Earnings release
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Exhibit 99.1 FOR IMMEDIATE RELEASE Research Solutions Reports Second Quarter Fiscal Year 2026 Results Reports 14% Increase in ARR to $21.8 Million, Net Income of $547,000 and 36% Year-over-Year Growth in Adjusted EBITDA HENDERSON, Nev., February 12, 2026 — Research Solutions, Inc. (NASDAQ: RSSS), the leading AI-powered research workflow platform, reported financial results for its fiscal second quarter ended December 31, 2025. Fiscal Second Quarter 2026 Summary (compared to prior-year quarter) · Annual Recurring Revenue (“ARR”) up 14% to $21.8 million, which includes approximately $15.3 million of B2B ARR and $6.4 million of B2C ARR. · Forty-seven net new deployments in the quarter reflect one of our best results and sustained momentum in new B2B customer acquisition. · Net income of $547,000, or $0.02 per diluted share, compared to net loss of $2.0 million or ($0.07) per share. · Adjusted EBITDA increased 36% to $1.3 million. On a trailing twelve-month ("TTM") basis, the Company has now generated Adjusted EBITDA of $5.8 million or 11.8% of revenue for the same period. · Net B2B ARR growth of $560,000 represents the best organic second quarter performance in Company history. · Gross profit up 6% to $6.2 million. Total gross margin improved 350 basis points to 52.4%. · Platform revenue up 14% to $5.2 million. Platform revenue accounted for 44% of total revenue as compared to 39% in the prior-year quarter. · Total revenue was $11.8 million compared to $11.9 million in the prior year, as strong B2B revenue growth has not yet fully offset softness in transactions revenue. “Our second quarter results reflect strong growth within our B2B Platforms business through forty-seven net new deployments in the quarter and Platforms continues to represent a larger portion of our total revenue mix. In addition, the average sales price for our Platform increased more than six percent year- over-year as we signed larger deals and as existing customers adopt more of our SaaS and AI solutions,” said Roy W. Olivier, President and CEO of Research Solutions. “Our business continues to generate strong operating cash flow and Adjusted EBITDA, allowing us to reinvest in sales and marketing to accelerate growth while maintaining financial flexibility. We continue to manage the business with a long-term focus to drive value for our shareholders.” Fiscal Second Quarter 2026 Results Total revenue was $11.8 million, compared to $11.9 million in the year-ago quarter. Platform revenue growth was offset by a decline in transactions revenue.
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Platform subscription revenue for the quarter was $5.2 million, a 14% year-over-year increase from the prior-year period. The increase was primarily due to organic growth in the core B2B platform, due to a mix of new logo generation as well as upsells and cross-selling into existing customers. The quarter ended with annual recurring revenue of $21.8 million, up 14% year-over-year (see the Company’s definition of annual recurring revenue below). Transaction revenue was $6.6 million, compared to $7.3 million in the second quarter of fiscal 2025. The decrease was due to the impact of a known customer that churned earlier and a few larger customers that saw significant declines in volume. The transaction active customer count for the quarter was 1,321, compared to 1,384 customers in the prior-year quarter (see the Company's definition of active customer accounts and transactions below). Total gross margin improved 350 basis points from the prior-year quarter to 52.4%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, including the expansion of the gross margin for that business. Total operating expenses were $5.4 million, compared to $5.7 million in the second quarter of fiscal 2025. The decrease was primarily related to reduced general and administrative and stock-based compensation expenses offset in part by increased sales and marketing expenses. Net income in the fiscal second quarter was $547,000, or $0.02 per diluted share, compared to a net loss of $2 million, or ($0.07) per share, in the prior- year quarter. Adjusted EBITDA was $1.3 million, compared to $963,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below). Conference Call Management will host the conference call, followed by a question-and-answer period. Date: Thursday, February 12, 2026 Time: 5:00 p.m. ET (2:00 p.m. PT) Dial-in number: 1-203-518-9708 Conference ID: RESEARCH The conference call will be broadcast live and available for replay until March 12, 2026 by dialing 1-412-317-6671 and using the replay ID 11160799, and via the investor relations section of the Company's website at http://researchsolutions.investorroom.com/.
