Research Solutions, Inc.
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
RSSS$1.820.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-13.
0001104659-26-015157
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001104659-26-062450
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 70 current paragraphs.
46 unchanged; 21 reworded; 2 added; 0 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 38 previous and 38 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Software Costs
Current report
Based on its nature, our software development costs are expensed as incurred. The finalization of our project development process precipitates the rapid commercialization and deployment of new products and enhancements. We continuously review our projects, processes and the nature of our software development costs to determine if there are changes that would meet the requirements for capitalization under ASC 350-40, Internal-Use Software.
Reworded paragraphs (21)
Previous wording
The following discussion and analysis of our financial condition and results of operations for the three and six months ended December 31, 2025 and 2024 should be read in conjunction with our consolidated financial statements and related notes to those financial statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
Current wording
The following discussion and analysis of our financial condition and results of operations for the three and nine months ended March 31, 2026 and 2025 should be read in conjunction with our consolidated financial statements and related notes to those financial statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
Previous wording
AI models are integral to powering the unique insights our platforms provide as well as the user experience customers enjoy. Natural language processing (“NLP”) and AI models are used to enhance metadata, define connections between topics and content items as well as to generate data and metrics employed to enable users to rapidly identify and understand the value of content they need for their research. We also use state of the art AI models, such as large language models (“LLP”) to include generative AI “assistants” in several parts of the research workflow today and will continually add capability as we move forward. Today we employ generative AI technologies as a basis for our recommendation engine in our Discovery Tools, Access, and Manage Platform solutions. In addition, generative AI based “assistants” in some of our solutions allow the researcher to ask questions about articles, groups of articles (folders), and more. We also have the capability to provide near full text search on STM content in the Scite.ai solution where the publisher gives us the rights to do so. The ability to not only mine an article’s full text but also show snippets of full text is unique to our Company and allows our generative AI assistants to provide highly accurate results with a very low incidence of hallucinations as part of a retrieval augmented generation framework focused just on STM content. We plan to release several new Platform solutions to enhance the research workflows described above and add new solutions to support the analysis functions that exist in our typical customer base.
Current wording
AI models are integral to powering the unique insights our platforms provide as well as the user experience customers enjoy. Natural language processing (“NLP”) and AI models are used to enhance metadata, define connections between topics and content items as well as to generate data and metrics employed to enable users to rapidly identify and understand the value of content they need for their research. We also use state of the art AI models, such as large language models (“LLP”) to include generative AI “assistants” in several parts of the research workflow today and will continually add capability as we move forward. Today we employ generative AI technologies as a basis for our recommendation engine in our Discovery Tools, Access, and Manage Platform solutions. In addition, generative AI based “assistants” in some of our solutions allow the researcher to ask questions about articles, groups of articles (folders), and more. We also have the capability to provide near full text search on STM content in the Scite.ai solution where the publisher gives us the rights to do so. The ability to not only mine an article’s full text but also show snippets of full text is unique to our Company and allows our generative AI assistants to provide highly accurate results with a very low incidence of hallucinations as part of a retrieval augmented generation framework focused just on STM content. We intend to continue investing in our platforms and in our integrations with third-party AI applications, through new product enhancements and expanded dataset coverage.
Previous wording
Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We derive our revenues from two sources: annual licenses that allow customers to access and utilize certain premium features of our cloud-based SaaS research intelligence platforms and the transactional sale of STM content managed, sourced and delivered through the Platform.
Current wording
Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We derive our revenues from two sources: annual licenses that allow customers to access and utilize certain premium features of our
Previous wording
Our trade accounts receivable are recorded at amounts billed to customers and presented on the consolidated balance sheet net of the allowance for estimated credit losses, and typically due within 30 days. We evaluate the collectability of our trade accounts receivable based on a number of factors. In circumstances where we become aware of a specific customer’s inability to meet its financial obligations to us, we estimate and record a specific reserve for bad debts, which reduces the recognized receivable to the estimated amount we believe will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on our historical losses, our
Current wording
Our trade accounts receivable are recorded at amounts billed to customers and presented on the consolidated balance sheet net of the allowance for estimated credit losses, and typically due within 30 days. We evaluate the collectability of our trade accounts receivable based on a number of factors. In circumstances where we become aware of a specific customer’s inability to meet its financial obligations to us, we estimate and record a specific reserve for bad debts, which reduces the recognized receivable to the estimated amount we believe will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on our historical losses, our forecast and an overall assessment of trade accounts receivable outstanding. We established an allowance for doubtful accounts of $94,234 and $182,324 as of March 31, 2026 and June 30, 2025, respectively.
