Resources Connection Inc. ( (RGP) ) has released its Q1 earnings. Here is a breakdown of the information Resources Connection Inc. presented to its investors.
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Resources Connection Inc., a global professional services firm, specializes in providing on-demand talent, consulting, and outsourced services to help organizations navigate change and seize opportunities across various domains including finance, technology, and digital transformation.
In its first quarter of fiscal 2026, Resources Connection Inc. reported financial results that exceeded its outlook ranges, showcasing improvements in profitability despite a decline in revenue. The company highlighted a significant enhancement in gross margin and a reduction in net loss compared to the previous year.
Key financial metrics revealed a decline in revenue to $120.2 million from $136.9 million in the prior year, primarily due to a decrease in billable hours amidst economic uncertainty. However, gross margin improved to 39.5%, and the net loss narrowed to $2.4 million from $5.7 million. The company also reported an adjusted EBITDA of $3.1 million, reflecting a strategic focus on higher-value engagements and cost management.
Segment-wise, the On-Demand Talent and Consulting segments experienced revenue declines, while the Europe & Asia Pacific and Outsourced Services segments saw growth. The company attributed these results to varying demand dynamics and strategic pricing initiatives.
Looking ahead, Resources Connection Inc. remains committed to transforming its business model to enhance integration, diversification, and resilience. The management is optimistic about the future, focusing on expanding consulting capabilities and optimizing cost structures to deliver improved shareholder returns.