Research Solutions Sees AI ARR Soar Amid Fiscal Shift

Research Solutions concluded its fiscal year ended June 30, 2026, with a revenue of $48.3 million, a modest 1.6% decrease from the previous year. Despite the revenue decline, the company successfully improved its gross margin to 51.9% from 49.3% in fiscal 2025.

This improved profitability is attributed to a strategic shift towards higher-margin platform subscriptions and AI-enabled products. Platform subscription revenue saw a roughly 10% increase, now comprising 43% of total revenue, up from 39% in fiscal 2025. Annual recurring revenue (ARR) grew 7.8% to $22.5 million, notably driven by a 14.1% increase in B2B ARR.

A significant development is the emergence of AI-related ARR, which reached $800,000, up from near zero a year prior. The company's connectors for major AI platforms like ChatGPT, Claude, and Copilot are now integrated into their official directories.

Financially, Research Solutions ended the fiscal year with $12.6 million in cash and no outstanding debt. This strong balance sheet provides flexibility for potential share buybacks or acquisitions, as management anticipates stronger AI sales and improved EBITDA in fiscal 2027.