Q1 2026 Research Solutions Inc Earnings Call
Speaker #2: Please stand by your program is about to begin. If you need assistance during your conference today, please press star zero. Good afternoon, everyone. And thank you for participating in today's conference call.
Speaker #2: To discuss research solutions, financial and operating results, for its fiscal 2026 first quarter ended September 30th, 2025. As a reminder, this conference is being recorded.
Speaker #2: I would now like to turn the conference over to your host, John Beisler, Investor.
Speaker #2: Relations. Thank you, operator, and good afternoon,
Speaker #3: everyone. Thank you for joining us today for research solutions, first quarter fiscal year 2026 earnings call. On the call with me today are Roy W.
Speaker #3: Olivier, president and chief executive officer; Bill Northern, chief financial officer; and Josh Nicholson, chief strategy officer. After the market closed this afternoon, the company issued a press release announcing its results for the first quarter fiscal 2026.
Speaker #3: The release is available on the company's website, researchsolutions.com. Before Roy, Bill, and Josh begin their prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are made under the private securities litigation reform act of 1995.
Speaker #3: Actual results may differ materially from those expressed or implied due to a variety of solutions' recent filings with the SEC for factors. We refer you to research a more detailed discussion of the risk and uncertainties that could impact the company's future operating results, and financial condition.
Speaker #3: will reference certain non-GAAP financial Also, on today's call, management measures which we believe provide useful information for investors. measures to GAAP measures is included in today's earnings press release as well.
Speaker #3: Finally, I would like to again remind everyone this call is being recorded, and made available for replay via a link on the company's website.
Speaker #3: I would now like to turn the call over to president and CEO Roy W. Olivier. Roy.
Speaker #4: John. The first quarter continued our progress in improving Thank you, sales teams as well as our transformation to becoming a comprehensive SaaS and AI solution for scientific research.
Speaker #4: It is the strongest organic first quarter B2B results on record. Total 21%, driven by that strong ARR for the quarter is up B2B performance.
Speaker #4: That performance includes closing some of the largest deals in the company's history, including new platform sales to real chemistry, a top 10 pharma company, and others.
Speaker #4: This resulted in the company's ASP second highest quarterly adjusted increasing and also contributed to driving our EBITDA result, as well as strong it over to Bill to walk you through the first quarter financial results in financial—I'm sorry, the fiscal cash flow.
Speaker #4: Comments and outlook for the remainder of the year. And Josh, I'd like to pass. We will discuss our strategy in detail. And then I'll wrap up with some comments from Bill.
Speaker #5: Thank you, Roy. And good afternoon, everyone. Total revenue for the first quarter of fiscal 2026 was $12.3 2025. Our platform subscription revenue increased the first quarter of fiscal 18% to $5.1 million.
Speaker #5: The growth was primarily driven by a net increase of platform deployments from last year, as well as upsells and cross-sells into our existing customer the quarter with $21.3 million, compared to $12 million in million in annual recurring revenue, base.
Speaker #5: or ARR, up 21% year over We ended year, which consisted of roughly 14.8 million in B2B ARR and approximately 6.5 million in normalized ARR associated with sites subscribers.
Speaker #5: By Q1, B2C for ARR growth totaled an incremental ARR of $375,000, with a 92% increase compared to the prior quarter. Moreover, B2B growth was $195,000 in the prior year, especially strong at $561,000 compared to $128,000 last year.
Speaker #5: While we did experience a decline in B2C quarter, up from only minimal, in what is seasonally a challenging time for B2C growth. Additionally, on a positive note, we are also seeing an increase in B2C business.
Speaker #5: Please see today's press release for how we leads, that are transitioning into B2B define and use annual recurring revenue, and other non-GAAP items. $7.2 million, compared to $7.7 million in the prior year quarter.
Speaker #5: You may recall from our fourth quarter fiscal year 2025 earnings Transaction revenue for the first quarter was call, in which we discussed decline in transaction an 8% revenue, that we expected transaction growth to continue to be of fiscal challenging, minimally through the first half 2026.
Speaker #5: As a result, the decline for the quarter was in line with our expectations, and was actually a little improved over the decline we experienced in the fourth quarter of fiscal 2025.
Speaker #5: Our total active customer count for the quarter was 1,326, compared to 1,390 in the same period a year ago. Gross profit for the first quarter was $6.2 million, up 8% from the prior year quarter.
