Resources Connection Inc
NASDAQ:RGP
Resources Connection Inc
Resources Connection Inc. engages in the provision of business consulting services. The company is headquartered in Irvine, California and currently employs 3,753 full-time employees. The company went IPO on 2000-12-15. The firm's operating entities primarily provide services under the name Resources Global Professionals (RGP). The company operates through three business segments: RGP, taskforce, and Sitrick. The RGP segment is a business consulting practice, which operates under the RGP brand and focuses on project consulting and professional staffing services in areas, such as finance and accounting, business strategy and transformation, and technology and digital. The taskforce segment is a German professional services firm that operates under the taskforce brand. The company utilizes an independent contractor/partner business model and infrastructure and focuses on providing senior interim management and project management services to middle market clients in the German market. The Sitrick segment is a crisis communications and public relations firm, which operates under the Sitrick brand, providing corporate, financial, transactional and management services.
Resources Connection Inc. engages in the provision of business consulting services. The company is headquartered in Irvine, California and currently employs 3,753 full-time employees. The company went IPO on 2000-12-15. The firm's operating entities primarily provide services under the name Resources Global Professionals (RGP). The company operates through three business segments: RGP, taskforce, and Sitrick. The RGP segment is a business consulting practice, which operates under the RGP brand and focuses on project consulting and professional staffing services in areas, such as finance and accounting, business strategy and transformation, and technology and digital. The taskforce segment is a German professional services firm that operates under the taskforce brand. The company utilizes an independent contractor/partner business model and infrastructure and focuses on providing senior interim management and project management services to middle market clients in the German market. The Sitrick segment is a crisis communications and public relations firm, which operates under the Sitrick brand, providing corporate, financial, transactional and management services.
Revenue Miss: Q2 revenue came in below consensus at $117.7 million, declining 18.4% YoY, impacted by softness in On-Demand and Consulting segments.
EBITDA Beat: Adjusted EBITDA of $4 million exceeded expectations due to disciplined cost control, despite lower revenue.
Cost Actions: Significant cost reductions underway, with a recent 5% reduction in management and administrative headcount expected to yield $6–8 million in annual savings.
Guidance: Q3 revenue outlook is $105–110 million, with gross margin expected between 35% and 36%. SG&A guidance is $40–42 million, plus $6–7 million in non-cash and restructuring costs.
AI Impact: Management noted that AI and automation are reducing demand for lower-level finance roles, but driving new demand for higher-skilled talent and transformation projects.
Segment Performance: Europe and Asia Pac and Outsourced Services segments showed YoY growth and improved margins, partially offsetting softness elsewhere.
Management Transition: New CEO Roger Carlile emphasized strategic focus on aligning costs, refocusing on-demand offerings, and scaling consulting capabilities for long-term growth.
