Navigating Challenges with Strategic Initiatives: RGP's Q2 2026 Earnings Call Highlights

Resources Connection Inc (RGP) exceeded adjusted EBITDA expectations despite revenue below consensus, driven by disciplined cost management. Europe and Asia Pacific segment showed growth, while the balance sheet remains strong. RGP is implementing AI and automation tools and hiring experienced professionals to scale its consulting business. However, consolidated revenue declined 18.4% year-over-year, and gross margin was below outlook due to unfavorable indirect costs. The company faces challenges in the on-demand segment and incurred one-time expenses related to CEO transition and reduction in force.