Speaker #5: Gross margin was 50.6%, a $270 basis point improvement over the first quarter of 2025. increase is due to the ongoing revenue The mix shift towards our higher margin platforms business, which was also enhanced by expanding gross margins in the platforms business.
Speaker #5: Platform revenue accounted for 42% of the revenue in the quarter, compared to 36% in the prior year quarter. On a trailing 12-month basis, the company blended gross margin now stands at 50%.
Speaker #5: The platform business recorded gross margin of 88.1%, a 70 basis point increase compared to the prior year quarter. We have been able to continue to expand gross margins in the platforms business, as our labor and hosting costs continue to increase at a proportionally slower pace, than our revenues.
Speaker #5: Gross margin in our transaction business was 23.8%, compared to 25.7% in the prior year quarter. The decrease was primarily attributable to lower copyright margins and lower fixed cost leverage, due to the reduced revenue base.
Speaker #5: Total operating expenses in the quarter were $5.3 million, compared to $5.1 million in the prior year quarter. Higher sales and marketing expenses were partially offset by lower general and administrative expenses, and lower stock-based compensation expenses.
Speaker #5: We have made a concerted effort to keep general and administrative costs contained as we increase investment in other parts of the business. Net income for the quarter was $749,000, or $0.02 per diluted share, compared to $669,000, or $0.02 per diluted share in the prior year quarter.
Speaker #5: Adjusted EBITDA for the quarter was $1.5 million, compared to $1.3 million in the year-ago quarter. A 16% increase. This was the second best adjusted EBITDA performance in company history, and with Q3 and Q4 typically being our strongest quarters for adjusted EBITDA, we are off to a very strong start for the year.
Speaker #5: Turning to our balance sheet, cash and cash equivalents as of September 30, 2025, were $12 million, versus $12.2 million on June 30, 2025. It is important to note that during the quarter, we made our first payment of the site earn-out, which consisted of $1.3 million in cash, and the issuance of approximately $265,000 shares.
Speaker #5: Despite the cash outlay related to the earn-out, we were almost back to where we ended Q4, which means our operational cash flow remains very healthy.
Speaker #5: Cash flow from operations was $1.1 million, compared to $843,000 in the first quarter of fiscal 2025, a 31% increase. We continue to believe that we can grow our cash balance in fiscal year 2026 while also continuing to service the site earn-out from operational cash flow.
Speaker #5: Further, there are no outstanding borrowings, under our revolving line of credit. As we look ahead, we are off to a good start for fiscal year 2026.
Speaker #5: As you may recall from our prior earnings call, I discussed some of the seasonality in our business, with respect to adjusted EBITDA. Typically, we see a dip in adjusted EBITDA between Q1 and Q2, before rebounding to higher levels of adjusted EBITDA in Q3 and Q4, with Q4 usually being our best quarter of performance.
Speaker #5: We think that it is likely that this seasonality will play out again in fiscal 2026, but we think the dip will be less pronounced in Q2 compared to where it was last year, and there's also a shot at some EBITDA growth sequentially between Q1 and Q2.
Speaker #5: All that said, our goal remains to experience outperformance to fiscal 2025 in each of the remaining quarters for the fiscal year. To the extent we can execute on that, it will be another record year for the company, and we will continue to experience expansion in cash flows generated by the company.
Speaker #5: I'll now turn the call back to Roy.
Speaker #5: Roy.
Speaker #2: Thanks, Phil.
Speaker #2: A few comments about the transaction business. In the last quarter's call, we discussed that we thought the year-over-year decline was driven by zero-click searches, further research suggests that may not be the case.
Speaker #2: Our academic segment is growing, and the corporate segment is declining, with about 60% of that decline coming from one churned account. The remaining churn dollars are primarily from customers who are very large and are buying less year-over-year. Both report that this is based primarily on the current economic environment or changes in their research priorities.
Speaker #2: In short, three customers are largely driving the year-over-year results. As you know, we started investing about this time last year, in more to B2B sales resources.
Speaker #2: We continue to actively monitor these investments to ensure that we are seeing a return on them. In looking at the first half of FY25 actual results, versus our current forecast for the same period in FY26, we expect to see new ARR growth to be materially higher than the incremental sales investments we made.
Speaker #2: We expect a new logo team to generate over $1 in new ARR for every dollar invested. We expect to see the churn upsell team generate a bit under $1 in new ARR for every dollar we've invested.
