Resources Connection Reports 18% Revenue Decline and Strategic Restructuring for Fiscal Year Ending May 30, 2026

Resources Connection, Inc. (RGP) reported a significant decline in financial performance for the fiscal year ending May 30, 2026, with total revenue of $452.0 million, down 18.0% from $551.3 million in the previous fiscal year. The decrease in revenue was attributed to a 17.5% drop in billable hours and a slight reduction in average bill rates. The company's net loss for the year was $40.6 million, compared to a loss of $191.8 million in the prior year, which included a substantial goodwill impairment charge of $194.4 million. The decline in revenue was primarily driven by reduced demand for traditional operational accounting skills as clients increasingly adopted automation and artificial intelligence.

In terms of operational changes, RGP underwent a strategic transformation initiative aimed at streamlining its operations and reducing costs. This included the sale of its Sitrick Group subsidiary, completed on May 2, 2026, for $1.9 million, which was part of a broader effort to simplify the company's business portfolio. The company also executed workforce reductions in October 2025 and January 2026, which contributed to a decrease in selling, general, and administrative expenses. As of May 30, 2026, RGP had approximately 3,006 employees, down from 3,200 the previous year, reflecting the impact of these restructuring efforts.

RGP's business segments also experienced varying performance. The On-Demand Talent segment generated $168.8 million in revenue, a decrease of 18.1%, while the Consulting segment saw a more pronounced decline of 27.1%, bringing in $159.8 million. The Europe & Asia Pacific segment's revenue fell by 3.2% to $75.1 million, and the Outsourced Services segment reported a slight decrease of 1.0% to $39.2 million. The company noted that the average bill rate in the U.S. improved by 2.4%, indicating some pricing power in its consulting services.

Looking ahead, RGP's management expressed cautious optimism about future growth, emphasizing the need to adapt to changing market conditions and client demands. The company plans to continue focusing on enhancing its consulting capabilities, particularly in areas such as digital transformation and AI integration. Additionally, RGP aims to leverage its diversified service offerings to deepen client relationships and increase revenue from existing clients. However, the company remains aware of potential risks, including economic downturns and competitive pressures, which could impact its ability to secure new projects and maintain profitability.