Research Solutions (NASDAQ:RSSS) Releases Earnings Results, Misses Expectations By $0.01 EPS

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

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 Stock Performance

Shares of NASDAQ RSSS traded up $0.20 during midday trading on Thursday, hitting $2.71. 150,328 shares of the company’s stock traded hands, compared to its average volume of 66,977. The firm has a fifty day moving average of $2.42 and a 200 day moving average of $2.70. Research Solutions has a 1 year low of $2.15 and a 1 year high of $4.12. The stock has a market capitalization of $89.16 million, a price-to-earnings ratio of 22.59 and a beta of 0.82.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP increased its stake in shares of Research Solutions by 6.1% in the 3rd quarter. Dimensional Fund Advisors LP now owns 67,671 shares of the company’s stock worth $252,000 after purchasing an additional 3,918 shares in the last quarter. Goldman Sachs Group Inc. lifted 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 valued at $126,000 after buying an additional 6,729 shares in the last quarter. Renaissance Technologies LLC grew its stake in shares of Research Solutions by 5.7% during the 4th quarter. Renaissance Technologies LLC now owns 218,200 shares of the company’s stock valued at $642,000 after acquiring an additional 11,756 shares during the period. Jane Street Group LLC grew its stake in shares of Research Solutions by 148.6% during the 4th quarter. Jane Street Group LLC now owns 25,826 shares of the company’s stock valued at $76,000 after acquiring an additional 15,438 shares during the period. Finally, XTX Topco Ltd purchased a new stake in Research Solutions in the 4th quarter worth approximately $65,000. Hedge funds and other institutional investors own 33.60% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Weiss Ratings raised Research Solutions from a “sell (d+)” rating to a “hold (c)” rating in a research report on Tuesday, February 17th. Maxim Group set a $5.00 price objective on shares of Research Solutions in a research report on Friday, February 13th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Research Solutions has a consensus rating of “Hold” and an average price target of $5.00.

Research Solutions Company Profile

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.