What is the revenue and EPS growth rate for Resources Connection year over year?

What does Resources Connection do and what are its main business segments?

What factors drove the changes in Resources Connection's revenue and profit?

What were the key takeaways from Resources Connection's earnings call?

What is Resources Connection's latest dividend and current dividend yield?

What is the market's earnings forecast for Resources Connection next quarter?

What is Resources Connection's gross profit margin?

What guidance did Resources Connection's management provide for the next earnings period?

- **Strategic Focus**: Cost alignment, on-demand refocus, consulting scaling; AI integration in client services.
- **Financial Performance**: Q2 2026 adjusted EBITDA $4M (3.4% margin); Europe/Asia Pac growth offsets on-demand decline.
- **AI Impact**: Transactional roles replaced; demand for AI-savvy consultants in finance and analytics.
- **Future Growth**: Consulting expansion, cost management, and AI-driven solutions for 12-24 month growth.

**【CEO Opening Remarks】**
- New CEO emphasizes smooth transition and employee commitment, highlighting market challenges but confidence in RGP's positioning.
- Strategic focus: aligning cost structure with revenue, refocusing on-demand services, scaling consulting business.
- Emphasis on AI and automation in client solutions and internal processes; clear, long-term strategy requiring disciplined execution.

**【CFO Financial Commentary】**
- Q2 2026: Adjusted EBITDA of $4M (3.4% margin) vs. $9.7M (16% margin) in Q2 2025; revenue $117.7M (-18.4% YoY).
- Segment performance: Europe/Asia Pac (+0.6% YoY), Consulting flat, On-Demand (-18.4% YoY), Outsourced Services stable.
- Gross margin improvements in Consulting (6.4% bill rate increase) and Outsourced Services.
- Integration of Reference Point to enhance consulting capabilities and client value.

**【Financial Details】**
- Gross margin 37.1% (vs. 38.5% Q2 2025); SG&A $39.7M (-15% YoY) due to cost management.
- Third quarter outlook: Revenue $105-110M, gross margin 35-36%, SG&A $40-42M.
- One-time expenses: $11.9M for CEO transition and RIF, yielding $6-8M annual savings.

**【Q&A Highlights】**
- **AI Impact**: Clients replacing transactional roles with AI; demand for AI-savvy consultants in finance and analytics.
- **Consulting Growth**: Hiring experienced professionals; Reference Point integration to expand advisory services.
- **Financial Metrics**: Health care costs (+$1M Q2) and holiday pay affecting margins; cost structure assessment underway.
- **Strategic Vision**: Aligning cost, on-demand focus, consulting scale over 12-24 months for sustainable growth.

Resources Connection, Inc.(RGP)-20260108-2026 Q2 Earnings call transcript

- **Revenue Resilience**: Q1 revenue $120.2M, beating outlook with 39.5% gross margin (up 300bps YoY). Europe/Asia Pac and Outsourced Services grew 5% and 4%.
- **Margin Expansion**: Consulting bill rates +11% to $160, driving 300bps gross margin improvement. SG&A reduced 7% to $44.5M with $6-8M annual savings from RIF.
- **Strategic Growth**: Countsy outsourced finance services and CFO advisory pipeline expanding, with 50%+ cross-sell opportunities. New leader in D.C. to accelerate consulting wins.
- **Q2 Outlook**: Revenue $115-120M, gross margin 38-39%, cautious on U.S. demand but optimistic on Europe/Asia Pac and digital transformation trends.

