Resources Connection Q3 revenue falls on lower billable hours

Resources Connection

08/04/2026 21:17

Overview

US professional services firm's fiscal Q3 revenue fell 16.6% yr/yr to $107.9 mln

Company posted a net loss of $9.5 mln, improved from prior-year quarter

Revenue decline driven by lower billable hours and reduced demand, especially in finance roles

Outlook

Company expects investments in On-Demand Talent and Consulting to drive revenue growth as they mature

Company continues to focus on aligning cost structure with current revenue levels and streamlining operations

Result Drivers

LOWER BILLABLE HOURS - Revenue decline was primarily due to a 16.3% yr/yr decrease in billable hours across the company

REDUCED DEMAND IN FINANCE ROLES - Company cited reduced demand in traditional finance roles as clients increasingly adopt AI and automation

Company press release: ID:nBw7qKs5da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$107.9 mln
Q3 Net Income
-$9.5 mln
Q3 Adjusted EBITDA
-$1.4 mln
Q3 Gross Margin
35.7%


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 $6.25, about 74.6% above its April 7 closing price of $3.58

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 20 three months ago

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