Resources Connection, Inc. reported a decline in financial performance for the first quarter of fiscal 2026, ending August 30, 2025. The company generated revenue of $120.2 million, a decrease of 12.2% from $136.9 million in the same period last year. The decline was attributed to a 14.3% drop in billable hours as clients delayed transformation projects amid ongoing economic uncertainty. However, the average bill rate increased by 2.2%, reflecting the company's efforts in implementing a value-based pricing strategy.
The company's net loss for the quarter was $2.4 million, or $(0.07) per share, compared to a net loss of $5.7 million, or $(0.17) per share, in the prior year. This improvement in net loss was primarily due to a reduction in costs, with total cost of services decreasing by 16.3% to $72.8 million. Selling, general, and administrative expenses also saw a slight decrease to $47.9 million, down from $48.9 million, as the company continued to streamline operations following a restructuring initiative.
In terms of operational metrics, the number of agile consultants on assignment decreased to 2,231 from 2,730 year-over-year, while the average number of salaried consultants also fell to 418 from 482. The company’s headcount reduction was part of its strategy to enhance efficiency and reduce costs. Additionally, Resources Connection completed the acquisition of Reference Point LLC in July 2024, which is now integrated into its Consulting segment, contributing to the company's service offerings.
Looking ahead, Resources Connection aims to focus on expanding cross-sell opportunities across its diversified service platform, optimizing high-growth solutions, and improving its cost structure. The company is also monitoring macroeconomic conditions that could impact client spending and overall demand for its services. As of August 30, 2025, the company had $77.5 million in cash and cash equivalents, providing a solid liquidity position to support its ongoing operations and strategic initiatives.
About RESOURCES CONNECTION, INC.
Resources Connection, Inc. is a professional services firm providing flexible consulting, on-demand talent, outsourcing, and crisis communication services. Serving over 1,600 clients worldwide, including most Fortune 100 companies, it specializes in business transformation, regulatory compliance, digital and finance transformation, and strategic project execution. Its competitive advantage lies in highly qualified talent, relationship-driven approach, and agile delivery models across multiple industries and geographies.
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