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Fiscal Second Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter Quarter Ended December 31, Six Months Ended December 31, 2025 2024 Change % Change 2025 2024 Change % Change Revenue: Platforms $ 5,224,845 $ 4,601,257 $ 623,588 13.6% $10,345,685 $ 8,930,902 $ 1,414,783 15.8% Transactions 6,567,806 7,312,962 (745,156) -10.2% 13,759,151 15,027,799 (1,268,648) -8.4% Total Revenue 11,792,651 11,914,219 (121,568) -1.0% 24,104,836 23,958,701 146,135 0.6% Gross Profit: Platforms 4,602,184 3,981,415 620,769 15.6% 9,112,649 7,763,893 1,348,756 17.4% Transactions 1,574,766 1,839,678 (264,912) -14.4% 3,289,599 3,823,076 (533,477) -14.0% Total Gross Profit 6,176,950 5,821,093 355,857 6.1% 12,402,248 11,586,969 815,279 7.0% Gross profit as a % of revenue: Platforms 88.1% 86.5% 1.6% 88.1% 86.9% 1.1% Transactions 24.0% 25.2% -1.2% 23.9% 25.4% -1.5% Total Gross Profit 52.4% 48.9% 3.5% 51.5% 48.4% 3.1% Operating Expenses: Sales and marketing 1,648,597 1,343,087 305,510 22.7% 3,315,422 2,533,494 781,928 30.9% Technology and product development 1,602,421 1,506,849 95,572 6.3% 3,012,572 2,879,607 132,965 4.6% General and administrative 1,620,595 2,008,201 (387,606) -19.3% 3,295,954 3,938,377 (642,423) -16.3% Depreciation and amortization 316,425 306,233 10,192 3.3% 632,491 618,328 14,163 2.3% Stock-based compensation 213,449 534,322 (320,873) -60.1% 425,931 952,311 (526,380) -55.3% Foreign currency translation loss (gain) 36,112 29,554 6,558 22.2% 18,856 (74,686) 93,542 -125.2% Total Operating Expenses 5,437,599 5,728,246 (290,647) -5.1% 10,701,226 10,847,431 (146,205) -1.3% Income from operations 739,351 92,847 646,504 696.3% 1,701,022 739,538 961,484 -130.0% Other expense: Other expense (183,572) (2,057,887) 1,874,315 -91.1% (374,625) (1,989,362) 1,614,737 -81.2% Provision for income taxes (8,859) (15,194) 6,335 -41.7% (30,090) (61,406) 31,316 -51.0% Total Other Expense: (192,431) (2,073,081) 1,880,650 -90.7% (404,715) (2,050,768) 1,646,053 -80.3% Net income (loss) $ 546,920 $(1,980,234) 2,527,154 -127.6% $ 1,296,307 $(1,311,230) 2,607,537 -198.9% Adjusted EBITDA $ 1,305,337 $ 962,956 $ 342,381 35.6% $ 2,778,300 $ 2,235,491 $ 542,809 24.3%
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Quarter Ended December 31, Six Months Ended December 31, 2025 2024 Change % Change 2025 2024 Change % Change Platforms: B2B ARR (Annual recurring revenue*): Beginning of Period $14,758,472 $12,187,834 $ 2,570,637 21.1% $14,197,598 $12,060,201 $ 2,137,397 17.7% Incremental ARR 560,482 550,422 10,060 1.8% 1,121,356 678,055 443,301 65.4% End of Period $15,318,954 $12,738,256 $ 2,580,697 20.3% $15,318,954 $12,738,256 $ 2,580,698 20.3% Deployments: Beginning of Period 1,185 1,029 156 15.2% 1,171 1,021 150 14.7% Incremental Deployments 47 61 (14) -23.0% 61 69 (8) -11.6% End of Period 1,232 1,090 142 13.0% 1,232 1,090 142 13.0% ASP (Average sales price): Beginning of Period $ 12,454 $ 11,844 $ 610 5.2% $ 12,124 $ 11,812 $ 312 2.6% End of Period $ 12,434 $ 11,686 $ 748 6.4% $ 12,434 $ 11,686 $ 748 6.4% B2C ARR (Annual recurring revenue*): Beginning of Period $ 6,535,197 $ 5,430,795 $ 1,104,402 20.3% $ 6,721,356 $ 5,363,129 $ 1,358,227 25.3% Incremental ARR (93,781) 940,586 (1,034,367) -110.0% (279,940) 1,008,252 (1,288,192) -127.8% End of Period $ 6,441,416 $ 6,371,381 $ 70,035 1.1% $ 6,441,416 $ 6,371,381 $ 70,035 1.1% Total ARR (Annualized recurring revenue): $21,760,370 $19,109,637 $ 2,650,732 13.9% $21,760,370 $19,109,637 $ 2,650,733 13.9% Transaction Customers: Corporate customers 1,326 1,051 275 26.2% 1,200 1,063 137 12.9% Academic customers 324 333 (9) -2.7% 320 325 (5) -1.5% Total customers 1,650 1,384 266 19.2% 1,520 1,388 132 9.5% * Annual Recurring Revenue (Non-GAAP Measure) - the value of contracted platform subscription recurring revenue normalized to a one year period. For B2C, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by 12.
