Research Solutions | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 12.12 M

Revenue: As of FY2026 Q3, the actual value is USD 12.12 M, missing the estimate of USD 12.37 M.

EPS: As of FY2026 Q3, the actual value is USD 0.03.

EBIT: As of FY2026 Q3, the actual value is USD 1.208 M.

Fiscal Third Quarter 2026 Financial and Operational Summary (compared to prior-year quarter)

Total Revenue

Research Solutions, Inc. reported total revenue of $12.1 million for the fiscal third quarter ended March 31, 2026, a decrease of -4.3% compared to $12.7 million in the prior-year period. Total revenue for the nine months ended March 31, 2026, was $36,226,397, down -1.1% from $36,620,064 in the prior-year period.

Segment Revenue

• Platforms Revenue: Platform revenue increased 6.6% to $5.2 million in the quarter, from $4,839,929 in the prior-year period, accounting for 43% of total revenue, up from 38% in the prior-year quarter. For the nine months ended March 31, 2026, Platforms revenue was $15,506,250, an increase of 12.6% from $13,770,831.
• Transactions Revenue: Transaction revenue was $7.0 million, a decrease of -11.0% from $7.8 million in the third quarter of fiscal 2025. For the nine months ended March 31, 2026, Transactions revenue was $20,720,147, a decrease of -9.3% from $22,849,233.

Net Income

Net income for the quarter was $860,000, an increase of 297% compared to $216,000 in the prior-year quarter. For the nine months ended March 31, 2026, net income was $2,156,512, compared to a net loss of - $1,094,761 in the prior-year period, representing a 297.0% increase.

Adjusted EBITDA

Adjusted EBITDA increased 14% to $1.6 million for the quarter, compared to $1.4 million in the year-ago quarter. On a trailing twelve-month basis, Research Solutions, Inc. generated Adjusted EBITDA of $6.0 million, representing a 12.3% margin. For the nine months ended March 31, 2026, Adjusted EBITDA was $4,396,819, an increase of 20.3% from $3,654,545.

Gross Margin

Total gross margin improved 220 basis points to 51.7% in the quarter, up from 49.5% in the prior-year quarter. Gross profit was $6,265,532 for the quarter, compared to $6,267,080. For the nine months ended March 31, 2026, total gross profit was $18,667,780, an increase of 4.6% from $17,854,049, with a total gross profit margin of 51.5%, up from 48.8%.

Operating Expenses

Total operating expenses were $5.2 million in the quarter, a decrease of -8.6% compared to $5.7 million in the third quarter of 2025. This decrease was primarily related to reduced general and administrative and stock-based compensation expenses. For the nine months ended March 31, 2026, total operating expenses were $15,921,778, a decrease of -3.8% from $16,557,590.

Income from Operations

Income from operations for the quarter was $1,044,980, an increase of 87.6% from $556,921 in the prior-year quarter. For the nine months ended March 31, 2026, income from operations was $2,746,002, an increase of 111.8% from $1,296,459.

Cash Flow

Cash flow from operations was $1.0 million for the quarter, compared to $2.9 million in the prior-year period, reflecting timing of billings and changes in working capital. On a trailing twelve-month basis, Research Solutions, Inc. generated $5.7 million in cash flow from operations. For the nine months ended March 31, 2026, net cash provided by operating activities was $3,499,149, compared to $4,764,251 in the prior-year period.

Unique Operational Metrics

• Annual Recurring Revenue (ARR): Total ARR increased 8.5% year-over-year to $22.1 million, which includes approximately $15.7 million of B2B recurring revenue and $6.4 million of B2C recurring revenue. B2B ARR at period end was $15,716,923, up 16.6% from $13,474,074, while B2C ARR at period end was $6,360,668, a decrease of -7.5% from $6,877,926.
• Deployments: Research Solutions, Inc. recorded fifteen net new deployments in the quarter, representing 10% deployment growth over the past 12 months. Total deployments at period end were 1,247, up 10.1% from 1,133.
• Transaction Customers: The transaction active customer count for the quarter was 1,346, compared to 1,380 customers in the prior-year quarter, representing a decrease of -2.5%. Corporate customers decreased -4.8% to 1,009, while academic customers increased 5.3% to 337.

Outlook / Guidance

Research Solutions, Inc. remains focused on executing over the long term to drive value for shareholders. The company’s third-quarter results reflect improving profitability and growth prospects, even within a softer operating environment. The company continues to focus on expanding consolidated gross margin and driving upsells and larger deals through strategic investment in sales and marketing.