**【CEO Summary Section】**
- **Revenue Growth and Margin Improvement**: Q1 revenue exceeded outlook, with gross margin up 300 basis points to 39.5% due to higher bill rates and cost control. Europe and Asia Pac segments grew 5%, while Japan and India showed momentum.
- **Strategic Focus**: Emphasized CFO advisory and digital transformation, with solutions like Countsy (outsourced finance services) driving higher margins. Bill rates in consulting rose 11% to $160.
- **Cost Restructuring**: Reduced SG&A by 7% year-over-year, with further $6-8M annual savings from recent RIF. Streamlined operations and automation investments aim to improve efficiency.
- **Client Engagement**: Cross-selling across consulting, staffing, and outsourcing is gaining traction, with pipeline expansion in large transformation projects.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q1 revenue $120.2M (down 13.9% YoY on same-day basis), adjusted EBITDA $3.1M (2.5% margin). Europe/Asia Pac and Outsourced Services grew 5% and 4%, offsetting U.S. softness.
- **Gross Margin Strength**: 39.5% gross margin vs. 36.5% prior year, driven by 12% increase in enterprise bill rates and 11% in consulting. On-Demand segment EBITDA margin improved to 10% from 4.9%.
- **Cost Savings**: SG&A down 7% to $44.5M, with healthcare and management comp reductions. Q2 outlook: $115-120M revenue, 38-39% gross margin, $43-45M SG&A.
- **Liquidity**: $77.5M cash, no debt. Dividends and buybacks continue under $79M remaining repurchase authorization.

**【Q&A Key Highlights】**
- **Pricing Trends**: Staffing rates stable, consulting bill rates up 11% on new projects. Shifting away from low-margin roles like operational accounting to ERP/digital transformation.
- **Cross-Selling Pipeline**: 50%+ of pipeline involves cross-selling across segments, with million+ deals growing. New CFO Advisory leader in D.C. driving momentum.
- **Regional Performance**: West Coast and Southeast show demand strength. Europe/Asia Pac outperforming U.S. due to diversified client base and automation adoption.
- **Client Sentiment**: Uncertain macro environment slows project starts, but CFO advisory and digital transformation work progressing. Clients value RGP's agility and specialized talent.


Resources Connection, Inc. (RGP) Q1 2026 Earnings Call Transcript

- **Q4 Strong Performance**: Revenue of $139.3M and 40.2% gross margin beat expectations, driven by higher bill rates and Europe/Asia Pac growth.
- **Strategic Wins**: New Consulting deals over $1M and cross-selling success with existing clients (20% likelihood to engage Consulting).
- **Challenges Ahead**: Q1 guidance of $115-120M reflects U.S. macro uncertainty and delayed project starts, with gross margin expected at 36-37%.
- **Key Drivers**: Bill rate improvements (13% in Consulting), offshore delivery efficiency, and disciplined cost management.
- **Long-Term Growth**: Focus on digital transformation, CFO advisory, and expanding global delivery capabilities to capitalize on enterprise modernization trends.


**【CEO Summary Section】**
- **Revenue Growth**: Q4 revenue of $139.3 million exceeded expectations, with gross margin at 40.2%, above the high end of guidance. Europe and Asia Pac segment grew 5% sequentially on a constant currency basis.
- **Strategic Focus**: Emphasis on CFO advisory and digital transformation, with Consulting segment bill rates up 13% YoY. Cross-selling efforts expanded preferred supplier relationships with Fortune 100 clients.
- **Regional Performance**: Europe saw 8% QoQ growth (U.K.-led), while Asia Pac growth was driven by Japan. Client retention in Europe remained strong at 90% YoY.
- **New Leadership**: Appointments of Jeff Fox and Filip Gydé to the Board to strengthen strategic evolution and global expansion.

**【COO Operational Update】**
- **Pipeline Dynamics**: Q4 pipeline creation rebounded to first-half levels, but total pipeline contracted due to higher win/loss activity and client caution. Europe closed more net new business with 40% revenue from project extensions.
- **Segment Performance**: Consulting revenue declined 14% YoY but saw growth in digital transformation, supply chain, and ERP projects. On-Demand segment stabilized with average bill rates up YoY, driven by demand for accounting expertise.
- **Challenges**: U.S. macroeconomic uncertainty and elongated sales cycles (e.g., $5+ million deals) impacted near-term growth. Involuntary sales team attrition caused Q4 disruption but is stabilizing.