Speaker #2: This suggests a payback period of a little over one year, on products that have a six to eight-year lifetime value. In my view, we need to continue to show improvement on the upsell churn teams, but overall, the investments we have made are working.
Speaker #2: As previously discussed, the new sales process is resulting in rising ASPs. We continue to set records in terms of total contract ARR and per-seat ARR, through better sales execution, especially with our AI-based products.
Speaker #2: While we saw less-than-expected B2C net ARR growth in Q1, we are starting to see more traction toward B2B strategic revenues from B2C. As you know, B2C are primarily month-to-month subscribers who are attending school or researchers in a corporate account that are trying out the product.
Speaker #2: We are seeing an increasing number of those users try the product and then report back to their academic or corporate enterprise that it should consider an enterprise subscription.
Speaker #2: A year ago, in Q1 FY25, about 50,000 of our total sales pipeline came from this B2C to B2B channel. At the end of Q1 FY26, over 1 million of our pipeline came from B2C now, I'd like to turn the call over to Josh to talk a little bit about our current thinking on product strategy issues.
Speaker #2: Josh?
Speaker #3: Thanks, Roy. Thanks, Roy, and hello, everyone. I'm going to spend a few minutes connecting what we're seeing in the market to the strategic decisions we've been making over the last few quarters, especially around AI rights, site, article galaxy, and our role with publishers.
Speaker #3: So, a few key trends worth calling out. One is enterprises want to use AI on their articles. Another is publishers are moving into AI licensing.
Speaker #3: And then a third one is the AI usage of articles is not being tracked. In response to these market trends, we have made various product additions, tweaks to our go-to-market offerings, and made sure we're aligned with where the market is going.
Speaker #3: On the first point, enterprises want to use AI on research articles. We've launched an AI rights offering in article galaxy, called RightsDell. RightsDell allows the researcher to acquire AI rights for documents they already own.
Speaker #3: The revenue we charge for those rights is split between the publisher and research solutions in a similar manner to the transaction business we have today.
Speaker #3: This gives publishers a way to monetize AI usage of their content, either on an article-by-article basis or across a company's existing library. We believe this will grow platform seat revenues, lead to more cross-sells, increase transactional purchases, and ultimately decrease churn.
Speaker #3: On the second point, publishers moving into AI licensing. We are working with our publisher partners to offer an AI gateway product based on site.
Speaker #3: In which customers can purchase the rights to use AI with all of that publisher's content to materially improve the productivity of their research teams.
Speaker #3: This would create an ARR upsell opportunity for publishers in their academic and corporate customers, and as a revenue share with research solutions, while deepening our role as their AI technology partner.
Speaker #3: This is a major challenge for our industry, especially the long tail of medium and small publishers. As we solve this gap, it could make sites' smart citations a key part of AI infrastructure and a key partner to publishers.
Speaker #3: On the third point, AI usage of articles not being tracked. Today, the industry standard is counter-compliant usage metrics. These usage metrics show how many times articles have been downloaded, read, and their central to how libraries and publishers assess the value and ROI of subscription spending.
Speaker #3: There is no equivalent for AI usage today. By working with publishers to deploy our AI gateway, we can introduce AI-specific usage metrics that play a similar role to counter for traditional usage.
Speaker #3: Giving publishers visibility, creating a basis for pricing, and value discussions, and enabling a clear upsell and revenue share opportunity for AI analytics and rights on top of existing subscriptions.
Speaker #3: This would be a huge value to both the publisher and our corporate and academic users. Researchers expect tools like site assistant and article galaxy to help them answer concrete questions, summarize bodies of work, and find key insights across many articles using AI.
Speaker #3: We believe we're well-positioned to do that in a copyright-compliant way that delivers real value to customers while generating new sources of revenue for research solutions and our publisher partners.
Speaker #3: Thanks again for having me, and I'll turn it back to
Speaker #3: Roy. Thanks,
Speaker #1: Josh, looking forward, we expect to focus on several areas for the remainder of the year. First, improve site B2C net ARR growth through product improvements, the pace of delivering those improvements, and the marketing and sales messaging around our unique capabilities in this segment.
Speaker #1: Second, continue to show improvements in overall ARR growth and ASP growth through better sales execution and improving our products. Third, demonstrate improvements in the retention and upsell part of the business by driving proactive versus reactive customer engagement through better health scoring and product improvements.
Speaker #1: Fourth, continue to innovate in the transaction or dock-dell space to return that business to a flat to slow growth business. And lastly, manage our cost structure to continue progress toward our goal of a weighted rule of 40.
Speaker #1: With that, I'd like to turn the call back over to our operator for Q&A.
Speaker #1: With that, I'd like to turn the call back over to our operator for Q&A. Operator, at this time, if you would like to.
Speaker #4: ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two.
Speaker #4: Once again, that is star one to ask a question. Our first question comes from Jacob Stephan with Lake Street Capital Markets. Please go ahead.
Speaker #5: Yeah, thanks, guys. Nice quarter on the B2B growth and on profitability as well. I just want to talk about the attach rate on the AI rights add-on product.
Speaker #5: Maybe you could help us think through attach rate on a kind of new logo deals versus current customer add-ons. And maybe just part B of that question would be, how significant is that in the overall ASP uplift that we're seeing?
Speaker #1: Yeah, I don't think we have a clear answer either to those questions. The product is brand new. We've sold it only to some existing customers and we are currently signing up more and more publishers to participate in that product.
Speaker #1: So I think the next quarter or two, we'll start to get better visibility on an attach rate. To your second question, there has been some industry chatter recently about what type of uplift on ARR SaaS or AI, well, vertical SaaS companies expect by adding AI to their vertical SaaS solution.
Speaker #1: And one of those studies suggests the uplift opportunity is about 50% of the ARR. As a reminder, our kind of AG business is about 11 point something million dollars in ARR, so that could be a material uplift.
Speaker #1: However, we have a long way to go before we really understand what the real rate is going to be. Bill or Josh, feel free to add to that.
Speaker #2: I think you captured that.
Speaker #3: Yeah, I'll just say that it was not a big contributor to the ASP increase for this quarter. That was more the larger new logo deals that Roy talked about earlier in the call.
Speaker #3: call. Yeah. Yeah,
Speaker #2: Okay. Yeah, thanks for the color there. I'm wondering if you could help us think through some of the overall product strategy shift in B2C.
Speaker #2: Maybe how are you planning to actually increase the attach rate or the net churn as well? That would be helpful.
Speaker #1: Yeah, I think from the go ahead, Josh. I think from the product perspective, how we got to success was pretty critical on every single aspect from sign-up to completion of using safe site search or site assistant.
Speaker #1: I think we lost a little bit of that, and slowed us down in kind of the velocity. And so we're back on pace, and I think rigorously looking at every single metric from sign-up to conversion and rigorously testing.
Speaker #1: Right? So a lot of testing to optimize and make sure that we're competitive with that. I think that's maybe a little bit of a reflection of joining a company where it takes some time to kind of get into that fit.
Speaker #1: Or swing, but I think now the velocity is really hitting, and I think the product is starting to catch back up.
Speaker #2: Yeah, very helpful comment.
Speaker #1: I think just comment on that further. We have obviously much more competition today than we did a year ago. And that is certainly impacting the conversion rate on the product.
Speaker #1: And I think Josh and the team are doing a lot of really great work now in terms of rolling out product improvements that we think will materially move that conversion rate back up to where we'd like it to be.
Speaker #1: Turn on that product. Turn on that product's actually been improving. So churn's going up, lifetime value is going up. The issue we're having is new subscribers sign up, conversion from trial which is not where we'd like it to be and it's below where it was last year.
Speaker #1: And I think that's partly product and partly messaging, being clear about the distinct advantages we have by having access to content behind the paywall.
Speaker #2: Okay. Interesting. I'm wondering if maybe you could help us think about how long the trial period is on that product and if you are seeing that maybe students sign up for just the trial and then cancel it basically to get them through one paper or something like that?
Speaker #2: Is that kind of what you're seeing?
Speaker #3: Yeah, the trial is
Speaker #3: seven days. Hold on.
Speaker #1: Yeah, hold on. Let me just mention. A churn is improving. churn this year than a year ago. In other words, we have materially less So they're not signing up and they're not signing up for seven days and leaving.
Speaker #1: Lifetime value is going up. However, in the spring, people cancel because they're going to be out of school for summer, and then they re-sign up in the fall.
Speaker #1: And so the re-sign-up process or attracting new people in the fall is where we go through a trial which Josh just mentioned is seven days.
Speaker #1: And then we convert that to subscribers and our conversion rate's not where we'd like it to be. Sorry, Josh, go
Speaker #1: ahead. Yeah, I was just going to say it is
Speaker #3: seven days and in many cases, the product has improved significantly in terms of the output you get out of it. Where it was, you can get a few paragraphs, you can get now a 15-page fully referenced report.
