Research Solutions Reports Preliminary Fourth Quarter and Fiscal Year 2025 Results
Research Solutions (NASDAQ: RSSS) announced preliminary Q4 and FY2025 results, highlighting strong performance across key metrics. The company's Platform revenue is expected to grow 21% YoY to $5.2M in Q4, with total revenue increasing 3% to $12.4M. Annual Recurring Revenue (ARR) reached $20.9M, up 20% from the previous year.
For FY2025, the company projects total revenue of $49.1M, up 10% YoY, with Platform revenue growing 36% to approximately $19M. Corporate gross margin improved to over 49% from 44% in FY2024. The company finalized the Scite earn-out at $15.4M, to be paid 62% in cash and 38% in stock over eight quarters through May 2027.
Notable achievements include Q4 net income of $2.3M, Adjusted EBITDA of $1.6M (up 15% YoY), and strong cash flow from operations at $2.3M, with an ending cash balance exceeding $12.2M.
Research Solutions (NASDAQ: RSSS) ha comunicato i risultati preliminari del quarto trimestre e dell'esercizio FY2025, evidenziando performance solide sui principali indicatori. I ricavi della Platform dovrebbero crescere del 21% annuo, a $5,2M nel Q4, con i ricavi totali in aumento del 3% a $12,4M. L'Annual Recurring Revenue (ARR) ha raggiunto $20,9M, in rialzo del 20% rispetto all'anno precedente.
Per l'FY2025 la societ脿 prevede ricavi totali per $49,1M, in crescita del 10% YoY, con i ricavi della Platform in aumento del 36% a circa $19M. Il margine lordo aziendale 猫 migliorato oltre il 49% rispetto al 44% dell'FY2024. La societ脿 ha definito l'earn-out di Scite a $15,4M, da corrispondere per il 62% in contanti e per il 38% in azioni nell'arco di otto trimestri fino a maggio 2027.
Tra i risultati di rilievo: utile netto del Q4 pari a $2,3M, Adjusted EBITDA di $1,6M (in crescita del 15% YoY) e robusto cash flow operativo di $2,3M, con una posizione di cassa finale superiore a $12,2M.
Research Solutions (NASDAQ: RSSS) anunci贸 resultados preliminares del cuarto trimestre y del a帽o fiscal 2025, destacando un desempe帽o s贸lido en m茅tricas clave. Los ingresos de la Plataforma se esperan que crezcan un 21% interanual hasta $5.2M en el Q4, con ingresos totales aumentando un 3% hasta $12.4M. Los ingresos recurrentes anuales (ARR) alcanzaron $20.9M, un 20% m谩s que el a帽o anterior.
Para el FY2025, la compa帽铆a proyecta ingresos totales de $49.1M, un aumento del 10% interanual, con ingresos de Plataforma creciendo un 36% hasta aproximadamente $19M. El margen bruto corporativo mejor贸 a m谩s del 49% desde el 44% en FY2024. La compa帽铆a cerr贸 el earn-out de Scite en $15.4M, que se pagar谩 62% en efectivo y 38% en acciones a lo largo de ocho trimestres hasta mayo de 2027.
Logros notables incluyen utilidad neta del Q4 de $2.3M, EBITDA ajustado de $1.6M (subiendo 15% interanual) y fuerte flujo de caja operativo de $2.3M, con un saldo de caja final superior a $12.2M.
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FY2025鞐� 雽�頃� 須岇偓電� 齑濍Г於� $49.1M(鞝勲厔 雽�牍� 10% 歃濌皜)鞚� 鞓堨儊頃橁碃 鞛堨溂氅�, 頂岆灚韽� 毵れ稖鞚� 鞎� $19M鞙茧 36% 靹膘灔頃� 瓴冹溂搿� 鞝勲頃╇媹雼�. 氩曥澑 齑濎澊鞚惦鞚� FY2024鞚� 44%鞐愳劀 49% 鞚挫儊鞙茧 臧滌劆霅橃棃鞀惦媹雼�. 須岇偓電� Scite 鞚胳垬 甏�霠� 鞏茧ジ鞎勳泝(earn-out)鞚� $15.4M鞙茧 頇曥爼頄堨溂氅�, 鞚措姅 62%電� 順勱笀, 38%電� 欤检嫕鞙茧 2027雲� 5鞗旉箤歆� 8臧� 攵勱赴鞐� 瓯胳硱 歆�旮夒惄雼堧嫟.
