NASDAQ$RGP

Resources Connection Inc · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of fiscal 2025.

Resources Connection's second quarter fiscal 2025 revenue was $145.6 million, a 10.7% decrease compared to the prior year quarter. The company reported 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 in the prior year quarter. Adjusted diluted earnings per common share was $0.18, compared to $0.28 in the prior year quarter.

  • Revenue of $145.6 million compared to $163.1 million, a decline of 10.7%.
  • Gross margin of 38.5% compared to 38.9%.
  • 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.
  • Adjusted diluted earnings per common share of $0.18 compared to $0.28.

Headline financials

Total Revenue

$146M

Previous: $163M-10.7%
EPS (adj)

$0.18

Previous: $0.14+28.6%
Gross Margin

38.5%

No prior period
Effective Tax Rate

10.1%

Previous: 43.4%-76.7%
Average Bill Rate

$123.00

Previous: $122.00+0.8%
Average Pay Rate

$59.00

Previous: $58.00+1.7%
Capital Expenditures

-$2M

Previous: -$885K-126.4%
Net Income

-$68.7M

Previous: $4.9M-1503.8%
Operating Income

-$76.7M

Previous: $8.35M-1018.7%
Gross Profit

$56.1M

Previous: $63.5M-11.6%
Stock-Based Comp

$1.95M

Previous: $516K+277.5%

Revenue & EPS history

Resources Connection · Revenue · Quarterly

$146M

Q2 2025-10.7%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company is cautiously optimistic the new calendar year will bring a stronger demand environment and are confident in their strategic vision.

Tailwinds

  • Increasing cross-selling efforts
  • Pushing for higher bill rates
  • Driving higher consultant utilization
  • Streamlining fixed costs
  • Board’s additional share repurchase authorization

Headwinds

  • Demand environment continues to be choppy
  • Clients are still measured in their decisions to move forward with transformation projects
  • Clients are still measured in their decisions to move forward filling professional interim needs
  • Timelines for opportunities to close in the pipeline continue to be extended compared to previous years.
  • On-Demand clients have recently expressed less need given lower talent movement

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-2.0%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-2.1%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.6%

Q1 2022

Best reaction

-19.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%+7.1%+26.4%
Q2 2026-14.6%+3.8%-2.9%
Q1 2026-4.2%-14.1%-9.7%
Q4 2025+0.0%-1.3%-12.1%
Q3 2025-19.8%-23.1%-12.2%
Q2 2025+6.4%+4.0%-1.5%
Q1 2025-13.9%-13.7%-17.0%
Q4 2024+2.1%+0.6%-7.2%
Q3 2024-9.9%-5.2%-11.3%
Q2 2024-4.4%-6.7%-4.7%
Q1 2024-7.1%-2.8%-4.3%
Q4 2023+4.8%-0.8%-3.5%
Q3 2023-10.5%-8.1%-16.4%
Q2 2023-16.8%-8.1%-2.4%
Q1 2023-13.6%-12.9%-3.7%
Q4 2022+4.7%+6.8%-0.1%
Q3 2022+5.7%+4.0%-1.1%
Q2 2022+8.0%+2.0%-4.4%
Q1 2022+17.6%+9.5%+14.1%
Q4 2021+15.3%+19.5%+18.4%
Q3 2021+1.7%+2.5%+8.8%
Q2 2021-3.8%-6.3%-0.9%
Q1 2021-1.1%+3.0%-6.5%
Q4 2020-9.0%-5.7%+5.4%
Q3 2020-5.6%-0.2%+4.6%
Q2 2020+6.6%+1.0%-6.7%
Q1 2020-10.8%-15.5%-11.6%
Q4 2019+1.8%+2.8%+3.8%
Q3 2019-11.7%-5.6%+0.1%
Q2 2019+13.1%+15.0%+19.5%
Q1 2019+15.0%+11.1%-0.7%
Q4 2018-17.0%-11.4%-6.4%
Q3 2018-0.3%-2.2%-1.3%
Q2 2018-0.3%+5.4%+3.8%
Q1 2018+5.6%+4.2%+10.9%
Q4 2017-6.5%-8.6%-16.2%
Q3 2017-16.3%-17.5%-17.2%
Q2 2017-11.6%-12.9%-14.4%
Q1 2017-11.4%-10.4%-1.2%
Q4 2016-3.9%-3.8%-2.5%
Q3 2016-11.9%
Q2 2016-14.2%
Q1 2016+6.6%
Q4 2015-5.1%
Q3 2015-6.0%
Q2 2015+7.7%
Q1 2015+0.2%
Q4 2014+14.5%
Q3 2014-3.6%
Q2 2014+4.0%
Q1 2014-10.8%
Q4 2013-4.4%
Q3 2013-5.2%
Q2 2013-7.8%
Q1 2013+0.1%
Q4 2012+0.1%
Q3 2012-2.8%
Q2 2012-5.9%
Q1 2012+6.1%
Q4 2009+1.5%
Q4 2011+1.5%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2011+11.9%
Q4 2010+1.2%
Q2 2010+1.2%
Q1 2010+1.2%
Q1 2011+1.2%

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