- Total revenue in Q3 2025 rose 4.5% year-over-year to $12.7 million, driven by a 22% boost in platform revenue.
- Annual Recurring Revenue (ARR) increased 23% to $20.4 million, with significant growth in AI-based B2B offerings.
- Gross margin improved by 430 basis points to 49.5%, while net income doubled to $216,000.
Research Solutions Inc. (RSSS, Financial), the leading AI-powered research workflow platform, reported an impressive fiscal third quarter of 2025, with total revenue climbing to $12.7 million, marking a 4.5% increase compared to the same period last year. This growth was fueled by a substantial 22% rise in platform revenue, which reached $4.8 million and now accounts for 38% of the company's total revenue.
The company realized a 23% growth in Annual Recurring Revenue (ARR), reaching $20.4 million, up from $16.6 million the previous year. This figure includes $13.5 million from business-to-business (B2B) recurring revenue and $6.9 million from business-to-consumer (B2C) recurring revenue. Particularly noteworthy is the 180% year-over-year growth in AI-based B2B offerings.
Profitability metrics showed significant improvement. Gross margin widened by 430 basis points to 49.5%, underpinned by the company's strategic focus on its platform business, which offers higher margins. Net income for the quarter more than doubled to $216,000, equivalent to $0.01 per diluted share, compared to $76,000 in the same period of 2024. Adjusted EBITDA was reported at $1.4 million, a 47.7% increase from the prior year.
Cash flow from operations hit a company record of $2.9 million, compared to $2.0 million in the prior-year quarter. This enhanced cash flow provides Research Solutions with greater flexibility for future investments and potential acquisitions.
The company also expanded its platform deployments by 15.3% year-over-year, adding 43 net new deployments and bringing the total to 1,133. Despite a 4.2% decline in transaction revenue to $7.8 million, this shift aligns with Research Solutions' strategic pivot toward its higher-margin platform business.
