Resources Connection (RGP) AI Stock Analysis

• Market Cap: $148.08M
• Dividend Yield: 6.74%
• Average Volume (3M): 439.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -10.83%
• EPS Growth: -1669.11%
• Country: US
• Employees: 722
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.06
• Shares Outstanding: 33,502,155
• 10 Day Avg. Volume: 733,741
• 30 Day Avg. Volume: 439,873
• PEG Ratio: <0.01
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 10.66
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.43
• Enterprise Value/Ebitda: -26.68
• 1Y Price Target: $10.00
• Price Target Upside: 122.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $4.50 ▲(0.22% Upside)

The score is held back primarily by deteriorating operating performance (revenue contraction and GAAP losses) and a bearish price trend. Offsetting factors include solid liquidity with low leverage, positive cash flow, and earnings-call progress on cost reduction, while a high dividend yield provides some support despite sustainability risk amid losses.

Positive Factors

Strong liquidity and capital flexibility

A large cash balance and zero debt provide durable financial flexibility to fund restructuring, sustain operations during demand downturns, and invest in strategic initiatives. This cushioning reduces refinancing risk and supports sustained capital allocation choices over the next several quarters.

Positive operating and free cash flow

Consistent positive operating and free cash flow underpins the company's ability to cover near-term losses and fund investments without relying on external financing. Sustained cash generation supports liquidity, dividend/distribution policy, and gradual reinvestment into growth areas.

Cost discipline driving adjusted profitability

Meaningful SG&A reductions and targeted workforce actions have restored adjusted EBITDA despite revenue pressure. Structural cost discipline improves operating leverage, enabling the firm to retain profitability at lower revenue levels and buy time to reposition service mix.

Negative Factors

Substantial consolidated revenue decline

A near-term 18% revenue drop signals persistent demand weakness for core services; prolonged revenue shrinkage erodes scale, utilization and fixed-cost coverage, making margin recovery and sustainable profitability harder without sustained top-line stabilization.

Severe consulting segment deterioration

A sharp, structural decline in consulting—a core, higher-price service—reduces average bill rates and mix quality. Persistent weakness in this segment undermines long-term revenue diversification and makes restoring pre-downturn margins and client pipeline growth more challenging.

Profitability flipped to sizable GAAP losses

A structural swing to GAAP losses indicates that revenue and margin declines have overcome prior profitability buffers. Continued negative earnings pressure equity and restricts reinvestment capacity, increasing execution risk for the turnaround and raising dividend sustainability concerns.

Resources Connection Business Overview & Revenue Model

Company Description

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. It also provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics. The company has a strategic alliance with Kotter International, Inc. to accelerate joint business development initiatives. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

How the Company Makes Money

RGP generates revenue primarily through the provision of consulting services, where the company charges clients on an hourly or project basis. Key revenue streams include fees from interim management roles, project consulting engagements, and advisory services. The company also benefits from long-term relationships with clients, leading to repeat business and referrals. Additionally, RGP has strategic partnerships with various firms and organizations, which can enhance its service offerings and expand its market reach. The emphasis on flexible workforce solutions allows RGP to adapt to changing client needs, contributing to consistent revenue generation.

Resources Connection Financial Statement Overview

Summary

Overall fundamentals are mixed but pressured. The income statement is the key weakness (shrinking revenue and a swing into substantial losses), partly offset by a conservative balance sheet (low leverage) and still-positive operating/free cash flow that supports liquidity.

Income Statement

Operating performance has deteriorated sharply. Revenue has been shrinking (TTM (Trailing-Twelve-Months) down ~5.2% and annual revenue down materially versus 2023), while profitability flipped from positive in 2022–2024 to deeply negative in 2025, with TTM (Trailing-Twelve-Months) showing a sizable net loss and negative operating profitability. A modestly stable gross margin around the high-30% range is a relative bright spot, but it has not prevented significant bottom-line pressure.

