olivLaw · US equity research
Resources Connection, Inc. RGP
Services-Business Services, NEC · SIC 7389 · Vertical: Services-Business Services, NEC (SIC 7389)
Resources Connection (RGP) is a global professional services firm based in Dallas that supplies on-demand talent, consulting and outsourced services to CFOs and other C-suite leaders. Revenue in the first quarter of fiscal 2027 fell to 98.1 million USD from 120.2 million USD as clients delayed decisions, which makes the pace of its cost-reduction and restructuring program worth following.
At the close of 04 Nov 2026, Resources Connection, Inc. (RGP) stock was 2.70 USD (+2.27% on the day), with market capitalisation 93.7 m USD, dividend yield 10.37%, beta 1.12, 52-week range 2.43–5.28 USD. Latest reported quarter (Q1 2027): revenue of 98.1 m USD (−18.4% YoY), net income of -8.0 m USD, diluted EPS -0.23 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 38.3
- weak (30–45)
- Bollinger (20, 2)
- 2.42 – 2.94
- in the upper half of the band · %B 0.55 · band width 19.5%
- SMA 50 / 200
- 3.46 / 3.99
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.23 / -0.28
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −27.8% | −1.1% | −26.7 pp | — |
| 3 months | −39.3% | −0.5% | −38.9 pp | — |
| 6 months | −37.8% | +4.4% | −42.2 pp | — |
| Year to date | −46.4% | +12.3% | −58.7 pp | — |
| 1 year | −40.7% | +13.5% | −54.2 pp | +0.9% |
| 3 years | −80.6% | +76.4% | −157.0 pp | +5.5% |
| 5 years | −85.5% | +63.7% | −149.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 29 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 145.6 m | 129.4 m | 139.3 m | 120.2 m | 117.7 m | 107.9 m | 106.1 m | 98.1 m |
| Cost of revenue | 89.5 m | 84.1 m | 83.4 m | 72.8 m | 74.0 m | 69.4 m | 66.2 m | 61.4 m |
| Gross profit | 56.1 m | 45.4 m | 56.0 m | 47.5 m | 43.7 m | 38.6 m | 39.9 m | 36.7 m |
| SG&A | 51.3 m | 51.2 m | 50.6 m | 47.9 m | 54.4 m | 45.8 m | 54.6 m | 43.1 m |
| Operating income | -76.7 m | -49.7 m | -65.5 m | -2.0 m | -12.2 m | -8.3 m | -15.8 m | -7.3 m |
| Depreciation & amortisation | 2.0 m ≈ | 2.5 m ≈ | 1.2 m | 1.5 m | 1.5 m ≈ | 1.1 m ≈ | 1.1 m | 897.0 k |
| Pre-tax income | -76.4 m | -49.6 m | -65.3 m | -1.9 m | -11.9 m | -8.8 m | -15.5 m | -7.5 m |
| Income tax | -7.7 m | -5.6 m | 8.0 m | 477.0 k | 714.0 k | 696.0 k | 571.0 k | 442.0 k |
| Net income | -68.7 m | -44.1 m | -73.3 m | -2.4 m | -12.7 m | -9.5 m | -16.1 m | -8.0 m |
| Diluted EPS | -2.08 | -1.34 | -2.23 ≈ | -0.07 | -0.38 | -0.28 | -0.47 ≈ | -0.23 |
| Operating cash flow | 1.8 m ≈ | 659.0 k ≈ | 16.8 m | -7.8 m | 15.9 m ≈ | -8.7 m ≈ | 2.1 m | -18.9 m |
| Capex | 1.7 m ≈ | 421.0 k ≈ | 286.0 k | 121.0 k | 321.0 k ≈ | 101.0 k ≈ | 265.0 k | 294.0 k |
| Dividends paid | 4.7 m ≈ | 4.6 m ≈ | 4.6 m | 2.3 m | 2.3 m ≈ | 2.4 m ≈ | 2.4 m | 2.4 m |
