Research Solutions (NASDAQ:RSSS) Posts Earnings Results, Misses Estimates By $0.01 EPS

Research Solutions (NASDAQ:RSSS) posted its earnings results on Thursday. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.01), FiscalAI reports. Research Solutions had a return on equity of 26.71% and a net margin of 7.87%.The company had revenue of $12.12 million during the quarter, compared to analyst estimates 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 down $0.41 on Friday, hitting $2.30. 116,691 shares of the company were exchanged, compared to its average volume of 66,736. The company’s 50 day moving average price is $2.42 and its two-hundred day moving average price is $2.70. The firm has a market capitalization of $75.67 million, a price-to-earnings ratio of 19.17 and a beta of 0.82. Research Solutions has a one year low of $2.11 and a one year high of $4.12.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on RSSS shares. Weiss Ratings raised shares of Research Solutions from a “sell (d+)” rating to a “hold (c)” rating in a report on Tuesday, February 17th. Maxim Group set a $4.00 price target on shares of Research Solutions in a report on Friday. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Research Solutions has a consensus rating of “Hold” and an average price target of $4.50.

Hedge Funds Weigh In On Research Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Punch & Associates Investment Management Inc. raised its holdings in Research Solutions by 3.4% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 2,499,310 shares of the company’s stock valued at $9,322,000 after acquiring an additional 81,210 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Research Solutions by 3.5% during the third quarter. Vanguard Group Inc. now owns 1,254,142 shares of the company’s stock valued at $4,678,000 after purchasing an additional 42,066 shares during the period. Rothschild Wealth LLC acquired a new position in shares of Research Solutions in the fourth quarter valued at $1,049,000. Renaissance Technologies LLC lifted its position in Research Solutions by 5.7% in the fourth quarter. Renaissance Technologies LLC now owns 218,200 shares of the company’s stock worth $642,000 after purchasing an additional 11,756 shares during the period. Finally, Acadian Asset Management LLC boosted its stake in Research Solutions by 83.7% during the first quarter. Acadian Asset Management LLC now owns 87,327 shares of the company’s stock worth $225,000 after buying an additional 39,789 shares in the last quarter. 33.60% of the stock is currently owned by institutional investors.

About Research Solutions

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.