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Feb 22
Resources Connection Q3 2025 Earnings Report
Resources Connection reported a net loss due to a significant goodwill impairment, despite maintaining dividend payouts and improving pricing strategy.
Key Takeaways
RGP posted a net loss of $44.1M in Q3 FY2025, driven by a $42M non-cash goodwill impairment. Revenue declined year-over-year amid a challenging demand environment, but the company reported improved average bill rates and emphasized efficiency gains.
Reported a $44.1M net loss due to a $42M goodwill impairment.
Revenue declined 14.5% YoY to $129.4M.
Adjusted EPS was $(0.08), down from $0.17 in Q3 FY2024.
Average bill rate improved to $123, reflecting value-based pricing.
Resources Connection
Resources Connection
Resources Connection Revenue by Segment
Resources Connection Revenue by Geographic Location
Revenue by Segment
On-Demand Talent Revenue
CapyFin.comConsulting Revenue
CapyFin.comEurope & Asia Pacific Revenue
CapyFin.comOutsourced Services Revenue
CapyFin.comAll Other Revenue
CapyFin.comRevenue by Geographic Location
Europe & Asia Pacific Revenue
CapyFin.comNorth America Revenue
CapyFin.com Forward Guidance
Management expects cautious demand to persist, but is optimistic about larger deal opportunities and diversification benefits.
Positive Outlook
- Improved pipeline quality with higher-value opportunities.
- Stronger pricing and average deal sizes.
- Improved cost efficiency under restructuring plan.
- Continued focus on strategic diversification.
- Strong client relationships across segments.
Challenges Ahead
- Macro uncertainty continues to impact demand.
- Mid-week holidays negatively affected billable hours.
- Net loss driven by significant goodwill impairment.
- SG&A expenses increased due to restructuring and tech investments.
- On-Demand segment remains challenged due to low talent movement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income