adjusted EBITDA  $1,305,337   $962,956   $342,381    35.6%  $2,778,300   $2,235,491   $542,809    24.3%

 

 

 

 

   Quarter Ended December 31,   Six Months Ended December 31, 
   2025   2024   Change   % Change   2025   2024   Change   % Change 
Platforms:                                
B2B ARR (Annual recurring revenue*):                                        
Beginning of Period  $14,758,472   $12,187,834   $2,570,637    21.1%  $14,197,598   $12,060,201   $2,137,397    17.7%
Incremental ARR   560,482    550,422    10,060    1.8%   1,121,356    678,055    443,301    65.4%
End of Period  $15,318,954   $12,738,256   $2,580,697    20.3%  $15,318,954   $12,738,256   $2,580,698    20.3%
Deployments:                                        
Beginning of Period   1,185    1,029    156    15.2%   1,171    1,021    150    14.7%
Incremental Deployments   47    61    (14)   -23.0%   61    69    (8)   -11.6%
End of Period   1,232    1,090    142    13.0%   1,232    1,090    142    13.0%
ASP (Average sales price):                                        
Beginning of Period  $12,454   $11,844   $610    5.2%  $12,124   $11,812   $312    2.6%
End of Period  $12,434   $11,686   $748    6.4%  $12,434   $11,686   $748    6.4%
B2C ARR (Annual recurring revenue*):                                        
Beginning of Period  $6,535,197   $5,430,795   $1,104,402    20.3%  $6,721,356   $5,363,129   $1,358,227    25.3%
Incremental ARR   (93,781)   940,586    (1,034,367)   -110.0%   (279,940)   1,008,252    (1,288,192)   -127.8%
End of Period  $6,441,416   $6,371,381   $70,035    1.1%  $6,441,416   $6,371,381   $70,035    1.1%
                                         
Total ARR (Annualized recurring revenue):  $21,760,370   $19,109,637   $2,650,732    13.9%  $21,760,370   $19,109,637   $2,650,733    13.9%
                                         
Transaction Customers:                                        
Corporate customers   1,326    1,051    275    26.2%   1,200    1,063    137    12.9%
Academic customers   324    333    (9)   -2.7%   320    325    (5)   -1.5%
Total customers   1,650    1,384    266    19.2%   1,520    1,388    132    9.5%

 

* Annual Recurring Revenue (Non-GAAP Measure) - the value of contracted platform subscription recurring revenue normalized to a one year period. For B2C, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by 12.

 

 

 

 

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 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 December 31,   Six Months Ended December 31, 
   2025   2024   Change   %
Change		   2025   2024   Change   %
Change		 
   $546,920   $(1,980,234)  $2,527,154    -127.6%  $1,296,307   $(1,311,230)  $2,607,537    -198.9%
                                  -      
Other expense   183,572    2,057,887    (1,874,315)   -91.1%   374,625    1,989,362    (1,614,737)   -81.2%
Foreign currency translation loss (gain)   36,112    29,554    6,558    22.2%   18,856    (74,686)   93,542    -125.2%
Provision for income taxes   8,859    15,194    (6,335)   -41.7%   30,090    61,406    (31,316)   -51.0%
Depreciation and amortization   316,425    306,233    10,192    3.3%   632,491    618,328    14,163    2.3%
Stock-based compensation   213,449    534,322    (320,873)   -60.1%   425,931    952,311    (526,380)   -55.3%
   $1,305,337   $962,956   $342,381    35.6%  $2,778,300   $2,235,491   $542,809    -24.3%

 

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 officially 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)

 

   December 31,   June 30, 
   2025   2025 
Assets          
Current assets:          
Cash and cash equivalents  $12,262,780   $12,227,312 
Accounts receivable, net of allowance of $79,869 and $182,324, respectively   5,661,171    7,191,234 
Prepaid expenses and other current assets   708,075    580,257 
Prepaid royalties   42,155    925 
Total current assets   18,674,181    19,999,728 
           
Non-current assets:          
Property and equipment, net of accumulated depreciation of $992,832 and $964,883, respectively   65,236    60,769 
Intangible assets, net of accumulated amortization of $3,347,683 and $2,736,773, respectively   9,130,484    9,686,241 
Goodwill   16,372,979    16,372,979 
Deposits and other assets   1,000    957 
Total assets  $44,243,880   $46,120,674 
           
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable and accrued expenses  $6,397,476   $7,443,757 
Deferred revenue   9,916,853    10,702,120 
Contingent earnout liability, current portion   7,295,596    7,363,152 
Total current liabilities   23,609,925    25,509,029 
           
