Resources Connection Inc. ( (RGP) ) has released its Q3 earnings. Here is a breakdown of the information Resources Connection Inc. presented to its investors.
Resources Connection Inc., a professional services firm, specializes in providing on-demand talent, consulting, and outsourced services across various industries globally. The company is known for its flexible and agile approach to addressing operational needs and change initiatives.
In its third quarter fiscal 2025 earnings report, Resources Connection Inc. reported a revenue decline of 14.5% compared to the same period last year, with revenue totaling $129.4 million. The company faced a net loss of $44.1 million, largely due to a significant non-cash goodwill impairment charge.
Key financial metrics revealed a decrease in gross margin to 35.1% from 37.0% in the previous year, and a drop in adjusted EBITDA to $1.7 million from $10.8 million. The On-Demand Talent segment saw a substantial revenue decline of 26.6%, while the Consulting segment experienced a smaller decrease of 5.8%. Despite these challenges, the company maintained its cash dividend at $0.14 per share.
The company highlighted its efforts to improve pricing strategies and enhance operational efficiencies, despite a challenging demand environment. Management noted improvements in deal size and win ratios, and emphasized a focus on higher-value consulting projects and strategic diversification.
Looking ahead, Resources Connection Inc. remains committed to its diversification strategy and aims to leverage strong client relationships to explore new opportunities, despite uncertainties in the macroeconomic environment.