Research Solutions, Inc. (NASDAQ: RSSS) announced selected preliminary financial results for its fiscal fourth quarter and fiscal year ended June 30, 2025.
Expectations include a 21% increase in platform revenue, a 3% increase in total revenue, and positive income from operations and net income.
The company anticipates significant growth in annual recurring revenue (ARR) and adjusted EBITDA, along with a strong cash position.
Platform Revenue Growth
Platform revenue is expected to increase by 21% from the prior-year quarter to around $5.2 million.
Financial Performance
Positive income from operations of approximately $1.2 million and positive net income over $2.3 million are anticipated, including adjustments related to the Scite acquisition earn-out.
Cash Flow and EBITDA Increase
Adjusted EBITDA is expected to rise by 15% to about $1.6 million, with cash flow from operations surpassing $2.3 million.
Full Year Outlook
For Fiscal 2025, total revenue is projected to grow by 10% to approximately $49.1 million, with improved gross margins and significant cash flow growth.
Scite Earn-Out Finalization
The Scite earn-out has been settled at about $15.4 million, with a mix of cash and stock payments over eight quarters.
- Research Solutions anticipates record fiscal year revenue, net income, adjusted EBITDA, and cash flow, reflecting strong performance in the fourth quarter.
- The company's focus on strategic plans and business momentum, particularly in the Platforms business, has led to significant growth in ARR and overall financial metrics.
The preliminary results showcase Research Solutions' continued growth trajectory and financial strength, driven by successful execution of strategic initiatives. The company's outlook for Fiscal 2025 is positive, with favorable projections in revenue, income, and cash flow.