Research Solutions (RSSS) Q3 2026 earnings summary

Executive summary

• Vertical SaaS and AI company serving research-intensive organizations with cloud-based platforms, STM content delivery, and advanced AI assistants integrated with third-party systems.

• Revenue streams include subscription-based platforms and transactional STM content sales, with robust academic and corporate sales and notable deals in Johannesburg, Singapore, and top U.S. universities.

• Two new AI-based MCP products were launched, integrating LLMs like ChatGPT and Claude, enhancing productivity and customer engagement.

• Annual recurring revenue (ARR) rose 8.5% year-over-year to $22.1M, with B2B ARR at $15.7M and B2C ARR at $6.4M.

• Fifteen net new deployments in the quarter, with 10% deployment growth over the past 12 months.

Financial highlights

• Total revenue for Q3 FY26 was $12.1M, down 4.3% year-over-year, as platform subscription growth was offset by declines in the transactions business.

• Platform subscription revenue rose 6.6% to $5.2M, now 43% of total revenue, while transaction revenue declined 11% to $7.0M.

• Gross profit margin improved to 51.7% for the quarter, up 220 bps year-over-year, driven by a higher mix of platform revenue.

• Net income was $860K ($0.03/share), up 297% year-over-year; adjusted EBITDA was $1.6M, up 14%, with a trailing 12-month margin of 12.3%.

• Operating expenses decreased 8.6% for the quarter, mainly due to lower G&A and stock-based compensation.

Outlook and guidance

• Management aims for continued adjusted EBITDA growth in Q4 FY26, driven by platform subscription growth, improved retention, transaction stabilization, and disciplined expense management.

• Focus remains on long-term execution, expanding gross margin, and driving value through strategic investments in sales, marketing, and AI innovation.

• Expectation to exit FY26 with stronger earnings power and cash generation, reinforcing the SaaS platform model.