Non-current liabilities:          
Contingent earnout liability, long-term portion   3,405,356    6,683,488 
Total liabilities   27,015,281    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; 32,875,476 and 32,479,993 shares issued and outstanding, respectively   32,875    32,480 
Additional paid-in capital   41,056,472    39,059,557 
Accumulated deficit   (23,747,387)   (25,043,693)
Accumulated other comprehensive loss   (113,361)   (120,187)
Total stockholders’ equity   17,228,599    13,928,157 
Total liabilities and stockholders’ equity  $44,243,880   $46,120,674 

 

See notes to condensed consolidated financial statements

 

 

 

 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)

(Unaudited)

 

   Three Months Ended   Six Months Ended 
   December 31,   December 31, 
   2025   2024   2025   2024 
Revenue:                    
Platforms  $5,224,845   $4,601,257   $10,345,685   $8,930,902 
Transactions   6,567,806    7,312,962    13,759,151    15,027,799 
Total revenue   11,792,651    11,914,219    24,104,836    23,958,701 
                     
Cost of revenue:                    
Platforms   622,661    619,842    1,233,036    1,167,009 
Transactions   4,993,040    5,473,284    10,469,552    11,204,723 
Total cost of revenue   5,615,701    6,093,126    11,702,588    12,371,732 
Gross profit   6,176,950    5,821,093    12,402,248    11,586,969 
                     
Operating expenses:                    
Selling, general and administrative   5,121,175    5,422,013    10,068,736    10,229,103 
Depreciation and amortization   316,425    306,233    632,491    618,328 
Total operating expenses   5,437,600    5,728,246    10,701,227    10,847,431 
                     
Income from operations   739,350    92,847    1,701,021    739,538 
                     
Other income   95,065    348,999    221,978    417,524 
Change in fair value of contingent earnout liability   (278,637)   (2,406,886)   (596,603)   (2,406,886)
                     
Income (loss) before provision for income taxes   555,778    (1,965,040)   1,326,396    (1,249,824)
Provision for income taxes   (8,859)   (15,194)   (30,090)   (61,406)
                     
Net income (loss)   546,919    (1,980,234)   1,296,306    (1,311,230)
                     
Other comprehensive income (loss):                    
Foreign currency translation   5,859    2,637    6,826    (3,531)
Comprehensive income (loss)  $552,778   $(1,977,597)  $1,303,132   $(1,314,761)
                     
Basic income (loss) per common share:                    
Net income (loss) per share  $0.02   $(0.07)  $0.04   $(0.04)
Weighted average common shares outstanding   31,634,575    30,421,808    31,434,725    30,384,339 
                     
Diluted income (loss) per common share:                    
Net income (loss) per share  $0.02   $(0.07)  $0.04   $(0.04)
Weighted average common shares outstanding   32,333,657    30,421,808    32,113,408    30,384,339 

 

See notes to condensed consolidated financial statements

 

 

 

 

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   Six Months Ended 
   December 31, 
   2025   2024 
Cash flow from operating activities:          
Net income (loss)  $1,296,306   $(1,311,230)
Adjustment to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and amortization   632,491    618,328 
Stock options expense   149,262    88,045 
Restricted common stock expense   276,669    864,266 
Adjustment to contingent earnout liability   596,603    2,406,886 
Changes in operating assets and liabilities:          
Accounts receivable   1,530,063    (266,255)
Prepaid expenses and other current assets   (127,818)   (98,613)
Prepaid royalties   (41,230)   478,169 
Accounts payable and accrued expenses   (1,035,903)   (737,670)
Deferred revenue   (785,267)   (170,433)
Net cash provided by operating activities   2,491,176    1,871,493 
           
Cash flow from investing activities:          
Purchase of property and equipment   (24,561)   (5,404)
Net cash used in investing activities   (24,561)   (5,404)
           
Cash flow from financing activities:          
Proceeds from the exercise of stock options   157,500    — 
Common stock repurchases   (39,549)   (205,278)
Payment of contingent acquisition consideration - Scite and FIZ   (2,554,394)   (62,560)
Net cash used in financing activities   (2,436,443)   (267,838)
           
Effect of exchange rate changes   5,296    2,873 
Net increase in cash and cash equivalents   35,468    1,601,124 
Cash and cash equivalents, beginning of period   12,227,312    6,100,031 
Cash and cash equivalents, end of period  $12,262,780   $7,701,155 
           
Supplemental disclosures of cash flow information:          
Cash paid for income taxes  $30,090   $61,406 
           
Non-cash investing and financing activities:          
Contingent consideration accrual on asset acquisition  $20,981   $30,198 
Common stock issued for Scite earnout payment  $1,453,428   $— 

 

See notes to condensed consolidated financial statements

 

Contact

Steven Hooser or John Beisler

Three Part Advisors

(214) 872-2710

shooser@threepa.com; jbeisler@threepa.com

 

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