Research Solutions (RSSS) outlined its expanding artificial intelligence strategy and improving profitability at the 17th Annual Midwest IDEAS Conference on August 27, 2026, citing platform gross margins in the mid-to-high 80% range and a four-year jump in annual recurring revenue to $22 million.
The company, which reached profitability in fiscal 2023 and is marking its 20th year in business, reported platform revenue now accounts for 43% of total sales, up from 39% a year earlier. Document delivery, by contrast, contributes roughly $27 million to $28 million in revenue with margins near 24% to 25%. Corporate clients generate about 80% of revenue across roughly 1,000 customers in 60 industries, with pharmaceutical, medical device and biotech verticals alone representing half of total sales.
Management highlighted recent contract momentum tied to AI connector integrations, with new deals ranging from high five-figure agreements to proposals in the six-figure range and at least one in the seven-figure range. Historical average deal sizes for core products Scite and Article Galaxy have climbed to about $11,000 to $12,000, reflecting growing enterprise demand for AI-enabled research tools. The company’s net renewal rate is approximately 100%, with a target improvement to 105% to 110%.
Research Solutions reported more than $12 million in cash and no debt as of its most recent quarter, alongside an untapped credit facility. The company’s diluted earnings per share stood at $0.14 over the last 12 months as of Q3 2026, with EBITDA totaling $6 million. The stock was last quoted at $2.23, down 0.45% on the day, with a market capitalization of $72 million and a trailing P/E ratio of 15.5.
Chief Executive Officer Roy W. Olivier emphasized the structural advantage of paywalled scientific content in AI integration, noting that large language models such as ChatGPT and Claude lack rights to access much of the peer-reviewed research behind paywalls. He added that top publishers generate roughly $3 billion in annual revenue with 40% EBITDA margins, making large-scale licensing to AI providers commercially impractical at current pricing levels.
Chief Financial Officer Dave Kutil underscored the company’s balance sheet strength, stating the cash position and absence of debt provide capacity to execute on growth initiatives. The company expects net income to double year over year, supported by expanding platform adoption and disciplined cost management.
