Research Solutions, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $11.9 million for the three months ended December 31, 2024, a 15.5% increase from $10.3 million in the same period last year. For the six months ended December 31, 2024, revenue reached $24.0 million, up 17.6% from $20.4 million in the prior year. The growth was primarily driven by a significant increase in revenue from the company's platform services, which rose by 47.2% to $4.6 million in the latest quarter, and a 1.7% increase in transaction revenue, which totaled $7.3 million.
Despite the revenue growth, Research Solutions reported a net loss of $1.98 million for the three months ended December 31, 2024, compared to a loss of $53,628 in the same quarter of the previous year. The loss for the six-month period also increased to $1.31 million from $1.04 million year-over-year. The company attributed the increased losses primarily to adjustments in the estimated earnout liability related to its recent acquisition of Scite, which significantly impacted the financial results.
In terms of operational developments, Research Solutions has made strategic acquisitions, including Scite, which enhances its capabilities in providing AI-driven research tools. The company also acquired ResoluteAI in July 2023, further expanding its product offerings. As of December 31, 2024, the company reported a total of 32.6 million shares outstanding, with a slight increase in employee headcount as it continues to grow its workforce to support its expanding operations.
The company’s cash and cash equivalents increased to $7.7 million as of December 31, 2024, up from $6.1 million at the end of June 2024, primarily due to improved cash flow from operating activities. Research Solutions has also entered into a $500,000 revolving line of credit with PNC Bank, which provides additional liquidity. Looking ahead, the company remains focused on enhancing its product offerings and leveraging its acquisitions to drive future growth, while managing its operational costs and improving profitability.
About Research Solutions, Inc.
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