| Share repurchases | 5.0 m ≈ | 3.0 m ≈ | -15.0 k | 0 | 0 ≈ | 0 ≈ | 0 | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 729.0 m | 703.4 m | 629.5 m | 805.0 m | 775.6 m | 632.8 m | 551.3 m | 452.0 m |
| Revenue YoY | +11.4% | −3.5% | −10.5% | +27.9% | −3.6% | −18.4% | −12.9% | −18.0% |
| Net income | 31.5 m | 28.3 m | 25.2 m | 67.2 m | 54.4 m | 21.0 m | -191.8 m | -40.6 m |
| Net income YoY | +67.2% | −10.1% | −10.8% | +166.3% | −19.1% | −61.3% | −1,011.8% | unavailable |
| Diluted EPS | 0.98 | 0.88 | 0.78 | 2.00 | 1.59 | 0.62 | -5.80 | -1.21 |
| Diluted EPS YoY | +63.3% | −10.2% | −11.4% | +156.4% | −20.5% | −61.0% | −1,035.5% | unavailable |
| net % | 4.3% | 4.0% | 4.0% | 8.3% | 7.0% | 3.3% | -34.8% | -9.0% |
| Free cash flow | 36.7 m | 47.2 m | 36.1 m | 46.5 m | 79.6 m | 20.8 m | 16.2 m | 619.0 k |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 May 2026
- Cash
- 82.4 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 169.8 m USD
- Total assets
- 257.4 m USD
- Debt / equity
- unavailable
- Current ratio
- 2.51x
- ROE
- -21.5%
- ROA
- -14.4%
- FCF margin
- 0.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 629.5 m | 805.0 m | 775.6 m | 632.8 m | 551.3 m | 452.0 m | SEC (XBRL)· 24 Jul 2026verified |
| Cost of revenue | 388.1 m | 488.4 m | 462.5 m | 386.7 m | 343.9 m | 282.3 m | SEC (XBRL)· 24 Jul 2026verified |
| Gross profit | 241.4 m | 316.6 m | 313.1 m | 246.1 m | 207.4 m | 169.7 m | SEC (XBRL)· 24 Jul 2026verified |
| SG&A | 209.3 m | 224.7 m | 228.8 m | 208.9 m | 202.0 m | 202.8 m | SEC (XBRL)· 24 Jul 2026verified |
| Operating income | 23.0 m | 83.4 m | 72.8 m | 28.8 m | -196.8 m | -38.3 m | SEC (XBRL)· 24 Jul 2026verified |
| Depreciation & amortisation | 9.1 m | 8.5 m | 8.6 m | 8.4 m | 7.7 m | 5.2 m | SEC (XBRL)· 24 Jul 2026verified |
| EBITDA | 32.1 m ≈ | 91.9 m ≈ | 81.3 m ≈ | 37.2 m ≈ | -189.0 m ≈ | -33.1 m ≈ | SEC (XBRL)· 24 Jul 2026derived |
| Interest expense | 1.6 m | 1.1 m | 552.0 k | -1.1 m | — | — | SEC (XBRL)· 22 Jul 2024verified |
| Pre-tax income | 22.7 m | 83.0 m | 72.6 m | 29.8 m | -196.1 m | -38.1 m | SEC (XBRL)· 24 Jul 2026verified |
| Income tax | -2.5 m | 15.8 m | 18.3 m | 8.8 m | -4.3 m | 2.5 m | SEC (XBRL)· 24 Jul 2026verified |
| Net income | 25.2 m | 67.2 m | 54.4 m | 21.0 m | -191.8 m | -40.6 m | SEC (XBRL)· 24 Jul 2026verified |
| Diluted EPS | 0.78 | 2.00 | 1.59 | 0.62 | -5.80 | -1.21 | SEC (XBRL)· 24 Jul 2026verified |
| Weighted average diluted shares | 32.6 m | 33.6 m | 34.2 m | 33.9 m | 33.1 m | 33.6 m | SEC (XBRL)· 24 Jul 2026verified |
| Dividend per share | 0.56 | 0.56 | 0.56 | 0.56 | 0.49 | 0.28 | SEC (XBRL)· 24 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 74.4 m | 104.2 m | 116.8 m | 108.9 m | 86.1 m | 82.4 m | SEC (XBRL)· 24 Jul 2026verified |
| Receivables | 116.5 m | 153.2 m | 137.4 m | 108.5 m | 99.2 m | 71.9 m | SEC (XBRL)· 24 Jul 2026verified |
