Research Solutions

RSSS

Software - Services · Technology

Price

$2.21

+0.01 (+0.45%)

Market Cap

$73.9M

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+18.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 26.0M (2021) → 30.7M (2025)

Research Solutions helps scientists, researchers, and companies find and access academic journal articles and research papers. Its main product is a cloud-based platform called Scite or Article Galaxy that lets users search for, request, and download scientific literature from thousands of publishers. It serves corporate research and development teams, law firms, and academic institutions that need fast access to published studies.

The company makes money through a mix of platform subscription fees and pay-per-article transaction fees, where customers pay each time they download a specific document. It operates primarily in North America but serves clients globally, and its roughly $100 million market cap puts it in small-cap territory. Its competitive position benefits from long-term customer relationships and the complexity of managing publisher licensing agreements, which creates some switching friction. The key growth driver is expanding its recurring subscription revenue base, since subscriptions carry more predictable cash flow than one-off article transactions.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-4.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+310.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$6M/ year

→ Flat (+3% vs prior year)

11.5% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

24.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$12M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Research Solutions's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

51.7%

Healthy — 51.7% gross margin

Operating Margin

8.6%

Modest — 8.6% operating margin

ROCE

5.5%

Weak — 5.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+1.1%

Nearly flat sales (1.1% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

189%

Turns 189% of profit into real cash

FCF Margin

15.3%

Converts sales into free cash efficiently (15.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

17.6x

Fair value — P/E 17.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+2.5

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.

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