Research Solutions Inc
RSSS
$2.93 -2.33%
Exchange: NASDAQ | Sector: Technology | Industry: Software Application
Q2 2025
Published: Feb 14, 2025

Earnings Highlights

  • Revenue of $11.91M up 15.5% year-over-year
  • EPS of $-0.07 decreased by 3% from previous year
  • Gross margin of 46.3%
  • Net income of -1.98M
  • "Net incremental ARR growth in the quarter was approximately $1.5 million and we had 61 net B2B Platform deployments." - Bill Nurthen
RSSS
Company RSSS

Executive Summary

Research Solutions (RSSS) reported QQ2 2025 results featuring meaningful ARR expansion and a strong rate of Platform deployments, underscoring the company’s progress in monetizing its AI-enabled research workflow platforms. Total revenue rose 15.5% year over year to $11.9 million, with Platform revenue up 47% to $4.6 million and a 39% platform contribution to total revenue. ARR reached $19.1 million, up 23% year over year, driven by a mix shift toward higher-margin Platform deployments and continued Scite/Article Galaxy cross-sell activity. Despite topline progress, GAAP net income declined to a net loss of $1.98 million, and EBITDA was negative at $(1.66) million on a reported basis. Adjusted EBITDA was $0.96 million for the quarter, with trailing-twelve-month EBITDA of approximately $4.6 million, signaling improving cash-generation characteristics even as profitability remains a near-term challenge due to ongoing growth investments and a $2.4 million earn-out provision associated with Scite. Management attributed the ARR strength to a combination of new logo acquisition, a restructured sales organization (corporate vs. academic), and a rebound in academic/B2B activity post-election season. The company signaled continued investments in growth (Sales & Marketing, technology, and product development), with the expectation that Q3-Q4 will be stronger on profitability as growth investments normalize. Management also emphasized a strategic AI focus: vertical, workflow-integrated AI leveraging proprietary content access and rights, capable of plugging into multiple LLMs to improve research outcomes. Near-term guidance remains qualitative, with expectations for sequentially stronger bookings in Q4 and into FY2026 Q1, a normalization of CAC/CAC-to-LTV over time, and continued expansion of both B2B and B2C platforms. Investors should monitor ARR progression, churn and upsell dynamics, platform mix impact on margins, and the evolution of AI-enabled product updates and analytics capabilities.

Key Performance Indicators

Revenue
Increasing
11.91M
QoQ: -1.08% | YoY: 15.52%
Gross Profit
Increasing
5.51M
46.29% margin
QoQ: -4.35% | YoY: 23.00%
Operating Income
Increasing
92.85K
QoQ: -85.64% | YoY: 122.11%
Net Income
Decreasing
-1.98M
QoQ: -396.00% | YoY: -3 592.54%
EPS
Decreasing
-0.07
QoQ: -418.18% | YoY: -3 584.21%

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