Resources Connection Stock Price, News & Analysis

RGP (Nasdaq: RGP) has appointed Jennifer Jones as its first Chief Marketing Officer (CMO), effective immediately. Jones, who joined RGP in July 2019 through the acquisition of Veracity Consulting Group, previously served as Managing Director of User Experience and Design at Veracity. Since 2023, she has been Senior Vice President of Brand, Marketing, and Sales. In her new role as CMO, Jones will lead strategic marketing initiatives, report to CEO Kate Duchene, and oversee the firm's marketing function alignment with brand strategy and go-to-market vision.

Resources Connection (RGP) has declared a quarterly cash dividend of $0.07 per share, payable on July 21, 2025 to stockholders of record as of June 23, 2025. CFO Jennifer Ryu emphasized that this dividend decision aims to provide meaningful returns while maintaining liquidity and flexibility for growth initiatives. The dividend structure will preserve over $9 million annually in available cash for other capital allocation needs, including potential share repurchases, particularly considering the current high-interest rate environment and macroeconomic uncertainties.

Resources Connection (RGP) reported third quarter fiscal 2025 financial results, showing significant challenges. Revenue declined 14.5% to $129.4 million compared to $151.3 million in the prior year quarter. The company recorded a net loss of $44.1 million, largely due to a $42.0 million non-cash goodwill impairment charge, compared to net income of $2.6 million last year.

Key metrics deteriorated across segments: gross margin fell to 35.1% from 37.0%, while Adjusted EBITDA margin dropped to 1.3% from 7.1%. The On-Demand Talent segment saw the steepest decline, with revenue down 26.6% to $47.1 million. Despite challenges, the company maintained its quarterly dividend at $0.14 per share and reported zero debt with available liquidity of $246.0 million.

Management noted progress in pricing strategies and deal sizes, though market conditions remain challenging with clients being cautious about transformation projects and interim roles. The mid-week timing of holidays also negatively impacted performance.

Resources Connection (RGP) has scheduled the announcement of its fiscal 2025 third quarter financial results, covering the period ended February 22, 2025. The results will be released after market close on April 2, 2025, followed by a conference call at 5:00 p.m. ET on the same day.

The company will host a live webcast accessible through their Investor Relations Events section. Participants are encouraged to dial in fifteen minutes before the scheduled start time to avoid delays. A replay of the webcast will be available for a time on the company's website.

RGP released new research showing that 91% of U.S. companies plan to increase workforce strategy investment in 2025. The survey of 201 financial decision-makers revealed that 46% will focus on reskilling existing employees, while 22% plan to invest in outside talent.

Key findings include: 58% expect increased investment following interest rate cuts within first 6 months of 2025; 70% plan to unlock new capital in digital transformation and AI; 26% are experiencing widening skills gaps (up from 17%); and 40% face accounting skills shortages.

The survey also found that two-thirds of respondents expect customer service to be most impacted by AI investments, followed by operations (64%) and marketing (60%). Additionally, 63% expect organizational skills gaps to increase in 2025, while 27% report narrowing skills gaps through AI and digital tools.

Resources Connection (RGP) has announced that its Board of Directors has approved a quarterly cash dividend of $0.14 per share. The dividend will be paid on March 14, 2025 to stockholders of record as of February 14, 2025. The announcement demonstrates the company's commitment to returning value to shareholders through regular dividend payments.

Resources Connection (RGP) reported Q2 fiscal 2025 financial results with revenue of $145.6 million, down 10.7% from $163.1 million in the prior year quarter. The company recorded a net loss of $68.7 million, including a non-cash goodwill impairment charge of $79.5 million, compared to net income of $4.9 million last year.

Key metrics include gross margin of 38.5% (vs 38.9% prior year), SG&A expenses of $51.3 million (improved 3.2%), and Adjusted EBITDA of $9.7 million with 6.6% margin (vs $16.1 million and 9.8% margin prior year). The company maintained its quarterly dividend at $0.14 per share.

Segment performance showed mixed results: On-Demand Talent revenue declined 24.7% to $53.5 million, Consulting revenue grew 2.7% to $60.6 million, while Europe and Asia Pacific revenue fell 9.6% to $19.7 million.

Resources Connection (RGP) has scheduled the announcement of its fiscal 2025 second quarter financial results for January 2, 2025, after market close. The results will cover the period ended November 23, 2024. The company will host a conference call at 5:00 p.m. ET on the same day to discuss the results. Investors can access the call through a webcast on the company's Investor Relations Events section or via phone by registering through the provided link. Participants are encouraged to dial in fifteen minutes before the scheduled start time to avoid delays.

RGP's recent survey reveals significant shifts in corporate investment strategies following the Fed's September interest rate cut. 51% of financial decision makers anticipate increased investments by end-2024, rising to 81% by first half of 2025. Business process optimization, automation, and digital transformation are top investment priorities.

The survey shows 88% of organizations plan to increase workforce strategy investment in 2025, with 39% focusing on reskilling existing employees and 24% planning to invest in outside talent. Regarding AI impact, 65% expect less than 10% job elimination, while 47% anticipate 11-30% job creation in the next two years. 71% of organizations are spending $5 million+ on digital transformation in 2024.