Research Solutions (RSSS) FY2026 Q4 Earnings Call: B2B ARR Up 14%, AI ARR Reaches $800,000
Source Tradingkey
Key Takeaways
- Fiscal Q4 2026 revenue declined to $12.1 million from $12.4 million as higher platform subscription revenue was more than offset by a 6.7% drop in transaction revenue.
- Total ARR reached $22.5 million, up 7.8% year over year. B2B ARR increased 14.1% to approximately $16.2 million, including $800,000 of AI-related ARR.
- Fiscal 2026 gross margin expanded 260 basis points to 51.9%. Gross profit rose 3.6% to $25.1 million despite lower total revenue.
- AI adoption is shifting research activity toward agent-based interfaces. Scite recorded more than 18 million AI reads, while MCP access roughly doubled contract value on average for deals completed during the year.
- Management expects platform subscription growth, improving retention, further transaction stabilization, higher adjusted EBITDA and strong cash generation in fiscal 2027, but provided no formal revenue guidance.
- The company ended fiscal 2026 with $12.6 million in cash, no revolving credit borrowings and three remaining Scite earn-out payments due in fiscal 2027.
Core Financial Results
| Metric | Fiscal Q4 2026 | Year-over-year comparison | Fiscal 2026 | Year-over-year comparison |
|---|---|---|---|---|
| Total revenue | $12.1 million | $12.4 million | $48.3 million | $49.1 million |
| Platform subscription revenue | $5.3 million | $5.2 million | $20.8 million | Up approximately 10% |
| Transaction revenue | $6.8 million | Down 6.7% | $27.5 million | Down 8.7% |
| Gross margin | 53.0% | Up 200 basis points | 51.9% | Up 260 basis points |
| Net income | $666,000 | $2.4 million | $2.8 million | $1.3 million |
| Diluted EPS | $0.02 | $0.09 | $0.08 | $0.04 |
| Adjusted EBITDA | $1.4 million | $1.6 million | $5.8 million | $5.3 million |
| Operating cash flow | $1.8 million | $2.3 million | $5.3 million | $7.0 million |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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