Research Solutions ( (RSSS) ) has released its Q1 earnings. Here is a breakdown of the information Research Solutions presented to its investors.
Research Solutions, Inc. is a prominent provider of AI-driven research workflow solutions, primarily operating in the technology sector. The company is known for its Article Galaxy platform, which facilitates seamless access to scientific research for a wide range of clients including pharmaceutical companies and universities.
In its fiscal first quarter of 2025, Research Solutions reported impressive financial results, showcasing significant growth across key performance metrics. The company achieved a 20% increase in total revenue, reaching $12 million, and a remarkable 60% rise in annual recurring revenue (ARR) to $17.6 million. Additionally, the company reported positive net income and cash flow, marking a significant turnaround from a loss in the previous year.
The company’s platform revenue surged by 67% to $4.3 million, now comprising 36% of the total revenue, up from 26% the previous year. This growth in platform revenue is attributed to increased platform deployments and customer upsells, as well as the strategic acquisition of Scite. The gross profit also saw a substantial increase of 43%, with the gross margin reaching a record 47.9%, reflecting a shift towards higher-margin platform revenue.
Research Solutions’ operating expenses remained stable at $5.1 million, while net income improved significantly to $669,000, or $0.02 per diluted share, compared to a net loss in the previous year. The company also reported an adjusted EBITDA of $1.3 million, indicating strong profitability and operational efficiency.
Looking ahead, Research Solutions is poised to continue its growth trajectory, focusing on enhancing its platform offerings and expanding its user base. The management remains confident in the strategic direction of the company, anticipating further growth in both B2B and B2C segments amid ongoing development of value-added features for end users.
