10-K · July 24, 2026
RGP's FY2026 filing shows a business still in a steep demand downturn: revenue fell 18.0% to $452.006 million, led by a 27.1% Consulting decline and an 18.1% On-Demand Talent decline. Management is repositioning around…
Earnings analysis · 10-Q
RGP earnings analysis
Filed October 7, 2026 · Our reading of the company's report
The latest report
RGP reported $98.086 million of revenue and a diluted EPS loss of $0.16 for the quarter, with revenue down approximately 7.5% sequentially and Consulting revenue down 25.8% year over year. Liquidity remains solid, with…
Read full summary
RGP reported $98.086 million of revenue and a diluted EPS loss of $0.16 for the quarter, with revenue down approximately 7.5% sequentially and Consulting revenue down 25.8% year over year. Liquidity remains solid, with $61.2 million of cash and no credit-facility borrowings, but demand weakness and a 37.4% gross margin indicate continued operating pressure. The unresolved IT general-controls material weakness is a significant governance risk, although management expects remediation activities to be completed as early as practicable in fiscal 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.16
- Gross margin
- 37.4%
- Segment
- Consulting revenue declined 25.8% year over year; no absolute segment revenue was provided in the available filing text.
What stood out
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Revenue declined sequentially
Revenue was $98.086 million, down from $106 million in the immediately preceding quarter, a decline of approximately 7.5%.
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Margins remain pressured
Gross margin was 37.4%, broadly below the prior-quarter 37.6% level and materially below the 40.2% level reported two quarters earlier.
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Per-share loss improved
Diluted EPS was a loss of $0.16, an improvement from the prior-quarter loss of $0.47.
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Strong liquidity and no debt
The company had $61.2 million of cash and cash equivalents as of August 29, 2026, with no borrowings under the 2026 Credit Facility.
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International revenue exposure increased
International operations generated approximately 21.0% of revenue in the quarter, versus 20.5% in the year-earlier quarter.
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Control remediation is underway
Management expects to complete remediation activities for the control weakness as early as practicable in fiscal 2027.
What to watch
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Material weakness remains unresolved
Disclosure controls were not effective as of August 29, 2026 because of a material weakness in IT general controls, including user-access and program-change-management controls. The weakness had not been remediated as of that date.
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Foreign-currency exposure
Approximately 21.0% of quarterly revenue was generated outside the U.S., while approximately 41.8% of cash balances were denominated in non-U.S. currencies. The company does not currently use financial hedges for foreign-currency exposure.
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No formal risk-factor update
The 10-Q states that there were no material changes to the risk factors in the Fiscal Year 2026 Form 10-K filed July 24, 2026; however, the filing continues to identify exposure to variable-rate borrowings under the 2026 Credit Facility, despite having no borrowings outstanding as of August 29, 2026.
Management's outlook
No numerical forward guidance was provided in the 10-Q. Management indicated results were within the revenue and gross-margin ranges communicated in July; the 10-Q does not provide numeric ranges.
Earlier filings 4
10-Q · April 9, 2026
Resources Connection reported Q3 revenue of $107,930,000 and gross profit of $38,579,000. Operating loss narrowed to $(8,344,000) and diluted net loss per share improved to $(0.28) versus the prior-year quarter, but…
10-Q · January 8, 2026
Resources Connection reported revenue of $117,732,000 and a GAAP net loss of $12,661,000 (loss per share $0.38) for the quarter ended November 29, 2025. Revenue declined vs. the prior-year quarter ($145,618,000) but…
10-K · July 28, 2025
RGP presents a strategy focused on flexible, project-based professional services and has reorganized reporting into four reportable segments (On-Demand Talent, Consulting, Europe & Asia Pacific, Outsourced Services) to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.