**【CFO Financial Commentary】**
- **Q4 Financials**: Adjusted EBITDA of $9.8 million (7.1% margin), highest in fiscal 2025. Outsourced Services grew 4% YoY, while On-Demand and Consulting segments faced U.S. softness.
- **Bill Rate Improvement**: Enterprise-wide average bill rate rose to $125 (from $120 YoY), driven by Consulting (13% increase) and Europe/Asia Pac (7% increase). Offshore delivery centers helped blend rates while maintaining gross margin.
- **Cost Control**: Run-rate SG&A of $46.2 million improved 0.6% YoY, supported by lower management compensation. Goodwill impairment charge of $69 million in Consulting segment reflects market conditions.
- **Q1 Outlook**: Revenue guidance of $115-120 million reflects summer utilization impacts and delayed project starts. Gross margin expected at 36-37%, in line with prior-year Q1.

**【Q&A Highlights】**
- **Gross Margin Beat**: Driven by higher bill rates (double-digit increase in new projects) and favorable medical claims. On-Demand segment stability continued into Q1.
- **Cross-Selling Success**: Existing On-Demand clients are 20% more likely to engage Consulting services. New sales team ramp-up is progressing well despite short-term disruption.
- **Pipeline Trends**: Focus on larger, strategic deals (e.g., $5+ million) with longer sales cycles. Europe and Asia Pac stability offset U.S. softness, but macroeconomic uncertainty persists.
- **Organic Growth**: Q1 YoY decline of 14% (same-day, constant currency) reflects U.S. challenges, while Europe/Asia Pac growth remains resilient. No significant M&A impact in Q4.


Resources Connection, Inc. (RGP) Q4 2025 Earnings Call Transcript

- **Revenue resilience in key markets**: Europe, Philippines, and Japan drove growth, with bill rates up 13% YoY.
- **Cost efficiency progress**: 8% SG&A reduction and $43.7M run rate reflect disciplined expense management.
- **Strategic investments paying off**: AI/automation adoption and India delivery centers enhance client value.
- **Challenges ahead**: U.S. macro uncertainty delays projects, but $1M+ pipeline growth signals future potential.
- **Financial stability**: $73M cash balance supports dividend ($4.6M Q3) and share buybacks ($3M Q3).

**【CEO Opening Remarks】**
- Q3 revenue of $129.4M matched expectations, with macroeconomic uncertainty and slower project ramp-ups impacting performance.
- Europe, Japan, and Philippines showed strength, with bill rates up 13% YoY and pipeline expansion for $1M+ projects.
- Key initiatives: diversified services strategy (CFO+1), cost optimization (8% SG&A reduction), and AI/automation investments.
- Client retention in top 100 accounts remained solid, with Countsy (outsourced services) performing well.

**【COO Operational Update】**
- Consulting segment bill rates improved 13% YoY, with $1M+ project wins doubling YoY.
- Europe and APAC growth hindered by macro challenges, but UK, Philippines, and Japan showed momentum.
- Outsourced services grew 3% YoY, driven by new venture-backed clients.
- Global delivery centers in India expanded, supporting CFO office functions and creating client stickiness.

**【CFO Financial Highlights】**
- Adjusted EBITDA of $1.7M (1.3% margin) due to holiday seasonality.
- Gross margin 35.1%, up 190bps YoY, driven by higher bill rates and offshore team utilization.
- SG&A run rate $43.7M, down 3% YoY, with cost savings from headcount reductions and real estate optimization.
- Non-cash goodwill impairment charge of $42M reflects cautious outlook for on-demand and consulting segments.
- Q4 revenue guide: $132M-$137M, with gross margin expected to normalize to 36%-37%.

**【Q&A Key Takeaways】**
- Client delays in U.S. due to policy uncertainty, but Europe showing pent-up demand for M&A and ERP migrations.
- Consultant retention focused on billable utilization and alumni engagement.
- Cost-cutting efforts balanced with tech investments; $5M-$7M annualized cash flow improvement expected post-2025.
- Dividend sustainability tied to improving margins; payout ratio to decline as stock price rises.
- HUGO (self-service talent platform) underperformed, now integrated into on-demand segment with modest growth.


