Research Solutions, Inc.

Total revenue for Q3 fiscal 2026 was $12.1 million, compared with $12.7 million in Q3 fiscal 2025. Platform subscription revenue increased approximately 7% to $5.2 million, while transaction revenue fell to $7.0 million from $7.8 million. Gross profit was $6.3 million, with gross margin of 51.7%, up 220 basis points year over year; platform gross margin was 86.4% and transaction gross margin was 26%. Net income was $860,000, or $0.03 per diluted share, versus $216,000, or $0.01 per diluted share, last year. Adjusted EBITDA was $1.6 million versus $1.4 million a year ago. Ending ARR was $22.1 million, up 8.5% year over year, and cash and cash equivalents were $12.1 million. For the quarter ahead, management said it expects Q4 improvement in year-over-year DocDel performance and aims to deliver adjusted EBITDA growth over the prior year, with stronger earnings power and cash generation exiting fiscal 2026.

Roy Olivier said the quarter was better on EBITDA and net income, but below expectations on top-line growth because churn remains an issue. He emphasized that new bookings were solid, including 61 new or upsell logos and sizable academic and corporate wins, and said the company is using AI internally to improve productivity and accelerate product releases. Olivier framed MCP-based products as central to the company’s headless strategy and future growth, saying AI will change how research is accessed rather than eliminate research.

Dave Kutil highlighted that the revenue decline came from weaker lower-margin transactions, while platform subscription revenue rose about 7% and represented about 43% of total revenue, up from about 38% a year ago. He noted gross margin improved to 51.7% from the prior year on mix shift, while platform gross margin remained 86.4% and transaction gross margin was 26%. He also pointed to disciplined spending, with operating expenses down to $5.2 million from $5.7 million, net income of $860,000, adjusted EBITDA of $1.6 million, and cash of $12.1 million with no revolver borrowings.

Analysts focused on B2B churn, B2C monetization, the AI road map, and whether new segments like financial institutions are gaining traction. Management said churn is mostly tied to low engagement, poor ROI, or lower DocDel usage, and outlined remedies including better onboarding, usage monitoring, proactive re-engagement, and feature education. On B2C, management said digital ad spend is down materially, conversion improved, retention improved after MCP launches, and CAC fell about 24%; on AI, they described a usage-based pricing approach and said MCP usage is running at a multiple of core-platform usage. On new markets, Roy said the company has only a few customers in financial services and is staying focused on corporate and academic sales for now.