Research Solutions delivered 14% year-over-year growth in platform subscription revenue, adding 47 net new deployments and expanding usage across its customer base. Annual recurring revenue climbed to $21.8 million, reflecting consistent demand for the company’s B2B solutions and bolstering its revenue visibility.

The company recorded a 6% increase in gross profit, driven by a 350 basis-point improvement in gross margin to 52.4%. Research Solutions swung to a $547,000 net income for the quarter, compared to a $2 million loss in the prior-year period, underscoring enhanced operational efficiency.

Transaction revenue declined due to churn of a large account and reduced volumes from key customers, while B2C revenue softened due to tighter marketing conversion rates. Management expects continued pressure on transaction revenue in the second half as competitive headwinds persist in the consumer segment.

The shift toward API and AI integration aims to transform the business into an 'answers and access' platform, with larger, stickier contracts in focus. Executive priorities include expense discipline, churn mitigation, and working capital management to sustain growth and cash flow improvements.