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Active Customer Accounts, Transactions and Annual Recurring Revenue The Company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month. A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform. The Company defines annual recurring revenue (“ARR”) as the value of contracted Platform subscription recurring revenue normalized to a one-year period. For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve. Use of Non-GAAP Measure – Adjusted EBITDA Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to the Company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company’s operating results. The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other expense, foreign currency transaction (gain) loss, provision for income taxes, depreciation and amortization, stock-based compensation, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss): Quarter Ended December 31, Six Months Ended December 31, 2025 2024 Change % Change 2025 2024 Change % Change $ 546,920 $(1,980,234) $ 2,527,154 -127.6% $ 1,296,307 $(1,311,230) $ 2,607,537 -198.9% - Other expense 183,572 2,057,887 (1,874,315) -91.1% 374,625 1,989,362 (1,614,737) -81.2% Foreign currency translation loss (gain) 36,112 29,554 6,558 22.2% 18,856 (74,686) 93,542 -125.2% Provision for income taxes 8,859 15,194 (6,335) -41.7% 30,090 61,406 (31,316) -51.0% Depreciation and amortization 316,425 306,233 10,192 3.3% 632,491 618,328 14,163 2.3% Stock-based compensation 213,449 534,322 (320,873) -60.1% 425,931 952,311 (526,380) -55.3% $ 1,305,337 $ 962,956 $ 342,381 35.6% $ 2,778,300 $ 2,235,491 $ 542,809 -24.3% About Research Solutions Research Solutions, Inc. (NASDAQ: RSSS) is a vertical SaaS and AI Company that simplifies research workflow for academic institutions, life science companies, and research organizations worldwide. As one of the only publisher-independent marketplaces for scientific, technical, and medical (STM) content, the Company uniquely combines AI-powered tools—including an intelligent research assistant and full-text search capabilities—with seamless access to both open access and paywalled research. The platform enables organizations to discover, access, manage and analyze scientific literature more efficiently, accelerating the pace of scientific discovery. For more information and details, please visit www.researchsolutions.com
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Important Cautions Regarding Forward-Looking Statements Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, creating long-term value for shareholders and the Company’s prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to officially release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
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Research Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) December 31, June 30, 2025 2025 Assets Current assets: Cash and cash equivalents $ 12,262,780 $ 12,227,312 Accounts receivable, net of allowance of $79,869 and $182,324, respectively 5,661,171 7,191,234 Prepaid expenses and other current assets 708,075 580,257 Prepaid royalties 42,155 925 Total current assets 18,674,181 19,999,728 Non-current assets: Property and equipment, net of accumulated depreciation of $992,832 and $964,883, respectively 65,236 60,769 Intangible assets, net of accumulated amortization of $3,347,683 and $2,736,773, respectively 9,130,484 9,686,241 Goodwill 16,372,979 16,372,979 Deposits and other assets 1,000 957 Total assets $ 44,243,880 $ 46,120,674 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 6,397,476 $ 7,443,757 Deferred revenue 9,916,853 10,702,120 Contingent earnout liability, current portion 7,295,596 7,363,152 Total current liabilities 23,609,925 25,509,029 Non-current liabilities: Contingent earnout liability, long-term portion 3,405,356 6,683,488 Total liabilities 27,015,281 32,192,517 Commitments and contingencies Stockholders’ equity: Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding — — Common stock; $0.001 par value; 100,000,000 shares authorized; 32,875,476 and 32,479,993 shares issued and outstanding, respectively 32,875 32,480 Additional paid-in capital 41,056,472 39,059,557 Accumulated deficit (23,747,387) (25,043,693) Accumulated other comprehensive loss (113,361) (120,187) Total stockholders’ equity 17,228,599 13,928,157 Total liabilities and stockholders’ equity $ 44,243,880 $ 46,120,674 See notes to condensed consolidated financial statements
