Resources Connection (RGP) reported QQ1 2026 revenue of $120.23 million with a gross margin of approximately 38.2% and a GAAP net loss of $2.41 million ($0.07 per share). The quarter reflected ongoing restructuring and investments to widen the company’s addressable market through its diversified platform—combining on-demand talent, consulting and outsourced services (Countsy). Management highlighted progress across Europe and Asia Pac, Japan and India, and a stabilizing On-Demand business, while Consulting saw higher bill rates on new work and an improving pipeline in CFO advisory and digital transformation. Despite near-term top-line headwinds, the company projects sequential stability into Q2 with a revenue guide of $115–$120 million and gross margin in the 38–39% band, alongside SG&A discipline and prior-stage cost-reduction initiatives.
The strategic refresh centers on higher-value engagements, AI-enabled delivery, and cross-sell opportunities, underpinned by leadership changes (e.g., CFO Advisory leadership) and a Board refresh aimed at sharpening cost discipline and operating performance. Balance sheet remains robust with approximately $77.5 million in cash and zero debt, enabling ongoing capital allocation to dividends and buybacks. The near-term outlook remains contingent on macro visibility and demand conversion cycles, but management communicates a path toward restoring double-digit profitability as the transformation gains traction and the pipeline matures.