Resources Connection, Inc.
- Open
- 4.54
- Day high
- 4.57
- Day low
- 4.38
- Prev close
- 4.64
- Volume
- 551K
- Mkt cap
- $152M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.8
- P/S
- 0.3
- Yield
- 6.33%
- Per share
- $0.28
Resources Connection, Inc. (RGP) is a Industrials company listed on NASDAQ. The stock is down 15% over the past year.
Resources Connection, Inc. (RGP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RGP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 8, 2026 | $-0.05 | $-0.09 | -80.0% | $108M | -0.2% |
| Jan 7, 2026 | $-0.02 | $0.06 | +400.0% | $118M | +8.8% |
| Oct 8, 2025 | $-0.15 | $0.03 | +120.0% | $120M | +0.3% |
| Jul 24, 2025 | $0.01 | $0.16 | +1500.0% | $139M | +16.2% |
| Apr 2, 2025 | $-0.10 | $-0.08 | +20.0% | $129M | -3.8% |
| Jan 2, 2025 | $0.02 | $0.18 | +800.0% | $146M | +3.1% |
| Oct 1, 2024 | $-0.09 | $-0.17 | -100.0% | $137M | -0.7% |
| Jul 18, 2024 | $0.07 | $0.28 | +300.0% | $148M | +5.4% |
| Apr 3, 2024 | $0.06 | $0.17 | +209.1% | $151M | +7.5% |
| Jan 3, 2024 | $0.11 | $0.14 | +27.3% | $163M | +0.7% |
| Oct 4, 2023 | $0.12 | $0.20 | +66.7% | $170M | +0.0% |
| Jul 24, 2023 | $0.35 | $0.44 | +25.7% | $184M | +1.9% |
RGP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 23, 2026 | Ryu Jennifer Yofficer: CFO | Grant | 2,231 | — |
| Jun 23, 2026 | Carlile Roger Ddirector, officer: President and CEO | Grant | 11,728 | — |
| Jun 23, 2026 | Rottmann Scott Glennofficer: President | Grant | 3,428 | — |
| Jun 23, 2026 | Lane Michael Wayneofficer: President | Grant | 3,221 | — |
| Jun 23, 2026 | von Maltzan Marcodirector | Grant | 1,416 | — |
| Jun 23, 2026 | KISTINGER ROBERT Fdirector | Grant | 1,502 | — |
| Jun 23, 2026 | Iyer Venkataraman Ramaswamyofficer: President | Grant | 1,318 | — |
| Jun 12, 2026 | Lane Michael Wayneofficer: President | Tax | 1,481 | $4.71 |
| Mar 24, 2026 | von Maltzan Marcodirector | Grant | 1,582 | — |
| Mar 24, 2026 | Rottmann Scott Glennofficer: President | Grant | 3,825 | — |
| Mar 24, 2026 | KISTINGER ROBERT Fdirector | Grant | 1,677 | — |
| Mar 24, 2026 | Iyer Venkataraman Ramaswamyofficer: President | Grant | 1,471 | — |
| Mar 24, 2026 | Ryu Jennifer Yofficer: CFO | Grant | 2,490 | — |
| Mar 24, 2026 | Carlile Roger Ddirector, officer: President and CEO | Grant | 13,089 | — |
| Mar 24, 2026 | Lane Michael Wayneofficer: President | Grant | 3,688 | — |
Source: RGP SEC Form 4 filings, latest Jun 23, 2026. For informational purposes only — not investment advice.
See the full RGP insider & 13F page →Resources Connection, Inc. company profile
Overview
Resources Connection, Inc. (NASDAQ:RGP) is a professional services consulting firm founded in 1996 and headquartered in Irvine, California. The company went public in December 2000 and operates under the Resources Global Professionals brand, providing specialized consulting services across North America, Europe, and the Asia Pacific region. Originally incorporated as RC Transaction Corp, the company changed its name to Resources Connection in August 2000. Over nearly three decades, RGP has evolved from a traditional staffing firm into a diversified professional services provider, focusing on finance and accounting, digital transformation, and specialized consulting services for mid-market and enterprise clients.
Business
Resources Connection operates in the professional services consulting industry, which involves providing specialized expertise and temporary staffing solutions to businesses that need additional capabilities for specific projects or ongoing operations. The professional services market encompasses everything from accounting and finance support to complex digital transformation initiatives. The company has structured its business around three primary service brands, each targeting different client needs: On-Demand by RGP represents approximately 36% of total revenue and provides temporary staffing solutions, primarily placing finance and accounting professionals at client sites for short-term assignments. This is similar to how a temp agency works, but focuses specifically on highly skilled professionals rather than general administrative staff. Clients use this service when they need additional expertise for busy periods, special projects, or to fill temporary gaps in their workforce. Veracity by RGP generates roughly 43% of revenue and offers project-based consulting services focused on business transformation initiatives. This includes helping companies implement new enterprise software systems, optimize their financial processes, navigate regulatory compliance requirements, and execute mergers and acquisitions. Think of this as hiring a specialized team of experts to solve complex business problems or guide major organizational changes. Countsy by RGP accounts for about 7% of revenue and provides outsourced services where RGP essentially takes over entire business functions for clients on an ongoing basis. This might include managing a company's accounts payable process, handling regulatory reporting, or providing ongoing internal audit services. The remaining 14% of revenue comes from the company's Europe and Asia Pacific operations, which offer similar services but are managed as a separate geographic segment. The professional services industry has been growing steadily, with finance and accounting services projected to expand at a 9% compound annual growth rate, driven by increasing regulatory complexity and digital transformation needs.
