Consulting firm Resources Connection's Q1 revenue declines 12%

Resources Connection

08/10/2025 21:25

Overview

Resources Connection fiscal Q1 revenue declines to $120.2 mln from $136.9 mln year-over-year

Adjusted EBITDA for fiscal Q1 beats analyst expectations

Net loss for fiscal Q1 narrows to $2.4 mln from $5.7 mln

Outlook

Company plans to deepen consulting capabilities in CFO Advisory & Digital Transformation

Resources Connection aims to strengthen its on-demand business for market relevance

Company focuses on cost structure redesign to improve shareholder returns

Result Drivers

HIGHER BILL RATES - Co increased average bill rates by 2.2% due to pricing discipline and pursuit of higher-value engagements

DECREASED BILLABLE HOURS - Billable hours decreased 14.3% due to choppy demand as clients delayed projects amid economic uncertainty

COST STRUCTURE IMPROVEMENTS - Reduction in SG&A expenses driven by restructuring and lower technology transformation costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$120.22 mln
Q1 EPS
-$0.07
Q1 Net Income
-$2.40 mln
Q1 Adjusted EBITDA
Beat
$3.10 mln
-$1.50 mln (2 Analysts)
Q1 Gross Margin
39.50%
Q1 Adjusted EBITDA Margin
2.50%
Q1 Gross Profit
$47.46 mln
Q1 Operating Income
-$1.98 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Resources Connection Inc is $7.00, about 30.7% above its October 7 closing price of $4.85

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwXmcqja

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)