RSSS

This article first appeared on GuruFocus. Total Revenue: $12.1 million, down from $12.7 million in Q3 fiscal 2025. Platform Subscription Revenue: $5.2 million, up approximately 7% year-over-year; ~43% of total revenue vs. ~38% prior year quarter. Transaction Revenue: $7.0 million, down from $7.8 million in prior year quarter. Annual Recurring Revenue (ARR): $22.1 million, up 8.5% year-over-year; ~$15.7 million B2B ARR and ~$6.4 million normalized Scite B2C ARR (B2C down 7.5% year-over-year). Net Incremental Platform ARR: ~$317,000 for the quarter. Gross Profit: $6.3 million, essentially flat year-over-year. Gross Margin: 51.7%, up 220 basis points year-over-year; trailing 12-month blended gross margin 51.4%. Platform Gross Margin: 86.4% vs. 87.4% prior year quarter. Transaction Gross Margin: 26%, essentially unchanged year-over-year. Operating Expenses: $5.2 million, down from $5.7 million prior year quarter. Net Income: $860,000, or $0.03 per diluted share, vs. $216,000 or $0.01 per diluted share prior year quarter (up ~297%). Adjusted EBITDA: $1.6 million, up 14% year-over-year; trailing 12-month adjusted EBITDA $6 million with 12.3% margin (up 220 basis points). Cash and Cash Equivalents: $12.1 million, essentially unchanged from fiscal year-end 2025; no outstanding borrowings on revolving line of credit. Cash Flow from Operations: $1.0 million for the quarter vs. $2.9 million prior year quarter; trailing 12-month cash flow from operations $5.7 million. New Bookings: 61 new or upsell logos representing $961,000 in ARR; corporate team ~$400,000, academic team ~$265,000. Churn: 46 logos representing $398,000 in ARR, including one large account at ~$130,000. Active Transaction Customer Count: 1,346 vs. 1,380 in same period a year ago. Platform Deployments: Net increase of 15 over prior year. MCP Sales Pipeline: More than $1 million in opportunities for new AI-based MCP products. B2C CAC: Reduced by approximately 24%. Warning! GuruFocus has detected 4 Warning Sign with RSSS. Is RSSS fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Platform subscription revenue increased 7% year-over-year to $5.2 million, driven by 15 net new platform deployments and expansion within existing customers. Gross margin improved 220 basis points to 51.7%, reflecting a favorable revenue mix shift toward higher-margin platform business. Net income surged 297% to $860,000, or $0.03 per diluted share, compared to $216,000 in the prior year quarter. Adjusted EBITDA rose 14% to $1.6 million, with trailing 12-month adjusted EBITDA margin expanding 220 basis points to 12.3%. New AI-based MCP products launched, already generating a sales pipeline exceeding $1 million and improving B2C conversion and retention. B2C customer acquisition cost reduced by 24% while maintaining flat monthly recurring revenue, with improved lifetime value. Strong new bookings with 61 new or upsell logos representing $961,000 in ARR, including sizable academic and corporate deals. Operating expenses decreased to $5.2 million from $5.7 million, demonstrating disciplined cost management and operating leverage. Cash and cash equivalents remained stable at $12.1 million with no outstanding borrowings, providing financial flexibility. Integration of Resolute's curated databases into MCPs expands unique data offerings and creates additional revenue opportunities. Total revenue declined to $12.1 million from $12.7 million year-over-year, missing top-line growth expectations. B2B churn remained a significant drag, with 46 logos representing $398,000 in ARR lost, including one large account at $130,000. Transaction revenue fell to $7.0 million from $7.8 million, due to a previously discussed churned account and volume reductions from larger customers. B2C ARR declined 7.5% year-over-year to $6.4 million, though showing signs of improvement. Cash flow from operations dropped to $1.0 million from $2.9 million, reflecting timing of customer billings and strategic prepays. Total active transaction customer count decreased to 1,346 from 1,380 in the prior year period. Platform gross margin slightly decreased to 86.4% from 87.4% due to hosting and infrastructure investments. M&A opportunities are challenging due to the company's low valuation multiple (2.7x-3.4x EV/revenue) versus seller expectations. B2C business faces seasonal slowdown as universities let out for summer, potentially impacting Q4 results. Churn issues are not expected to be fully resolved in a single quarter, requiring ongoing reorganization and process improvements. Q: Jacob Stephan of Lake Street Capital Markets asked about the pain points and reasons customers are churning on the B2B side, given the strong new logo quarter was hindered by churn.A: CEO Roy Olivier explained that churn largely stems from customers with limited engagement low platform usage or insufficient Article Galaxy article purchases to justify ROI and, in some cases, customers simply cutting costs in the current economy. He outlined three priorities: improving onboarding and training so most researchers log in and use the product within a 90-day window; monitoring usage to automatically trigger reengagement workflows for non-using cohorts; and identifying customers not using high-renewal features and prompting them to adopt those features. He noted most churn relates to lack of ROI from low usage or lower DocDel purchases. Q: Derek Greenberg of Maxim Group asked about usage under the headless strategy what percentage of pulls and usage is coming outside the core platforms versus on-platform, and how that mix may evolve.A: CEO Roy Olivier said MCP product usage is a multiple higher than their own products because once integrated, it reaches all users working in LLMs like Claude or ChatGPT daily in some cases a big multiple over a typical enterprise customer of similar size. He added they are positioning MCPs with usage-based pricing rather than unlimited access, with tiered limits, because they believe revenue will increasingly be derived from usage a multiple of the SaaS platform and they want to capture that value rather than sell a seat product into an environment with 10x the usage. Q: Jacob Stephan asked about the B2C side and the improving CAC metrics whether they are spending less on marketing while still seeing better conversion.A: CEO Roy Olivier confirmed they are spending significantly less on digital ad spend while conversion rates from trial users have actually improved, leading to flattish MRR on much lower spend. He credited new releases like the MCPs with a big impact on retention, improving lifetime value, and said continued execution could get B2C growing again. CFO Dave Kutil added they manage advertising spend week-to-week, turning it on for the fall academic season and being more deliberate approaching summer, which helps manage costs while keeping MRR growing. Q: Derek Greenberg asked about the Scite B2C-to-B2B pipeline highlighted in past quarters and whether there was progress in pipeline buildout.A: CEO Roy Olivier said he didn't pull that specific pipeline slice but noted it continues to drive much B2B sales. CFO Dave Kutil added it increased about 50% from roughly $100,000, and they are looking at newer B2C products giving users more MCP usage over the basic plan. He said they aim to capture power users and future teams of 2 to 50 seats in B2C, let them see MCP value, then convert them to B2B with retention and engagement much improved after the MCP release, creating a B2C-to-B2B pathway. Q: Jacob Stephan asked for a 12-to-18-month view of the AI road map for new product launches and where pockets of opportunity exist for new product development.A: CEO Roy Olivier said Scite was developed as 100% AI, and Article Galaxy has opportunities to implement AI in a copyright-compliant way to reduce research friction such as summaries of folder contents or articles and extracting tables, assuming users have the rights. He said both MCPs are 100% AI, with roughly 9 or 10 additional curated Resolute databases to integrate, including drug and other research databases that users can toggle on or off as revenue opportunities. These will later be integrated into Scite, AG, or both to broaden search results beyond scientific research. Q: Derek Greenberg asked whether Research Solutions has seen traction in new segments such as financial institutions, hedge funds, and investment banks for their research.A: CEO Roy Olivier said they have a few "cats and dogs" in those segments but are currently very focused on corporate and academic sales groups. He is hesitant to pull people off a good pipeline and TAM to chase other verticals beyond reacting to inbound interest. If a vertical shows real promise, they may hire additional salespeople to focus on those markets, but they have not done so yet. Q: Jacob Stephan asked about B2B churn what pain points customers cite as reasons for leaving.A: CEO Roy Olivier reiterated that churn comes down to limited engagement low platform usage or insufficient Article Galaxy article purchases to make ROI work and some customers seeking cost savings in the current economy. He emphasized priorities of improving onboarding and training, monitoring usage to trigger automated reengagement communications, and promoting high-renewal features to at-risk cohorts. Q: Jacob Stephan asked about the B2C seasonal slowdown as students leave and how to think about improving CAC metrics.A: CEO Roy Olivier said they are spending significantly less on digital ads while funnel conversion to trial users has improved, yielding flattish MRR on lower spend, with MCP releases boosting retention and lifetime value. CFO Dave Kutil added they manage ad spend week-to-week, ramping for the fall academic cohort and pulling back in summer, which helps control costs while sustaining MRR growth. Q: Derek Greenberg asked about the B2C-to-B2B pipeline progress.A: CFO Dave Kutil said the pipeline increased about 50% from roughly $100,000, and they are developing B2C products with more MCP usage beyond the basic plan to capture power users and small teams, then convert them to B2B. Retention and engagement improved significantly after the MCP release, supporting a B2C-to-B2B pathway. Q: Derek Greenberg asked about headless strategy usage mix and expectations over time.A: CEO Roy Olivier said MCP usage is a multiple higher than their own products because integration reaches all LLM users daily, and they are using usage-based pricing with tiered limits to capture value as revenue shifts from SaaS/API to MCP-associated usage. Q: Derek Greenberg asked about traction in new verticals like financial institutions and hedge funds.A: CEO Roy Olivier said they have minimal presence there and remain focused on corporate and academic segments, avoiding diversion from a strong pipeline unless a vertical shows clear promise, in which case they might hire dedicated salespeople. