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Research Solutions
(NASDAQ:RSSS)
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Rating:66Neutral
Price Target:
$2.00
▼(-33.33% Downside)
Action:Reiterated
Date:09/15/26
Score is supported primarily by solid financial footing (debt-free balance sheet, improved profitability, and positive free cash flow) and a mostly constructive earnings call focused on continued Platform/AI momentum and EBITDA/cash generation. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and mixed growth signals, including declining total/transaction revenue and expected transaction headwinds.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet and substantially higher equity give Research Solutions financial flexibility to fund product development, complete Scite earn-out payments, and withstand operating variability without the added burden of interest expense or refinancing pressure.
Negative Factors
Declining transaction revenue
The transaction business remains a meaningful revenue stream but is shrinking, with management expecting further declines. Persistent pressure from lower volumes and changing research workflows could offset platform growth and make consolidated revenue expansion harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet and substantially higher equity give Research Solutions financial flexibility to fund product development, complete Scite earn-out payments, and withstand operating variability without the added burden of interest expense or refinancing pressure.
Read all positive factors
Research Solutions (RSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.17M
Dividend YieldN/A
Average Volume (3M)41.91K
Price to Earnings (P/E)22.0
Beta (1Y)0.26
Revenue Growth-1.53%
EPS Growth140.44%
CountryUS
Employees141
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding33,762,670
10 Day Avg. Volume27,187
30 Day Avg. Volume41,909
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)3.56
Price to Sales (P/S)1.53
P/FCF Ratio14.09
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit2.63
Enterprise Value/Ebitda13.30
Forecast
1Y Price Target
$3.83Price Target Upside27.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.13
Revenue Forecast (FY)$48.33M
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:Sep 09, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, supported by B2B ARR growth, improving platform mix and gross margins, higher full-year profitability, strong AI usage and bookings, expanding MCP adoption, and a cash-rich, debt-free balance sheet. The main challenges were declining total and transaction revenue, lower operating cash flow, weaker B2C ARR and customer count, expected B2C and DocDel headwinds, and the early stage of the Publisher Gateway initiative.Positive Updates
Improved Sales Execution and Deployment Growth
Corporate and academic sales teams grew year-over-year while upgrading the sales process and sales team. Research Solutions turned over almost 50% of its sales team, expanded sales head count going into FY2027, closed larger deals, increased average sales price on both products, and added 105 net new deployments during FY2026.
Negative Updates
Fourth-Quarter Revenue Decline
Q4 FY2026 total revenue was $12.1 million, down from $12.4 million in Q4 FY2025, as increased platform revenue was more than offset by a decrease in transaction revenue.
Read all updates
Q4-2026 Updates
Positive
Negative
Improved Sales Execution and Deployment Growth
Corporate and academic sales teams grew year-over-year while upgrading the sales process and sales team. Research Solutions turned over almost 50% of its sales team, expanded sales head count going into FY2027, closed larger deals, increased average sales price on both products, and added 105 net new deployments during FY2026.
Read all positive updates
Company Guidance
Management said it does not give guidance, but expects continued Platform subscription growth, improving retention and further stabilization in the transactions business, another year of adjusted EBITDA growth and strong cash generation, strong corporate and academic B2B sales in FY '27, improved renewal and upsells, and a strong year for AI-related product sales, with a strong pipeline going into FY '27 that was “well over” $1 million. B2C is expected to be “a flat business for the year,” while transactions or DocDel sales are expected to decline by “a low single-digit year-over-year decline” versus its “5-year CAGR of about 1% growth”; management also expects “improved EBITDA and cash flows in FY '27” and cited “almost $13 million in cash, no debt and are generating cash.”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 | 4.90M | 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
2.12
Negative
2.18
Negative
2.33
Negative
Market Momentum
-0.04
Positive
38.40
Neutral
52.08
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 2.04, above the 50-day MA of 2.12, and above the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $66.17M | 21.97 | 15.55% | ― | -1.53% | 140.44% | |
65 Neutral | $49.45M | 16.15 | 15.02% | ― | 16.70% | ― | |
64 Neutral | $236.17M | -15.55 | -11.54% | ― | -4.27% | 1.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $184.11M | 5.42 | 38.91% | ― | 63.98% | ― | |
53 Neutral | $110.69M | -6.48 | -23.77% | 0.00% | -5.72% | -60.57% | |
43 Neutral | $8.13M | -0.51 | -145.28% | ― | ― | ― |
* Technology Sector Average
RSSS
Research Solutions
1.96
-1.33
-40.48%
IDN
Intellicheck Mobilisia
2.44
-2.28
-48.31%
SSTI
SoundThinking Inc
8.36
-1.33
-13.73%
DUOT
Duos Technologies Group
5.85
-4.25
-42.08%
EXFY
Expensify
2.59
0.88
51.46%
YXT
YXT.COM Group Holding Limited Sponsored ADR
1.23
-8.87
-87.82%
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.