Resources Connection, Inc. (RGP) reported a significant decline in financial performance for the fiscal year ending May 31, 2025, with total revenue of $551.3 million, a decrease of 12.9% from $632.8 million in the previous fiscal year. The company's net loss for the year was $191.8 million, compared to a net income of $21.0 million in fiscal 2024. This downturn was primarily attributed to reduced client spending amid economic uncertainty, which led to a 13.5% decrease in billable hours, although the average bill rate remained relatively stable.
The company underwent a strategic reorganization in the first quarter of fiscal 2025, creating distinct operational business units: On-Demand Talent, Consulting, Europe & Asia Pacific, and Outsourced Services. This restructuring aimed to enhance service delivery and align with market demands. Additionally, RGP made two significant acquisitions: CloudGo in November 2023 and Reference Point in July 2024, both of which are expected to bolster its consulting capabilities and expand its market reach.
Operationally, RGP served over 1,600 clients globally, with approximately 3,100 professionals engaged across 41 offices. The company reported a decline in its consultant headcount, with 2,368 consultants on assignment at the end of fiscal 2025, down from 2,585 the previous year. The restructuring efforts and market conditions contributed to a 46% decrease in Adjusted EBITDA for the On-Demand Talent segment, which fell to $17.1 million, while the Consulting segment's Adjusted EBITDA decreased by 17.4% to $31.7 million.
Looking ahead, RGP anticipates continued challenges due to macroeconomic conditions, including inflation and geopolitical tensions, which may impact client spending and project timelines. The company is focused on leveraging its recent acquisitions and enhancing its digital capabilities to drive growth. RGP's management remains committed to improving operational efficiency and maintaining a flexible workforce to adapt to changing market demands. The outlook for fiscal 2026 will depend on the recovery of the global economy and the effectiveness of the company's strategic initiatives.
About RESOURCES CONNECTION, INC.
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