Key Highlights

  • Fiscal 2026 revenue was $48.3 million, down 1.5%.
  • Adjusted EBITDA reached a record $5.8 million, up 10.6%.
  • Gross margin rose 260 basis points to 51.9%.
  • Cash was $12.6 million at year end.

Research Solutions, Inc. (NASDAQ:RSSS) provides research-access and AI-linked scientific data tools, and it closed fiscal 2026 with record adjusted EBITDA even as total revenue slipped. The story is about company execution: a shift toward recurring platform revenue, new AI products and a cash balance that management says positions it for investment and acquisitions.

Latest Company Context

For fiscal 2026 (year ended June 30, 2026), revenue was $48.3 million, down 1.5% from $49.1 million. Net income was $2.8 million, or $0.09 per diluted share, versus $1.3 million ($0.04). Adjusted EBITDA reached a record $5.8 million, up 10.6%. Gross margin rose 260 basis points to 51.9%. Operating cash flow was $5.3 million and cash was $12.6 million.

In the fourth quarter, revenue was $12.1 million, down 2.9%; net income was $666,000 ($0.02) compared with $2.4 million ($0.07), when the prior-year quarter included a $1.1 million favourable earnout adjustment. Adjusted EBITDA was $1.4 million, an 11.8% margin, and gross margin was 53.0%.

Key Business Drivers

Platform revenue grew 9.8% to $20.8 million and now represents 43% of revenue, versus 39% a year earlier, while transaction revenue fell 8.7% to $27.5 million. Annual recurring revenue was $22.5 million, up 7.8%: B2B ARR was $16.2 million (up 14.1%), while B2C ARR was $6.3 million (down 5.6%). The company added 105 net new B2B platform deployments.

Management is emphasising AI. It launched Scite MCP and Article Galaxy MCP, which work inside tools such as ChatGPT and Claude, and reported AI-related ARR of $0.8 million, up 125% sequentially. It cites a large pipeline of AI revenue opportunities for FY2027. Those are management statements, not guarantees. The mix shift toward recurring platform revenue may support margins, though falling transaction revenue and B2C ARR are headwinds.

What Investors Should Watch

Investors may watch whether B2B ARR growth stays above 10% and whether AI-related ARR scales from a small base. Whether platform growth offsets declining transaction revenue will determine total revenue direction.

The first-quarter fiscal 2027 report could provide early evidence, including gross margin and operating cash flow. Management has indicated it may continue to invest in internal tools and pursue strategic M&A, so any acquisition and how it is funded from the $12.6 million cash balance may be significant. As the release contained no FY2027 guidance, investors may look for outlook commentary on future calls.

Record Adjusted EBITDA on Slightly Lower Revenue

Research Solutions closed fiscal 2026 with record adjusted EBITDA and a higher gross margin on slightly lower revenue. The September 9 report included no FY2027 guidance, so operating indicators carry the story.