Detailed financial statements for Research Solutions, Inc. (RSSS): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally.
Analysis Summary
Research Solutions, Inc. reported revenue of $48.3M in the most recent fiscal year, growing at a 5-year CAGR of 8.8%.
Trailing-twelve-month margins: gross margin 50.1%, operating margin 8.0%, net margin 9.3%. Free cash flow grew at 23.1% CAGR over 5 years.
At the current price of $2.06, RSSS trades at a P/E of 14.29 and an ROE of 27.45%. Market capitalisation stands at $69M.
Balance sheet quality for RSSS: current ratio of 0.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $5.2M represents 185% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $25.7M | $28.0M | $28.8M | $31.1M | $31.8M | $32.9M | $37.7M | $44.6M | $49.1M | $48.3M |
| Cost of Revenue | $19.6M | $20.7M | $20.5M | $21.4M | $21.5M | $20.9M | $23.0M | $25.0M | $24.9M | $23.2M |
| Gross Profit | $6.1M | $7.3M | $8.3M | $9.6M | $10.3M | $12.0M | $14.7M | $19.6M | $24.2M | $25.1M |
| Research & Development | $1.5M | $1.8M | $2.1M | $2.1M | $2.6M | $3.7M | $3.7M | $5.4M | $5.6M | 0 |
| Selling, General & Admin | $9.0M | $7.4M | $7.4M | $8.3M | $7.9M | $9.8M | $10.8M | $14.1M | $15.0M | $20.2M |
| Operating Expenses | $9.2M | $9.3M | $9.6M | $10.5M | $10.6M | $13.7M | $14.5M | $20.4M | $21.7M | $21.5M |
| Operating Income | -$3.1M | -$2.0M | -$1.3M | -$851895 | -$283032 | -$1.6M | $238608 | -$769543 | $2.5M | $3.6M |
| EBITDA | -$2.9M | -$1.6M | -$1.1M | -$688798 | -$235139 | -$1.5M | $169304 | $88123 | $3.5M | $4.9M |
| Interest Expense | $12000 | $4000 | 0 | 0 | 0 | $136744 | 0 | 0 | 0 | $1.0M |
| Pre-tax Income | -$3.1M | -$1.9M | -$1.1M | -$771851 | -$281885 | -$1.6M | $577225 | -$3.7M | $1.3M | $3.0M |
| Income Tax | $35495 | $39779 | $27040 | $7836 | $3204 | $7622 | $5602 | $113071 | $82811 | $133042 |
| Net Income | -$2.3M | -$1.7M | -$1.2M | -$662242 | -$285089 | -$1.6M | $571623 | -$3.8M | $1.3M | $2.8M |
| EPS | $-0.10 | $-0.07 | $-0.05 | $-0.03 | $-0.01 | $-0.06 | $0.02 | $-0.13 | $0.04 | $0.09 |
| EPS (Diluted) | $-0.10 | $-0.07 | $-0.05 | $-0.03 | $-0.01 | $-0.06 | $0.02 | $-0.13 | $0.04 | $0.09 |
| Shares Outstanding (Diluted) | $23.2M | $23.5M | $23.8M | $24.8M | $26.0M | $26.4M | $29.1M | $28.9M | $30.7M | $31.8M |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $5.8M | $4.9M | $5.4M | $9.3M | $11.0M | $10.6M | $13.5M | $6.1M | $12.2M | $12.6M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $5.5M | $4.3M | $4.5M | $4.4M | $4.7M | $5.3M | $6.2M | $6.9M | $7.2M | $7.0M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | $1.2M | 0 | 0 | 0 |
| Total Current Assets | $12.0M | $9.6M | $10.2M | $14.7M | $16.9M | $17.0M | $21.3M | $14.7M | $20.0M | $20.7M |
| Property, Plant & Equipment | $503654 | $366367 | $229073 | $83607 | $20755 | $47985 | $70193 | $88011 | $60769 | $58671 |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $16.3M | $16.4M | $16.4M |
| Intangible Assets | $41870 | 0 | 0 | 0 | 0 | 0 | $462068 | $10.8M | $9.7M | $8.5M |
| Total Assets | $12.6M | $10.0M | $10.4M | $14.8M | $16.9M | $17.0M | $21.8M | $41.9M | $46.1M | $45.7M |
| Accounts Payable | -$110888 | -$119786 | $4.9M | $6.3M | $6.7M | $6.6M | $8.1M | $8.8M | $7.4M | $6.1M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $7.9M | $6.5M | $7.3M | $10.0M | $11.5M | $12.1M | $14.5M | $17.9M | $25.5M | $24.9M |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $8.2M | $6.7M | $7.4M | $10.0M | $11.5M | $12.1M | $14.5M | $30.2M | $32.2M | $25.0M |
| Retained Earnings | -$17.9M | -$19.6M | -$20.5M | -$21.2M | -$21.5M | -$23.1M | -$22.5M | -$26.3M | -$25.0M | -$22.2M |
| Total Equity | $4.3M | $3.3M | $3.0M | $4.9M | $5.4M | $4.9M | $7.3M | $11.7M | $13.9M | $20.7M |