Speaker #3: And so to your point, sometimes the success of the product means they're solving their problems quicker. And so we think about all these different aspects, not just conversion rate, but how many queries are they doing?
Speaker #3: What is the weekly active users, the monthly active users? And I think, again, we need to be really disciplined looking at those numbers across the board and then optimizing kind of the product decisions around what gets deployed.
Speaker #3: Does that increase the conversion rate? What does that do to the lifetime value of the customer and then also the usage of various KPIs?
Speaker #3: And so we are, I would say, in a much better position now. We've also started to really leverage a lot of AI in our own development work, which has greatly accelerated the ability to deploy new features and a lot of UI/UX changes that are necessary for testing.
Speaker #3: You can easily run a test on this button moving here versus there and what does that do to conversion rates and things like that.
Speaker #2: Okay. Got it. Very helpful, guys. Thank you. Nice work.
Speaker #4: Our next question comes from Richard Baldry with Roth Capital. Please go
Speaker #4: ahead. Thanks.
Speaker #3: Sort of hoping you could drill a little more deeper into the non-typical or non-seasonal strengths you saw in ARR in the first quarter that looked up versus prior years.
Speaker #3: And it was multiples of what you'd seen before. Sort of break down where you think that's coming from. Was there any sort of pull forwards that we have to be cautious about looking forward?
Speaker #3: Or is there something sustainably higher going on there? Thanks.
Speaker #1: Yeah, there was no pull-forwards. I would say, over the last year, we have upgraded well over half of our sales teams. We've spent well into the six figures on training an entirely new sales process, where we work with a customer closely to understand the problem we're solving and assess the value of solving that problem for the customer, and then pricing accordingly.
Speaker #1: I think just having a much more disciplined and focused sales process, in addition to marketing, is doing a great job driving top-of-the-funnel leads into that sales team. This has resulted in the ARR that we posted.
Speaker #1: Bill or Josh, you're welcome to add to
Speaker #1: that. I'll just add that
Speaker #3: the some of it also was, again, some of the larger deals, but I think that's not a one-time thing. We have, again, we started talking about it last quarter and then obviously some this quarter.
Speaker #3: And the sales team is focused, and I know we have other deals in the pipeline now that are kind of some similar size to some of what we saw in Q1.
Speaker #3: So that definitely helps the situation when you can land one to three of those in a quarter. But I think that's something that we have a chance to do each quarter going forward as.
Speaker #3: well.
Speaker #2: to the expense side, the G&A is the lowest in almost two years, I think. Is there again, anything one-time oriented there? Or sort of out-of-pattern that would reverse itself?
Speaker #2: Or is this sort of a sustainable level? How do we think about that forward?
Speaker #3: Yeah, as I said, we had some concerted effort to keep the cost down. I think in some prior quarters, we may have had some legal and stuff.
Speaker #3: There was an executive departure at the end of last quarter, so some of that reduction there is due to that executive no longer being in the business. We were sort of able to replace that with some resources that are just more efficient from a cost perspective.
Speaker #3: So I do think it's decent sort of to think about it as a run rate with maybe a little bit of exception here and there as being a little bit low.
Speaker #3: Barring some kind of something that drives legal expense or a runtime recruiting item of some sort, I think we can modestly increase that through the year.
Speaker #2: And then last for me, sort of switching gears to AI internally as opposed to talking externally. It seems like the pace of new offerings from the company is increasing.
Speaker #2: How much has AI enabling sort of either efficiency gains or productivity gains and how much more do you think you can do with that?
Speaker #2: We're sort of hearing that a lot of companies are really embracing it internally, not just externally.
Speaker #2: now. Yeah, on the
Speaker #1: internal side, go ahead.
Speaker #3: Yeah, I would say on the internal side, we've made some changes. They're not fully kind of deployed across all of the team, but a lot of that is the AI to greatly speed up development.
Speaker #3: And it's pretty inspiring to watch. A lot of these Copilot and different AI coding tools are now part of the workflow for senior developers to junior developers.
Speaker #3: We've clearly put guardrails in place and established rules for using this AI, ensuring that it is secure. The changes are largely around light UI/UX adjustments, rather than significant features.
Speaker #3: It's hard to quantify it, but it is dramatic. And I think that allows us to shift a lot of things that are important to the business.
Speaker #3: That might seem superficial, but matter a lot, right? And again, that is the workflow of getting that PDF in a second, making sure your AI compliant, using that PDF, asking the question, getting an answer from the literature.
