Resources Connection (RGP)
NASDAQ:RGP
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Resources Connection
(NASDAQ:RGP)
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Rating:51Neutral
Price Target:
$4.00
▲(1.78% Upside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by deteriorating fundamentals (declining revenue and losses) and weak near-term guidance despite cost-cutting progress. Support comes from a relatively conservative balance sheet/strong liquidity with positive cash generation, plus constructive near-term technical momentum and a high dividend yield.
Positive Factors
Strong liquidity & low leverage
A cash-rich, largely debt-free balance sheet provides durable optionality: it funds ongoing dividends and buybacks, supports selective reinvestment and absorbs restructuring costs. This financial flexibility materially reduces solvency risk while revenue recovers over the medium term.
Negative Factors
Multi-year revenue decline
A persistent multi-year revenue contraction erodes scale advantages and cross-sell opportunities. Loss of scale increases per-unit SG&A and delivery costs, limiting the firm's ability to invest while raising the hurdle for sustainable margin recovery even after cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity & low leverage
A cash-rich, largely debt-free balance sheet provides durable optionality: it funds ongoing dividends and buybacks, supports selective reinvestment and absorbs restructuring costs. This financial flexibility materially reduces solvency risk while revenue recovers over the medium term.
Read all positive factors
Resources Connection (RGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$148.99M
Dividend Yield6.74%
Average Volume (3M)343.92K
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth-13.38%
EPS Growth9.50%
CountryUS
Employees722
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)-2.96
Shares Outstanding34,329,346
10 Day Avg. Volume435,337
30 Day Avg. Volume343,921
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.83
Price to Sales (P/S)0.31
P/FCF Ratio10.66
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.51
Enterprise Value/Ebitda-200.22
Forecast
1Y Price Target
$6.00Price Target Upside52.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)$466.05M
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 integra...
How the Company Makes Money
RGP makes money primarily by billing clients for professional services delivered by its consultants and project teams. The core revenue stream is service fees generated from client engagements, typically structured around time-and-materials (e.g.,...
Resources Connection Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyResources Connection Earnings Call Summary
Earnings Call Date:Apr 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call portrayed a company navigating a challenging top line — consolidated revenue fell ~19.6% YoY and consulting revenue plunged ~32.5% — while taking decisive actions to stabilize margins, reduce costs (targeting $12–$14M annualized savings), strengthen leadership (notably in AI and IT), preserve liquidity ($82.8M cash, no debt) and selectively reinvest to drive future growth. Management expects revenue growth in fiscal 2027 (likely in the latter half) but near‑term guidance remains down ~16% YoY at the top end, with Q4 trends currently below Q3. Overall, meaningful operational progress and balance‑sheet strength offset but do not fully negate significant revenue and profitability pressure in the near term.Positive Updates
Consolidated Revenue and Key Metrics Reported
Consolidated revenue for Q3 was $107.9 million; gross margin improved to 35.7% (up 60 basis points vs. 35.1% a year ago). Enterprise average bill rate was $120 (constant currency).
Negative Updates
Significant Year‑Over‑Year Revenue Decline
Consolidated revenue declined 19.6% on a same‑day constant currency basis versus the prior year quarter, reflecting broad top‑line pressure across segments.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue and Key Metrics Reported
Consolidated revenue for Q3 was $107.9 million; gross margin improved to 35.7% (up 60 basis points vs. 35.1% a year ago). Enterprise average bill rate was $120 (constant currency).
