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

Research Solutions (NASDAQ:RSSSGet Free Report) 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 firm had revenue of $12.12 million for the quarter, compared to analysts’ expectations 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 Stock Up 8.0%

NASDAQ RSSS traded up $0.20 on Thursday, reaching $2.71. The company had a trading volume of 150,328 shares, compared to its average volume of 66,977. The stock has a market capitalization of $89.16 million, a PE ratio of 22.59 and a beta of 0.82. Research Solutions has a 12 month low of $2.15 and a 12 month high of $4.12. The firm’s 50 day moving average price is $2.42 and its 200 day moving average price is $2.70.

Hedge Funds Weigh In On Research Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RSSS. XTX Topco Ltd bought a new position in shares of Research Solutions during the 4th quarter valued at approximately $65,000. Jane Street Group LLC raised its stake in 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 purchasing an additional 15,438 shares in the last quarter. NewEdge Advisors LLC bought a new position in Research Solutions during the first quarter valued at $71,000. Goldman Sachs Group Inc. grew its stake in shares of Research Solutions by 18.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 42,979 shares of the company’s stock worth $126,000 after buying an additional 6,729 shares in the last quarter. Finally, Topline Capital Management LLC purchased a new position in shares of Research Solutions in the 2nd quarter worth $125,000. 33.60% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

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

Check Out Our Latest Stock Report on Research Solutions

Research Solutions Company Profile

(Get Free Report)

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.

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Earnings History for Research Solutions (NASDAQ:RSSS)

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