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Research Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Revenue: Platforms $ 5,224,845 $ 4,601,257 $ 10,345,685 $ 8,930,902 Transactions 6,567,806 7,312,962 13,759,151 15,027,799 Total revenue 11,792,651 11,914,219 24,104,836 23,958,701 Cost of revenue: Platforms 622,661 619,842 1,233,036 1,167,009 Transactions 4,993,040 5,473,284 10,469,552 11,204,723 Total cost of revenue 5,615,701 6,093,126 11,702,588 12,371,732 Gross profit 6,176,950 5,821,093 12,402,248 11,586,969 Operating expenses: Selling, general and administrative 5,121,175 5,422,013 10,068,736 10,229,103 Depreciation and amortization 316,425 306,233 632,491 618,328 Total operating expenses 5,437,600 5,728,246 10,701,227 10,847,431 Income from operations 739,350 92,847 1,701,021 739,538 Other income 95,065 348,999 221,978 417,524 Change in fair value of contingent earnout liability (278,637) (2,406,886) (596,603) (2,406,886) Income (loss) before provision for income taxes 555,778 (1,965,040) 1,326,396 (1,249,824) Provision for income taxes (8,859) (15,194) (30,090) (61,406) Net income (loss) 546,919 (1,980,234) 1,296,306 (1,311,230) Other comprehensive income (loss): Foreign currency translation 5,859 2,637 6,826 (3,531) Comprehensive income (loss) $ 552,778 $ (1,977,597) $ 1,303,132 $ (1,314,761) Basic income (loss) per common share: Net income (loss) per share $ 0.02 $ (0.07) $ 0.04 $ (0.04) Weighted average common shares outstanding 31,634,575 30,421,808 31,434,725 30,384,339 Diluted income (loss) per common share: Net income (loss) per share $ 0.02 $ (0.07) $ 0.04 $ (0.04) Weighted average common shares outstanding 32,333,657 30,421,808 32,113,408 30,384,339 See notes to condensed consolidated financial statements
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Research Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended December 31, 2025 2024 Cash flow from operating activities: Net income (loss) $ 1,296,306 $ (1,311,230) Adjustment to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 632,491 618,328 Stock options expense 149,262 88,045 Restricted common stock expense 276,669 864,266 Adjustment to contingent earnout liability 596,603 2,406,886 Changes in operating assets and liabilities: Accounts receivable 1,530,063 (266,255) Prepaid expenses and other current assets (127,818) (98,613) Prepaid royalties (41,230) 478,169 Accounts payable and accrued expenses (1,035,903) (737,670) Deferred revenue (785,267) (170,433) Net cash provided by operating activities 2,491,176 1,871,493 Cash flow from investing activities: Purchase of property and equipment (24,561) (5,404) Net cash used in investing activities (24,561) (5,404) Cash flow from financing activities: Proceeds from the exercise of stock options 157,500 — Common stock repurchases (39,549) (205,278) Payment of contingent acquisition consideration - Scite and FIZ (2,554,394) (62,560) Net cash used in financing activities (2,436,443) (267,838) Effect of exchange rate changes 5,296 2,873 Net increase in cash and cash equivalents 35,468 1,601,124 Cash and cash equivalents, beginning of period 12,227,312 6,100,031 Cash and cash equivalents, end of period $ 12,262,780 $ 7,701,155 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 30,090 $ 61,406 Non-cash investing and financing activities: Contingent consideration accrual on asset acquisition $ 20,981 $ 30,198 Common stock issued for Scite earnout payment $ 1,453,428 $ — See notes to condensed consolidated financial statements Contact Steven Hooser or John Beisler Three Part Advisors (214) 872-2710 shooser@threepa.com; jbeisler@threepa.com # # #