HENDERSON, Nev., Feb. 12, 2026 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ:RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal second quarter ended December 31, 2025.
Fiscal Second Quarter 2026 Summary (compared to prior-year quarter)
Annual Recurring Revenue ("ARR") up 14% to $21.8 million, which includes approximately $15.3 million of B2B ARR and $6.4 million of B2C ARR.
Forty-seven net new deployments in the quarter reflect one of our best results and sustained momentum in new B2B customer acquisition.
Net income of $547,000, or $0.02 per diluted share, compared to net loss of $2.0 million or ($0.07) per share.
Adjusted EBITDA increased 36% to $1.3 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $5.8 million or 11.8% of revenue for the same period.
Net B2B ARR growth of $560,000 represents the best organic second quarter performance in Company history.
Gross profit up 6% to $6.2 million. Total gross margin improved 350 basis points to 52.4%.
Platform revenue up 14% to $5.2 million. Platform revenue accounted for 44% of total revenue as compared to 39% in the prior-year quarter.
Total revenue was $11.8 million compared to $11.9 million in the prior year, as strong B2B revenue growth has not yet fully offset softness in transactions revenue.
"Our second quarter results reflect strong growth within our B2B Platforms business through forty-seven net new deployments in the quarter and Platforms continues to represent a larger portion of our total revenue mix. In addition, the average sales price for our Platform increased more than six percent year-over-year as we signed larger deals and as existing customers adopt more of our SaaS and AI solutions," said Roy W. Olivier, President and CEO of Research Solutions. "Our business continues to generate strong operating cash flow and Adjusted EBITDA, allowing us to reinvest in sales and marketing to accelerate growth while maintaining financial flexibility. We continue to manage the business with a long-term focus to drive value for our shareholders."
Fiscal Second Quarter 2026 Results
Total revenue was $11.8 million, compared to $11.9 million in the year-ago quarter. Platform revenue growth was offset by a decline in transactions revenue.
Platform subscription revenue for the quarter was $5.2 million, a 14% year-over-year increase from the prior-year period. The increase was primarily due to organic growth in the core B2B platform, due to a mix of new logo generation as well as upsells and cross-selling into existing customers. The quarter ended with annual recurring revenue of $21.8 million, up 14% year-over-year (see the Company's definition of annual recurring revenue below).
Transaction revenue was $6.6 million, compared to $7.3 million in the second quarter of fiscal 2025. The decrease was due to the impact of a known customer that churned earlier and a few larger customers that saw significant declines in volume. The transaction active customer count for the quarter was 1,321, compared to 1,384 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below).
Total gross margin improved 350 basis points from the prior-year quarter to 52.4%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, including the expansion of the gross margin for that business.
Total operating expenses were $5.4 million, compared to $5.7 million in the second quarter of fiscal 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses offset in part by increased sales and marketing expenses.
Net income in the fiscal second quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million, or ($0.07) per share, in the prior-year quarter. Adjusted EBITDA was $1.3 million, compared to $963,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference CallManagement will host the conference call, followed by a question-and-answer period.
Date: Thursday, February 12, 2026Time: 5:00 p.m. ET (2:00 p.m. PT)Dial-in number: 1-203-518-9708Conference ID: RESEARCH
The conference call will be broadcast live and available for replay until March 12, 2026 by dialing 1-412-317-6671 and using the replay ID 11160799, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.
Fiscal Second Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter
Quarter Ended December 31,
Six Months Ended December 31,
2025
2024
Change
% Change
2025
2024
Change
% Change
Revenue:
Platforms
$ 5,224,845
$ 4,601,257
$ 623,588
13.6 %
$ 10,345,685
$ 8,930,902
$ 1,414,783
15.8 %
Transactions
6,567,806
7,312,962
(745,156)
-10.2 %
13,759,151
15,027,799
(1,268,648)
-8.4 %
Total Revenue
11,792,651
11,914,219
(121,568)
-1.0 %
24,104,836
23,958,701
146,135
0.6 %
Gross Profit:
Platforms
4,602,184
3,981,415
620,769
15.6 %
9,112,649
7,763,893
1,348,756
17.4 %
Transactions
1,574,766
1,839,678
(264,912)
-14.4 %
3,289,599
3,823,076
(533,477)
-14.0 %
Total Gross Profit
6,176,950
5,821,093
355,857
6.1 %
12,402,248
11,586,969
815,279
7.0 %
Gross profit as a % of revenue:
Platforms
88.1 %
86.5 %
1.6 %
88.1 %
86.9 %
1.1 %
Transactions
24.0 %
25.2 %
-1.2 %
23.9 %
25.4 %
-1.5 %
Total Gross Profit
52.4 %
48.9 %
3.5 %
51.5 %
48.4 %
3.1 %
Operating Expenses:
Sales and marketing
1,648,597
1,343,087
305,510
22.7 %
3,315,422
2,533,494
781,928
30.9 %
Technology and product development
1,602,421
1,506,849
95,572
6.3 %
3,012,572
2,879,607
132,965
4.6 %
General and administrative
1,620,595
2,008,201
(387,606)
-19.3 %
3,295,954
3,938,377
(642,423)
-16.3 %
Depreciation and amortization
316,425
306,233
10,192
3.3 %
632,491
618,328
14,163
2.3 %
Stock-based compensation
213,449
534,322
(320,873)
-60.1 %
425,931
952,311
(526,380)
-55.3 %
Foreign currency translation loss (gain)
36,112
29,554
6,558
22.2 %
18,856
(74,686)
93,542
-125.2 %
Total Operating Expenses
5,437,599
5,728,246
(290,647)
-5.1 %
10,701,226
10,847,431
(146,205)
-1.3 %
Income from operations
739,351
92,847
646,504
696.3 %
1,701,022
739,538
961,484
-130.0 %
Other expense:
Other expense
(183,572)
(2,057,887)
1,874,315
-91.1 %
(374,625)
(1,989,362)
1,614,737
-81.2 %
Provision for income taxes
(8,859)
(15,194)
6,335
-41.7 %
(30,090)
(61,406)
31,316
-51.0 %
Total Other Expense:
(192,431)
(2,073,081)
1,880,650
-90.7 %
(404,715)
(2,050,768)
1,646,053
-80.3 %
Net income (loss)
$ 546,920
$ (1,980,234)
2,527,154
-127.6 %
$ 1,296,307
$ (1,311,230)
2,607,537
-198.9 %
Adjusted EBITDA
$ 1,305,337
$ 962,956
$ 342,381
35.6 %
$ 2,778,300
$ 2,235,491
$ 542,809
24.3 %
Quarter Ended December 31,
Six Months Ended December 31,
2025
2024
Change
% Change
2025
2024
Change
% Change
Platforms:
B2B ARR (Annual recurring revenue*):
Beginning of Period
$ 14,758,472
$ 12,187,834
$ 2,570,637
21.1 %
$ 14,197,598
$ 12,060,201
$ 2,137,397
17.7 %
Incremental ARR
560,482
550,422
10,060
1.8 %
1,121,356
678,055
443,301
65.4 %
End of Period
$ 15,318,954
$ 12,738,256
$ 2,580,697
20.3 %
$ 15,318,954
$ 12,738,256
$ 2,580,698
20.3 %
Deployments:
Beginning of Period
1,185
1,029
156
15.2 %
1,171
1,021
150
14.7 %
Incremental Deployments
47
61
(14)
-23.0 %
61
69
(8)
-11.6 %
End of Period
1,232
1,090
142
13.0 %
1,232
1,090
142
13.0 %
