RGP Reports Q1 2027 Earnings: Revenue Declines Amid Client Spending Cautiousness
Resources Connection, Inc. (RGP) reported first-quarter financial results for fiscal year 2027 with revenue declining to $98.1 million, an 18.5% drop on a same-day constant currency basis due primarily to reduced project volume and utilization in the Consulting segment. The company also experienced lower gross margins at 37.4%, down from 39.5% year-over-year, as indirect costs rose and consultant productivity fell. Despite these challenges, adjusted SG&A expenses improved by 9.4%, driven by cost reductions in employee-related spending and corporate areas. However, the company reported a net loss of $8 million or $0.23 per diluted share compared to a prior-year loss of $2.4 million. Adjusted EBITDA was negative at $3.6 million with a margin of -3.7%. RGP maintained zero debt and ended the quarter with $61.2 million in cash, while also paying out a quarterly dividend of $0.07 per share. Looking ahead, management expects Q2 revenue to range between $95 million and $100 million as demand remains consistent with first-quarter levels. The company is focusing on improving sales execution, aligning costs, and leveraging AI for internal efficiency while navigating ongoing client spending caution.
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Topics: adjusted_ebitda gross_margin net_loss revenue