Research Solutions Q3 net income rises 297%

Research Solutions

14/05/2026 21:29

Overview

AI research workflow platform's fiscal Q3 revenue declined 4.3% yr/yr, missing analyst expectations

Net income for fiscal Q3 rose 297% yr/yr to $860,000

Company's gross margin improved 220 basis points, driven by shift to higher-margin platform business

Outlook

Company did not provide specific guidance for the current or future quarters

Result Drivers

PLATFORM REVENUE GROWTH - Co said platform revenue rose 6.69% yr/yr due to organic growth in B2B platform, new customer acquisitions, and upselling to existing customers

TRANSACTION REVENUE DECLINE - Co attributed 11% yr/yr drop in transaction revenue to lower volume from a churned customer and a few large customers

GROSS MARGIN IMPROVEMENT - Co said gross margin rose due to continued revenue mix shift to higher-margin platform business

Company press release: ID:nPn3LX8qMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$12.10 mln
$12.37 mln (3 Analysts)
Q3 EPS
$0.03
Q3 Gross Margin
51.70%
Q3 Operating Expenses
$5.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Research Solutions Inc is $5.00, about 99.2% above its May 13 closing price of $2.51

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)