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Research Solutions
(NASDAQ:RSSS)
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Rating:62Neutral
Price Target:
$2.50
▼(-16.67% Downside)
Action:Reiterated
Date:09/10/26
The score is primarily supported by improving profitability, strong recent cash generation quality, and a debt-free balance sheet. Offsetting this, technicals are weak with the stock trading below all major moving averages and negative MACD, while valuation looks demanding at a ~31 P/E without a dividend yield to provide support.
Positive Factors
AI product expansion and platform mix
Embedding Scite and Article Galaxy capabilities into widely used AI tools broadens the company’s distribution and creates new workflow relevance. The rising platform revenue mix can support recurring sales and higher margins, while the AI pipeline provides a durable avenue for product-led expansion.
Negative Factors
Inconsistent revenue growth
A recent revenue contraction raises uncertainty about demand durability and the pace at which new products can offset weakness in existing activity. If top-line growth remains uneven, operating leverage and the company’s ability to compound improved margins may be constrained over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
AI product expansion and platform mix
Embedding Scite and Article Galaxy capabilities into widely used AI tools broadens the company’s distribution and creates new workflow relevance. The rising platform revenue mix can support recurring sales and higher margins, while the AI pipeline provides a durable avenue for product-led expansion.
Read all positive factors
Research Solutions (RSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.92M
Dividend YieldN/A
Average Volume (3M)29.45K
Price to Earnings (P/E)31.4
Beta (1Y)0.26
Revenue Growth-0.18%
EPS GrowthN/A
CountryUS
Employees136
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.07
Shares Outstanding33,447,533
10 Day Avg. Volume27,280
30 Day Avg. Volume29,451
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)3.56
Price to Sales (P/S)1.53
P/FCF Ratio14.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)$49.12M
Research Solutions Business Overview & Revenue Model
Company Description
Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internat...
How the Company Makes Money
Research Solutions primarily generates revenue by selling access to its software platforms and related services, and by facilitating the fulfillment of scientific, technical, and medical (STM) content requested by end users.
Key revenue streams i...
Research Solutions Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress on profitability, ARR growth, margin expansion, product innovation (notably AI MCPs) and stronger unit economics in B2C, but top-line revenue was down with notable transaction revenue weakness and controllable churn remains a meaningful headwind. Cashflow timing and DocDel softness were called out as near-term issues even as management outlines plans to improve retention and expects Q4 stabilization.Positive Updates
Platform Subscription Revenue Growth
Platform subscription revenue increased ~7% year-over-year to $5.2M and now represents ~43% of total revenue (vs ~38% prior year), reflecting a shift to higher-margin recurring business.
Negative Updates
Total Revenue Decline
Total revenue fell to $12.1M from $12.7M a year ago, a decline of ~4.7% YoY, driven by softness in the transaction business.
Read all updates
Q3-2026 Updates
Positive
Negative
Platform Subscription Revenue Growth
Platform subscription revenue increased ~7% year-over-year to $5.2M and now represents ~43% of total revenue (vs ~38% prior year), reflecting a shift to higher-margin recurring business.
Read all positive updates
Company Guidance
Management guided to deliver adjusted EBITDA growth in Q4 versus the prior year and to exit FY‑2026 with stronger earnings power and cash generation driven by continued platform subscription growth, improved retention, stabilization in transactions, and disciplined expense management; they also expect year‑over‑year improvement in DocDel in Q4. Key metrics cited include trailing‑12‑month adjusted EBITDA of $6.0M (12.3% margin, +220 bps YoY), Q3 adjusted EBITDA $1.6M (+14% YoY), Q3 net income $860K ($0.03/sh), cash & equivalents $12.1M with no revolver borrowings, ARR $22.1M (+8.5% YoY: B2B ~$15.7M, B2C ~$6.4M down 7.5%), platform subscription revenue $5.2M (+~7%) representing 43% of total revenue, transaction revenue $7.0M (vs $7.8M PY), net incremental platform ARR ~$317K, Q3 bookings of 61 new/upsell logos totaling $961K ARR vs churn of 46 logos / $398K ARR (including ~ $130K from one large account), CAC down ~24% with higher LTV, Q3 operating cash flow $1.0M (TTM $5.7M), blended gross margin 51.7% (TTM 51.4%), platform gross margin 86.4% and transaction gross margin 26%, plus an MCP sales pipeline >$1M.Research Solutions Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 48.31M | 49.06M | 44.62M | 37.70M | 32.93M |
| Gross Profit | 25.07M | 24.20M | 19.64M | 14.70M | 12.02M |
| EBITDA | 2.90M | 3.54M | 88.12K | 169.30K | -1.47M |
| Net Income | 2.82M | 1.27M | -3.79M | 571.62K | -1.63M |
Balance Sheet | |||||
| Total Assets | 45.66M | 46.12M | 41.86M | 21.83M | 17.03M |
| Cash, Cash Equivalents and Short-Term Investments | 12.63M | 12.23M | 6.10M | 13.55M | 10.60M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 24.96M | 32.19M | 30.17M | 14.50M | 12.14M |
| Stockholders Equity | 20.71M | 13.93M | 11.69M | 7.33M | 4.88M |
Cash Flow | |||||
| Free Cash Flow | 5.23M | 7.00M | 3.48M | 3.34M | -461.49K |
| Operating Cash Flow | 5.27M | 7.02M | 3.55M | 3.38M | -417.20K |
| Investing Cash Flow | -39.77K | -19.26K | -10.10M | -344.66K | -44.29K |
| Financing Cash Flow | -4.85M | -877.88K | -905.85K | -97.26K | 63.27K |
Research Solutions Technical Analysis
Negative
3.00
Price Trends
2.23
Negative
2.30
Negative
2.47
Negative
Market Momentum
-0.01
Positive
41.43
Neutral
26.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSSS, the sentiment is Negative. The current price of 3 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.23, and above the 200-day MA of 2.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $55.33M | 17.54 | 15.02% | ― | 16.70% | ― | |
64 Neutral | $216.11M | -13.75 | -11.54% | ― | -4.27% | 1.47% | |
62 Neutral | $72.92M | 31.38 | 15.55% | ― | -0.18% | ― | |
62 Neutral | $284.83M | 8.15 | 38.91% | ― | 63.98% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | $78.85M | -4.49 | -23.77% | ― | -5.72% | -60.57% | |
45 Neutral | $15.32M | -1.02 | -155.82% | ― | ― | ― |
* Technology Sector Average
RSSS
Research Solutions
2.14
-1.17
-35.35%
IDN
Intellicheck Mobilisia
2.65
-2.83
-51.64%
SSTI
SoundThinking Inc
5.79
-7.08
-55.01%
DUOT
Duos Technologies Group
8.80
0.96
12.24%
EXFY
Expensify
2.29
0.33
16.84%
YXT
YXT.COM Group Holding Limited Sponsored ADR
2.46
-6.44
-72.36%
Research Solutions Corporate Events
Business Operations and StrategyExecutive/Board Changes
Research Solutions Reshapes Leadership with CFO Appointment
Neutral
Aug 3, 2026
Research Solutions, Inc. announced that on July 28, 2026, it appointed 42-year-old Dave Kutil as Chief Financial Officer, formalizing a role he had held on an interim basis since December 10, 2025. Kutil, a Certified Public Accountant with prior r...
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.