Research Solutions' Q2 2025: Contradictions in Sales Strategy, Cost Management, and B2C Growth

These are the key contradictions discussed in Research Solutions' latest 2025Q2 earnings call, specifically including: Sales Strategy and Performance, Cost Trends, Cross-selling Performance, and B2C Opportunity and Growth Rate Expectations:



Platform Revenue and Deployment Growth:
- Research Solutions reported Platform subscription revenue of $4.6 million, a 47% increase from the previous year.
- This growth was primarily driven by a net increase in Platform deployments and contributions from Scite, which experienced over 75% pro forma revenue growth over the prior year quarter.

Annual Recurring Revenue (ARR) Expansion:
- The company's ARR reached $19.1 million, up 23% year-over-year.
- This growth is attributed to strong performance in both B2B and B2C Platform deployments, as well as the company's continued sales and upselling efforts.

Operating Profitability Improvement:
- Research Solutions recorded income from operations of $0.1 million, compared to a loss of $0.4 million in the prior year quarter.
- This improvement is due to a strategic focus on organic growth, particularly in the Platforms business, which is now a primary driver of revenue.

AI and Content Access as Competitive Advantages:
- Research Solutions leverages its unique content access and AI rights to the world's research, combined with a deep focus on research workflows, to differentiate itself.
- This vertical focus and proprietary research data enable the company to address specific research needs better than larger AI companies.

Challenges with Churn and Upsells:
- While the company achieved record organic net new deployments, it faces challenges with churn and upsells.
- The current focus is on improving these areas to align with the company's growth expectations and plans.