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the shift in revenue mix to a deliberate transition toward high-margin platform subscriptions, which now represent over 43% of total revenue. The company overhauled nearly 50% of its sales team to implement a more structured process, resulting in higher average sales prices (ASP) and larger enterprise deal sizes. Operational productivity in software engineering increased fourfold, from 50 updates per month to 200, driven by the internal adoption of AI for code development and testing. Management identified a shift in researcher behavior where AI agent queries are overtaking traditional browser-based searches, prompting a strategy to 'be where the researchers are working.' The decline in transaction revenue was characterized as a stabilization trend, with management noting that AI pressures on document delivery are being captured by recurring platform demand. A new leadership structure and automated customer health tools were implemented to address previous weaknesses in the upsell and renewal teams. Management expects fiscal 2027 to be a year of scaling AI products, anticipating that improved renewal rates and a strong AI sales pipeline will drive EBITDA and cash flow growth. The B2C segment is projected to remain flat due to intense competition and cost-sensitive academic researchers, with growth limited by customer acquisition costs. Transaction revenue is forecasted to experience a low single-digit year-over-year decline, slightly below its historical 5-year CAGR of 1% growth. The company plans to complete the remaining three Scite earn-out payments in fiscal 2027 using its $12.6 million cash position. Strategic capital allocation priorities include evaluating stock buybacks to address a perceived undervaluation of the share price, alongside opportunistic M&A. The launch of the Publisher MCP Gateway aims to mitigate supply-side risks by allowing publishers to track AI demand for their catalogs while protecting paywalled content. Management flagged that roughly 43% of AI agent requests involve paywalled text, positioning their 20-year publisher relationships as a critical, non-disruptive moat against LLMs. The company noted a significant increase in sales and marketing expenses as a necessary investment for the expanded sales headcount and AI product launches. Working capital timing was cited as the primary driver for the year-over-year decline in operating cash flow, rather than a shift in underlying earnings power. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the $800,000 in AI-related ARR represents net growth from both new sales and upsells, starting from near zero a year ago. AI products accounted for nearly half of the total net B2B ARR growth for the fiscal year. Pricing is typically seat-based or enterprise-wide but includes usage caps that require customers to purchase additional capacity if exceeded. Management noted this model aligns with current industry standards set by major LLM providers. Usage is actively shifting; Scite Assistant usage is declining while MCP (agentic access) usage is 'skyrocketing' with over 18 million AI reads. Management observed that customers adopting agentic access retain at significantly higher rates than those using traditional tools. The product is in early stages with 40 publishers indexed and two agreements signed, serving as a discovery layer for AI agents. Management admitted that while demand is high, the broader industry is still figuring out how content should exist in an AI-driven licensing world.

Image source: The Motley Fool. Wednesday, Sept. 9, 2026 at 5:00 p.m. ET Investor Relations - John Beisler Chairman and Chief Executive Officer - Roy W. Olivier Chief Financial Officer - Dave Kutil Chief Strategy Officer - Josh Nicholson Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Research Solutions financial and operating results for its fiscal fourth quarter and full year ended June 30, 2026. As a reminder, this conference is being recorded. I would like to now turn the conference over to your host, John Beisler, Investor Relations. John Beisler: Thank you, operator. Good afternoon, everyone, and welcome to the Research Solutions Fourth Quarter and Full Fiscal Year 2026 Earnings Call. On the call today are Roy W. Olivier, Chairman and Chief Executive Officer; Dave Kutil, Chief Financial Officer; and Josh Nicholson, Chief Strategy Officer. After the market closed this afternoon, the company issued a press release announcing its results for the fourth quarter of full year fiscal 2026. The release is available on the company's website at researchsolutions.com. Before management begins their prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Research Solutions' recent filings with the SEC for a more detailed discussion of the risks that could impact today's -- that could impact the company's future operating results and financial condition. Also on today's call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. A reconciliation of those measures to GAAP measures is included in the earnings press release issued this afternoon. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link on the company's website. I would now like to turn the call over to Roy W. Olivier. Roy? Roy Olivier: Thank you, John. It was a busy year at Research Solutions in all respects. The corporate and academic sales teams did a nice job growing year-over-year while upgrading our sales process and sales team. We turned over almost 50% of our sales team during the year and have expanded sales head count going into FY '27. We continue to transition to a more structured sales process that has resulted in closing larger deals than we have in the past, raised our average sales price or ASP on both products and resulted in 105 net new deployments for the year. While the new sales teams are doing well, and we feel very good about that continuing in FY '27, the upsell and renewal teams continue to need focus. We appointed a new leader to run that team, strengthen and expanded the team and realigned the structure around customer size and location. We also implemented a tool to do a better job measuring customer health and kicking off automated and manual workflows based on those results. For example, we can kick off an engagement workflow to a specific cohort of users who have not used the software or used what we know are high-value features. We started all this in early FY '26 and saw a nice improvement in renewal rates in Q4 of FY '26. We expect this more to positively impact net ARR growth as we go into and through FY '27. We did report a 14% B2B ARR growth during the year, raising our high gross margin platform revenue from 39% of total revenue last year to over 43% this year, which translated into another year of positive results in terms of operating income, net income, EBITDA and cash flow. In addition to increased spend in sales, we made some additional investments in product development and software engineering, which helped us release 2 new key AI products in addition to increasing development velocity on our core Scite and Article Galaxy products. In addition, we made several internal changes to improve productivity and output, including using AI to help us write and test code. All these improvements drove a large increase in development productivity. In fact, in the third quarter of FY '25, we were doing about 50 software updates a month. In June of '26, we did 200, a 4x improvement. Most importantly, we released 2 AI products that extend the unique capability of Scite and Article Galaxy to be accessible in ChatGPT, Claude or Copilot. This is part of our intent to "be where the researchers are working," and those products have been well received by our customers. As noted in our press release, we did about $800,000 in AI-related bookings in Q4, and we have built a strong pipeline of interest in those products that we expect we'll close in FY '27. I think much of what we did in FY '27 will set us up nicely to grow the business profitably in FY '27. I'd like to pass the call over to Dave to walk you through the fiscal fourth quarter and full year FY '26 financial results in detail. And then I'll discuss our goals in FY '27 and wrap up with some comments and the outlook for the year ahead. Dave? Dave Kutil: Thank you, Roy, and good afternoon, everyone. I'll start my comments with a recap of our fourth quarter, followed by a summary of fiscal 2026 results. Total revenue for the fourth quarter of fiscal 2026 was $12.1 million compared to $12.4 million in the fourth quarter of fiscal 2025, as increased platform revenue was more than offset by a decrease in transaction revenue. Our platform subscription revenue was $5.3 million compared to $5.2 million in the prior year quarter. The growth was driven by an increase in B2B platform ARR due to a mix of new logo generation and upsells and cross-sells into our existing customer base, partially offset by a decline in B2C ARR. We added 29 net new platform deployments in the quarter, bringing total deployments to 1,276 at year-end. We ended the quarter with $22.5 million in annual recurring revenue, up 7.8% year-over-year, which breaks down as approximately $16.2 million in B2B ARR and approximately $6.3 million in normalized ARR associated with sites B2C subscribers. B2B ARR grew $2 million or 14.1% versus the year ago period and included AI-related ARR of $800,000, which grew 125% sequentially from the third quarter of fiscal '26. Please see today's press release for how we define and use annual recurring revenue and other non-GAAP terms. Transaction