Research Solutions' AI-SaaS Platform Fuels 14% ARR Growth and Improved Profitability

Research Solutions Leverages SaaS and AI to Accelerate Recurring Revenue

HENDERSON, Nevada, Feb. 12 (Reuters) — Research Solutions is positioning its AI-powered research workflow platform as the engine behind stronger recurring revenue and larger customer engagements, reporting what management characterizes as its best organic B2B quarterly performance. The company posts Annual Recurring Revenue of $21.8 million, up 14% year-over-year, with B2B ARR of about $15.3 million and B2C ARR of $6.4 million, driven in part by 47 net new deployments during the fiscal second quarter ended Dec. 31, 2025.

Platform-led growth is central to the company’s strategy and is visibly changing its revenue mix. Platform subscription revenue rises 14% to $5.2 million and now represents 44% of total revenue versus 39% a year earlier, reflecting expanding SaaS and AI adoption among existing customers and progressively larger deal sizes. Research Solutions reports that average sales price for the platform increases more than 6% year-over-year as customers move from one-off transactions to integrated, AI-enhanced workflows, a shift the company says supports scalability and predictable income streams.

Management highlights that the B2B funnel and product-led engagements generate strategic optionality: stronger recurring revenue and larger average deals allow the company to reinvest in sales and marketing while maintaining capital discipline. President and CEO Roy W. Olivier frames the quarter as validating the platform’s value proposition, noting that momentum in B2B customer acquisition and the company’s AI capabilities enable continued customer expansion and operational leverage. The company is using improved cash flow and profitability metrics to pursue growth initiatives without sacrificing financial flexibility.

Revenue mix and profitability show diverging trends

Total revenue is roughly flat at $11.8 million versus $11.9 million a year earlier as platform gains offset softness in transactions. Gross profit rises 6% to $6.2 million and gross margin expands by 350 basis points to 52.4%, underscoring better unit economics from subscription revenue.

Profitability and cash generation improve, giving management room to invest

Research Solutions moves into net income of $547,000, or $0.02 per diluted share, compared with a loss a year earlier, while Adjusted EBITDA climbs 36% to $1.3 million and reaches $5.8 million on a trailing twelve‑month basis (11.8% of revenue). Management signals it will prioritize sales and marketing reinvestment to accelerate platform adoption while keeping a long-term focus on shareholder value.