Research Solutions ( (RSSS) ) has released its Q1 earnings. Here is a breakdown of the information Research Solutions presented to its investors.
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Research Solutions, Inc. is a vertical SaaS and AI company that streamlines research workflows for academic institutions, life sciences companies, and research organizations globally, offering a unique combination of AI-powered tools and access to scientific literature.
In its fiscal first quarter of 2026, Research Solutions reported a 21% increase in annual recurring revenue (ARR) to $21.3 million, alongside notable growth in net income, adjusted EBITDA, and operating cash flow. This performance underscores the company’s ongoing transformation towards SaaS and AI solutions.
Key financial highlights include a total revenue increase of 2% to $12.3 million, driven by an 18% rise in platform revenue. The company’s gross profit improved by 8% to $6.2 million, with a gross margin increase to 50.6%. Net income rose to $749,000, while adjusted EBITDA saw a 16% increase to $1.5 million. Operating cash flow also grew by 31% to $1.1 million.
The company’s strategic focus on expanding its B2B business contributed to its strongest organic Q1 growth, aided by significant deals and enhanced platform capabilities. This growth is reflected in the increased average sales price and the company’s progress towards its ‘Rule of 40’ target.
Looking ahead, Research Solutions remains committed to leveraging its strong cash flow to reinvest in sales and marketing efforts, aiming to drive better execution and deliver value for shareholders, as indicated by the management’s positive outlook.