Loading...
•
Aug 24, 2024
Resources Connection Q1 2025 Earnings Report
Resources Connection's financial performance declined due to a challenging demand environment and strategic investments.
Key Takeaways
Resources Connection reported a decrease in revenue and a net loss for Q1 2025, impacted by a choppy demand environment and a goodwill impairment charge. The company is focused on diversification and brand refresh initiatives to improve long-term growth and profitability.
Revenue decreased by 19.5% to $136.9 million compared to the prior year quarter.
Net loss was $5.7 million, including a $3.9 million goodwill impairment charge.
Gross margin declined to 36.5% from 39.4% in the prior year quarter.
SG&A expenses improved by 18.4%, driven by cost reduction plans and a gain on the sale of the Irvine office building.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is focused on technology transformation, operating model evolution, and brand refresh initiatives to improve speed to market, extend buying centers, and strengthen brand recognition. They believe these efforts will drive growth and profitability in the long term.
Positive Outlook
- Notable pipeline improvement
- More sizable deal closes involving service brands delivering together seamlessly
- Refreshed brand positioning to cross sell as a trusted partner
- Focus on technology transformation to improve speed to market
- Operating model evolution to extend buying centers
Challenges Ahead
- Persistently choppy demand environment
- Clients restrained in moving forward with transformation projects
- Extended timelines for opportunities to close in the pipeline
- Decline in average bill rate reflects a more competitive pricing environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...