revenue for the fourth quarter was approximately $6.8 million compared to $7.3 million in the prior year quarter, a decline of approximately 6.7%. That result represents a meaningful improvement from the 11% year-over-year decline we reported in the third quarter and is consistent with the stabilization trend we discussed on last quarter's call. Our total active customer count for the quarter was 1,323 compared to 1,338 in the same period a year ago. Gross margin for the fourth quarter was 53%, a 200 basis point improvement over the fourth quarter of 2025 and a new quarterly record for the company. The increase was due to the ongoing revenue mix shift towards our higher-margin platforms business which now represents 43% of our total revenue. The Platform business recorded gross margin of 87.3% compared to an all-time high of 88.5% in the prior year quarter, but still well within our target range of mid-80% gross margin. Gross margin in our Transactions business was 26% compared to 24.1% in our prior year quarter. The increase was primarily attributable to improved margins on our copyright content, reflecting favorable publisher mix and pricing partially offset by lower service fee margins. Total operating expenses in the quarter were $5.6 million compared to $5.1 million in the prior year quarter, as increased sales and marketing expenses and upfront investments in AI were partially offset by lower general and administrative costs compared to the fourth quarter of fiscal 2025. Other expense for the quarter was $135,000 compared to income of $1.2 million in the prior year quarter. The prior year result was primarily attributable to a favorable adjustments, the final earn-out determination for sites in the fourth quarter of fiscal 2025. As a reminder, as of August 2, we have completed 5 quarters of earn-out payments with 3 additional payments remaining in fiscal 2027. Net income for the quarter was $666,000 or $0.02 per diluted share compared to $2.4 million or $0.09 per diluted share in the prior year quarter. Adjusted EBITDA for the quarter was $1.4 million compared to $1.6 million for the fourth quarter of last year. Now let me turn to the full year fiscal 2026 results. Total revenue for fiscal 2026 was approximately $48.3 million compared to $49.1 million in fiscal 2025. Platform subscription revenue increased roughly 10% to $20.8 million. Total deployments at year-end were 1,276 and net increase of 105 the deployments from the end of fiscal 2025, and our average sales price increased 4.7% due to the upselling efforts mentioned earlier. From an ARR perspective, we added approximately $2 million of net B2B ARR during the fiscal year, while normalized B2C ARR declined by approximately $380,000 for the full year. Transaction revenue for fiscal 2026 was $27.5 million compared to $30.1 million in the prior year, a decline of approximately 8.7% as transaction purchases for new customers were more than offset by lower volumes from a small number of large customers and the transactions-related benefits offered within our Platform subscriptions. As I noted earlier, the year-over-year trend improved as we exited the fiscal year. Gross margin for fiscal 2026 was 51.9%, a 260 basis point improvement over fiscal '25. The increase is primarily related to our continued revenue shift towards our higher-margin Platform business and it drove a 3.6% increase in gross profit dollars to $25.1 million despite the lower revenue base. Total operating expenses in fiscal 2026 were $21.5 million compared to $21.7 million in the prior year. Lower general and administrative and stock compensation expense were partially offset by higher sales and marketing expenses and product development costs. Other expense for the year was $724,000 and $1.2 million in fiscal 2025. Last year included $1.7 million to reflect the adjustments made to the Scite earn-out finalization. Net income for fiscal 2026 was $2.8 million or $0.08 per diluted share compared to $1.3 million or $0.04 per diluted share in the prior year. Adjusted EBITDA for the year was $5.8 million compared to $5.3 million in fiscal 2025. Turning to cash flow. Cash flow from operations for the fourth quarter was approximately $1.8 million compared to $2.3 million in the prior year quarter. For the full year, we generated approximately $5.3 million in cash flow from operations compared to approximately $7 million in fiscal 2025. As we discussed on last quarter's call, the year-over-year decline primarily reflects the timing of working capital payments rather than a change in the underlying earnings power of the business or the collectibility of our receivables. Turning to our balance sheet. Cash and cash equivalents as of June 30, 2026, were $12.6 million compared to $12.2 million on June 30, 2025. The end of the fiscal year with a higher cash balance than a year ago, even after funding 4 quarters of Scite earn-out payments, consistent with the expectations that we laid out on last year's fourth quarter call. There were no outstanding borrowings under our revolving line of credit. And with a growing cash position and no debt, our current balance sheet provides the flexibility to complete the remaining Scite earn-out payments in fiscal 2027, while remaining opportunistic in regard to strategic alternatives. As we look forward to fiscal 2027, we expect continued Platform subscription growth, improving retention and further stabilization in our transactions business. Paired with disciplined expense management, we believe that we are also positioned to deliver another year of adjusted EBITDA growth and strong cash generation. I'll now turn the call over to Josh to talk about our products. Josh? Josh Nicholson: Yes. Thanks, Dave, and hello, everyone. I missed the last call as my wife and I welcomed our daughter to the world, really 1 of the best things ever, but I'm happy to be back with you guys today. So today, I want to cover 3 things. What is AI actually doing to our business, what we shipped in response and why we think we are on the right side of the shift. First, the impact of AI on the business, because I know it continues to be the question on everyone's mind and the question we get a lot. Our answer is that AI is already reshaping how research gets read, and we can see it directly in our own data. Since we launched the Article Galaxy and Scite MCP connectors in February, AI agents have performed more than 16 million scholarly reads through Scite. Two details in that data matter for how you think about research solutions: One, in June, 4 months after launch; two, calls from AI agents overtook the number of queries in our own Scite assistant interface. Usage didn't shrink, it moved. Researchers are still asking the same questions. They're increasingly asking them inside Claude, ChatGPT and Copilot instead of inside a browser tab and more corporate and academic customers are taking licenses with these tools. Our job is to recognize our differentiators, leverage them and be where the users are and where we are. Scite and Article Galaxy connectors are in the official connector directories of all 3 of these platforms. Copilot, ChatGPT and Claude. Article Galaxy is the only DocDel tool with a connector that integrates directly into LLMs. Scite is 1 of the very few scientific article search connectors, and it adds capability that platforms themselves do not have and other search tools do not have either. I can tell you whether a claim has been supported or contradicted by later research because we have classified over 1.6 billion citations statements from the full text of the literature. It can also search inside Paywalled full text through our publisher agreement. The second point roughly 43% of what AI agents reach for sits behind a Paywall, that is the unique value that AI and research solutions can deliver together. An agent finds a paper in Scite and about 4 times in 10, it cannot read the full text. Article Galaxy is a compliant rights cleared way to get it. 20 years of publisher relationships and right settlement do not get disrupted by a language model. It becomes the thing that the language model needs. So the honest answer on AI is this. Legacy per article volume is under pressure, and Dave walked you through the transaction numbers, but the same force that pressures document delivery is creating demand for verified search, verification and rights cleared access, and that demand is landing on our recurring platform business. Second, I want to talk about what we shipped. In fiscal 2026, we put 3 major things into production. The Gateway, MCP access to Scite and Article Galaxy with admin controls, purchasing and ordering and coverage that now extends beyond papers to patent grant clinical trials and drug and device data. The Meter, metered billing on agent usage, Pro and Teams plans on Scite and pooled usage across an organization. So that the agentic access is something we price for rather than give away. Today, roughly 3/4 of MCP usage comes from paid plans, not free ones. And then self-serve and API console launched in August, so a developer or a pharma data science team or an agent can get started ASAP. Third, why is this working commercially? MCP is behaving as an expansion engine. MCP deals that we closed this year were almost entirely upsells to existing Scite customers, and on average, adding agentic access roughly doubled the contract. The first article Galaxy MCP deals landed as new logos, a large pipeline Roy continues to grow and the mix is shifting towards larger corporate deals. That shows up in deal size. The average value of new opportunities we create each quarter has nearly doubled over the past 2 years, with the sharpest step-up in the 2 quarters since the MCP launch. It also shows up in retention. Customers who adopt MCP retain at far higher rates than those who do not. The part of the retention fix and the AI strategy are the same work, get customers using agentic access early and they stay. The last piece is the supply side. We launched a publisher MCP Gateway that makes a publisher's content discoverable to AI agents while keeping Paywalled full text protected and that gives the publisher a clean read on what AI demand for their catalog looks like. Around 