欤检殧 靹标臣搿滊姅 Q4 靾滌澊鞚� $2.3M, 臁办爼 EBITDA $1.6M(鞝勲厔 雽�牍� 15% 歃濌皜), 鞓侅梾順勱笀頋愲 $2.3M鞚� 臧曧暅 鞁れ爜瓿� 旮半 順勱笀 鞛旍暋鞚� $12.2M鞚� 齑堦臣頃� 鞝愳澊 韽暔霅╇媹雼�.
Research Solutions (NASDAQ: RSSS) a annonc茅 des r茅sultats pr茅liminaires pour le quatri猫me trimestre et l鈥檈xercice FY2025, soulignant de solides performances sur les indicateurs cl茅s. Les revenus de la plateforme devraient cro卯tre de 21% en glissement annuel pour atteindre $5,2M au T4, les revenus totaux augmentant de 3% 脿 $12,4M. Le chiffre d鈥檃ffaires r茅current annuel (ARR) a atteint $20,9M, en hausse de 20% par rapport 脿 l鈥檃nn茅e pr茅c茅dente.
Pour FY2025, la soci茅t茅 projette des revenus totaux de $49,1M, en hausse de 10% YoY, la plateforme devant cro卯tre de 36% pour atteindre environ $19M. La marge brute du groupe s鈥檈st am茅lior茅e, passant de 44% en FY2024 脿 plus de 49%. L鈥檈arn-out de Scite a 茅t茅 finalis茅 脿 $15,4M, payable 脿 62% en num茅raire et 脿 38% en actions sur huit trimestres jusqu鈥檈n mai 2027.
Parmi les r茅alisations notables : un r茅sultat net T4 de $2,3M, un EBITDA ajust茅 de $1,6M (en hausse de 15% YoY) et des flux de tr茅sorerie d鈥檈xploitation solides de $2,3M, avec une tr茅sorerie de cl么ture sup茅rieure 脿 $12,2M.
Research Solutions (NASDAQ: RSSS) hat vorl盲ufige Ergebnisse f眉r das vierte Quartal und das Gesch盲ftsjahr FY2025 bekanntgegeben und dabei eine starke Entwicklung bei den wichtigsten Kennzahlen hervorgehoben. Der Plattformumsatz d眉rfte im Q4 um 21% YoY auf $5,2M steigen, die Gesamtums盲tze um 3% auf $12,4M. Der Annual Recurring Revenue (ARR) erreichte $20,9M, ein Plus von 20% zum Vorjahr.
F眉r FY2025 prognostiziert das Unternehmen Gesamtums盲tze von $49,1M, ein Anstieg von 10% YoY, wobei der Plattformumsatz um 36% auf rund $19M wachsen soll. Die Bruttomarge des Konzerns verbesserte sich von 44% in FY2024 auf 眉ber 49%. Die Vereinbarung zur Scite-Earn-out wurde mit $15,4M abgeschlossen, zahlbar zu 62% in bar und zu 38% in Aktien 眉ber acht Quartale bis Mai 2027.
Zu den bemerkenswerten Ergebnissen z盲hlen ein Quartalsnettogewinn von $2,3M, ein bereinigtes EBITDA von $1,6M (ein Anstieg von 15% YoY) sowie starke operative Cashflows von $2,3M und ein Endbestand an liquiden Mitteln von 眉ber $12,2M.
- Platform revenue growth of 21% YoY in Q4 2025
- ARR increased 20% YoY to $20.9M
- Corporate gross margin improved to 49% from 44% in FY2024
- Cash flow from operations doubled to $7.0M in FY2025
- Strong cash position with $12.2M balance
- Weighted rule of 40 metric reached 34% for FY2025
- Slower total revenue growth of 3% YoY in Q4 compared to Platform revenue growth
- Significant future cash obligations due to Scite earn-out payments ($15.4M total)
Insights
RSSS reports strong FY2025 results with 20% ARR growth and exceptional cash flow, showing solid platform business momentum.
