Research Solutions (NASDAQ:RSSS) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Research Solutions (NASDAQ:RSSS) announced its quarterly earnings data on Thursday. The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.03 by ($0.01), Zacks reports. Research Solutions had a return on equity of 10.37% and a net margin of 2.73%.The company had revenue of $11.79 million for the quarter, compared to analyst estimates of $12.16 million.

Here are the key takeaways from Research Solutions’ conference call:

• Platform/B2B momentum: ARR rose 14% YoY to $21.8M with 47 net new platform deployments and platform subscription revenue up ~14%, signaling stronger enterprise demand and higher-value bookings.
• Transaction and B2C headwinds: Transaction revenue fell to $6.6M from $7.3M, driven largely by one churned large account and weaker B2C trial-to-subscriber conversion amid increased marketing competition, and management expects continued pressure in the second half.
• Improving profitability and cash flow: Gross margin expanded to 52.4% (platform margin 88.1%), net income was $547k versus a prior-year loss, adjusted EBITDA rose 36% to $1.3M, and cash from operations improved to $1.4M with no revolver borrowings.
• Strategic shift to API/AI infrastructure: Management is repositioning the company from document delivery to an “answers and access” platform and selling API/MCP integrations that are reported to be 2x–5x larger and stickier than seat-based deals.
• Monetization and publisher/payment uncertainty: Management expects higher ASPs from per-call/API pricing but notes pricing models, publisher revenue-sharing and the long-tail publisher rollout are still being developed, creating near-term execution and monetization uncertainty.

Research Solutions Stock Performance

Shares of Research Solutions stock opened at $2.51 on Friday. The company has a market capitalization of $82.50 million, a P/E ratio of 83.67 and a beta of 0.75. The stock has a fifty day simple moving average of $2.84 and a 200 day simple moving average of $3.06. Research Solutions has a 12-month low of $2.32 and a 12-month high of $4.12.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Punch & Associates Investment Management Inc. grew its position in Research Solutions by 3.4% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 2,499,310 shares of the company’s stock worth $9,322,000 after purchasing an additional 81,210 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Research Solutions by 3.5% in the 3rd quarter. Vanguard Group Inc. now owns 1,254,142 shares of the company’s stock worth $4,678,000 after buying an additional 42,066 shares during the last quarter. Renaissance Technologies LLC boosted its stake in shares of Research Solutions by 5.7% in the 4th quarter. Renaissance Technologies LLC now owns 218,200 shares of the company’s stock worth $642,000 after buying an additional 11,756 shares during the last quarter. Acadian Asset Management LLC grew its holdings in shares of Research Solutions by 83.7% in the first quarter. Acadian Asset Management LLC now owns 87,327 shares of the company’s stock valued at $225,000 after acquiring an additional 39,789 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Research Solutions by 13.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 77,029 shares of the company’s stock valued at $226,000 after acquiring an additional 9,358 shares during the last quarter. 33.60% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Wall Street Zen raised Research Solutions from a “buy” rating to a “strong-buy” rating in a research report on Saturday, December 13th. Weiss Ratings lowered Research Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, January 12th. Zacks Research downgraded shares of Research Solutions from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Finally, Roth Mkm restated a “buy” rating and set a $5.00 price objective on shares of Research Solutions in a report on Friday, November 14th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $5.00.

About Research Solutions

Research Solutions, Inc (NASDAQ:RSSS) is a provider of software and managed services that streamline access to and management of scientific, technical and medical research. The company’s flagship platform automates the acquisition, licensing and delivery of journal articles, conference proceedings and other pay-walled content, enabling institutions to reduce administrative overhead and control subscription costs.

Key offerings include self-service workflows for document requests, enterprise-grade managed services for high-volume users, and analytics tools that deliver detailed reporting on spend, usage patterns and supplier performance.