Research Solutions expects record fiscal year results

HENDERSON, Nev. - Research Solutions, Inc. (NASDAQ:RSSS), a $93 million market cap company currently trading at $2.87 per share, announced preliminary financial results for its fiscal fourth quarter and year ended June 30, 2025, showing growth across key metrics. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong growth metrics.

Based on unaudited information, the company expects fourth-quarter platform revenue to increase 21% year-over-year to approximately $5.2 million, with annual recurring revenue rising about 20% to $20.9 million. Total quarterly revenue is projected to grow 3% to approximately $12.4 million. This growth trajectory aligns with the company’s historical performance, as InvestingPro data shows a 5-year revenue CAGR of 9%.

For the full fiscal year 2025, platform revenue is expected to rise approximately 36% to nearly $19 million, with total revenue increasing 10% to approximately $49.1 million. Corporate gross margin is anticipated to exceed 49%, compared to 44% in fiscal 2024.

The company projects positive fourth-quarter income from operations of approximately $1.2 million and net income over $2.3 million, which includes a $1.1 million favorable adjustment related to the Scite acquisition earn-out. Adjusted EBITDA for the quarter is expected to be approximately $1.6 million, up 15% from the prior year. Analysts tracked by InvestingPro maintain a strong bullish consensus, with price targets ranging from $4.35 to $6.00 per share, suggesting significant upside potential. Get access to 8 more exclusive InvestingPro Tips and comprehensive valuation analysis through the Pro Research Report.

For the full fiscal year, Research Solutions anticipates GAAP net income of approximately $1.3 million and adjusted EBITDA of approximately $5.3 million. Cash flow from operations is expected to exceed $7.0 million, nearly double the previous fiscal year.

The company also announced that the Scite earn-out has been finalized at approximately $15.4 million, to be paid 62% in cash and 38% in stock over eight quarters through May 2027.

Research Solutions plans to report complete fiscal fourth quarter and year 2025 results on September 18, 2025.

The preliminary financial results are subject to completion of the company’s financial closing procedures and audit, according to the press release statement.

In other recent news, Research Solutions, Inc. announced the termination of its chief operating officer, Scott Ahlberg. The company disclosed this change in a filing with the Securities and Exchange Commission. The announcement was made under Item 5.02 of Form 8-K, which pertains to changes in directors or executive officers. Research Solutions did not provide additional details regarding the circumstances of Ahlberg’s departure or any immediate plans for his replacement. This development comes as part of the company’s ongoing management adjustments. Investors and stakeholders are advised to stay informed through official company communications for any updates on this matter.

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