| Current assets | 235.3 m | 308.5 m | 264.1 m | 240.8 m | 203.7 m | 169.6 m | SEC (XBRL)· 24 Jul 2026verified |
| Property, plant & equipment, net | 20.5 m | 17.7 m | 15.4 m | 3.8 m | 4.4 m | 3.4 m | SEC (XBRL)· 24 Jul 2026verified |
| Goodwill | 216.8 m | 209.8 m | 206.7 m | 216.6 m | 28.8 m | 28.8 m | SEC (XBRL)· 24 Jul 2026verified |
| Intangibles (excl. goodwill) | 20.2 m | 15.8 m | 11.5 m | 9.6 m | 19.0 m | 15.2 m | SEC (XBRL)· 24 Jul 2026verified |
| Total assets | 520.6 m | 581.5 m | 532.0 m | 510.9 m | 304.7 m | 257.4 m | SEC (XBRL)· 24 Jul 2026verified |
| Accounts payable | 16.0 m | 13.6 m | 14.5 m | 15.2 m | 13.9 m | 12.0 m | SEC (XBRL)· 24 Jul 2026verified |
| Long-term debt | 43.0 m | 54.0 m | 0 | 0 | 0 | — | SEC (XBRL)· 28 Jul 2025verified |
| Current liabilities | 100.9 m | 124.3 m | 97.1 m | 72.4 m | 75.4 m | 67.5 m | SEC (XBRL)· 24 Jul 2026verified |
| Total liabilities | 191.1 m | 209.0 m | 117.5 m | 92.2 m | 97.6 m | 87.6 m | SEC (XBRL)· 24 Jul 2026verified |
| Equity | 329.5 m † | 372.4 m † | 414.5 m † | 418.8 m † | 207.1 m † | 169.8 m † | SEC (XBRL)· 24 Jul 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 39.9 m | 49.4 m | 81.6 m | 21.9 m | 18.9 m | 1.4 m | SEC (XBRL)· 24 Jul 2026verified |
| Capex | 3.8 m | 3.0 m | 2.0 m | 1.1 m | 2.7 m | 808.0 k | SEC (XBRL)· 24 Jul 2026verified |
| Free cash flow | 36.1 m ≈ | 46.5 m ≈ | 79.6 m ≈ | 20.8 m ≈ | 16.2 m ≈ | 619.0 k ≈ | SEC (XBRL)· 24 Jul 2026derived |
| Investing cash flow | -3.8 m | -3.0 m | 3.9 m | -8.6 m | -13.6 m | 1.1 m | SEC (XBRL)· 24 Jul 2026verified |
| Financing cash flow | -59.5 m | -13.4 m | -71.9 m | -20.7 m | -27.7 m | -7.5 m | SEC (XBRL)· 24 Jul 2026verified |
| Dividends paid | 18.2 m | 18.6 m | 18.8 m | 18.8 m | 18.6 m | 9.4 m | SEC (XBRL)· 24 Jul 2026verified |
| Share repurchases | — | 19.7 m | 15.2 m | 8.0 m | 13.0 m | 0 | SEC (XBRL)· 24 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 93.7 m USD
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.68 – 4.95 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)3.68 – 4.95 (Mid 4.22)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -10.7% | 13 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -16.5% | 0 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.9x | 100 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -11.3% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | 10.1% | 100 (on a fixed band) | 19% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality· partial13/100 · 1/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RESOURCES CONNECTION, INC. (RGP). Latest full fiscal year: 2026; data up to 2026-08-29.
Figures computed from the financial statements: revenue 452.0 m USD in 2026; YoY growth -18.0%; net margin -10.7%; ROE -25.1%.
