Research Solutions (RSSS) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 results showed flat revenue at $11.8 million, with net income of $547,000 reversing prior year losses and strong B2B ARR growth, but transaction and B2C segments declined due to churned accounts and lower volumes.

• Platform revenue grew 14% to $5.2 million, driven by 47 net new B2B deployments and upsell/cross-sell activity, while product innovation and API/AI integration supported larger, stickier contracts.

• Adjusted EBITDA increased 36% to $1.3 million for the quarter, with a trailing twelve-month margin of 11.8%.

• Cash and equivalents stood at $12.3 million, with positive operating cash flow and no outstanding borrowings.

• The company is shifting from a document delivery model to an answers and access platform, emphasizing API and AI integration.

Financial highlights

• Total Q2 revenue was $11.8 million, down slightly from $11.9 million year-over-year, with six-month revenue at $24.1 million.

• Platform subscription revenue grew 14% to $5.2 million, now 44% of total revenue.

• ARR reached $21.8 million, up 14% year-over-year, with $15.3 million from B2B and $6.4 million from B2C.

• Gross profit rose 6% to $6.2 million, with gross margin improving 350 basis points to 52.4%.

• Net income was $547,000 ($0.02 per diluted share), compared to a net loss of $2 million in the prior year.

• Adjusted EBITDA for the quarter was $1.3 million, up 36% year-over-year.

• Cash and cash equivalents stood at $12.3 million, with $1.4 million in operating cash flow for the quarter and $2.5 million for the six months.

Outlook and guidance

• Management expects continued year-over-year decline in transaction revenue due to churned accounts, but anticipates stronger second-half performance due to seasonality.

• B2B and transaction segments are projected to outperform the first half, with ongoing focus on platform subscription growth and operating expense discipline.

• Objective is to exceed fiscal 2025 EBITDA levels in each remaining quarter and drive further cash flow growth.

• Continued investment in sales and marketing to accelerate growth while maintaining financial flexibility.

• No material changes to risk factors or forward-looking statements were reported.