40 publishers are indexed and the first 2 Gateway agreements are signed. Every publisher that joins makes the corporate product more valuable, and every corporate customer makes the Gateway more valuable to publishers. To close, the way research is distributed has shifted twice from print to online and now from online to AI, each time a new layer formed between the content and the reader, and that layer captured the growth. We built the layer this year. It's live, it's metered, and it's in the base of what we sell. Fiscal 2027 is about scaling it. Back to you, Roy. Roy Olivier: Thanks, Josh. I think Josh and Dave did a great job framing our results and what we've done to lay the groundwork for the future. I want to close covering a few items. First, let's talk about how I think about FY '27. It will continue to be a year of change in our industry as we continue to see mass adoption of AI. We have deep vertical market expertise and research, where being 100% correct is required. I think of us as filling the gap between what an LLM can do and what a research-intensive organization expects. What is changing is how researchers start the research journey and what tools they use daily. What is not changing is that the business is driven by rights management and the costs to do research. What we have always done, we will continue to do, produce tools that researchers can use where they are working in a copyright compliant and cost-efficient way, managing entitlements, company IP, rights, billing and reporting, along with access to almost 160 million journal articles from 1,800 publishers and societies is what is required in enterprise research. Scite's access to behind the Paywall information, the unique Scite badge that shows the quality of the article a researcher is looking at and all the supporting business intelligence to help publishers sell AI rights to researchers based on usage data to improve the LLM experience exponentially for both the enterprise and the publisher. When you add that to the fact that we have multiyear customer relationships with over 1,000 enterprises around the world, we believe we're well positioned to be part of the AI growth story going forward. So what does that mean for FY '27 results? While we do not give guidance, I expect to see strong corporate and academic B2B sales in FY '27 based on our larger and more experienced sales teams and new AI solutions. We have seen and we expect to continue to see improved renewal and upsells based on a larger and more focused team, better tools monitoring leading indicators earlier in the ownership cycle and AI tools that when installed directly translate to higher renewal rates. As noted in our press release and above, we've seen a large increase in AI-related product sales and have a strong pipeline going into FY '27. I do believe it will be a strong year in that regard. I expect B2C to continue to be a challenging environment as increased competition chases the same individual researcher. I do think our unique value works here as well, but we are typically serving academic researchers in this segment that are very cost sensitive. What we are losing to "try something else," we are gaining in higher retention, higher monthly payments using MCP with their LLM of choice. Our ASP lifetime value and renewal rates in this segment are going up. The challenge would be to drive any material growth that is acceptable at and acceptable customer acquisition costs. In short, I think this is a flat business for the year. I do expect to see continued headwinds on transactions or DocDel sales resulting in a low single-digit year-over-year decline as it's a 5-year -- versus its 5-year CAGR of about 1% growth. It's an important business and will continue to be 1 in the new AI world. Our tools help customers find and acquire what they need in a cost-efficient and copyright compliant way. That's not going to change. While I don't have a top line growth number to tell you, I can say that I expect the output of all of this to be improved EBITDA and cash flows in FY '27. We have almost $13 million in cash, no debt and are generating cash. While we continue to look at acquisitions that will help us accelerate growth and add unique or strategic capability, we do not have anything lined up in the short term. We do recognize that our stock price is far below where we think it should be and are evaluating all options to increase shareholder value, including stock buybacks or other ways to use the cash to directly impact that. With now -- with that, I will now turn the call back over to the operator for Q&A. Operator? Operator: [Operator Instructions] We will take our first question from Jacob Stephan with Lake Street Capital Markets. Jacob Stephan: I appreciate you taking the questions and appreciate all the color as well. The AI-related ARR number, that's the first time you guys have broken that out. How much of that is genuinely incremental customer spend versus kind of like repricing and rebundling of existing subscriptions at renewal? And maybe if as a part B, you can kind of comment on attach rate with FY '26 renewable? Roy Olivier: That's a net ARR growth number of AI-related products that could be an upsell or could be a new sale. I don't think we did that math and certainly haven't disclosed it. We will disclose an AI-related revenue number going forward, but I don't think we'll split it up across what's upsell and what's new. I guess we could, but I'd have to give that some thought. And that's -- I think we said this, but that's up -- that's compared to near 0 a year ago. So the point is the MCP, the AI products are starting to generate traction, because that $800,000 number is out of a net ARR growth for the year of, I think, $1.8 million or $1.9 million. Dave, correct me if I'm wrong. Dave Kutil: Correct. Yes. Jacob Stephan: Okay. Got it. Maybe if you could comment on pricing a little bit. It seems like a lot of the industry is shifting towards kind of a usage-based model. How are you guys pricing this? Is this more of a per seat basis? Is there some usage component to it? Any color there would be helpful. Roy Olivier: We do run some pricing models around usage, but typically, the price that's put in front of the customer is -- if it's not seats, it's an enterprise, but it has caps for usage and above that, they have to buy additional usage. Jacob Stephan: Okay. So very similar to kind of how Anthropic and OpenAI are currently working as well. Roy Olivier: Yes. Jacob Stephan: Maybe just last 1 for me then. On Scite MCP and Article Galaxy MCP. So if a researcher gets your information or data inside of 1 of those 2, I guess, what keeps them from paying for either Scite or Article Galaxy? Is the MCP kind of a pull-through channel that you guys are using and driving transaction orders? Or is there some kind of intermediary in there? Roy Olivier: Today, if you want to run MCP, you have to have the corresponding products. So you have to have an AG license to run MCP for AG. You have to have a Scite license to run MCP for Scite. However, we are experimenting with some new models where that won't necessarily be required. On the AG side, it's really hard to separate those 2. On the Scite side, it would be easier to separate those 2, and we're looking at that. Operator: [Operator Instructions] Our next question will come from Derek Greenberg with Maxim Group. Derek Greenberg: Just continuing off the last question. I was wondering for the MCP product, you had mentioned that, that's primarily been an upsell from current customers. I was wondering how usage is tracking on MCP versus the traditional products? If you were to break those out separately, do you see a drop-off in traditional versus the MCP or how you view that dynamic? Roy Olivier: Do you want to take that one, Josh? Josh Nicholson: Yes. I discussed this a little bit, and I'll talk maybe first about the Scite MCP. So if you look at usage in assistant or search compared to MCP, really the users are moving over to MCP. And so assistant usage is declining and MCP is actually really skyrocketing. And so we have over 18 million AI reads. And if you look at the growth of that, which we publish on the Scite, you can see it ticking up even this last week, 1 million reads over that. And so we're seeing a lot, and this goes to the thesis going to where the users are. And so we're seeing better retention and more usage through MCP. For Article Galaxy, we've been a bit more conservative on how we roll that out. We are discussing different ways of deploying that. We do see usage across the customer base, and that usage is interesting, but I would say it's still pretty early. And what we're tracking there is really looking at the article -- purchase to article use. How does that compare platform versus MCP. And in both of those cases, everything is basically plain language, so instead of clicking a button here or there, you're telling the tool to do this or to search that. And so I think it really facilitates the use of both core differentiators of the product in where users are starting to live including a lot of our own researchers and developers on the team. More and more of us are daily users of Claude, not just in software development, but really across the org. And we ourselves use MCPs from some of our tools such as our sales CRM and analytics and things like that. Derek Greenberg: Okay. Got it. And I was wondering if you could talk a little bit more about the Gateway products and maybe the economics there on both the supply and the demand side and just how the traction look on that? Josh Nicholson: Yes. On that, that's pretty early, but I think there's very large demand. I think what publishers are trying to figure out is how does their content exist in this world of AI. And so again, as I mentioned, we're trying to help bring content into AI just as hosting platforms brought content online. I think where we'll start to see some of that is that we provide subscription-based access to their subscribers. And so we get value to our product, which we're charging for, they get value to their subscribers and they get usage data for that. I think this is going to evolve over time. And I think we ultimately serve a variety of