The estimated value range is 3.68–4.95 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 4.22 USD, the price of 2.70 USD leaves a potential of 56.3% (value / price − 1) and a margin of safety of 36.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.9x
- Shareholder yield (distributions): 10.1%
- The price is below the estimated value range
What contradicts it
- Net margin: -10.7%
- Revenue CAGR 3Y: -16.5%
- FCF yield: -11.3%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Services-Business Services, NEC (SIC 7389) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| UBERUber Technologies, Inc. | 142.7 bn | 41.3 | 12.4% | 6.1% | +18.3% | −20% / +24% |
| MELIMercadoLibre, Inc. | 88.2 bn | 47.3 | 27.5% | 5.3% | +39.1% | −16% / +7% |
| EBAYeBay Inc. | 54.9 bn | 27.2 | 46.6% | 16.9% | +7.9% | +51% / +205% |
| PYPLPayPal Holdings, Inc. | 50.0 bn | 11.5 | 23.8% | 13.8% | +4.3% | −4% / +4% |
| MSCIMsci Inc. | 48.2 bn | 35.7 | — | 40.3% | +9.7% | +20% / +29% |
| FISVFiserv, Inc. | 33.0 bn | — | -17.0% | -18.9% | +3.6% | +1% / −52% |
| CPAYCorpay, Inc | 27.5 bn | 25.4 | 30.5% | 22.7% | +13.9% | +42% / +74% |
| GPNGlobal Payments Inc. | 25.4 bn | — | -4.1% | -9.1% | −0.4% | +27% / −17% |
| BRBroadridge Financial Solutions, Inc. | 21.4 bn | 20.9 | 40.2% | 13.9% | +8.5% | −17% / −2% |
| RBARB Global, Inc | 17.6 bn | 39.9 | 8.8% | 10.0% | +7.2% | −3% / +49% |
| FISFidelity National Information Services, Inc. | 15.3 bn | 4.4 | 23.0% | 26.8% | +5.4% | −55% / −49% |
| FICOFair Isaac Corp | 15.1 bn | 20.3 | — | 34.1% | +15.9% | −61% / −36% |
| AKAMAkamai Technologies, Inc | 12.3 bn | 30.9 | 8.9% | 9.5% | +5.4% | −4% / −26% |
| ETSYEtsy, Inc | 8.3 bn | 11.4 | — | 32.8% | +2.7% | +77% / +27% |
| RELYRemitly Global, Inc. | 5.8 bn | 16.4 | 35.9% | 19.1% | +29.4% | +100% / +26% |
| SEZLSezzle Inc. | 4.6 bn | 30.0 | 88.9% | 30.4% | +66.1% | +121% / +8,110% |
| TICTIC Solutions, Inc. | 2.3 bn | — | -7.1% | -5.6% | unavailable | +10% / unavailable |
| ACVACopart Inc | 1.8 bn | — | -15.1% | -7.9% | +19.2% | +16% / −21% |
| LQDTLiquidity Services, Inc | 1.5 bn | 45.8 | 15.0% | 6.8% | +31.2% | +56% / +144% |
| QNSTQuinStreet, Inc. | 1.1 bn | 13.8 | 28.6% | 6.3% | +18.3% | +38% / +54% |
| CTEVClaritev Corporation | 367.3 m | — | — | -28.5% | +3.7% | −60% / −58% |
| FVRRFiverr International Ltd. | 314.4 m | 15.6 | 5.4% | 4.9% | +10.1% | −58% / −67% |
| POWWOutdoor Holding Company | 278.4 m | 70.8 | 2.8% | 12.1% | +3.5% | +30% / +18% |
| ZHZhihu Inc. | 159.4 m | — | -5.0% | -7.1% | −20.3% | −27% / −38% |
| RGPResources Connection, Inc. | 93.7 m | — | -25.1% | -10.7% | −18.0% | −41% / −81% |
1- and 3-year price returns: for RGP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Resources Connection (RGP) is a global professional services firm based in Dallas that supplies on-demand talent, consulting and outsourced services to CFOs and other C-suite leaders. Revenue in the first quarter of fiscal 2027 fell to 98.1 million USD from 120.2 million USD as clients delayed decisions, which makes the pace of its cost-reduction and restructuring program worth following.
SWOT
Strengths
- Strong client relationships, shown by a high retention rate among the largest clients over five years 1.
- An integrated model combining on-demand talent, consulting and outsourced services.
- Global presence and more than three decades of experience in professional services.
Weaknesses
- Revenue and profitability fell in the first quarter of fiscal 2027 and the net loss widened 3.
- Consulting project volume is low and consultant utilisation is weak.
- Restructuring costs and workforce reductions could weigh on morale and continuity.
Opportunities
- Demand for digital transformation, data and AI could open new consulting projects.
- Cross-selling to existing clients could raise the value of those relationships.
- Targeted acquisitions in areas such as M&A or data analytics could complete the offering.
Threats
- A recession or economic uncertainty could cut client project budgets.
- Rivals with larger resources and advanced AI could offer more competitive prices.
- Large clients moving procurement in-house could reduce RGP's bargaining power.
Risks
- Consulting demandhigh
Clients are postponing decisions, and low project volume could weigh on revenue and consultant utilisation.
- Pricing pressuremedium
Geographic mix and competition could reduce average bill rates and gross margin.
- Absence of long-term contractsmedium
Clients may end engagements at any time, which makes revenue more volatile.
- Talent retentionmedium
Without non-compete agreements, key consultants or managers could leave for competitors.
- Wage costs and restructuringlow
Rising wages or restructuring costs could reduce profitability if they cannot be passed on to clients.
Investment thesis
What would need to be true (bull case)
- If demand for flexible talent and transformation stabilises, the integrated model could return to steadier revenue growth.
