Research Solutions Inc (FRA:61I)

Q3 2025 Research Solutions Inc Earnings Call Transcript

May 8, 2025 / 09:00 PM GMT

Release Date Price: €2.42 (+1.68%)

Transcript 10-Q8-K

Key Points

Positve

Research Solutions Inc (RSSS) achieved a record high annual recurring revenue (ARR) of $20.4 million, marking a 23% year-over-year increase.
The company's platform subscription revenue increased by 22%, driven by growth in both B2B and B2C platform revenue.
Gross margin improved significantly to 49.5%, a 430 basis point increase from the previous year, due to a shift towards higher-margin platform business.
The company reported a record adjusted EBITDA of $1.4 million, surpassing the previous company record.
Research Solutions Inc (RSSS) is seeing strong growth in its AI-based products, with a 180% increase in the B2B enterprise license segment year-over-year.

Negative

Transaction revenue for the third quarter decreased by 4% compared to the prior year, attributed to lower paid order volume.
The total active customer count declined to 1,380 from 1,426 in the same period a year ago.
There is uncertainty regarding the impact of recent budget cuts in government and academic institutions on the company's future business.
The company has not yet fully leveraged AI internally to improve productivity or reduce costs, particularly in software engineering.
B2C segment is experiencing seasonal weakness, with a decline in trials and sign-ups expected to continue through the end of June.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RSSS.OQ - Research Solutions Inc
Q3 2025 Research Solutions Inc Earnings Call
May 08, 2025 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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To fights on hold, we appreciate your patience, and we ask that you please continue to stand by.

Please stand by. We're about to begin.

Good afternoon everyone, and thank you for participating in today's conference call to discuss research solutions, financial and operating results for its fiscal 2025 3rd quarter ended March 31, 2025.

As a reminder, this call is being recorded. I would not like to turn the conference over to your host John Bisler, investor relations, please go ahead.

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Unidentified_2 [2]
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