RSSS Should I Buy
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Research Solutions Inc (RSSS) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock shows bearish technical indicators, no significant trading signals, and mixed financial performance. While there is potential for growth in platform subscription revenue and strategic shifts towards API and AI integration, the company's declining net income, EPS, and revenue, coupled with customer churn, suggest caution. It's better to wait for clearer positive signals or improved financial performance before investing.
The technical indicators for RSSS are bearish. The MACD histogram is negative and contracting, RSI is neutral at 27.607, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 2.559, with key support at 2.403 and resistance at 2.716. Historical candlestick analysis indicates a 70% chance of a -3.15% drop in the next day and a -4.13% drop in the next week.
Annual recurring revenue (ARR) grew 14% YoY to $21.8 million, with B2B ARR at $15.3 million. Gross profit increased by 6%, and gross margin rose to 52.4%. Management is focusing on API and AI integration to drive larger contracts.
Net income fell significantly by -127.62% YoY, and EPS dropped by -128.57% YoY. Customer churn and declining B2C conversion rates are notable challenges. Analysts lowered the price target from $6 to $5 due to underperformance in revenue.
In Q2 2026, revenue decreased by -1.02% YoY to $11.8 million. Net income dropped significantly by -127.62% YoY to $546,919, and EPS fell by -128.57% YoY to 0.02. However, gross margin improved by 7.37% YoY to 49.7%.
Maxim lowered the price target from $6 to $5 but maintained a Buy rating. The analyst cited revenue underperformance due to churn in B2C and declines in Transactions revenue, while adjusted EBITDA beat estimates due to cost controls and margin expansion.
