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Nov 23, 2024
Resources Connection Q2 2025 Earnings Report
Reported financial results for the second quarter of fiscal 2025.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
The company is cautiously optimistic the new calendar year will bring a stronger demand environment and are confident in their strategic vision.
Positive Outlook
- Increasing cross-selling efforts
- Pushing for higher bill rates
- Driving higher consultant utilization
- Streamlining fixed costs
- Board’s additional share repurchase authorization
Challenges Ahead
- 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.
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
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