Resources Connection, Inc. (RGP) Earnings Call Transcripts

Resources Connection, Inc.'s Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Resources Connection, Inc. (RGP) reported consolidated revenue of $107.9 million, reflecting a 19.6% decline year-over-year. The adjusted EBITDA was negative $1.4 million, indicating ongoing challenges in revenue generation despite management's confidence in future growth. Guidance for the fourth quarter anticipates revenue between $104 million and $109 million, signaling a potential continuation of revenue decline. Management emphasized strategic investments in leadership and operational simplification as key drivers for future growth.

Reported metrics

Guidance from management

Management expects fourth quarter revenue in the range of $104 million to $109 million, with gross margin projected between 36.5% and 37.5%. This guidance indicates ongoing revenue challenges as the company continues to implement strategic changes.

What management said

Yes. Joe, this is Jenn. Yes, I mean, as you know, we've been working on taking out costs and also been reassessing strategic priorities, and we started reinvesting into the business. So given all the moving pieces, we're still assessing just impact holistically, including where we are from a liquidity standpoint. But yes, I mean, no doubt, we think our shares are very attractive, and we'll look to begin executing on ...

Yes. I mean I would say, yes, we are nearing the stability level for SG&A. As you know, I mean, we are going -- we started reinvesting this quarter in Q3. So over the next couple of quarters, you'll see the full impact of those reinvestments come in. But offsetting that, we will also be realizing the benefits from the cost actions that we've taken. So those 2 things will have some offset. But timing-wise, it's not go...

What analysts pressed on

Analysts expressed concerns regarding the lack of revenue growth and the impact of AI on traditional roles. Questions were raised about the timing of revenue recovery and the effectiveness of recent leadership hires in driving growth.

Main topics on the call

• Strategic Leadership Changes — RGP has appointed Jessica Block as Chief Artificial Intelligence Officer and Prashant Lamba as Chief Information Officer, aiming to enhance AI capabilities and operational efficiency. CEO Roger Carlile stated, "I have pe...
• Revenue Stabilization Efforts — Management noted signs of stabilization in the On-Demand Talent segment, with a moderating year-over-year decline. CFO Jenn Ryu mentioned, "We saw an uptick in the volume of closed contracts during the quarter," indicati...
• Cost Structure Alignment — RGP is actively reducing its cost structure to align with current revenue levels, expecting total annualized savings of approximately $12 million to $14 million. This includes a 10% reduction in SG&A expenses year-over-y...
• Consulting Segment Challenges — The Consulting segment experienced a 32.5% year-over-year revenue decline, with longer sales cycles impacting top-line results. Despite this, management expects integration efforts to improve utilization and conversion r...

Read the full Resources Connection, Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 28 Resources Connection, Inc. earnings call transcripts on record, spanning January 2, 2020 to July 22, 2026. Based on this history, Resources Connection, Inc. reports quarterly. The most recent call on file is dated July 22, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

RGP

Exchange

NasdaqGS

Country

US

Sector

Industrials

Industry

Professional Services

Calls on record

28

First call

January 2, 2020

Most recent

July 22, 2026

Reporting cadence

quarterly