Resources Connection, Inc. (NASDAQ: RGP) Q4 2025 Earnings | 07/25/2025

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Resources Connection, Inc. delivered a mixed close to fiscal 2025, reporting Q4 revenue of $139.3 million, which exceeded the high end of company guidance and marked a notable beat on margin expectations. Gross margin held steady at 40.2%, supported by higher bill rates and favorable medical claims, and adjusted EBITDA reached $9.8 million with a 7.1% margin—RGP’s strongest quarterly margin performance for the year. The company’s Outsourced Services segment stood out, growing 4% year-over-year and benefiting from robust demand among high-growth clients, while the Europe and Asia Pacific business also delivered sequential and year-over-year growth. However, these positives were overshadowed by weakness in the core U.S. Consulting and On-Demand Talent segments, each declining by double digits as macroeconomic pressures and extended client decision cycles weighed on demand. Despite operational highlights, bottom-line results reflected one-off structural charges. RGP recorded a $69 million non-cash goodwill impairment in its Consulting unit as persistent market uncertainties led to lower utilization and a softer outlook for future cash flows. As a result, the company reported a Q4 net loss of $73.3 million, or -$2.23 per diluted share, compared to net income of $10.5 million, or $0.31 per share, in the prior year period. Adjusted diluted earnings per share, which exclude the impairment charge, were $0.16—down from $0.28 the previous year. For the full fiscal year 2025, revenue fell to $551.3 million and the company posted an annual net loss of $191.8 million, largely due to impairment charges totaling $194.4 million. Cash and equivalents remained solid at $86.1 million, with zero outstanding debt, and RGP maintained its quarterly dividend at $0.07 per share. Looking forward, management signaled cautious optimism, highlighting recovery trends in international segments and continued margin discipline. Strategic board appointments and efforts to align the company’s offerings with evolving market needs—particularly digital and technology-driven solutions—were underscored as key to long-term transformation and resilience in a challenging consulting landscape. RGP’s focus remains on disciplined execution, value-based pricing, and capturing demand in international and outsourced services, even as near-term market conditions remain uncertain. About Inside Ticker: For more expert analysis and real-time updates on Resources Connection, Inc. (NASDAQ: RGP) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #ResourcesConnection #RGP #Q42025 #Earnings #FinancialResults #Consulting #GrossMargin #NetIncome #AdjustedEBITDA #Impairment #OperationalResilience #StockMarket #InsideTicker #OutsourcedServices #GrowthStrategy #Management #InternationalExpansion #Guidance #2025Outlook #Dividend #CashFlow #DigitalTransformation #ValueBasedPricing #ConsultingTrends