Research Solutions Inc Common Stock (RSSS)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Research Solutions is a small software company with 141 employees, serving researchers who need to discover scientific, technical, and medical articles. In fiscal 2026, the year ended 2026-06-30, revenue was $48.3M and net income was $2.8M, or $0.09 diluted EPS. That follows fiscal 2025 revenue of $49.1M and net income of $1.3M, and fiscal 2024 revenue of $44.6M with a net loss of $3.8M. So the Lynch category, a TURNAROUND returned to profit after a loss within three years, fits: profits have recovered, though sales edged down from fiscal 2025 to fiscal 2026. The latest filed quarter, fiscal Q3 2026 ended 2026-03-31, showed $12.1M revenue and $860,206 net income. The business throws off cash: trailing free cash flow was $5.2M, a FairStock-calculated 7.9% FCF yield on the $66.5M market cap. Return on equity is a FairStock-calculated 16.30%, but return on capital employed is only 4.89%, so the quality is mixed. The balance sheet ratios give me pause: FairStock's Altman Z-Score is 1.06, which is weak, and its Piotroski F-Score is 6/9, decent but not fortress-like. At the 2026-10-13 close of $1.97, the FairStock-calculated P/E is 21.89 and P/B is 3.08. The Graham Number is a FairStock-calculated $1.12, and FairStock's margin of safety is -75.89%. The PEG of 0.07 looks optically cheap because profit growth was large off a small base. This is a modest turnaround with real cash generation, but the margin of safety is negative and the competitive moat is not proven by these numbers. I want consistent revenue growth and stronger returns on capital before calling it a compelling value.

In plain English: Research Solutions makes cloud software and services that help researchers search scientific and technical articles. The company has swung back to a profit and produces cash, but sales slipped a little in the latest full year, and the shares at $1.97 on 2026-10-13 look more expensive than several cautious value checks would suggest. It is a small, improving business, not an obvious bargain on the numbers given.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer