Research Solutions Inc (RSSS)
NASDAQ:RSSS
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Research Solutions
(NASDAQ:RSSS)
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Rating:65Neutral
Price Target:
$2.50
▼(-16.67% Downside)
Action:ReiteratedDate:02/13/26
The score is driven primarily by solid financial footing (no debt) and improved profitability/cash generation, supported by constructive earnings-call operating progress (ARR/platform growth and margin expansion). These positives are tempered by weak technicals, a high P/E with no dividend support, and ongoing top-line pressure (transaction/B2C weakness and recent TTM revenue decline).
Positive Factors
Debt-free balance sheet
Zero debt materially reduces financial risk and preserves optionality: the company can fund product investments, absorb cyclical revenue shocks, and service site earn-outs from operations without tapping markets. This durability supports multi‑quarter execution on SaaS transition and margins.
Negative Factors
TTM revenue decline
A pronounced trailing‑12‑month revenue decline erodes operating leverage and raises execution risk: recovering margins may not offset lost scale if top‑line contraction persists. Sustained revenue weakness would pressure reinvestment, growth targets and long‑term confidence in the SaaS pivot.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero debt materially reduces financial risk and preserves optionality: the company can fund product investments, absorb cyclical revenue shocks, and service site earn-outs from operations without tapping markets. This durability supports multi‑quarter execution on SaaS transition and margins.
Read all positive factors
Research Solutions (RSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.97M
Dividend YieldN/A
Average Volume (3M)82.98K
Price to Earnings (P/E)42.2
Beta (1Y)0.27
Revenue Growth5.83%
EPS GrowthN/A
CountryUS
Employees145
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding32,905,476
10 Day Avg. Volume143,761
30 Day Avg. Volume82,980
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)6.32
Price to Sales (P/S)1.79
P/FCF Ratio12.57
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit2.70
Enterprise Value/Ebitda11.73
Forecast
1Y Price Target
$5.00Price Target Upside66.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)$50.46M
Research Solutions Business Overview & Revenue Model
Company Description
Research Solutions (RSSS) is a technology company that provides cloud-based software solutions aimed at simplifying the process of accessing and managing scientific, technical, and medical (STM) content. The company operates primarily in the infor...
How the Company Makes Money
Research Solutions makes money through a subscription-based revenue model and transactional services. Key revenue streams include subscription fees from its cloud-based platform, Article Galaxy, which offers on-demand document retrieval and manage...
Research Solutions Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong operational and financial improvements (ARR +14%, platform subscription revenue +14%, adjusted EBITDA +36%, margin expansion, positive net income and improved cash flow) alongside continuing top-line pressure in transaction/document delivery and B2C channels driven by a churned large account, lower trial-to-subscriber conversion, and increased competition. Management emphasized strategic progress—API/AI integrations, infrastructure deals with much higher ASPs, and product investments—that underpin durable, higher-margin growth, while acknowledging near-term revenue and pricing execution risks related to transaction dynamics and evolving API pricing models.Positive Updates
ARR Growth and Platform Strength
Annual recurring revenue (ARR) ended the quarter at $21.8M, up 14% year-over-year; B2B ARR ~ $15.3M and normalized B2C ARR ~ $6.4M. Platform revenue share rose to 44% of total revenue from 39% a year ago (≈+500 bps).
Negative Updates
Overall Revenue Essentially Flat / Slight Decline
Total revenue was $11.8M versus $11.9M in the prior-year quarter (≈-0.8%), indicating top-line pressure despite platform growth.
Read all updates
Q2-2026 Updates
Positive
Negative
ARR Growth and Platform Strength
Annual recurring revenue (ARR) ended the quarter at $21.8M, up 14% year-over-year; B2B ARR ~ $15.3M and normalized B2C ARR ~ $6.4M. Platform revenue share rose to 44% of total revenue from 39% a year ago (≈+500 bps).
