Press Release FeedGet the RSS feed
Menu

Business Wire

Resources Connection Reports Financial Results for First Quarter Fiscal Year 2027

Business Wire

DALLAS, October 07, 2026--Resources Connection, Inc. (Nasdaq: RGP) (the "Company"), a professional services firm, today announced its financial results for its first quarter of fiscal 2027 ended August 29, 2026.

First Quarter Fiscal 2027 Highlights Compared to Prior Year Quarter:

  • Revenue of $98.1 million compared to $120.2 million

  • Gross margin of 37.4% compared to 39.5%

  • Selling, General and Administrative ("SG&A") expenses improved to $43.1 million compared to $47.9 million

  • Adjusted SG&A expenses, a non-GAAP measure, improved to $40.3 million compared to $44.5 million

  • Net loss of $8.0 million (net loss margin of 8.1%) compared to net loss of $2.4 million (net loss margin of 2.0%)

  • Diluted loss per common share of $0.23 compared to $0.07

  • Adjusted EBITDA, a non-GAAP measure, of $(3.6) million (Adjusted EBITDA margin of (3.7%)) compared to $3.1 million (Adjusted EBITDA margin of 2.5%)

Management Commentary

"Our first-quarter results were within the revenue and gross margin ranges we communicated in July, with adjusted SG&A expense better than our outlook," said Roger Carlile, President and Chief Executive Officer of RGP. "However, our revenue and profitability remained below our potential, driven primarily by lower project volume and utilization in Consulting and ongoing caution in client decision-making. We are addressing this with urgency by continuing to strengthen sales execution, improving Consulting project staffing and related utilization, and ongoing efforts to reduce our cost structure. At the same time, we are seeing positive indicators in the business, including the benefit from disciplined pricing in On-Demand Talent, opportunities in our pipeline, and strong performance within several strategic client relationships."

"We remain confident in the long-term demand for RGP's integrated model, which combines on-demand talent, consulting, and managed services to help clients move from strategy to execution. Our focus is on translating that differentiated model into more consistent revenue growth, improved utilization, and stronger profitability. While these efforts will take time to be fully reflected in our results, we are committed to disciplined execution and to building sustainable long-term value."

First Quarter Fiscal 2027 Results

Revenue in the first quarter of fiscal 2027 was $98.1 million compared to $120.2 million in the first quarter of fiscal 2026. On a same-day constant currency basis, revenue was down 18.4% compared to the prior year quarter. Billable hours decreased 13.2% year-over-year and the average bill rate for the first quarter of fiscal 2027 decreased 5.8% year over year, or 5.6% on a constant currency basis. The decline in billable hours reflects longer client decision-making timelines, delayed project starts, and lower project volume in Consulting, together with On-Demand Talent demand that remained below prior year levels but continued to show signs of stabilization. The average bill rate reflects a continued shift in the geographic revenue mix towards regions with lower bill rates and the May 2026 sale of Sitrick Group, LLC ("Sitrick").

  1. HealthcareAIDS Healthcare FoundationAHF Commemorates 40 Years of Global Impact During Annual World AIDS Day Concert Celebration Featuring Ricky MartinLOS ANGELES, October 16, 2026--AIDS Healthcare Foundation (AHF) , the world's largest, non-profit public health organization providing direct HIV/ADS services to over 3.3 million clients across the globe, will celebrate 40 years of impact during its annual World AIDS Day concert commemoration. Continu
  2. Real estateKBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2026-6 (AOMT 2026-6)NEW YORK, October 16, 2026--KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2026-6 (AOMT 2026-6), a $250.6 million non-prime RMBS transaction. The underlying collateral, comprised of 381 residential mortgages, and includes a meaningful conce
  3. FinanceUL SolutionsUL Solutions Warns of GFCI and Duplex Wall Outlets Modified by Third Parties to Include Built-in CamerasAfter manufacturing, third parties added built-in cameras to the wall outlets; UL Solutions did not evaluate the modified products and recommends that they be immediately removed from service and discarded. NORTHBROOK, Ill., October 16, 2026--UL Solutions (NYSE: ULS), a global leader in applied safety
  4. Port Houston Regular Commission Meetingto Be Held on Wednesday, October 21, 2026 HOUSTON, October 16, 2026--The Port Commission of the Port of Houston Authority will hold its Regular Monthly Meeting on Wednesday, October 21, 2026, beginning at 9:15 a.m. in the boardroom of the Port Houston Authority Administrative Building, located at 2960
  5. KBRA Assigns Rating to $500 Million Senior Unsecured Notes Issued by Cantor Fitzgerald, L.P.NEW YORK, October 16, 2026--KBRA assigns a rating of BBB with a Stable Outlook to the $500 million senior unsecured notes issued by Cantor Fitzgerald, L.P. ("Cantor", "CFLP", or "the firm") with a final maturity date of October 15, 2029. The proceeds will be used to refinance existing senior unsecured
  6. Berkley OneBerkley One Launches Expanded Product Portfolio in WashingtonMORRISTOWN, N.J., October 16, 2026--Berkley One (a Berkley Company), an insurance provider for modern, sophisticated individuals and families, today announced the expansion of its product portfolio in Washington State. The launch introduces non-admitted homeowners coverage alongside admitted Collectibl