different kind of mechanisms and paths to serve the AI licensing. But I think it's still early, and there hasn't been much traction across anyone kind of in the space. But there is demand, and I think we are seeing good interest from some publishers in exploring this with us. Derek Greenberg: Got it. And then just last 1 for me. I was wondering for the pipeline you mentioned it was growing nicely. I was wondering, last quarter, you provided us over $1 million on the AI products. I was wondering if there's any more detail you could provide in terms of what that pipeline may look like today? Roy Olivier: It's well over that today, but I don't have an exact number. Operator: I'm showing no additional questions at this time. I'd like to now turn the call back to Roy Olivier for any additional closing remarks. Roy Olivier: Thank you, and thanks, everyone, for joining us on our call today. As a reminder, we'll be participating at the Lake Street Conference tomorrow in New York City. We look forward to speaking with you in November to discuss the first quarter FY '27 results. Have a great day. Josh Nicholson: Thank you. Operator: Thank you. This brings us into today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Research Solutions, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Research Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. RSSS Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Q4 Revenue: $12.1 million, down from $12.4 million year-over-year. Q4 Platform Subscription Revenue: $5.3 million, up from $5.2 million year-over-year. Q4 Transaction Revenue: ~$6.8 million, down ~6.7% year-over-year. Q4 Gross Margin: 53%, up 200 bps year-over-year; new quarterly record. Q4 Platform Gross Margin: 87.3%, vs. 88.5% prior year quarter. Q4 Transaction Gross Margin: 26%, vs. 24.1% prior quarter. Q4 Operating Expenses: $5.6 million, up from $5.1 million year-over-year. Q4 Net Income: $666,000, or $0.02 per diluted share, vs. $2.4 million, or $0.09 per diluted share, prior year quarter. Q4 Adjusted EBITDA: $1.4 million, vs. $1.6 million prior year quarter. Q4 Cash Flow from Operations: ~$1.8 million, vs. $2.3 million prior year quarter. Q4 Net New Platform Deployments: 29; total deployments 1,276 at year-end. Q4 AI-Related Bookings: ~$800,000. Full Year Revenue: ~$48.3 million, vs. $49.1 million in fiscal 2025. Full Year Platform Subscription Revenue: $20.8 million, up ~10%. Full Year Transaction Revenue: $27.5 million, down ~8.7%. Full Year Gross Margin: 51.9%, up 260 bps year-over-year. Full Year Gross Profit: $25.1 million, up 3.6%. Full Year Operating Expenses: $21.5 million, vs. $21.7 million prior year. Full Year Net Income: $2.8 million, or $0.08 per diluted share, vs. $1.3 million, or $0.04 per diluted share, prior year. Full Year Adjusted EBITDA: $5.8 million, vs. $5.3 million in fiscal 2025. Full Year Cash Flow from Operations: ~$5.3 million, vs. ~$7 million in fiscal 2025. Full Year Net New Platform Deployments: 105; average sales price up 4.7%. Annual Recurring Revenue: $22.5 million, up 7.8% year-over-year; B2B ARR ~$16.2 million (up 14.1%), normalized B2C ARR ~$6.3 million. AI-Related ARR: $800,000, up 125% sequentially from Q3 fiscal 2026. Total Active Customer Count: 1,323, vs. 1,338 prior year period. Cash and Cash Equivalents: $12.6 million as of June 30, 2026, vs. $12.2 million as of June 30, 2025; no outstanding borrowings under revolving line of credit. Warning! GuruFocus has detected 4 Warning Sign with RSSS. Is RSSS fairly valued? Test your thesis with our free DCF calculator. Release Date: September 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. B2B ARR grew 14% year-over-year to $16.2 million, driven by new logo generation and upsells. AI-related bookings reached $800,000 in Q4, up 125% sequentially, with a strong pipeline for FY27. Gross margin hit a record 53% in Q4, up 200 basis points year-over-year, due to higher-margin platform revenue mix. Platform revenue now represents 43% of total revenue, up from 39% last year, improving overall profitability. Net income for fiscal 2026 rose to $2.8 million from $1.3 million, and adjusted EBITDA increased to $5.8 million. Cash and cash equivalents grew to $12.6 million with no debt, providing flexibility for earnout payments and strategic options. MCP deals are expanding existing customer contracts, on average doubling the contract value, and customers adopting MCP retain at higher rates. Development productivity improved 4x, enabling the release of two new AI products and integration with ChatGPT, Claude, and Copilot. Total revenue for fiscal 2026 declined 1.6% to $48.3 million, as transaction revenue fell 8.7%. Transaction revenue decreased 6.7% year-over-year in Q4, reflecting ongoing pressure on document delivery. B2C ARR declined by approximately $380,000 for the full year, and the segment is expected to remain flat amid competition. Net income for Q4 dropped to $666,000 from $2.4 million, and adjusted EBITDA decreased to $1.4 million from $1.6 million. Cash flow from operations for fiscal 2026 fell to $5.3 million from $7 million, due to timing of working capital payments. Total active customer count decreased to 1,323 from 1,338 a year ago, indicating challenges in customer acquisition or retention. The company expects continued low single-digit decline in transactions revenue for FY27, with no top-line growth guidance. Stock price is significantly undervalued, and management is evaluating options like buybacks but has no immediate acquisition plans. Q: The AI-related ARR number is the first time you've broken that out. How much of that is genuinely incremental customer spend versus repricing and rebundling of existing subscriptions at renewal? And can you comment on attach rate with FY26 renewals? A: Roy W. Olivier, Interim CEO: That's a net ARR growth number for AI-related products, which could be an upsell or a new sale. We haven't done the math on the split and haven't disclosed it. We will disclose an AI-related revenue number going forward, but I don't think we'll split it between upsell and new. That $800,000 compares to near zero a year ago, so the MCP and AI products are starting to generate traction, especially against net ARR growth for the year of about $1.8 million to $1.9 million. Q: How are you pricing the AI products? Is it per seat, or is there a usage component? A: Roy W. Olivier, Interim CEO: We run some pricing models around usage, but typically the price put in front of the customer is either seats or an enterprise arrangement with usage caps, above which they have to buy additional usage. Q: For Site MCP and Article Galaxy MCP, what keeps a researcher from paying for either Site or Article Galaxy? Is MCP a pull-through channel driving transaction orders? A: Roy W. Olivier, Interim CEO: Today, to run MCP you have to have the corresponding product an Article Galaxy license to run MCP for AG, and a Site license to run MCP for Site. However, we are experimenting with new models where that won't necessarily be required. On the AG side it's hard to separate the two; on the Site side it would be easier, and we're looking at that. Q: For the MCP product, which has primarily been an upsell from current customers, how is usage tracking versus traditional products? Do you see a drop-off in traditional usage? A: Josh Nicholson, Chief Strategy Officer: On Site MCP, users are moving over to MCP assistant usage is declining while MCP is skyrocketing. We have over 18 million AI reads and the growth continues, ticking up about a million reads in the last week alone. We're seeing better retention and more usage through MCP. For Article Galaxy, we've been more conservative on rollout and it's still pretty early, but we're tracking article purchases and usage across platform versus MCP. Everything is plain language, which facilitates use of both core differentiators where users are starting to live. Q: Can you talk more about the gateway products, the economics on both the supply and demand side, and how traction looks? A: Josh Nicholson, Chief Strategy Officer: It's pretty early, but there's very large demand. Publishers are trying to figure out how their content exists in the world of AI, and we're trying to help bring content into AI just as hosting platforms brought content online. We provide subscription-based access to their subscribers, so we get value to our product which we charge for, and they get value to their subscribers plus usage data. This will evolve over time and ultimately serve a variety of mechanisms and paths for AI licensing. There hasn't been much traction across anyone in the space yet, but there is demand and good interest from publishers exploring this with us. Q: On the pipeline for AI products, last quarter you provided over $1 million. Is there any more detail you can provide on what that pipeline looks like today? A: Roy W. Olivier, Interim CEO: It's well over that today, but I don't have an exact number. Q: What drove the fourth-quarter revenue decline, and how are the platform and transaction businesses trending? A: Dave Kutil, CFO: Total Q4 revenue was $12.1 million versus $12.4 million a year ago, as increased platform revenue was more than offset by lower transaction revenue. Platform subscription revenue was $5.3 million versus $5.2 million, driven by B2B platform ARR growth from new logos and upsells/cross-sells, partially offset by a decline in B2C ARR. Transaction revenue was approximately $6.8 million, down 6.7% year over year a meaningful improvement from the 11% decline in Q3 and consistent with the stabilization trend we discussed last quarter. Q: Can you walk through ARR, deployments, and gross margin for the quarter? A: Dave Kutil, CFO: We ended the quarter with $22.5 million in annual recurring revenue, up 7.8% year over year, comprising approximately $16.2 million in B2B ARR and approximately $6.3 million in normalized ARR from Site B2C subscribers. B2B ARR grew $2 million, or 14.1%, and included $800,000 of AI-related ARR, which grew 125% sequentially from Q3. We added 29 net new platform deployments in the quarter, bringing total deployments to 1,276 at year-end. Gross margin was 53%, a 200 basis point improvement and a new quarterly record, driven by the mix shift toward platforms, which now represent 43% of total revenue. Q: What were the full-year fiscal 2026 results and the cash position? A: Dave Kutil, CFO: Total revenue was approximately $48.3 million versus $49.1 million in fiscal 2025. Platform subscription revenue rose roughly 10% to $20.8 million, with 105 net new deployments and a 4.7% increase in average sales price. We added approximately $2 million of net B2B ARR, while normalized B2C ARR declined about $380,000. Transactions revenue was $27.5 million, down 8.7%. Gross margin was 51.9%, up 260 basis points, driving a 3.6% increase in gross profit dollars to $25.1 million. Net income was $2.8 million, or $0.08 per diluted share, versus $1.3 million, or $0.04, last year. Adjusted EBITDA was $5.8 million versus $5.3 million. Cash flow from operations was approximately $5.3 million versus $7 million, reflecting working capital timing rather than a change in earnings power. Cash and equivalents were $12.6 million at June 30, 2026, with no outstanding borrowings under our revolver. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Research Solutions Inc. (RSSS) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -25.00%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.04, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Research Solutions, which belongs to the Zacks Commercial Printing industry, posted revenues of $12.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.52%. This compares to year-ago revenues of $12.44 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Research Solutions shares have lost about 25.9% since the beginning of the year versus the S&P 500's gain of 12.1%. While Research Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Research Solutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $11.98 million in revenues for the coming quarter and $0.16 on $48.04 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Commercial Printing is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Research Solutions Inc. (RSSS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Research Solutions Inc.? Here are five stocks we like better. Revenue declined modestly in fiscal Q4 to $12.1 million, as stronger platform subscriptions were offset by lower transaction revenue. Full-year revenue fell to $48.3 million, but net income rose to $2.8 million and adjusted EBITDA increased to $5.8 million. Recurring platform growth and margin expansion continued: Annual recurring revenue rose 7.8% to $22.5 million, with B2B ARR up 14.1%. Full-year gross margin improved to 51.9%, driven by the higher-margin platform business. AI products are becoming a key growth driver. AI-related ARR reached $800,000 in Q4, while new AI-agent integrations generated usage and primarily upsell opportunities; management expects continued B2B growth and improved profitability in fiscal 2027, though transaction revenue may decline at a low-single-digit rate. Research Solutions (NASDAQ:RSSS) reported fiscal fourth-quarter revenue of $12.1 million for the period ended June 30, 2026, down from $12.4 million a year earlier, as growth in platform subscriptions was offset by lower transaction revenue. For the full fiscal year, revenue declined to $48.3 million from $49.1 million, while net income and adjusted EBITDA increased. The company’s platform subscription revenue rose to $5.3 million in the fourth quarter from $5.2 million in the prior-year period. Full-year platform revenue increased about 10% to $20.8 million. Management attributed the growth to new customer wins, upsells and cross-selling activity, while noting that business-to-consumer recurring revenue declined. → 3 Under-the-Radar Defense Stocks With Record Backlogs Research Solutions ended fiscal 2026 with annual recurring revenue of $22.5 million, up 7.8% year over year. This included approximately $16.2 million in business-to-business ARR and $6.3 million in normalized ARR from Scite business-to-consumer subscribers. B2B ARR increased $2 million, or 14.1%, from a year earlier. The company said AI-related ARR reached $800,000 in the fourth quarter, rising 125% sequentially from the fiscal third quarter. Chief Executive Officer Roy W. Olivier said the company recorded roughly $800,000 in AI-related bookings during the quarter and built a pipeline of prospective business expected to close in fiscal 2027. → Ride-Share Reckoning: Tesla Drives Into Uber's Lane Platform deployments increased by 29 during the fourth quarter and by 105 during the full year, reaching 1,276 at year-end. The company said its average sales price rose 4.7% for the year as it pursued larger deals and expanded upselling efforts. Gross margin reached a quarterly record of 53%, improving 200 basis points from the prior-year quarter. Full-year gross margin rose 260 basis points to 51.9%, helping gross profit increase 3.6% to $25.1 million despite the lower revenue base. The company attributed the improvement primarily to a greater mix of its higher-margin platform business, which represented 43% of total revenue in the fourth quarter. Fourth-quarter platform gross margin was 87.3%. Fourth-quarter transaction gross margin was 26%, compared with 24.1% in the preceding quarter. Total active customers were 1,323, compared with 1,338 a year earlier. → High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit Transaction revenue, which includes the company’s document-delivery business, fell 6.7% year over year to approximately $6.8 million in the fourth quarter. The decline improved from an 11% year-over-year decrease reported in the fiscal third quarter. For the full year, transaction revenue fell 8.7% to $27.5 million from $30.1 million. Chief Financial Officer Dave Kutil said purchases from new transaction customers were more than offset by reduced volumes from a small number of large customers and transaction-related benefits included in platform subscriptions. Olivier said the company expects transaction revenue to remain under pressure in fiscal 2027, projecting a low-single-digit year-over-year decline. He said the business remains important because its products help customers obtain research content in a cost-efficient and copyright-compliant manner. Fourth-quarter net income was $666,000, or $0.02 per diluted share, compared with $2.4 million, or $0.09 per diluted share, in the prior-year quarter. The previous year’s result included a favorable adjustment to the final Scite earn-out determination. Adjusted EBITDA was $1.4 million, compared with $1.6 million a year earlier. For fiscal 2026, net income rose to $2.8 million, or $0.08 per diluted share, from $1.3 million, or $0.04 per diluted share, in fiscal 2025. Adjusted EBITDA increased to $5.8 million from $5.3 million. Cash flow from operations was $5.3 million for the year, down from approximately $7 million in fiscal 2025. Kutil said the decline primarily reflected the timing of working-capital payments rather than a change in the company’s underlying earnings power or receivables collectibility. Cash and cash equivalents totaled $12.6 million at June 30, up from $12.2 million a year earlier. The company had no outstanding borrowings under its revolving credit line. Kutil said the balance sheet provides flexibility to make the remaining Scite earn-out payments in fiscal 2027 and consider strategic alternatives. Management did not provide formal fiscal 2027 guidance. However, Olivier said he expects continued B2B sales growth, improved renewals and upsells, further transaction-business stabilization, higher EBITDA and stronger cash flow. He characterized the B2C business as likely to remain flat amid competition for cost-sensitive individual researchers. Chief Strategy Officer Josh Nicholson said the company launched Article Galaxy and Scite MCP connectors in February, allowing users to access its tools through AI platforms including ChatGPT, Claude and Copilot. He said AI agents had performed more than 16 million scholarly reads through Scite since launch, and tool calls from AI agents exceeded queries through the company’s Scite Assistant interface in June. Nicholson said roughly 43% of content accessed by AI agents is behind a paywall, an area where Article Galaxy’s rights-cleared document-delivery capabilities can complement Scite’s search and citation-analysis tools. Scite has classified more than 1.6 billion citation statements, according to Nicholson, enabling users to see whether later research supports or contradicts a claim. The company introduced metered billing for AI-agent usage, including pooled organizational usage and paid Scite Pro and Teams plans. Nicholson said about three-quarters of MCP usage comes from paid plans. He also said MCP-related deals closed during fiscal 2026 were almost entirely upsells to existing Scite customers, with agentic access roughly doubling contract value on average. Research Solutions also launched a publisher MCP gateway to make publisher content discoverable by AI agents while protecting paywalled full text. Nicholson said about 40 publishers are indexed and the company has signed its first two gateway agreements. