Research Solutions Targets Growth with $1M+ Sales Pipeline

Information services provider Research Solutions (NASDAQ: RSSS) announced on May 15, 2026, the development of a sales pipeline valued at over $1 million. This new business pipeline specifically targets the Marketing and Communication Professionals (MCP) vertical. The initiative is a core component of the company's strategy to accelerate growth and improve customer retention metrics for its cloud-based software platforms.

What is the MCP Sales Pipeline?

The newly outlined pipeline focuses on attracting and converting clients within the Marketing and Communication Professionals sector. This represents a targeted effort by Research Solutions to expand its user base beyond its traditional core of academic and R&D-focused organizations. The company's platforms, including its flagship Article Galaxy, provide on-demand access to scientific, technical, and medical research, a service with growing applications in corporate marketing and strategic communications.

The $1 million-plus figure represents the total potential contract value of deals currently in the company's sales funnel for this specific segment. Management's disclosure of this metric signals confidence in its ability to penetrate this new vertical. Success in this area would diversify the company's revenue streams and demonstrate the broader applicability of its research access tools.

Why This Pipeline is Significant for RSSS

For a company of Research Solutions' scale, a $1 million pipeline is a material development. The company reported annual revenue of approximately $38.5 million in its most recent fiscal year. Converting even a portion of this pipeline into secured contracts would provide a noticeable boost to top-line growth. This is particularly relevant for a small-cap company where incremental revenue gains can have a substantial impact on financial results and investor perception.

The initiative also indicates a proactive growth strategy. Instead of relying solely on its established markets, Research Solutions is actively seeking to create new revenue channels. Capturing business from marketing and communications teams at large corporations could lead to larger average contract values than those from smaller academic institutions, potentially improving overall profit margins.

How This Connects to Customer Retention

The focus on the MCP vertical is directly linked to Research Solutions' stated goal of improving customer retention. By embedding its platform into the daily workflows of corporate marketing teams, the company can increase the "stickiness" of its products. When a tool becomes essential for competitive intelligence, content creation, or market research, clients are less likely to churn.

Improved retention has a compounding effect on the financial health of a SaaS provider. Higher Net Revenue Retention (NRR) is a key metric for software investors, as it demonstrates a company's ability to not only keep its customers but also grow revenue from them over time. By landing and expanding within corporate accounts, RSSS aims to strengthen this critical performance indicator.

What are the Potential Risks?

A primary risk is that a sales pipeline does not represent guaranteed revenue. The conversion rate of sales pipelines can vary widely based on economic conditions, competitive pressure, and sales execution. A typical conversion rate for enterprise software can range from 20% to 40%, meaning the actual realized revenue from this pipeline may be a fraction of the $1 million headline figure.

successfully penetrating a new market vertical presents execution challenges. The needs of marketing professionals may differ from those of R&D scientists, requiring adjustments to the product, marketing message, and sales approach. Failure to adapt effectively could slow adoption and hinder the company's ability to capitalize on the opportunity.

Q: What does Research Solutions do?

A: Research Solutions, Inc. is a cloud-based software and information services company. Its main product, Article Galaxy, is a platform for scientific, technical, and medical (STM) content. It helps researchers at corporations, academic institutions, and government agencies to legally and cost-effectively acquire and manage scholarly articles and other research documents on-demand.

Q: Who are Research Solutions' main competitors?

A: Research Solutions competes with a range of information service providers. These include large, established players like Clarivate and Elsevier, which offer broad suites of research tools and content databases. It also faces competition from other document delivery services and open-access initiatives that provide alternative ways for researchers to access content.

Bottom Line

Research Solutions' $1 million pipeline initiative marks a targeted effort to drive growth and improve retention by expanding into the corporate marketing vertical.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.