Revenue model
Resources Connection generates revenue through multiple business models depending on the service provided. For its On-Demand talent services, the company operates on a markup model where it pays consultants an hourly rate and charges clients a higher rate, capturing the difference as gross profit. This is similar to how traditional staffing agencies work, but with higher-skilled professionals commanding premium rates. For Veracity consulting projects, RGP typically charges clients on a project basis or through ongoing retainer arrangements. These engagements often involve teams of consultants working on complex, multi-month initiatives like ERP implementations or financial process redesigns. The company can command higher margins on these services because they require specialized expertise and deliver measurable business value. The Countsy outsourced services operate on a subscription-like model where clients pay ongoing fees for RGP to manage specific business functions. This creates more predictable, recurring revenue streams with potentially higher margins due to operational efficiencies gained from serving multiple clients. Several factors significantly impact the company's profitability. Economic uncertainty tends to reduce demand as clients delay discretionary projects and reduce temporary staffing, which has been evident in recent quarters. Talent availability and wage inflation directly affect margins since consultant costs represent the largest expense. When skilled professionals are scarce, RGP must pay higher rates while potentially being unable to pass all increases to clients immediately. Regulatory changes can be a double-edged sword - while new compliance requirements create demand for specialized expertise, they can also increase RGP's own operational costs. Technology adoption presents both opportunities and challenges, as digital transformation projects drive consulting demand, but automation could potentially reduce the need for certain types of temporary staffing over time. The company's ability to maintain pricing power depends heavily on the specialized nature of its services and the strength of client relationships, particularly with its top 100 strategic accounts which provide more stable, recurring business.
Competitive moat
Resources Connection operates in a highly competitive professional services market with relatively modest barriers to entry, suggesting a narrow economic moat at best. The company's primary competitive advantages stem from its established client relationships and specialized industry expertise, particularly in finance and accounting functions where regulatory knowledge and technical skills create some switching costs for clients. The firm's brand recognition in the Resources Global Professionals name provides some differentiation, especially among mid-market companies that prefer working with established providers rather than smaller boutique firms. RGP's geographic footprint across North America, Europe, and Asia Pacific also creates advantages for multinational clients seeking consistent service delivery across regions. However, these moats are not particularly deep. The professional services industry faces competition from multiple directions: large consulting firms like Deloitte and PwC compete for high-end projects, while numerous smaller regional players and independent contractors compete on price and specialization. Technology disruption poses a growing threat, as automation and AI tools increasingly handle routine finance and accounting tasks that have traditionally required human consultants. The rise of freelance platforms and direct hiring by companies also threatens the traditional staffing model, as clients can increasingly find specialized talent without intermediaries. RGP's recent investments in technology platforms like HUGO represent attempts to defend against this disruption, but the company essentially competes in a commoditized market where differentiation is challenging to maintain long-term. The firm's success depends more on execution, client service quality, and market positioning rather than any sustainable competitive advantages that would prevent new entrants or existing competitors from taking market share.
Risks & safety
Resources Connection maintains a relatively strong financial position despite recent operational challenges, though profitability concerns warrant attention. Liquidity and Solvency: - Strong cash position of $72.5 million with minimal debt ($9.6 million debt-to-equity ratio of 0.096) - Current ratio of 2.63 indicates solid short-term liquidity - Positive free cash flow of $238,000 in Q3 2025, though significantly down from prior periods - No immediate solvency risk given debt-free balance sheet structure Valuation Metrics: - Trading at 0.89x book value, suggesting potential undervaluation - Negative P/E ratio due to recent losses, making traditional valuation difficult - Graham Net-Net ratio of 1.73 indicates stock trading below liquidation value - Enterprise value appears reasonable given asset base Other Considerations: - Recent negative EBITDA of -$5.2 million raises profitability concerns - Revenue declining across most segments with challenging market conditions - Management actively cutting costs and optimizing operations - Professional services industry cyclicality suggests current weakness may be temporary
Recent development
Over the past several years, Resources Connection has undergone significant strategic transformation to position itself as a more diversified and technology-enabled professional services provider. The company completed a major brand architecture restructuring, organizing its services under three distinct brands: On-Demand by RGP for talent solutions, Veracity by RGP for consulting and transformation services, and Countsy by RGP for outsourced services. A cornerstone of the transformation has been Project Phoenix, a comprehensive technology modernization initiative that has moved 75% of the business onto a modern technology platform. This includes implementing new talent acquisition systems, contract management platforms, and the launch of HUGO, an AI-powered digital engagement platform designed to improve consultant and client matching. The company has made strategic acquisitions to strengthen its consulting capabilities, including the Reference Point acquisition in financial services consulting, which has been integrated successfully and is expanding beyond its original financial services focus. RGP has also expanded its global delivery capabilities by establishing and growing operations in the Philippines and India to provide more cost-effective service delivery. In response to challenging market conditions, management has implemented significant operational efficiency measures, including reducing real estate footprint, optimizing discretionary spending, and leveraging new technology to improve productivity. The company has also focused on cross-selling initiatives across its service brands, with management reporting doubled opportunities for projects over $1 million and an expanded pipeline of engagements exceeding $5 million. Recent quarters have seen the company navigate economic headwinds by emphasizing strategic client relationships, maintaining strong retention rates among its top 100 accounts, and improving bill rates in the consulting segment by 13% year-over-year despite overall revenue pressures.
RGP company profile · for informational purposes only — not investment advice.
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