Research Solutions to Present at Midwest IDEAS Investor Conference on August 27th.

Research Solutions will present at the 16th Annual Midwest IDEAS Investor Conference on August 27, 2025, at 9:15 AM CT at The InterContinental in Chicago, IL. The presentation will be accessible via webcast on the conference website. Investors can reach out to Lacey Wesley for additional information. The company provides cloud-based technologies for managing and creating intellectual property, serving over 70% of top pharmaceutical companies, universities, and emerging businesses.

Research Solutions, Inc. (NASDAQ: RSSS), a leading AI-powered research workflow platform, has announced its participation in the 16th Annual Midwest IDEAS Investor Conference. The presentation is scheduled for August 27, 2025, at 9:15 AM CT at The InterContinental in Chicago, IL. The presentation will be accessible via webcast on the conference website. Investors can reach out to Lacey Wesley for additional information.

Research Solutions provides cloud-based technologies for managing and creating intellectual property, serving over 70% of top pharmaceutical companies, universities, and emerging businesses. The company's primary revenue streams come from subscription-based platform software and selling access to individual scientific articles. Key to its recent progress has been a shift to higher-margin, recurring platform revenue and the introduction of artificial intelligence (AI) products.

In its latest earnings report, Research Solutions reported total GAAP revenue for Q4 FY2025 of approximately $12.4 million, slightly below analyst estimates by about 1.35%. Platform revenue grew 21% year over year, supported by expanded AI features and recurring revenue strength. Adjusted EBITDA, a measure of profitability that excludes certain non-cash and one-off items, increased 15%. The period featured a $1.1 million one-time gain tied to the finalized earn-out from the Scite acquisition, lifting net income.

Research Solutions operates in the scientific, technical, and medical (STM) information sector, offering cloud-based software, content access tools, and AI-enhanced workflows for researchers in academia, corporate R&D, and related industries. The company’s primary revenue streams come from subscription-based platform software (software-as-a-service, or SaaS) and from selling access to individual scientific articles (transaction revenue).

The company’s success depends on rapid innovation, customer retention, expanding publisher partnerships to broaden content access, and pursuing organic growth and select acquisitions. Platform revenue growth and gross margin improvement are main drivers of financial performance.

Active customer count was 1,380 in Q3 fiscal 2025. Retention is critical, as recurring platform revenue now makes up a growing portion of total company sales. Low customer "churn," a measure of customers leaving for competitors, continues to support recurring platform revenue growth of approximately 20% and approximately 36% for FY2025.

Management emphasized new investments in account management, now stratifying its customer base and automating support for smaller accounts while dedicating more resources to large, strategic customers. Upselling and cross-selling were top performers during the period.

On the content side, new publisher partners joined both Scite and Article Galaxy, enhancing the platform’s breadth. Additional "AI rights" products allow customers to purchase rights for articles, supporting the AI data strategy and expanding usage options within and between organizations.

Despite exposure to library and corporate budget cycles, management reported no material impact yet from recent academic and government spending cuts. Though end-market weakness remains a risk to watch.

Research Solutions did not offer explicit financial guidance for fiscal 2026 or the upcoming quarter. Management did state, however, that it remains focused on boosting annual recurring revenue, improving adjusted EBITDA margin, and tracking its "Rule of 40" performance, a commonly used SaaS industry benchmark that combines revenue growth and profitability rates. The weighted Rule of 40 metric rose to 34% for FY2025.

In the months ahead, investors may wish to monitor the balance between recurring and transaction revenues, the pace of AI-driven product adoption, and the deployment of growing cash reserves. The company’s $12.2 million cash balance and positive cash flow provide flexibility for future acquisition or strategic investment. Notably, leadership did not declare or change a dividend. RSSS does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250820la55528/research-solutions-to-present-and-host-1x1-investor-meetings-at-the-16th-annual-midwest-ideas-investor-conference-on-august-27th
[2] https://www.nasdaq.com/articles/research-solutions-reports-earnings
[3] https://www.stocktitan.net/news/RSSS/research-solutions-to-present-and-host-1x1-investor-meetings-at-the-pt01s9gd6aa9.html