Read all positive updates
Company Guidance
Management said transaction revenue weakness (Q2 transaction revenue $6.6M vs $7.3M LY)—driven largely by one churned account—is expected to persist into the second half and B2C will face continued competition, while B2B is the primary growth driver: ARR finished Q2 at $21.8M (+14% YoY) including roughly $15.3M of B2B ARR and $6.4M of normalized B2C ARR, platform subscription revenue rose to ~$5.2M (+~14%), total incremental ARR was $560K (the largest organic Q2), 47 net new platform deployments were added and ASP increased 6%; management reiterated a goal to return SaaS growth to 20%+, to exceed fiscal 2025 EBITDA levels in each remaining quarter (Q3/Q4 are typically strongest), to grow cash flow (Q2 cash from operations $1.4M, +35%) while funding remaining site earn-outs from operations, and to exit the year with stronger earnings, cash generation and balance-sheet flexibility (cash $12.3M, no revolver borrowings).Research Solutions Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
82
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.20M | 49.06M | 44.62M | 37.70M | 32.93M | 31.76M |
| Gross Profit | 24.70M | 24.20M | 19.64M | 14.70M | 12.02M | 10.29M |
| EBITDA | 5.69M | 3.54M | 88.12K | 169.30K | -1.47M | -235.14K |
| Net Income | 3.87M | 1.27M | -3.79M | 571.62K | -1.63M | -285.09K |
Balance Sheet | ||||||
| Total Assets | 44.24M | 46.12M | 41.86M | 21.83M | 17.03M | 16.92M |
| Cash, Cash Equivalents and Short-Term Investments | 12.26M | 12.23M | 6.10M | 13.55M | 10.60M | 11.00M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 27.02M | 32.19M | 30.17M | 14.50M | 12.14M | 11.49M |
| Stockholders Equity | 17.23M | 13.93M | 11.69M | 7.33M | 4.88M | 5.43M |
Cash Flow | ||||||
| Free Cash Flow | 7.60M | 7.00M | 3.48M | 3.34M | -461.49K | 1.85M |
| Operating Cash Flow | 7.64M | 7.02M | 3.55M | 3.38M | -417.20K | 1.87M |
| Investing Cash Flow | -38.42K | -19.26K | -10.10M | -344.66K | -44.29K | -19.85K |
| Financing Cash Flow | -3.05M | -877.88K | -905.85K | -97.26K | 63.27K | -159.97K |
Research Solutions Technical Analysis
Neutral
3.00
Price Trends
2.45
Negative
2.69
Negative
2.90
Negative
Market Momentum
-0.01
Negative
51.75
Neutral
77.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSSS, the sentiment is Neutral. The current price of 3 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.45, and above the 200-day MA of 2.90, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RSSS.
Research Solutions Risk Analysis
Research Solutions disclosed 31 risk factors in its most recent earnings report. Research Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Research Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $78.97M | 42.24 | 26.72% | ― | 5.83% | ― | |
63 Neutral | $161.31M | 21.76 | 6.77% | ― | 14.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $199.71M | -18.08 | -35.23% | ― | 159.00% | 33.19% | |
49 Neutral | $77.21M | -6.51 | -16.00% | ― | 4.71% | 11.12% | |
49 Neutral | $24.52M | -2.82 | -89.60% | ― | ― | ― | |
48 Neutral | $84.85M | -10.87 | -12.81% | ― | -1.83% | -642.89% |
* Technology Sector Average
RSSS
Research Solutions
2.40
<0.01
0.42%
IDN
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7.97
5.70
251.10%
SSTI
SoundThinking Inc
6.55
-8.64
-56.88%
DUOT
Duos Technologies Group
6.76
2.62
63.29%
EXFY
Expensify
0.83
-1.76
-67.99%
YXT
YXT.COM Group Holding Limited Sponsored ADR
0.41
-0.30
-42.62%
Research Solutions Corporate Events
Executive/Board Changes
Research Solutions Appoints Dave Kutil as Interim CFO
Neutral
Dec 11, 2025
On December 10, 2025, William Nurthen resigned as Chief Financial Officer and Secretary of Research Solutions, Inc. to pursue another opportunity. Dave Kutil, who has been the company’s Global Controller since March 2023, was appointed as th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.