Research Solutions (RSSS) AI Stock Analysis

• Market Cap: $94.98M
• Dividend Yield: N/A
• Average Volume (3M): 82.98K
• Price to Earnings (P/E): 76.7
• Beta (1Y): 0.24
• Revenue Growth: 5.83%
• EPS Growth: N/A
• Country: US
• Employees: 145
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 32,866,070
• 10 Day Avg. Volume: 143,761
• 30 Day Avg. Volume: 82,980
• PEG Ratio: -0.53
• Price to Book (P/B): 6.32
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 12.57
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 16.53
• 1Y Price Target: $5.33
• Price Target Upside: 77.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $3.00 ▲(0.00% Upside)

Overall score reflects strong financial improvement (debt-free balance sheet and strong free cash flow) and generally positive earnings-call progress in ARR, margins, and EBITDA. The score is held back by expensive valuation (high P/E, no dividend yield) and a relatively neutral/soft technical picture with limited momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Platform Subscription Revenue

Robust growth in subscription revenue highlights the company's successful platform strategy, ensuring recurring income and customer retention.

Cash Flow Generation

Strong cash flow generation enhances financial stability, providing resources for reinvestment and strategic initiatives.

Negative Factors

Profitability Challenges

Increasing net losses indicate ongoing profitability challenges, necessitating improved cost management and operational efficiencies.

Customer Churn

High customer churn can hinder revenue stability and growth, emphasizing the need for better customer retention strategies.

Seasonal B2C Slowdown

Seasonal slowdowns in B2C can impact revenue predictability, requiring diversification to mitigate cyclical business impacts.

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 information services and technology sectors, offering platforms and services that enable researchers, academic institutions, and corporate customers to streamline document retrieval and content management.

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 management services. The company also generates revenue from per-transaction fees when users access or purchase specific articles or documents. Significant partnerships with academic institutions, corporate research divisions, and publishers help broaden its customer base and ensure a continuous flow of content, contributing to its earnings.

Research Solutions Financial Statement Overview

Summary

Strong turnaround supported by very strong free cash flow (~$7.25M TTM) and a debt-free balance sheet, with accelerating revenue growth (+54.6% TTM) and improved profitability. Main risk is still-thin operating margin (~1.6% EBIT TTM) and historical volatility, which makes results more execution-sensitive.

Income Statement

Revenue growth is strong in TTM (Trailing-Twelve-Months) (+54.6%), and profitability has improved meaningfully versus prior loss years (net margin ~2.7% TTM vs. negative in 2024 and 2022). Gross margin has expanded steadily (from ~32% in 2021 to ~50% TTM), supporting the earnings turnaround. The main weakness is that operating profitability remains relatively thin (EBIT margin ~1.6% TTM), leaving results more sensitive to costs and execution.

Balance Sheet

The balance sheet is conservatively positioned with no debt across all reported periods (debt-to-equity at 0.0), reducing financial risk. Equity has grown materially (from ~$5.4M in 2021 to ~$15.6M TTM), and return on equity has rebounded to ~10.4% TTM after being negative in 2024/2022. A watch item is that profitability has been volatile historically, which can pressure equity returns if margins compress again.

Cash Flow

Cash generation is a clear strength: operating cash flow is strong at ~$7.3M TTM and free cash flow is similarly strong at ~$7.25M, with very high free-cash-flow growth in TTM (+351.9%). Free cash flow tracks reported earnings closely (free cash flow to net income ~0.99 TTM), suggesting earnings quality is solid. The key weakness is past variability (including negative operating and free cash flow in 2022), indicating cash flow durability should still be monitored through cycles.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.33M	49.06M	44.62M	37.70M	32.93M	31.76M
Gross Profit	24.34M	24.20M	19.64M	14.70M	12.02M	10.29M
EBITDA	5.02M	3.54M	88.12K	169.30K	-1.47M	-235.14K
Net Income	1.35M	1.27M	-3.79M	571.62K	-1.63M	-285.09K
Balance Sheet
Total Assets	45.51M	46.12M	41.86M	21.83M	17.03M	16.92M
Cash, Cash Equivalents and Short-Term Investments	11.96M	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	29.92M	32.19M	30.17M	14.50M	12.14M	11.49M
Stockholders Equity	15.59M	13.93M	11.69M	7.33M	4.88M	5.43M
Cash Flow
Free Cash Flow	7.25M	7.00M	3.48M	3.34M	-461.49K	1.85M
Operating Cash Flow	7.29M	7.02M	3.55M	3.38M	-417.20K	1.87M
Investing Cash Flow	-36.80K	-19.26K	-10.10M	-344.66K	-44.29K	-19.85K
Financing Cash Flow	-2.22M	-877.88K	-905.85K	-97.26K	63.27K	-159.97K

Research Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.88, above the 50-day MA of 2.93, and above the 200-day MA of 2.98, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RSSS.

Research Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSSS	69 Neutral	$94.98M	76.66	9.49%	―	5.83%	―
IDN	62 Neutral	$121.43M	607.07	1.17%	―	14.20%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DUOT	55 Neutral	$219.46M	-11.32	-38.62%	―	159.00%	33.19%
EXFY	50 Neutral	$137.70M	-8.73	-12.19%	―	4.71%	11.12%
SSTI	49 Neutral	$94.10M	-8.75	-14.61%	―	-1.83%	-642.89%
YXT	49 Neutral	$42.66M	13.87	―	―	―	―

Research Solutions Corporate Events

Research Solutions Appoints Dave Kutil as Interim CFO

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 the Interim CFO and Secretary. Kutil brings over 15 years of financial leadership experience, having previously worked at Lesaffre Yeast Corporation and Badger Meter. His appointment is expected to maintain continuity in the company’s financial operations and strategic vision.

The most recent analyst rating on (RSSS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Research Solutions stock, see the RSSS Stock Forecast page.

Research Solutions Holds Annual Stockholders Meeting

On November 12, 2025, Research Solutions held its annual meeting of stockholders, where 75.78% of the common stock was represented. During the meeting, six board members were elected, Wipfli LLP was ratified as the independent accountant for the fiscal year ending June 30, 2026, and executive compensation was approved. Additionally, it was decided that an advisory vote on executive compensation would be held every year.

The most recent analyst rating on (RSSS) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Research Solutions stock, see the RSSS Stock Forecast page.