Research Solutions (NASDAQ:RSSS) Issues Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Research Solutions (NASDAQ:RSSS) released its earnings results on Wednesday. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.02), FiscalAI reports. Research Solutions had a net margin of 9.28% and a return on equity of 27.45%. The firm had revenue of $12.08 million for the quarter, compared to analyst estimates of $11.95 million.

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

• Platform and recurring revenue continued to grow: Fiscal 2026 B2B ARR increased 14.1% to approximately $16.2 million, while total ARR rose 7.8% to $22.5 million. The higher-margin platform mix reached more than 43% of revenue, lifting full-year gross margin to 51.9%.
• AI products gained early commercial traction. AI-related ARR reached approximately $800,000 in the fourth quarter, with roughly $800,000 in AI bookings during the quarter and a pipeline that management said is now well above $1 million. MCP offerings have primarily driven upsells, with management reporting that adding agentic access roughly doubled average contract value.
• Legacy transaction revenue and B2C remain pressured. Fiscal 2026 transaction revenue declined 8.7%, and management expects another low-single-digit decline in fiscal 2027; B2C is also expected to be roughly flat amid competition and cost-sensitive customers.
• Management expects further profitability and cash-flow improvement. Fiscal 2026 net income rose to $2.8 million and adjusted EBITDA increased to $5.8 million, while the company ended the year with $12.6 million of cash, no debt, and flexibility for remaining Scite earn-out payments, acquisitions, or potential share repurchases.

Research Solutions Stock Performance

Shares of RSSS opened at $2.14 on Thursday. Research Solutions has a 52-week low of $2.00 and a 52-week high of $4.12. The business’s 50 day moving average price is $2.23 and its two-hundred day moving average price is $2.31. The firm has a market cap of $71.58 million, a PE ratio of 15.29 and a beta of 0.75.

Institutional Trading of Research Solutions

Several hedge funds have recently modified their holdings of the stock. XTX Topco Ltd acquired a new position in shares of Research Solutions during the 4th quarter valued at $65,000. NewEdge Advisors LLC acquired a new stake in Research Solutions in the first quarter worth $71,000. Jane Street Group LLC increased its stake in Research Solutions by 148.6% in the fourth quarter. Jane Street Group LLC now owns 25,826 shares of the company’s stock valued at $76,000 after purchasing an additional 15,438 shares in the last quarter. Topline Capital Management LLC acquired a new position in shares of Research Solutions during the second quarter valued at about $125,000. Finally, Goldman Sachs Group Inc. boosted its position in shares of Research Solutions by 18.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 42,979 shares of the company’s stock worth $126,000 after purchasing an additional 6,729 shares in the last quarter. Institutional investors own 33.60% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Roth Capital reaffirmed a “buy” rating and issued a $3.50 price objective on shares of Research Solutions in a research note on Friday, May 15th. Lake Street Capital lowered their target price on shares of Research Solutions from $5.00 to $4.00 and set a “buy” rating for the company in a research note on Monday, May 18th. Maxim Group dropped their target price on shares of Research Solutions from $5.00 to $4.00 and set a “buy” rating on the stock in a report on Friday, May 15th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Research Solutions in a report on Wednesday, August 12th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $3.83.

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.