Read all positive updates
Company Guidance
RGP guided fourth‑quarter revenue of $104M–$109M (early weekly trends tracking below Q3; the top of the range implies roughly a 16% y/y organic, same‑day constant‑currency decline), gross margin of 36.5%–37.5% (Q4 has 64 U.S. business days vs. 69 LY and 61 in Q3), run‑rate SG&A of $39M–$41M (Q3 run‑rate SG&A was $39.4M, down 10% vs. $43.7M LY), non‑run‑rate and noncash expenses of $13M–$15M, and expected annualized cost savings of ~$12M–$14M (with some savings to be reinvested); for context Q3 results were $107.9M revenue (down 19.6% same‑day constant currency), 35.7% gross margin (up 60 bps), adjusted EBITDA of negative $1.4M, $82.8M cash and no debt, a $2.3M quarterly dividend (≈7.4% annualized yield), and $79M remaining on the share repurchase authorization.Resources Connection Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 485.23M | 551.33M | 632.80M | 775.64M | 805.02M | 629.52M |
| Gross Profit | 184.66M | 207.42M | 246.07M | 313.14M | 316.64M | 241.40M |
| EBITDA | -473.00K | 10.50M | 41.30M | 84.70M | 91.92M | 33.41M |
| Net Income | -97.84M | -191.78M | 21.03M | 54.36M | 67.17M | 25.23M |
Balance Sheet | ||||||
| Total Assets | 274.11M | 304.69M | 510.91M | 532.00M | 581.47M | 520.64M |
| Cash, Cash Equivalents and Short-Term Investments | 82.76M | 86.15M | 108.89M | 116.78M | 104.22M | 74.39M |
| Total Debt | 24.36M | 25.30M | 13.32M | 17.73M | 75.55M | 73.95M |
| Total Liabilities | 87.43M | 97.61M | 92.15M | 117.48M | 209.02M | 191.10M |
| Stockholders Equity | 186.68M | 207.08M | 418.76M | 414.52M | 372.45M | 329.55M |
Cash Flow | ||||||
| Free Cash Flow | 14.94M | 16.19M | 20.78M | 79.62M | 46.48M | 36.10M |
| Operating Cash Flow | 15.77M | 18.90M | 21.92M | 81.64M | 49.44M | 39.94M |
| Investing Cash Flow | -1.03M | -13.57M | -8.55M | 3.94M | -2.96M | -3.84M |
| Financing Cash Flow | -9.44M | -27.73M | -20.71M | -71.91M | -13.37M | -59.46M |
Resources Connection Technical Analysis
Neutral
3.93
Price Trends
3.74
Positive
4.25
Negative
4.49
Negative
Market Momentum
0.02
Negative
61.72
Neutral
96.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGP, the sentiment is Neutral. The current price of 3.93 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.74, and below the 200-day MA of 4.49, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 96.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGP.
Resources Connection Risk Analysis
Resources Connection disclosed 30 risk factors in its most recent earnings report. Resources Connection reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resources Connection Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.85B | 24.15 | 15.14% | ― | 5.60% | 14.32% | |
72 Outperform | $1.95B | 23.29 | 21.83% | ― | 11.79% | -13.03% | |
65 Neutral | $1.33B | 22.56 | 9.11% | 0.65% | -7.27% | -15.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $253.07M | -18.76 | -4.11% | ― | -8.43% | -115.12% | |
51 Neutral | $148.99M | -3.31 | -49.24% | 6.74% | -13.38% | 9.50% | |
50 Neutral | $116.78M | -1.14 | -80.76% | ― | -8.23% | -2018.47% |
* Industrials Sector Average
RGP
Resources Connection
4.34
-0.96
-18.10%
FORR
Forrester Research
6.09
-4.62
-43.14%
FC
Franklin Covey Company
22.45
1.12
5.25%
FCN
FTI Consulting
160.99
-5.83
-3.49%
HURN
Huron Consulting
120.11
-32.15
-21.12%
ICFI
Icf International
73.58
-13.25
-15.26%
Resources Connection Corporate Events
Dividends
Resources Connection Declares Quarterly Cash Dividend for Shareholders
Positive
Apr 28, 2026
On April 23, 2026, Resources Connection, Inc.’s board approved a quarterly cash dividend of $0.07 per share on its common stock, underscoring a continued commitment to shareholder returns. The dividend will be paid on June 19, 2026, to stock...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Resources Connection Posts Mixed Q3 Results Amid Restructuring
Negative
Apr 8, 2026
On April 7, 2026, Resources Connection agreed to sell 100% of the membership interests of its Sitrick crisis communications unit to Sitrick, LLC for a price tied to realizable client receivables, keeping certain office-lease related assets and lia...
Business Operations and StrategyExecutive/Board Changes
Resources Connection COO Departs Amid Leadership Restructuring Plan
Negative
Mar 4, 2026
On March 3, 2026, Resources Connection, Inc. entered into a Separation and General Release Agreement with Chief Operating Officer Bhadreskumar Patel, setting his last day of employment as May 15, 2026, with salary paid through that date and no pla...
Business Operations and StrategyExecutive/Board Changes
Resources Connection Implements Executive Retention Incentive Agreement
Positive
Feb 9, 2026
On February 6, 2026, Resources Connection, Inc. entered into a retention agreement with executive Jennifer Ryu to reinforce leadership continuity and support the company’s ongoing success. The agreement offers three retention payments of $12...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.