Research Solutions Reports 4.5% Revenue Growth to $12.7 Million for Quarter Ended March 31, 2025

Research Solutions, Inc. reported its financial results for the three and nine months ended March 31, 2025, revealing a total revenue of $12.7 million for the quarter, a 4.5% increase from $12.1 million in the same period last year. For the nine-month period, revenue rose to $36.6 million, up 12.7% from $32.5 million in the prior year. The growth was primarily driven by a 22.4% increase in revenue from its platform services, which reached $4.8 million, while transaction revenue saw a slight decline of 4.2%, totaling $7.8 million for the quarter.

The company's gross profit for the three months ended March 31, 2025, was $6.3 million, reflecting a 14.3% increase from $5.5 million in the prior year. The gross margin improved to 49.5%, up from 45.2% a year earlier, attributed to a decrease in the total cost of revenue as a percentage of revenue. Operating expenses increased by 5.9% to $5.7 million, driven by higher sales and marketing costs, which surged by 43.2% to $1.6 million. Despite these increases, Research Solutions reported a net income of $216,470 for the quarter, a significant improvement compared to a net income of $76,301 in the same period last year.

In terms of strategic developments, Research Solutions completed two acquisitions in the past fiscal year: ResoluteAI in July 2023 and Scite in December 2023. These acquisitions are expected to enhance the company's product offerings and capabilities in artificial intelligence and research management. The company also reported a change in the fair value of its contingent earnout liability related to the Scite acquisition, which negatively impacted its income before taxes for the quarter.

Operationally, Research Solutions has seen an increase in customer engagement, with a notable rise in the number of users utilizing its platforms. The company reported a cash balance of $9.9 million as of March 31, 2025, up from $6.1 million at the end of the previous fiscal year, indicating improved liquidity. The company continues to focus on expanding its geographic reach and enhancing product adoption rates, particularly in the academic and corporate research sectors.

Looking ahead, Research Solutions remains optimistic about its growth trajectory, driven by the integration of its recent acquisitions and the ongoing development of its software platforms. The company anticipates that its investments in technology and marketing will further bolster its market position and drive revenue growth in the coming quarters.