Research Solutions, Inc.

Research Solutions, Inc.

RSSSยทNASDAQ

$2.21

+0.91%
TechnologySoftware - Application

Research Solutions, Inc., through its subsidiaries, provides cloud-based software-as-a-service research platform. The company is also involved in the transactional sale of published scientific, technical, and medical (STM) content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to accelerate their research and development activities with access and management STM articles used throughout the intellectual property development lifecycle. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was founded in 2006 and is based in Henderson, Nevada.

At a Glance

Live Snapshot
Market Cap$73.92M
EPS0.0412
P/E Ratio53.64
Earnings Date09/17/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 53.6).

Valuation inputs: P/E 53.6, earnings yield +1.9%, momentum +0.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +9.1%, ROIC +11.4%).

Profitability stack: net margin +2.6%, ROE +9.1%, ROIC +11.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +69.8%, momentum +0.9%, net margin +2.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

rsss

Research Solutions, Inc. Market vs Earnings Trajectory

RSSS ยท NASDAQ

Loading price and EPS data...

Research Solutions, Inc.

Research Solutions, Inc. Fair Value Envelope

RSSS ยท NASDAQ

Our analysis suggests that RSSS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $2.21, this represents a potential HIDDEN relative to our calculated worth for Research Solutions, Inc..

Intrinsic Value
Current Price: $2.21
3Y-167.0%
5Y-231.0%
10Y-241.0%
3Y+49.0%
5Y+58.0%
10Y+43.0%
3Y-178.0%
5Y-262.0%
10Y-354.0%
3Y-1783.0%
5Y+190.0%
10Y+3693.0%
3Y-1618.0%
5Y+190.0%
10Y-63045.0%
3Y+171.0%
5Y+211.0%
10Y+273.0%
Research Solutions, Inc.

Research Solutions, Inc. Profit Bridge

RSSS ยท NASDAQ
Revenue49.06M
Cost of Goods Sold (24.86M)
Gross Profit24.20M
Operating Expenses (21.69M)
Operating Income2.50M
Interest Expense (0.00)
Other Income/Expense-1.15M
Pretax Income1.35M
Income Tax (82.81K)
Net Income1.27M
Net Income
1.27M

Profitability Analysis

Gross Margin

49.3%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

5.1%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

2.6%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

6.1%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

49.32%
Gross Profit Margin
12%
3Y+35.0%
5Y+59.0%
10Y+161.0%
5.10%
Operating Profit Margin
-396%
3Y-203.0%
5Y-286.0%
10Y-236.0%
2.58%
Net Profit Margin
-130%
3Y-152.0%
5Y-203.0%
10Y-278.0%
9.09%
Return on Equity
-128%
3Y-127.0%
5Y-157.0%
10Y-210.0%
2.74%
Return on Assets
-130%
3Y-129.0%
5Y-152.0%
10Y-168.0%
11.39%
Return on Invested Capital
-455%
3Y-134.0%
5Y-166.0%
10Y-152.0%
RSSS

Research Solutions, Inc. Cash Conversion Engine

RSSS ยท NASDAQ
Net Income1.27M
Depreciation & Amortization1.25M
Stock-Based Compensation0.00
Change in Working Capital1.04M
Others3.47M
Capital Expenditures-19.27K
Free Cash Flow7.00M

Cash Flow Quality Analysis

FCF Conversion Rate

553.4%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

0.3%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+101.3%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$1.04M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Research Solutions, Inc. Funding & Solvency Profile

RSSS ยท NASDAQ
Cash & Cash Equivalents12.05M
Net Receivables7.60M
Inventory0.00
Other Current Assets1.03M
Total Current Assets21 M
Property, Plant & Equipment57.86K
Goodwill & Intangible Assets25.21M
Long-Term Investments0.00
Other Non-Current Assets998.00
Total Non-Current Assets59 K
Total Assets
45.95M

Financial Health Analysis

Current Ratio

0.82x

Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.

Debt-to-Equity Ratio

1.41x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

-4426037

Negative working capital indicates short-term liabilities exceed short-term assetsโ€”potential liquidity stress.

Asset Composition

45% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Negative working capital but strong cash position suggests an efficient operating model (common in retail/subscription businesses) rather than financial distress.

rsss

Research Solutions, Inc. Street Expectations Map

RSSS ยท NASDAQ

Wall Street analysts project that RSSS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 3.83, with estimates ranging from a low of 3.50 to a high of 4.00.

Lowest Target
3.50
58.37%
Consensus Target
3.83
73.30%
Highest Target
4.00
81.00%

The consensus 1-year price target stands at 3.83, with estimates ranging from a low of 3.50 to a high of 4.00.

Analyst Consensus Analysis

Upside Potential

+73.3%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

13.1% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Research Solutions, Inc. Insider Positioning

RSSS ยท NASDAQ

During the last 12 months, insiders have sold $125K worth of RSSS shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

3.7K

13.37K

Net Activity

-13K

-$13K

9-12 Months

Bought

0

0.00

Sold

97.0K

111.35K

Net Activity

-111K

-$111K

Top Buyers

No buying activity

Top Sellers

1
MMA

Mcpeak Merrill A

Director

75.0K sharesโ€ข1 transactions

$83K

2
NW

Nurthen William

Officer: Cfo & Secretary

5.1K sharesโ€ข2 transactions

$16K

3
RJJ

Regazzi John J

Director

16.0K sharesโ€ข1 transactions

$13K

4
ORW

Olivier Roy W

Director, Officer: Ceo & President

3.6K sharesโ€ข2 transactions

$11K

5
AS

Ahlberg Scott

Officer: Chief Operating Officer

933 sharesโ€ข1 transactions

$3K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $125K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

No Dividend Yield Data

RSSS has not reported any dividend yield values in the available annual periods.

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rsss Dividend History

RSSS
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%