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Research Solutions Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Reports Record Fiscal Year Net Income of $2.8 Million, 14% YoY B2B ARR Increase and ARR of $22.5 Million HENDERSON, Nev., Sept. 9, 2026 /PRNewswire/ -- Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fourth quarter and full fiscal year ended June 30, 2026. Fiscal Fourth Quarter 2026 Summary (compared to prior-year quarter) Total gross profit of $6.4 million improved the Company’s gross margin percentage 200 basis points versus the prior year quarter to 53% driven by the continued Platform mix shift. B2B ARR grew $2.0 million or 14.1% compared to the fourth quarter of fiscal 2025 resulting in $16.2 million of ARR. This included AI related ARR of $0.8 million which grew 125% sequentially from the third quarter of fiscal 2026. Net income of $666,000, or $0.02 per diluted share, compared to $2.4 million or $0.07 per diluted share. The prior year included a $1.1 million favorable adjustment for the finalization of the Scite earnout. Adjusted EBITDA of $1.4 million and Adjusted EBITDA margin of 11.8%. Total revenue of $12.1 million, compared to $12.4 million in the prior year. Cash flow from operations of $1.8 million, compared to $2.3 million on the timing of working capital payments. Fiscal Year 2026 Summary (compared to Fiscal 2025) Gross profit up 3.6% to $25.1 million. Total gross margin improved 260 basis points to 51.9% with the continued Platform mix shift as the main catalyst. Platforms revenue was 43% of total revenue compared to 39% in the prior year. B2B ARR grew $2.0 million or 14.1% versus the year ago period to $16.2 million. This included incremental AI related ARR of $0.8 million. Net income of $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share. The prior-year results included $1.7 million of net other expense related to the Scite earn-out. Platform revenue up approximately 10% to $20.8 million. Annual Recurring Revenue (“ARR”) up 7.8% to $22.5 million, which includes approximately $16.2 million of B2B recurring revenue and $6.3 million of B2C recurring revenue. Adjusted EBITDA of $5.8 million, a Company record, compared to $5.3 million. Total revenue of $48.3 million, compared to $49.1 million. Cash flow from operations of $5.3 million compared to $7.0 million on the timing of working capital payments. The Company ended the fiscal year with $12.6 million in cash and cash equivalents. “We launched multiple products in fiscal 2026, including new AI based products. Two of the AI products, Scite MCP and Article Galaxy MCP, allow researchers to utilize the unique functionality of Scite and Article Galaxy inside ChatGPT, Claude, Copilot, and any AI tools researchers already use. This is part of our strategy to support our users where they work and has resulted in us building a large pipeline of AI related revenue opportunities in FY27." said Roy W. Olivier, President and CEO of Research Solutions. "Platform revenue grew to 43% of total revenue, up from 39% in fiscal 2025. That mix shift expanded gross margin and helped us more than double net income for the full year in a challenging market. With a strong cash position and Adjusted EBITDA posture, we're well-positioned to continue investing in internally developed tools and to pursue strategic M&A that complements our current offerings.” Fiscal Fourth Quarter 2026 Results Total revenue was $12.1 million, compared to $12.4 million in the year-ago quarter, as increased platform revenue was more than offset by a decrease in transaction revenue. Platform subscription revenue for the quarter was $5.3 million, compared to $5.2 million in the prior-year period. The increase was driven by a 14% increase in B2B platform ARR, due to a mix of new logo generation and upsell and cross-sells into the existing customer base, partially offset by a decline in B2C ARR. The quarter ended with ARR of $22.5 million, up 7.8% year-over-year as B2B ARR increases more than offset a modest decline in B2C ARR (see the Company’s definition of annual recurring revenue below). Transaction revenue was $6.8 million, compared to $7.3 million in the fourth quarter of fiscal 2025. The decrease was due to lower paid order volume. The transaction active customer count for the quarter was 1,323, compared to 1,338 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below). Total gross margin improved 200 basis points from the prior-year quarter to 53.0%. 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 $5.6 million, compared to $5.1 million in the fourth quarter of 2025. The increase was primarily related to higher sales expenses and up front investments in AI that were partially offset by reduced general and administrative expense. Other expense for the quarter was approximately $0.2 million compared to other income of $1.2 million in the fourth quarter of fiscal 2025. Prior year results included a $1.1 million favorable adjustment related to the final determination of the Scite earnout. Net income in the fourth quarter was $666,000 or $0.02 per diluted share, compared to $2.4 million, or $0.07 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.4 million, compared to $1.6 million in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below). Full-Year Fiscal 2026 Results Total revenue was $48.3 million compared to $49.1 million in fiscal 2025. Platform subscription revenue for fiscal 2026 was $20.8 million, a 9.8% year-over-year increase. The increase was primarily due to organic growth in the core B2B platforms, including 105 net new B2B platform deployments. The increase included incremental AI related ARR of $0.8 million. Transaction revenue was $27.5 million, compared to $30.1 million in fiscal 2025. The decrease was due to lower paid order volume, particularly in the second and third quarters of fiscal 2026. Total gross margin improved 260 basis points from the prior year to 51.9%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business. Total operating expenses for the year were $21.5 million, compared to $21.7 million in fiscal 2025. The decrease was primarily related to reduced general and administrative and stock compensation expenses, partially offset by higher sales and marketing expenses. Net income for fiscal 2026 was $2.8 million, or $0.09 per diluted share, compared to $1.3 million, or $0.04 per diluted share, in the prior year. Adjusted EBITDA was $5.8 million, compared to $5.3 million in fiscal 2025 (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below). Conference CallResearch Solutions President and CEO Roy W. Olivier and CFO David Kutil will host the conference call, followed by a question-and-answer period. Date: Wednesday, September 9, 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 October 9, 2026, by dialing 1-412-317-6671 and using the replay ID 11160802, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/. Fiscal Fourth Quarter and Full Year Financial and Operational Summary Tables vs. Prior-Year Quarter and Full Prior-Year Active Customer Accounts, Transactions and Annual Recurring Revenue The Company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month. A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform. The Company defines annual recurring revenue ("ARR") as the value of contracted Platform subscription recurring revenue normalized to a one-year period. For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve. Use of Non-GAAP Measure – Adjusted EBITDA Research Solutions' management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results. The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other (income) expense, foreign currency transaction (gain) loss, provision for income taxes, depreciation and amortization, stock-based compensation, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss): About Research SolutionsResearch Solutions, Inc. (NASDAQ: RSSS) is a vertical SaaS and AI Company that simplifies research workflow for academic institutions, life science companies, and research organizations worldwide. As one of the only publisher-independent marketplaces for scientific, technical, and medical (STM) content, the Company uniquely combines AI-powered tools—including an intelligent research assistant and full-text search capabilities—with seamless access to both open access and paywalled research. The platform enables organizations to discover, access, manage and analyze scientific literature more efficiently, accelerating the pace of scientific discovery. For more information and details, please visit www.researchsolutions.com. Important Cautions Regarding Forward-Looking Statements Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to several risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, creating long-term value for shareholders and the Company's prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission. View original content to download multimedia:https://www.prnewswire.com/news-releases/research-solutions-reports-fourth-quarter-and-fiscal-year-2026-results-302874245.html

This article first appeared on GuruFocus. Total Revenue: Research segment revenue was $293 million, up 4%; Learning segment revenue was $93 million, down 20%. Research Publishing Revenue: Increased 12%, with $13 million from Emerald and the balance from Open Access growth and AI licensing; excluding Emerald, publishing grew about 6%. Research Solutions Revenue: Declined 30%, almost entirely due to the prior year AI licensing comparison. Learning Revenue (Academic): $45 million, down 20%, with $8 million of prior year AI licensing and declines in print, offsetting growth in digital content and courseware. Learning Revenue (Professional): $48 million, down 20%, reflecting $5 million of prior year AI licensing, softer consumer demand in retail, and softer corporate demand in assessments. AI Revenue: $14 million in the quarter, with $10.5 million from model training and $3.5 million recurring; a further $14 million is contracted across Q2 and Q3. Adjusted EBITDA: Down 4% year-over-year; Research adjusted EBITDA was $87 million, up 9%, with margin up 130 basis points to 29.6%; Learning adjusted EBITDA was $14 million, with margin at 15.1% against 27.4%. Adjusted EPS: Down 10%, further impacted by higher net interest expense related to the Emerald acquisition. GAAP EPS: Loss of $0.23 compared to earnings of $0.22 in the prior year, largely due to restructuring charges and acquisition and integration costs. Free Cash Flow: Use of $70 million against a use of $100 million a year ago; full year outlook of $205 million is on track. Net Debt to EBITDA: 2.7 times on a trailing 12-month basis, against 1.9 times a year ago; pro forma leverage is 2.1 times including Emerald synergies. Capital Expenditures: $14 million against $15 million a year ago; full year CapEx expected to be approximately $80 million, up from $65 million. Dividends and Repurchases: Returned $33 million through dividends and repurchases; raised the dividend for the 33rd consecutive year. Emerald Contribution: Added $13 million to the top line and $5 million to adjusted EBITDA at a margin above the segment average; acquired for approximately $450 million net in cash at roughly 7 times adjusted EBITDA. Corporate Expenses (Adjusted EBITDA basis): $33 million in the quarter, down $8 million or 19%. Submissions: Up 31% year-over-year. Publishing Output: Up 8% year-over-year. Customer