Research Solutions' preliminary FY2025 results showcase impressive platform revenue growth of 21% in Q4 and 36% for the full year, demonstrating strong momentum in their high-margin subscription business. The company's ARR reached
The company's overall financial health appears robust, with Q4 operating income of approximately
Particularly noteworthy is the exceptional cash generation, with operating cash flow nearly doubling year-over-year to over
The company's strategic focus on their "weighted rule of 40" metric (combining ARR growth and Adjusted EBITDA margin) reached
Expects Record Fiscal Year Revenue, Net Income, Adjusted EBITDA and Cash Flow
Based on preliminary unaudited information, Research Solutions expects the following results for its fiscal fourth quarter 2025:
- Platform revenue expected to be up
21% from the prior-year quarter to approximately$5.2 million 20% from the prior-year quarter to$20.9 million - Total revenue expected to increase
3% from the prior-year quarter to approximately$12.4 million - Positive income from operations of approximately
$1.2M $2.3M $1.1 million - Adjusted EBITDA of approximately
$1.6 million 15% increase from the prior-year quarter. - Cash flow from operations of approximately
$2.3 million $12.2 million
The Company also expects the following results for the full year Fiscal 2025:
- Platform revenue up approximately
36% from fiscal 2024 to near$19 million - Total revenue expected to increase
10% from fiscal 2024 to approximately$49.1 million - Corporate gross margin above
49% , compared to44% in fiscal 2024. - GAAP net income of approximately
$1.3 million $5.3 million - Cash flow from operations in excess of
$7.0 million
The Company is also able to make the following statements with respect the Scite earn-out:
- The Scite earn-out has been finalized at approximately
$15.4M - In accordance with the merger agreement, the earn-out was to be paid
50% in cash and50% in stock over eight quarters. - Through an offer to Scite's former shareholders, subject to certain limitations, such shareholders could request more cash than stock as part of their payout. As a result of this offer, the mix of the earn-out payments will be approximately
62% in cash and38% in stock. - The first cash and stock payment was made earlier this month with seven remaining payments to take place each quarter until completed in May 2027.
"As we execute on our strategic plan, we continue to experience strong results on both the top and bottom line.听 Our preliminary fourth quarter and fiscal year 2025 results reflect the continued momentum in our business, particularly within our Platforms business, for which ARR grew
Research Solutions expects to report its full fiscal fourth quarter and fiscal year 2025 results on听September 18, 2025. Information on the conference call details will be provided in a separate press release.
Annual Recurring Revenue
The Company defines annual recurring revenue ("ARR") as the value of contracted Platform subscription recurring revenue normalized to a one-year period.听 For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.
Use of Non-GAAP Measure 鈥� 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.
Adjusted EBITDA is defined as net income (loss), plus interest expense, other (income) expense, foreign currency transaction loss (gain), provision for income taxes, depreciation and amortization, stock-based compensation, gain on sale of discontinued operations, and other potential adjustments that may arise.
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property. Founded in 2006 as Reprints Desk, the Company was a pioneer in developing solutions to serve researchers. Today, more than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy, the Company's SaaS research platform, to streamline access to the latest scientific research and data with 24/7 customer support. For more information and details, please visit .听
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 our expected results for our fiscal fourth quarter and fiscal year ended June 30, 2025, earnout assumptions related to acquisitions and the Company's expected operational performance. The preliminary financial and operating results presented herein are an estimate and subject to the completion of the Company's financial closing and other procedures and finalization of the Company's consolidated financial statements for its year ended June 30, 2025, including the completion of the audit of the Company's financial statements. Accordingly, actual financial and operating results that will be reflected in the Company's Annual Report on Form 10-K for the year ended June 30, 2025, including its audited financial statements, when they are completed and publicly disclosed may differ from these preliminary results. In addition, any statements regarding the Company's estimated financial performance for the fourth fiscal quarter 2025 do not present all information necessary for an understanding of the Company's financial condition and results of operations as of and for the quarterly period ended June 30, 2025.听 Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.听 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 publicly 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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