Balance Sheet

Leverage appears manageable, with low total debt relative to equity across the period, which provides balance-sheet flexibility. However, equity has stepped down meaningfully from 2023–2024 levels, and returns to shareholders have turned strongly negative in the most recent periods due to losses. Overall, the balance sheet is not overly levered, but declining equity and weak returns are key risks.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive, and TTM (Trailing-Twelve-Months) free cash flow growth is strong. That said, cash flow is not keeping pace with the scale of reported losses (free cash flow covers only part of net losses), and operating cash flow has been far stronger in prior years (notably 2023) than in the latest periods, indicating reduced cash earnings power.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	551.33M	632.80M	775.64M	805.02M	629.52M
Gross Profit	207.42M	246.07M	313.14M	316.64M	241.40M
EBITDA	10.50M	41.30M	84.70M	91.92M	33.41M
Net Income	-191.78M	21.03M	54.36M	67.17M	25.23M
Balance Sheet
Total Assets	304.69M	510.91M	532.00M	581.47M	520.64M
Cash, Cash Equivalents and Short-Term Investments	86.15M	108.89M	116.78M	104.22M	74.39M
Total Debt	25.30M	13.32M	17.73M	75.55M	73.95M
Total Liabilities	97.61M	92.15M	117.48M	209.02M	191.10M
Stockholders Equity	207.08M	418.76M	414.52M	372.45M	329.55M
Cash Flow
Free Cash Flow	16.19M	20.78M	79.62M	46.48M	36.10M
Operating Cash Flow	18.90M	21.92M	81.64M	49.44M	39.94M
Investing Cash Flow	-13.57M	-8.55M	3.94M	-2.96M	-3.84M
Financing Cash Flow	-27.73M	-20.71M	-71.91M	-13.37M	-59.46M

Resources Connection Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGP, the sentiment is Negative. The current price of 4.49 is below the 20-day moving average (MA) of 4.55, below the 50-day MA of 4.85, and below the 200-day MA of 4.92, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGP.

Resources Connection Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCN	76 Outperform	$5.38B	22.15	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$2.85B	27.74	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.67B	16.90	9.88%	0.65%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FC	58 Neutral	$228.51M	-166.78	-2.08%	―	-7.02%	-86.27%
RGP	52 Neutral	$148.08M	-1.10	-61.44%	6.74%	-10.83%	-1669.11%
FORR	42 Neutral	$137.20M	-1.60	-43.39%	―	-8.73%	-1168.15%

Resources Connection Corporate Events

Resources Connection launches cost-cutting plan and dividend

On January 22, 2026, Resources Connection authorized a reduction in its global management and administrative workforce aimed at cutting costs and improving operational efficiency, a move expected to generate annual savings of $6 million to $8 million, with about $3 million in restructuring charges recognized over the third and fourth quarters of fiscal 2026 and the bulk of the workforce reductions completed by the end of that fiscal year. On the same date, the board approved a cash dividend of $0.07 per share on the company’s common stock, payable March 20, 2026 to shareholders of record as of February 20, 2026, underscoring a continued return of capital to investors even as the firm undertakes cost-cutting measures.

The most recent analyst rating on (RGP) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Resources Connection stock, see the RGP Stock Forecast page.

Resources Connection Announces New CEO Appointment

On October 30, 2025, Resources Connection, Inc. announced that its Board of Directors decided not to renew the employment agreement with Kate W. Duchene, the company’s President and CEO, effective November 2, 2025. Roger Carlile, a director of the company and founder of Ankura Consulting Group, will take over as President and CEO starting November 3, 2025. This leadership transition is accompanied by a detailed employment agreement for Mr. Carlile, which includes compensation and equity awards, reflecting the company’s strategic direction and commitment to leadership continuity. Ms. Duchene will remain as an Executive Advisor until January 3, 2026, and continue as a consultant through December 31, 2028, ensuring a smooth transition. This change is poised to impact the company’s operations and market positioning, with potential implications for stakeholders as Mr. Carlile brings extensive experience from his previous roles in global business advisory firms.

The most recent analyst rating on (RGP) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Resources Connection stock, see the RGP Stock Forecast page.