| Total Debt | $439187 | $328299 | $208513 | $79326 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Debt | -$5.3M | -$4.6M | -$5.1M | -$9.2M | -$11.0M | -$10.6M | -$13.5M | -$6.1M | -$12.2M | -$12.6M |
| Working Capital | $4.1M | $3.1M | $2.9M | $4.8M | $5.4M | $4.8M | $6.8M | -$3.2M | -$5.5M | -$4.2M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$2.3M | -$1.7M | -$959958 | -$779687 | -$285089 | -$1.6M | $571623 | -$3.8M | $1.3M | $2.8M |
| Depreciation & Amortization | $178799 | $262990 | $153895 | $143568 | $83853 | $17651 | $52649 | $836271 | $1.2M | $1.3M |
| Stock-based Compensation | $630163 | $790237 | $827172 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Working Capital | $1.3M | $277195 | $770074 | $2.1M | $1.1M | $169422 | $841396 | $1.1M | $1.0M | -$771430 |
| Operating Cash Flow | -$436842 | -$605314 | $576446 | $2.4M | $1.9M | -$417200 | $3.4M | $3.6M | $7.0M | $5.3M |
| Capital Expenditure | -$73652 | -$86736 | -$15828 | -$5 | -$19854 | -$44288 | -$47207 | -$71510 | -$19266 | -$39771 |
| Acquisitions | $435000 | 0 | 0 | 0 | 0 | 0 | 0 | -$10.0M | 0 | 0 |
| Stock Repurchased | -$199328 | -$152739 | -$200023 | -$321601 | -$178012 | -$93918 | -$104250 | -$554202 | -$934577 | -$53039 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$510494 | -$692050 | $560618 | $2.4M | $1.8M | -$461488 | $3.3M | $3.5M | $7.0M | $5.2M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +8.8% | +2.8% | +7.9% | +2.2% | +3.7% | +14.5% | +18.4% | +9.9% | -1.5% | |
| Net Income Growth (YoY) | +26.8% | +30.0% | +43.6% | +57.0% | -472.6% | +135.0% | -762.4% | +133.4% | +123.0% | |
| EPS Growth (YoY) | +27.6% | +31.0% | +36.1% | +65.1% | -461.8% | +134.5% | -710.3% | +131.7% | +115.5% | |
| Shares Change (YoY) | +1.0% | +1.5% | +4.0% | +5.0% | +1.6% | +10.3% | -0.9% | +6.3% | +3.6% | |
| FCF Growth (YoY) | -35.6% | +181.0% | +331.4% | -23.6% | -125.0% | +823.0% | +4.3% | +101.3% | -25.3% | |
| Gross Margin | 23.7% | 26.2% | 29.0% | 31.0% | 32.4% | 36.5% | 39.0% | 44.0% | 49.3% | 51.9% |
| Operating Margin | -12.0% | -7.0% | -4.4% | -2.7% | -0.9% | -5.0% | 0.6% | -1.7% | 5.1% | 7.5% |
| EBITDA Margin | -11.4% | -5.8% | -3.7% | -2.2% | -0.7% | -4.5% | 0.4% | 0.2% | 7.2% | 10.1% |
| Net Margin | -8.9% | -6.0% | -4.1% | -2.1% | -0.9% | -5.0% | 1.5% | -8.5% | 2.6% | 5.8% |
| FCF Margin | -2.0% | -2.5% | 1.9% | 7.8% | 5.8% | -1.4% | 8.8% | 7.8% | 14.3% | 10.8% |
| Effective Tax Rate | -1.2% | -2.1% | -2.4% | -1.0% | -1.1% | -0.5% | 1.0% | -3.1% | 6.1% | 4.5% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-0.02 | $-0.03 | $0.02 | $0.10 | $0.07 | $-0.02 | $0.11 | $0.12 | $0.23 | $0.16 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $23.2M | $23.5M | $23.8M | $24.8M | $26.0M | $26.4M | $26.9M | $28.9M | $30.7M | $31.8M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 27.45% |
| Return on Invested Capital | 18.37% |
| Return on Assets | 9.83% |
| Gross Margin | 50.10% |
| Operating Margin | 7.97% |
| Net Margin | 9.28% |
Financial Health
| Debt / Equity | 0.00 |
| Current Ratio | 0.82 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -10.03 | -27.27 | -56.80 | -75.24 | -260.00 | -28.80 | 95.77 | -19.92 | 69.66 | 26.13 |
| P/B | 5.30 | 13.96 | 22.00 | 12.08 | 13.71 | 9.63 | 7.48 | 6.39 | 6.32 | 3.56 |
| P/S | 0.89 | 1.63 | 2.32 | 1.89 | 2.34 | 1.43 | 1.45 | 1.68 | 1.79 | 1.53 |
| Gross Margin | 23.7% | 26.2% | 29.0% | 31.0% | 32.4% | 36.5% | 39.0% | 44.0% | 49.3% | 51.9% |
| Operating Margin | -12.0% | -7.0% | -4.4% | -2.7% | -0.9% | -5.0% | 0.6% | -1.7% | 5.1% | 7.5% |
| Net Margin | -8.9% | -6.0% | -4.1% | -2.1% | -0.9% | -5.0% | 1.5% | -8.5% | 2.6% | 5.8% |
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