Research Solutions, Inc. (NASDAQ: RSSS) reported financial results for the fourth quarter and full fiscal year ended June 30, 2026. The company announced record net income for the fiscal year and highlighted growth in its AI-related revenue streams.
For the fiscal year, total revenue was $48.3 million, a slight decrease of 1.5% compared to the prior year. However, the company achieved record net income of $2.8 million, or $0.09 per diluted share, compared to $1.3 million in fiscal 2025. This increase was driven by a shift in revenue mix toward higher-margin platform subscriptions, which grew to 43% of total revenue from 39% in the prior year. Total gross margin improved by 260 basis points to 51.9%.
Annual Recurring Revenue (ARR) increased by 7.8% year-over-year to $22.5 million. This growth was primarily driven by a 14.1% increase in B2B ARR, which reached $16.2 million. The company noted that AI-related ARR grew 125% sequentially in the fourth quarter to $0.8 million. The company ended the fiscal year with $12.6 million in cash and cash equivalents.
In the fourth quarter, total revenue was $12.1 million, compared to $12.4 million in the prior year. Net income for the quarter was $666,000, or $0.02 per diluted share. Adjusted EBITDA for the quarter was $1.4 million with a margin of 11.8%. The company reported that total operating expenses were $5.6 million, primarily due to higher sales expenses and investments in AI.
Research Solutions President and CEO Roy W. Olivier stated that the company launched multiple AI-based products in fiscal 2026, including Scite MCP and Article Galaxy MCP, which integrate with tools like ChatGPT and Claude. The company indicated it has built a large pipeline of AI-related revenue opportunities for fiscal year 2027.
