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

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

What is Resources Connection's gross profit margin?

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

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

Did Resources Connection beat or miss consensus estimates last quarter?

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

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

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RGP

RGP fundamentals

You can ask Aime