Retention: Remained above 99% in the calendar 2026 general renewal season. Advanced Journal Portfolio: More than 30 journal titles with revenue of $70 million growing at strong double digits. Clinical Outcome Assessments Revenue: Q1 revenue rose by more than threefold year-over-year. Subscription Knowledge Feeds Customers: Expanded to 23 across five industry verticals. Nexus Licensing Service Partners: Total increased to 71. Warning! GuruFocus has detected 7 Warning Sign with WLY. Is WLY fairly valued? Test your thesis with our free DCF calculator. Release Date: September 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Research publishing revenue grew 12%, driven by strong global demand, record submissions (up 31%), and the addition of Emerald Publishing. AI revenue reached $14 million in Q1, ahead of pace for the full-year target of over $50 million, with an additional $14 million already contracted for Q2 and Q3. Research adjusted EBITDA margin expanded by 130 basis points to 29.6%, driven by cost savings and the high-margin contribution from Emerald. The company was selected as the sole scientific publisher for the US Department of Energy's Genesis Mission and a founding data partner for CuspAI's materials foundry, validating its strategic position in the AI economy. The clinical outcome assessments business is growing rapidly, with Q1 revenue rising more than threefold, and the company launched its new spectral analysis API portfolio for laboratory markets. Customer retention in research remained above 99% following the calendar 2026 renewal season, and the company raised its dividend for the 33rd consecutive year. Total revenue declined due to a tough prior-year comparison of $29 million in AI licensing revenue, which was not repeated in Q1 of fiscal 2027. The Learning segment faced significant headwinds, with revenue down 20% due to soft market conditions in professional publishing and a prior-year AI licensing comparison. Adjusted EPS decreased 10% year-over-year, impacted by higher net interest expense related to the Emerald acquisition. GAAP EPS was a loss of $0.23, largely due to restructuring charges and acquisition and integration costs associated with the Emerald deal. The professional publishing market remains soft, with continued pressure from retail channel inventory normalization (e.g., Amazon) and weaker consumer demand. Free cash flow was a use of $70 million in Q1, and net debt to EBITDA rose to 2.7 times (1.9 times a year ago) due to the Emerald acquisition. Q: Organic revenue growth in research excluding AI revenue and Emerald was 5%. How does that compare to peers in the market overall, and how does that enhance your confidence in your mid-single-digit growth outlook for the business?A: Matt Kissner (CEO): We are growing along the same lines with the leaders in the market. Our confidence is driven by strong leading indicators and KPIs. While this is a seasonally slow quarter for that business, we have confidence in the full-year guidance because our signals are all quite strong. Craig Albright (CFO) added that the long-term market growth rate is in the 3% to 4% range, and Wiley is seeing similar trends, with momentum expected to build throughout the year. Q: Looking at Q2, remind us how much AI-related revenue you generated last year in Q2 and what your expectations are for this quarter?A: Craig Albright (CFO): In Q2 of last year, we generated around $6 million in AI revenue, with a similar number repeated in Q3 and Q4. We have already contracted for another $14 million of AI licensing revenue to be realized across Q2 and Q3 of this year. While these deals are lumpy, we see continued phasing in line with the prior year. Q: Can you talk about what you've seen so far at Emerald, since it's been about two months since the acquisition? Any surprises, good, bad, or otherwise?A: Matt Kissner (CEO): There are no surprises. It is a really good fit with our journal portfolio, and the signals are running all green. We are ahead of the pace we initially established. Craig Albright (CFO) added that the working relationship between the teams is positive, and they are on track to achieve the full run rate of $30 million in synergies by year three, running slightly ahead in the first year. Q: Can you provide a deeper dive into the recent partnerships, starting with IQVIA? Is that generating meaningful revenue, and what is a reasonable expectation?A: Matt Kissner (CEO): IQVIA is a terrific example of our partnership network enabling us to punch above our weight. It is a strategic partnership, not just a licensing deal, leveraging our clinical outcome assessments with their established distribution. Craig Albright (CFO) noted that clinical outcome assessments grew from hundreds of thousands of dollars to $11 million last year, and we are on the front end of something really big with another great year of growth expected. Q: How are things progressing with OpenEvidence, Anthropic, AWS, and others? How should we think about the revenue models and financial perspective for '27 and the next few years?A: Craig Albright (CFO): We are pleased with the early stages of the work with OpenEvidence, which was a $15 million agreement over 5 years. It is a modest add but a great example of commercial licensing. We continue to see promise of that expanding, though it is still early days. Matt Kissner (CEO) added that they have added more content to the agreement and that OpenEvidence's strong footprint in the US physician market creates a terrific opportunity to leverage our content for new revenue streams. Q: What was the impact of Amazon reducing inventories this quarter, and when do we cycle against that? Excluding print and digital books, what was the organic growth rate for the remaining learning businesses?A: Craig Albright (CFO): The significant reduction in inventory through the Amazon channel impacted the trade publishing area of the professional segment, with the toughest comparison occurring in late August. There has also been some softness in demand. However, the academic segment is very healthy, driven by digital content, courseware, and Inclusive Access. Assessments were light in Q1 but are expected to improve. We are managing the business with discipline, and trends should normalize against the prior year impacts. Q: How should we think about the cadence of top-line growth, margin expansion, and EPS for the year?A: Craig Albright (CFO): Q1 is a seasonally lighter quarter, and we see momentum build as we go throughout the year. We are reaffirming full-year guidance, consistent with a seasonally soft first quarter picking up in Q2, Q3, and Q4. Matt Kissner (CEO) added that the drivers are strong growth in the foundational research publishing business, with newer growth engines in AI and data analytics gaining traction later in the year, all underneath continuous margin improvement. Q: Can you elaborate on the recent partnerships with the US Department of Energy's Genesis Mission and CuspAI, and what role Wiley plays?A: Matt Kissner (CEO): Wiley was invited to be the sole scientific publisher in the DOE's Genesis Mission, a public-private partnership alongside NVIDIA, AWS, and Microsoft. Our role is substantive: we will make research intelligence tools available to researchers across all DOE National Laboratories and help shape the consortium's foundational knowledge layer. We also became a founding data partner for CuspAI's Materials Foundry, where CuspAI has licensed access to Wiley's material science content to train their platform, underscoring how our content is being integrated into AI systems driving scientific discovery. Q: What is the current state of the AI revenue pipeline, and how is the mix shifting between model training and recurring revenue?A: Matt Kissner (CEO): In Q1, we realized $14 million of AI revenue, ahead of the pace needed for our full-year target. Of that, $10.5 million is from model training and $3.5 million is recurring. We have contracted a further $14 million to be realized across Q2 and Q3. The mix is shifting the way we want, with recurring revenue growing 2 to 3 times over the prior year. We have expanded our corporate customer base for subscription knowledge feeds to 23 across five industry verticals. Q: Can you provide more detail on the margin expansion in the research segment and the cost savings initiatives?A: Craig Albright (CFO): Research adjusted EBITDA margin increased by 130 basis points to 29.6%, driven by the addition of Emerald and cost savings initiatives. Emerald added $5 million at a margin above the segment average. Most of the margin expansion was organic cost savings after continued investment in the advanced journal portfolio and clinical outcome assessments. Corporate expenses on an adjusted EBITDA basis came down 19%, building on the reduction from $166 million in fiscal '25 to $143 million in fiscal '26. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Research Solutions Inc. (RSSS) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.03, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Research Solutions, which belongs to the Zacks Commercial Printing industry, posted revenues of $12.12 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $12.66 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Research Solutions shares have lost about 14.6% since the beginning of the year versus the S&P 500's gain of 8.8%. While Research Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Research Solutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $12.36 million in revenues for the coming quarter and $0.13 on $48.95 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Commercial Printing is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Core & Main (CNM), is yet to report results for the quarter ended April 2026. This distributor of water and fire protection products is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +34.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Core & Main's revenues are expected to be $1.9 billion, down 0.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Research Solutions Inc. (RSSS) : Free Stock Analysis Report Core & Main, Inc. (CNM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research