Previous wording
Comparison of the Three and Six Months Ended December 31, 2025 and 2024
Current wording
Comparison of the Three and Nine Months Ended March 31, 2026 and 2025
Previous wording
Total revenue decreased $121,568, or 1.0%, for the three months ended December 31, 2025 compared to the prior year, due to the following:
Current wording
Total revenue decreased $539,802, or 4.3%, for the three months ended March 31, 2026 compared to the prior year, due to the following:
Previous wording
Total revenue increased $146,135, or 0.6%, for the six months ended December 31, 2025 compared to the prior year, due to the following:
Current wording
Total revenue decreased $393,667, or 1.1%, for the nine months ended March 31, 2026 compared to the prior year, due to the following:
Previous wording
Total cost of revenue as a percentage of revenue decreased 3.5%, from 51.1% for the prior year to 47.6%, for the three months ended December 31, 2025.
Current wording
Total cost of revenue as a percentage of revenue decreased 2.2%, from 50.5% for the prior year to 48.3%, for the three months ended March 31, 2026.
Previous wording
Total cost of revenue as a percentage of revenue decreased 3.1%, from 51.6% for the prior year to 48.5%, for the six months ended December 31, 2025.
Current wording
Total cost of revenue as a percentage of revenue decreased 2.7%, from 51.2% for the prior year to 48.5%, for the nine months ended March 31, 2026.
Previous wording
Net income increased $2,607,536, or 198.9%, for the six months ended December 31, 2025 compared to the prior year, primarily due to a fiscal year 2024 increase in the estimated fair value related to the Scite earn out liability, increased gross profit and a decrease in operating expenses as described above.
Current wording
Net income increased $643,736, or 297.4%, for the three months ended March 31, 2026 compared to the prior year, primarily due to a decrease in operating expenses as described above.
Previous wording
Net income increased $2,527,153, or 127.6%, for the three months ended December 31, 2025 compared to the prior year, primarily due to a fiscal year 2024 increase in the estimated fair value related to the Scite earn out liability, increased gross profit and a decrease in operating expenses as described above.
Current wording
Net income increased $3,251,272, or 297%, for the nine months ended March 31, 2026 compared to the prior year, primarily due to a fiscal year 2025 increase in the estimated fair value related to the Scite earn out liability, increased gross profit and a decrease in operating expenses as described above.
Previous wording
As of December 31, 2025, we had cash and cash equivalents of $12,262,780, compared to $12,227,312 as of June 30, 2025, an increase of $35,468. This increase was primarily due to cash provided by operating activities partially offset by cash used in financing activities.
Current wording
As of March 31, 2026, we had cash and cash equivalents of $12,050,396, compared to $12,227,312 as of June 30, 2025, a decrease of $176,916. This decrease was primarily due to cash used in financing activities partially offset by cash provided by operating activities.
Previous wording
Net cash provided by operating activities was $2,491,176 for the six months ended December 31, 2025 and resulted primarily from net income of $1,296,306, an adjustment to contingent earnout liability of $596,603 and a decrease in accounts receivable of $1,530,063, partially offset by a decrease in accounts payable and accrued expenses of $1,035,903 and a decrease in deferred revenue of $785,267.
Current wording
Net cash provided by operating activities was $3,499,149 for the nine months ended March 31, 2026 and resulted primarily from net income of $2,156,512, an accreted interest expense of $843,129 and an increase in deferred revenue of $459,660, partially offset by a decrease in accounts payable and accrued expenses of $724,921.
Previous wording
Net cash provided by operating activities was $1,871,493 for the six months ended December 31, 2024 and resulted primarily from an adjustment to contingent earnout liability of $2,406,886 and a decrease in prepaid royalties of $478,169, partially offset by a decrease in accounts payable and accrued expenses of $737,670 and an increase in accounts receivable of $266,255.
