Research Solutions Inc

Research Solutions reported fourth-quarter fiscal 2026 total revenue of $12.1 million, down from $12.4 million a year earlier, as platform subscription growth was more than offset by a decline in transaction revenue. Platform subscription revenue rose to $5.3 million from $5.2 million, and the company ended the quarter with $22.5 million in annual recurring revenue, up 7.8% year-over-year, comprising approximately $16.2 million in B2B ARR and approximately $6.3 million in normalized B2C ARR. B2B ARR grew $2 million, or 14.1%, and included $800,000 in AI-related ARR, which grew 125% sequentially from the third quarter of fiscal 2026. Fourth-quarter gross margin reached a record 53%, a 200 basis point improvement, while net income was $666,000, or $0.02 per diluted share, and adjusted EBITDA was $1.4 million. For the full fiscal year, total revenue was approximately $48.3 million, net income was $2.8 million, or $0.08 per diluted share, and adjusted EBITDA was $5.8 million, with cash and cash equivalents of $12.6 million as of June 30, 2026, and no outstanding borrowings. Chief Executive Officer Roy W. Olivier said the company expects improved EBITDA and cash flows in fiscal 2027, with continued B2B sales growth, a flat B2C business, and a low single-digit decline in transactions.

Research Solutions expects a low single-digit year-over-year decline in transactions or DocDel sales in fiscal 2027, with President, CEO and Chairman Roy Olivier saying he expects continued headwinds in that segment but improved EBITDA and cash flows for the year. The company reported fourth-quarter total revenue of $12.1 million, with platform subscription revenue of $5.3 million and transaction revenue of approximately $6.8 million, while gross margin reached 53%, a 200 basis point improvement over the fourth quarter of 2025 and a new quarterly record. Net income for the quarter was $666,000, or $0.02 per diluted share, and adjusted EBITDA was $1.4 million. For full-year fiscal 2026, total revenue was approximately $48.3 million and net income was $2.8 million, or $0.08 per diluted share, with cash and cash equivalents of $12.6 million as of June 30, 2026, and no outstanding borrowings under the revolving line of credit. Management said it does not give guidance but expects strong corporate and academic B2B sales in fiscal 2027, improving renewals and upsells, and a flat B2C business, after recording about $800,000 in AI-related bookings in the fourth quarter and more than 16 million scholarly reads through Scite by AI agents.