0001104659-26-015157
SEC filingResearch Solutions, Inc. (RSSS) reported solid financial results for the second quarter of fiscal year 2026, demonstrating continued operational efficiency and profitability. Total revenue for the period ending December 31, 2025, was $11.8M, generating a gross profit of $6.2M. The company achieved income from operations of $739K, contributing to a net income of $547K, a notable improvement for the period. Operating expenses were well-controlled at $5.4M, supported by $316K in depreciation and amortization. The balance sheet reflects a robust liquidity position with $12.3M in cash and cash equivalents and total current assets of $18.7M. However, total current liabilities stand at $23.6M, largely driven by a significant contingent earnout liability of $7.3M. Cash flow from operations remained strong at $2.5M, despite a net cash usage of $2.4M in financing activities primarily due to acquisition-related payments. The company continues to manage its acquisition integration effectively while maintaining positive net income.
Research Solutions, Inc. reported total revenue of $11.8M for the fiscal second quarter ending December 31, 2025. The company achieved a gross profit of $6.2M, resulting in a healthy gross margin. Operating income was reported at $739K, demonstrating effective cost management relative to revenue generation. After accounting for other income of $95K and a $279K change in the fair value of the contingent earnout liability, income before taxes stood at $556K. The provision for income taxes was minimal at $9K, leading to a net income of $547K. Comprehensive income totaled $553K, inclusive of a $6K foreign currency translation adjustment.
The filing did not disclose specific revenue breakdowns by segment, geography, or product line within the provided XBRL data or document text. Revenue was reported as a consolidated figure of $11.8M. Without segment-specific disclosures in the provided context, a detailed analysis of revenue drivers or product mix cannot be determined. The company appears to operate primarily within the research solutions and intellectual property services sector, but specific growth drivers for this quarter are not detailed in the financial statements provided.
The company maintained solid profitability metrics for the quarter. The gross margin calculated from the reported figures is approximately 52.5% ($6.2M gross profit / $11.8M revenue). The operating margin stood at 6.3% ($739K operating income / $11.8M revenue). Total operating expenses were $5.4M, including $5.1M in selling, general, and administrative expenses and $316K in depreciation and amortization. The favorable change in the fair value of the contingent earnout liability ($279K) provided a notable boost to pre-tax income.
The balance sheet shows total assets of $44.2M against total liabilities of $27.0M, resulting in total stockholders' equity of $17.2M. The company holds $12.3M in cash and cash equivalents. A significant portion of current liabilities ($23.6M total) relates to the contingent earnout liability ($7.3M current portion) and deferred revenue ($9.9M). Operating cash flow was strong at $2.5M. Financing activities used $2.4M in cash, primarily for the payment of contingent acquisition consideration ($2.6M) related to Scite and FIZ, partially offset by proceeds from stock option exercises ($158K).
The provided document text and XBRL data do not contain specific forward-looking statements, management guidance, or strategic priorities regarding future periods. While the company completed acquisition-related payments during the quarter, specific risk factors or strategic initiatives for the remainder of fiscal year 2026 are not disclosed in the provided financial excerpts. Investors should refer to the complete 10-Q filing for MD&A discussion on future outlook.