- Pricing discipline in On-Demand Talent and cost reduction could improve operating margins in coming quarters.
- Strategic relationships with large clients could produce bigger and more valuable projects.
What would break the thesis
- If clients keep postponing projects, Consulting revenue could stay below earlier levels.
- Competitive pressure and AI could limit the company's ability to hold its rates.
- Recent net losses and restructuring spending could reduce financial flexibility if demand does not recover.
What to watch
- Billable hours and revenue trend in ConsultingQ2 2027
- Stability of the average bill rate in On-Demand TalentQ2 2027
- Completion of the transformation program and its cost effectsfirst half of 2027
- Cash position and use of the credit facilitynext 10-Q
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The model replaces permanent hires with project-based specialists, emphasising flexibility, lower hiring costs and access to scarce expertise. Growth priorities include deeper relationships with existing clients through strategic accounts, capabilities in digital, AI and data, and targeted acquisitions such as Reference Point, now part of Consulting 1. The Sitrick crisis communications unit was sold on May 2, 2026 1.
Roger Carlile became President and CEO in November 2025, and the 2026 Transformation Initiative included two workforce reductions in management and administrative roles 1. The company expects its transformation efforts to be substantially complete in the first half of fiscal 2027 1.
Segments
On-Demand Talent
This segment supplies experts on an as-needed basis, mainly serving the office of the CFO. Revenue in the first quarter of fiscal 2027 was 38.6 million USD, down 13.2%, as billable hours fell while the average bill rate rose 3.
Consulting
Consulting covers transformation across finance, technology, risk and operational performance. Q1 fiscal 2027 revenue was 32.4 million USD, down 25.8%, as clients stayed cautious about new projects and the company invested in leadership and business development 3.
Europe & Asia Pacific
This geographic segment offers on-demand and consulting services across Europe and Asia Pacific. Revenue was 17.1 million USD in Q1 fiscal 2027, with the decline driven mainly by a lower average bill rate from a shift toward lower-cost Asia Pacific markets 3.
Market context
The company describes a lasting shift in which organisations meet workforce needs through projects and initiatives rather than permanent positions. This could support long-term demand for RGP's model, while near-term demand is held back by economic uncertainty and slower client decisions 13.
The professional services market is fragmented and competition is rising, with relatively few barriers to entry and technology such as AI lowering costs for rivals. The absence of long-term client contracts makes revenue more sensitive to economic cycles 1.
Trends
- Shift from permanent hiring to project worktailwind
Organisations increasingly use flexible talent for transformation, which supports RGP's model over the long term.
- Client caution on decisionsheadwind
Clients are delaying projects, leading to fewer billable hours in Consulting and delayed project starts.
- Artificial intelligencemixed
AI could open consulting work in data and automation, but it could also reduce demand for some external expert roles.
- Pricing and geographic mix pressureheadwind
Average bill rates are falling as revenue shifts to lower-cost regions, although pricing discipline in On-Demand Talent could partly offset this.
Competitive position
Competition comes from consulting firms, traditional accounting firms, independent contractors, staffing firms and clients' in-house resources. Many rivals have larger financial resources and advanced technology, including AI, which could let them offer price concessions 1.
Some competitors do not provide medical insurance to their consultants, which could allow lower rates to clients. RGP may differentiate through its integrated model and strategic client relationships, but pricing pressure remains a risk 1.
- Traditional accounting and consulting firms
Competitors in financial consulting that can offer larger resources and stronger name recognition.
- Management consulting firms
Direct competitors for transformation and consulting projects.
- Traditional and internet-based staffing firms
Competitors in temporary talent that may offer lower cost to clients.
- Independent consultants
Individual alternative that may be cheaper but offers less delivery capacity.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report27 Oct 2026Departure or appointment of officers · Shareholder vote · Other events · Financial statements and exhibits
- Quarterly report07 Oct 2026
- Current report07 Oct 2026Results of operations · Financial statements and exhibits
- Current report21 Sept 2026Departure or appointment of officers
- Proxy statement10 Sept 2026
- Current report03 Sept 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report11 Aug 2026Other events · Financial statements and exhibits
- Annual report24 Jul 2026
- Current report22 Jul 2026Results of operations · Financial statements and exhibits
- Current report16 Jul 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-05-30 · SEC / Resources Connection, Inc. · 24 Jul 2026
- [2] Form 10-Q, quarter ended 2026-08-29 · SEC / Resources Connection, Inc. · 07 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Resources Connection, Inc. · 07 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.