MeLikeBananas
$RSSS Bull Thesis đ
⢠FY26 operating cash flow: ~$5.3M
⢠Net income: ~$2.8M â actually profitable
⢠~$12.6M cash on the balance sheet
⢠Gross margin: ~52%
⢠ARR: ~$22.5M
⢠B2B recurring revenue grew ~14%
⢠AI ARR reached ~$800K and grew ~125% sequentially in Q4
⢠Management has discussed a sizable AI opportunity pipeline
⢠Only modest ~2â3% share-count growth â relatively controlled dilution
⢠No toxic discounted-convertible financing identified in recent filings
⢠No current reverse-split issue identified
The interesting part of $RSSS isn't just revenue growth. It's the potential shift toward higher-margin recurring software/AI revenue while the underlying business is already profitable and generating positive operating cash flow.
Big metric to watch going forward: AI ARR. If AI revenue continues scaling rapidly while cash flow stays positive and dilution remains controlled, the company's revenue mix could look considerably different over the next several quarters.
-Not financial advice-
