Research Solutions (NASDAQ:RSSS) Issues Quarterly Earnings Results

Research Solutions (NASDAQ:RSSS) released its earnings results on Thursday. The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.01), FiscalAI reports. The company had revenue of $12.12 million for the quarter, compared to the consensus estimate of $12.37 million. Research Solutions had a net margin of 7.87% and a return on equity of 26.71%.

Here are the key takeaways from Research Solutions’ conference call:

• Research Solutions reported improving EBITDA and net income in fiscal Q3, with adjusted EBITDA up 14% year over year to $1.6 million and net income rising to $860,000.
• Revenue missed management’s expectations, as total revenue fell to $12.1 million from $12.7 million a year ago because platform subscription growth was more than offset by lower-margin transaction declines.
• Platform subscription revenue continues to grow, increasing about 7% to $5.2 million, and platform mix rose to 43% of total revenue from 38% last year, supporting higher gross margins.
• B2B churn remains the main drag on top-line growth, with 46 logos churning in the quarter versus 61 new or upsell logos, although management said most churn is controllable and not tied to AI usage.
• The company highlighted AI-driven product momentum, including new MCP connectors for Scite and Article Galaxy, improved B2C retention, and a sales pipeline of more than $1 million for these new offerings.

Research Solutions Price Performance

Shares of RSSS stock traded up $0.20 on Thursday, reaching $2.71. 150,328 shares of the company were exchanged, compared to its average volume of 66,977. The company has a 50-day moving average of $2.42 and a 200-day moving average of $2.70. The company has a market cap of $89.16 million, a price-to-earnings ratio of 22.59 and a beta of 0.82. Research Solutions has a one year low of $2.15 and a one year high of $4.12.

Analyst Ratings Changes

RSSS has been the subject of several recent analyst reports. Maxim Group set a $5.00 price objective on shares of Research Solutions in a research report on Friday, February 13th. Weiss Ratings raised shares of Research Solutions from a “sell (d+)” rating to a “hold (c)” rating in a report on Tuesday, February 17th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $5.00.

Institutional Investors Weigh In On Research Solutions

A number of hedge funds have recently added to or reduced their stakes in the company. XTX Topco Ltd acquired a new position in Research Solutions during the fourth quarter worth $65,000. Rothschild Wealth LLC bought a new position in shares of Research Solutions in the fourth quarter valued at $1,049,000. Jane Street Group LLC grew its holdings in shares of Research Solutions by 148.6% during the fourth quarter. Jane Street Group LLC now owns 25,826 shares of the company’s stock valued at $76,000 after buying an additional 15,438 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Research Solutions by 5.7% during the fourth quarter. Renaissance Technologies LLC now owns 218,200 shares of the company’s stock worth $642,000 after acquiring an additional 11,756 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Research Solutions by 13.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 77,029 shares of the company’s stock worth $226,000 after acquiring an additional 9,358 shares in the last quarter. Institutional investors and hedge funds own 33.60% of the company’s stock.

About Research Solutions

Research Solutions, Inc (NASDAQ:RSSS) is a provider of software and managed services that streamline access to and management of scientific, technical and medical research. The company’s flagship platform automates the acquisition, licensing and delivery of journal articles, conference proceedings and other pay-walled content, enabling institutions to reduce administrative overhead and control subscription costs.

Key offerings include self-service workflows for document requests, enterprise-grade managed services for high-volume users, and analytics tools that deliver detailed reporting on spend, usage patterns and supplier performance.