Resources Connection (RGP)-2 Apr 25-2025 Q3 Earnings call transcript

- **Q2 Growth Momentum**: 6.3% sequential revenue rise, 200bp gross margin expansion, Europe/Asia Pac up 18%/4%.
- **Tech Transformation Success**: Workday platform implemented in North America, 75% business on modern stack.
- **Consulting Surge**: 10.2% QoQ growth, $1M+ contracts won via cross-sell with Reference Point.
- **Financial Health**: $9.7M EBITDA, 38.5% gross margin, $78M cash on hand.
- **Future Focus**: Accelerate buybacks, expand AI/automation capabilities, target ERP/digital transformation deals.

**【CEO Opening Remarks】**
- Q2 revenue grew 6.3% sequentially, with gross margin improving 200 basis points to 38.5%.
- Europe and Asia Pac segments showed strong sequential growth (18% and 4% respectively), while On-Demand segment stabilized.
- Successfully implemented new Workday platform in North America, with 75% of business now on modern tech stack.
- Emphasized diversified service model (staffing, consulting, outsourcing) as key to resilience and long-term growth.

**【Bhadresh Patel - Operational Update】**
- Consulting segment grew 10.2% QoQ, driven by cross-sell wins in finance transformation, ERP modernization, and digital employee experience.
- Secured $1M+ consulting contracts and pursuing $10M+ opportunities, leveraging Reference Point's AI/automation expertise.
- On-Demand segment up 1.9% QoQ, with stable pipeline in finance and risk compliance.
- Europe and Asia Pac segments showed sequential improvement, despite macro challenges.

**【Jennifer Ryu - Financial Highlights】**
- Total Q2 revenue: $145.6M (5% sequential growth), adjusted EBITDA: $9.7M (6.6% margin).
- Consulting segment revenue: $60.6M (flat YoY), On-Demand: $53.5M (-27% YoY).
- Gross margin: 38.5% (vs 36.5% Q1), driven by improved pay/bill ratio and utilization.
- Q3 guidance: $127-132M revenue, 34-35% gross margin, $46-48M SG&A.
- $79.5M non-cash goodwill impairment charge recorded for On-Demand and Europe/APAC segments.

**【Q&A Key Takeaways】**
- Gross margin improvement: 200bp QoQ driven by pay/bill ratio and utilization, but 40bp YoY decline due to macro pressures.
- Technology platform implementation: Successful go-live in North America, with international rollout planned.
- Stock buybacks: $5M executed in Q2, expect more aggressive repurchases post-technology transition.
- Cross-sell success: $1M+ consulting contracts won through Reference Point integration, targeting $10M+ deals.
- Macro outlook: Cautious optimism, with improving client activity post-election but cautious on On-Demand segment.


Actual											0.27	0.16	0.14	0.21	0.14	0.8	0.43	0.47	0.65	0.67	0.6	0.59	0.37	0.44	0.2	0.28	0.17	0.28	0	-2.08	-1.34	-2.23	-0.07	0.06
Forecast											0.115	0.1633	0.0733	0.1933	0.025	0.2133	0.27	0.3567	0.335	0.4233	0.43	0.5	0.325	0.285	0.1567	0.1667	0.0167	0.0633	0.0091	0.0033	-0.22	-0.035	-0.1967	-0.0125	-0.0925
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+134.78%	-2.02%	+91.00%	+8.64%	+460.00%	+275.06%	+59.26%	+31.76%	+94.03%	+58.28%	+39.53%	+18.00%	+13.85%	+54.39%	+27.63%	+67.97%	+917.96%	+342.34%	-100.00%	-63130.30%	-509.09%	-6271.43%	+64.41%	+580.00%	0.00%

RGP

RGP fundamentals

RGP Q3 2026 Earnings Preview

Earnings Call

You can ask Aime

RGP

RGP fundamentals

RGP Q3 2026 Earnings Preview

Earnings Call

RGP Earnings Call Summary for Q3/2026Upcoming5:00 PM on Apr 8, 2026

RGP Earnings Call Summary for Q2/20265:00 PM on Jan 7, 2026

RGP Earnings Call Summary for Q1/20265:00 PM on Oct 8, 2025

RGP Earnings Call Summary for Q4/20255:00 PM on Jul 24, 2025

RGP Earnings Call Summary for Q3/20255:00 PM on Apr 2, 2025

You can ask Aime