Resources Connection's loss narrowed, but its revenue kept falling

The loss got smaller. The business did not. Resources Connection (Nasdaq: RGP), a professional services firm based in Dallas, said on July 22 that its fourth-quarter net loss narrowed to $16.1m, or $0.47 a diluted share, from $73.3m, or $2.23, in the same quarter a year earlier. Almost the entire improvement is the disappearance of a single charge. The year-ago quarter carried a $69.0m goodwill impairment, one piece of $194.4m the company wrote off across its 2025 fiscal year.

Revenue tells the real story. Fourth-quarter revenue fell to $106.1m from $139.3m, down 18.3 percent on a same-day constant-currency basis, as billable hours dropped 20.9 percent. Adjusted EBITDA, which excludes the impairment and other items, was negative $0.6m, down from positive $9.8m a year earlier. For the full fiscal year, revenue was $452.0m against $551.3m, and the loss was $40.6m against $191.8m. The company said softer demand for traditional accounting work and longer sales cycles on consulting projects drove the decline.

Two moves cushion the year. Resources Connection sold Sitrick, its crisis-communications arm, on May 2, booking a $3.4m loss on the sale. It kept its quarterly dividend at $0.07 a share and ended the year with $82.4m in cash. The company bought back no shares during the year and has $79.2m left under its repurchase authorization. Chief Executive Roger Carlile said the firm is refocusing its on-demand talent offerings, scaling its consulting segment, and investing in artificial intelligence for both client work and internal operations.