Research Solutions Posts 8.5% ARR Growth Amid Mixed Revenue Trends — Research Solutions, Inc.

Event summary

Research Solutions reported an 8.5% increase in ARR to $22.1 million for Q3 FY2026, with B2B recurring revenue at $15.7 million and B2C at $6.4 million.
Total revenue declined 4.3% YoY to $12.1 million, offset by a 6.6% increase in platform revenue to $5.2 million.
Net income surged 297% to $860,000, with adjusted EBITDA up 14% to $1.6 million.
Gross margin improved 220 basis points to 51.7%, driven by a shift to higher-margin platform revenue.
The company added 15 net new deployments, marking a 10% growth over the past 12 months.

The big picture

Research Solutions is navigating a mixed revenue landscape, with platform growth counterbalancing transaction declines. The company's focus on AI-powered tools positions it to capitalize on the increasing demand for streamlined research workflows, though sustaining profitability will depend on maintaining operational discipline. The strategic investment in sales and marketing aims to drive upsells and new customer acquisitions, critical for long-term growth.

What we're watching

AI Adoption: How the integration of AI tools into Article Galaxy and Scite will impact customer retention and upsell opportunities.
Revenue Mix: Whether the shift toward higher-margin platform revenue can offset declines in transaction revenue.
Operational Efficiency: The pace at which Research Solutions can sustain improved gross margins amid a softer operating environment.