Current wording
Net cash provided by operating activities was $4,764,251 for the nine months ended March 31, 2025 and resulted primarily from an adjustment to the contingent earnout liability of $2,812,796, an increase in deferred revenue of $1,331,920 and restricted common stock expense of $1,400,199, partially offset by an increase in accounts receivable of $754,258.
Previous wording
Net cash used in investing activities was $24,561 for the six months ended December 31, 2025 and resulted from the purchase of property and equipment.
Current wording
Net cash used in investing activities was $28,609 for the nine months ended March 31, 2026 and resulted from the purchase of property and equipment.
Previous wording
Net cash used in investing activities was $5,404 for the six months ended December 31, 2024 and resulted from the purchase of property and equipment.
Current wording
Net cash used in investing activities was $11,571 for the nine months ended March 31, 2025 and resulted from the purchase of property and equipment.
Previous wording
Net cash used in financing activities was $2,436,443 for the six months ended December 31, 2025 and resulted from the payment of contingent acquisition consideration of $2,554,394 and the repurchase of common stock of $39,549, partially offset by proceeds from the exercise of stock options of $157,500.
Current wording
Net cash used in financing activities was $3,656,148 for the nine months ended March 31, 2026 and resulted from the payment of $3,766,263 in contingent acquisition consideration and the repurchase of $47,385 of Company common stock, partially offset by proceeds from the exercise of stock options of $157,500.
Previous wording
Net cash used in financing activities was $267,838 for the six months ended December 31, 2024 and resulted from the payment of contingent acquisition consideration of $62,560 and the repurchase of common stock of $205,278.
Current wording
Net cash used in financing activities was $999,567 for the nine months ended March 31, 2025 and resulted from the repurchase of $908,393 of Company common stock and the payment of $91,174 in contingent acquisition consideration.
Previous wording
On April 15, 2024, we entered into a Loan Agreement (the “PNC Loan Agreement”) with PNC Bank, National Association (“PNC”), as lender. Pursuant to the PNC Loan Agreement, we entered into a Revolving Line of Credit Note (the “PNC Note”) with PNC, which provides for a $500,000 secured revolving line of credit that matures on April 15, 2026 and bears interest annually at the daily SOFR rate plus 2.5%, with accrued interest due and payable monthly. The
Current wording
On April 15, 2024, we entered into a Loan Agreement (the “PNC Loan Agreement”) with PNC Bank, National Association (“PNC”), as lender. Pursuant to the PNC Loan Agreement, we entered into a Revolving Line of Credit Note (the “PNC Note”) with PNC, which provides for a $500,000 secured revolving line of credit that matures on April 15, 2027 and bears interest annually at the daily SOFR rate plus 2.5%, with accrued interest due and payable monthly. The PNC Note contains customary events of default including, among other things, payment defaults, material misrepresentations, breaches of covenants, revocation of guarantee, certain bankruptcy and insolvency events. There were no outstanding borrowings under the line of credit as of March 31, 2026 and June 30, 2025.
Previous wording
Set forth below is a reconciliation of Adjusted EBITDA to net income for the three and six months ended December 31, 2025 and 2024:
Current wording
Set forth below is a reconciliation of Adjusted EBITDA to net income for the three and nine months ended March 31, 2026 and 2025:
Previous wording
We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation
Current wording
We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
cloud-based SaaS research intelligence platforms and the transactional sale of STM content managed, sourced and delivered through the Platform.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
forecast and an overall assessment of trade accounts receivable outstanding. We established an allowance for doubtful accounts of $79,869 and $182,234 as of December 31, 2025 and June 30, 2025, respectively.
Previous report — wording carried elsewhere
PNC Note contains customary events of default including, among other things, payment defaults, material misrepresentations, breaches of covenants, revocation of guarantee, certain bankruptcy and insolvency events. There were no outstanding borrowings under the line of credit as of December 31, 2025.
Previous report — wording carried elsewhere
decisions and in communications with our board of directors concerning our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following: