Research Solutions Inc
RSSS
$2.93 -2.33%
Exchange: NASDAQ | Sector: Technology | Industry: Software Application
Q1 2025
Published: Nov 14, 2024

Earnings Highlights

  • Revenue of $12.04M up 19.7% year-over-year
  • EPS of $0.02 increased by 160.3% from previous year
  • Gross margin of 47.9%
  • Net income of 669.00K
  • "Our first quarter results reflect the financial scalability of our model, as our net income and adjusted EBITDA growth outpaced our top line on a year-over-year basis." - Roy Olivier
RSSS
Company RSSS

Executive Summary

RSSS delivered a robust top-line expansion in QQ1 2025, with total revenue rising 20% year over year to $12.0 million and platform revenue surging 67% to $4.3 million, underscoring the accelerating contribution of SaaS platforms to overall profitability. ARR climbed 60% year over year to $17.6 million, split roughly $12.2 million in B2B and $5.4 million in B2C, signaling a meaningful shift toward high‑margin subscription revenue. The blended gross margin improved to 47.9%, driven by a platform-dominant mix (platform margin is 87.4%) while transaction gross margin rose to 25.7%. Net income of $0.669 million and adjusted EBITDA of $1.3 million for the quarter reflect a business that is translating higher platform profitability into cash flow, with trailing twelve months adjusted EBITDA near $4 million and quarterly operating cash flow of $0.843 million. The balance sheet remains conservatively levered, with $6.9 million in cash and no long‑term debt or revolver borrowings. Management highlighted seasonality and execution as near‑term headwinds, particularly in B2C deployments and upsell productivity, but remains constructive on the longer‑term trajectory driven by the SaaS revenue mix shift, cross-sell opportunities from Syte and Article Galaxy, and a growing M&A pipeline. The company also signaled a renewed emphasis on sales discipline (new CRO) and AI-enabled product integrations, with a UC academic library win and ongoing efforts to broaden publishers’ TDM rights offerings. Near-term guidance suggests a modest sequential dip in adjusted EBITDA in Q2, with Q3 and Q4 expected to outperform as seasonality wanes and cross-sell activities mature.

Key Performance Indicators

Revenue
Increasing
12.04M
QoQ: -0.73% | YoY: 19.71%
Gross Profit
Increasing
5.77M
47.87% margin
QoQ: 2.18% | YoY: 43.02%
Operating Income
Increasing
646.69K
QoQ: -2.27% | YoY: 158.85%
Net Income
Increasing
669.00K
QoQ: 123.71% | YoY: 167.71%
EPS
Increasing
0.02
QoQ: 125.17% | YoY: 160.27%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 12.31 0.02 +1.5% View
Q3 2025 12,661.36 0.01 +104.0% View
Q2 2025 11.91 -0.07 +15.5% View
Q1 2025 12.04 0.02 +19.7% View
Q4 2024 12.13 -0.09 +21.8% View