Speaker #3: All those things built on that foundation of relationships and data that we have needs to be done seamlessly. And I think the AI tools that we're now using primarily in development are greatly accelerating the pace.
Speaker #3: And I think we'll continue to see that pace as it rolls out to more teams and more people on the development.
Speaker #3: team. Yeah, the only thing I would add to
Speaker #1: that is I think in the next one to two quarters, we'll be implementing some AI on the support side of the business to improve that.
Speaker #1: I don't think the development AI impact that Josh talked about or the support team impact is going to result in cost structure reduction. If anything, what it's going to do is free up software engineers to work on the more important stuff, or it's going to free up support people to do a better job covering our existing support workload unless we see an unusual percentage of our account base start to use the AI chat tools to solve their issues as opposed to sending in a ticket to us, if that makes sense.
Speaker #2: Yeah, got it. Thanks.
Speaker #4: And as a reminder, ladies and gentlemen, if you'd like to ask a question, you may do so by pressing star one. Our next question comes from Derek Greenberg with Maxim Group.
Speaker #4: Please go
Speaker #4: ahead. Hi, thanks for taking my
Speaker #3: questions. I wanted to touch on just the transaction segment. You guys had called out already that that was largely due to three customers churning.
Speaker #3: And largely, first half will be impacted. I was wondering if you had any visibility into the second half yet and if maybe we'll see potential relief due to just lapping when the initial declines had happened.
Speaker #1: Yeah, just to be clear, it's three customers, one churn, the other two are simply buying less year over year. So they didn't churn, they're just reduced spend on their side.
Speaker #1: In terms of visibility in the second half, I don't certainly don't think I do, Bill, do you have any comments on
Speaker #1: that? We really don't.
Speaker #3: I think part of the reason we said that we think the second half will be better is we started experiencing these sharp declines in January of last year.
Speaker #3: And it really sort of accelerated in February. So we are seeing a little bit of stabilization, as I mentioned, the decline this quarter was a little bit less than last quarter.
Speaker #3: And we're seeing some things that we're seeing growth in our academic business. And we're obviously adding more platform customers. So when you look at that, it's more hunch than anything at this point that we'll start to see improvement.
Speaker #3: I'm not saying it'll necessarily be growing in Q3 and 4, but hopefully we're seeing a reduction in that decline. Just given some of those factors.
Speaker #3: I'm not saying it'll necessarily be growing in Q3 and 4, but hopefully we're seeing a reduction in that decline. Just given some of those factors.
Speaker #2: Okay, thank you. That's helpful. Then in terms of the second quarter, I was wondering if you saw any impact from the government shutdown regarding any of your end markets.
Speaker #2: customers. No, we
Speaker #1: have not seen any material impact in government. Well, our government in government corporate or
Speaker #1: academic. Okay, got
Speaker #2: it. And then sometimes if you could just give an update too. I know on the last call you had kind of introduced this concept of a headless strategy, plugging directly into customers' workflows.
Speaker #2: I was wondering if you had any updates there. That'd be great, yeah.
Speaker #1: I really no updates other than we continue to make product changes to be where the puck is going. We continue to support many large customers with that strategy today.
Speaker #1: And I would say I don't know what the percentage is, but a material part of our pipeline is headless work because more of our larger corporate clients are frankly building their own internal LLM or tool set and so what they're looking to do is connect us into the parts of the workflow where they need specific problems solved, whether it's AI rights, document rights, site citation information, or something else.
Speaker #2: Okay, got it. And then just my last question was just on M&A. You guys had previously said you were expecting at least one acquisition this year.
Speaker #2: I was just wondering how the pipeline's looking, how the market's looking, if there are any updates there.
Speaker #1: Yeah, active pipeline, good discussions. I don't think we have something that'll close by the end of the year, but we have a lot of things that are pretty close.
Speaker #2: Okay, got it. Thank you.
Speaker #4: Thank you. This does conclude today's question and answer session. I will now turn the call back over to Roy for any additional or closing remarks.
Speaker #1: Well, thanks everyone for joining us on our call today. Bill and I will participate in the Southwest Ideas Conference on November 20th. Qualified investors interested in participating should contact Three-Part Advisors.
Speaker #1: We look forward to speaking with you in February to discuss our second quarter fiscal 2026 results. Have a great
Speaker #1: day.
Speaker #4: This does conclude today's