The company is experiencing severe top-line pressure with revenue falling to $107.9M in 2026Q3, contributing to a trailing twelve-month operating margin of -35.69%.
| Metric | TTM | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 |
|---|
| Sales/Revenue | 485.23M | 551.33M | 632.8M | 775.64M | 805.02M | 629.52M | 703.35M | 729M | 654.13M | 583.41M | 598.52M | 590.59M | 567.18M | 556.33M | 571.76M | 545.55M | 499M | 685.58M | 840.28M | 735.89M | 633.84M | 537.64M | 628.33M | 202.02M | 181.68M | 189.75M | 126.33M |
| Revenue Growth % | -13.38% | -12.87% | -18.42% | -3.65% | 27.88% | -10.5% | -3.52% | 11.45% | 12.12% | -2.52% | 1.34% | 4.13% | 1.95% | -2.7% | 4.81% | 9.33% | -27.21% | -18.41% | 14.19% | 16.1% | 17.89% | -14.43% | 211.02% | 11.2% | -4.26% | 50.2% | - |
| Cost of Goods Sold | 300.57M | 343.91M | 386.73M | 462.5M | 488.38M | 388.11M | 427.87M | 446.56M | 408.07M | 362.09M | 366.36M | 362.23M | 351.36M | 342.04M | 352.52M | 335.07M | 303.77M | 422.17M | 518.41M | 447.36M | 384.43M | 324.64M | 199.87M | 121.65M | 108.72M | 110.81M | 73.18M |
| COGS % of Revenue | - | 62.38% | 61.11% | 59.63% | 60.67% | 61.65% | 60.83% | 61.26% | 62.38% | 62.06% | 61.21% | 61.33% | 61.95% | 61.48% | 61.66% | 61.42% | 60.88% | 61.58% | 61.69% | 60.79% | 60.65% | 60.38% | 31.81% | 60.22% | 59.84% | 58.4% | 57.93% |
| Gross Profit | 184.66M | 207.42M | 246.07M | 313.14M | 316.64M | 241.4M | 275.48M | 282.44M | 246.06M | 221.32M | 232.17M | 228.36M | 215.82M | 214.29M | 219.24M | 210.47M | 195.23M | 263.4M | 321.87M | 288.53M | 249.41M | 212.99M | 428.46M | 80.37M | 72.96M | 78.94M | 53.15M |
| Gross Margin % | 38.06% | 37.62% | 38.89% | 40.37% | 39.33% | 38.35% | 39.17% | 38.74% | 37.62% | 37.94% | 38.79% | 38.67% | 38.05% | 38.52% | 38.34% | 38.58% | 39.12% | 38.42% | 38.31% | 39.21% | 39.35% | 39.62% | 68.19% | 39.78% | 40.16% | 41.6% | 42.07% |
| Gross Profit Growth % | - | -15.7% | -21.42% | -1.11% | 31.17% | -12.37% | -2.46% | 14.79% | 11.17% | -4.67% | 1.67% | 5.81% | 0.71% | -2.26% | 4.16% | 7.81% | -25.88% | -18.16% | 11.56% | 15.68% | 17.1% | -50.29% | 433.09% | 10.16% | -7.57% | 48.52% | - |
| Operating Expenses | 267.96M | 404.18M | 217.29M | 240.35M | 233.2M | 218.45M | 238.83M | 232.28M | 215.43M | 186.92M | 178.36M | 178.1M | 177.85M | 174.59M | 146.15M | 184.88M | 197.02M | 222.96M | 237.42M | 199.18M | 154.43M | 120.34M | 84.3M | 60.19M | 51.99M | 53.1M | 37.52M |
| OpEx % of Revenue | - | 73.31% | 34.34% | 30.99% | 28.97% | 34.7% | 33.96% | 31.86% | 32.93% | 32.04% | 29.8% | 30.16% | 31.36% | 31.38% | 25.56% | 33.89% | 39.48% | 32.52% | 28.25% | 27.07% | 24.36% | 22.38% | 13.42% | 29.8% | 28.62% | 27.99% | 29.7% |
| Selling, General & Admin | 188.98M | 196.92M | 204.76M | 228.44M | 224.72M | 209.33M | 228.07M | 223.8M | 209.04M | 183.47M | 174.81M | 173.8M | 172.53M | 168.32M | 170.99M | 172.62M | 183.49M | 212.68M | 227.85M | 191.59M | 149.74M | 116.4M | 84.3M | 58.25M | 50.69M | 49.96M | 34.65M |
| SG&A % of Revenue | - | 35.72% | 32.36% | 29.45% | 27.91% | 33.25% | 32.43% | 30.7% | 31.96% | 31.45% | 29.21% | 29.43% | 30.42% | 30.25% | 29.91% | 31.64% | 36.77% | 31.02% | 27.12% | 26.04% | 23.62% | 21.65% | 13.42% | 28.83% | 27.9% | 26.33% | 27.43% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 207.26M | 12.53M | 11.91M | 8.48M | 9.13M | 10.76M | 8.48M | 6.39M | 3.45M | 3.56M | 4.31M | 5.32M | 6.27M | -24.84M | -13.6M | 13.53M | 10.28M | 9.57M | 7.59M | 4.7M | 3.93M | 3.62M | 1.95M | 1.3M | 3.14M | 2.87M |
| Operating Income | -83.3M | -196.76M | 28.78M | 72.79M | 83.44M | 22.95M | 36.65M | 50.16M | 30.62M | 34.4M | 53.8M | 50.26M | 37.98M | 39.7M | 73.09M | 51.45M | -1.79M | 40.44M | 84.45M | 89.34M | 94.98M | 92.66M | 44.16M | 20.18M | 20.97M | 25.84M | 15.63M |
| Operating Margin % | -17.17% | -35.69% | 4.55% | 9.38% | 10.36% | 3.65% | 5.21% | 6.88% | 4.68% | 5.9% | 8.99% | 8.51% | 6.7% | 7.14% | 12.78% | 9.43% | -0.36% | 5.9% | 10.05% | 12.14% | 14.98% | 17.23% | 7.03% | 9.99% | 11.54% | 13.62% | 12.37% |
| Operating Income Growth % | - | -783.75% | -60.47% | -12.76% | 263.52% | -37.38% | -26.93% | 63.79% | -10.98% | -36.06% | 7.05% | 32.34% | -4.35% | -45.68% | 42.06% | 2979.24% | -104.42% | -52.11% | -5.47% | -5.93% | 2.51% | 109.81% | 118.83% | -3.76% | -18.84% | 65.34% | - |
| EBITDA | -74.6M | -189.01M | 37.2M | 81.34M | 91.92M | 32.08M | 47.42M | 58.64M | 37.01M | 37.85M | 57.36M | 54.56M | 43.29M | 45.98M | 82.19M | 63.7M | 10.25M | 50.73M | 94.02M | 96.94M | 99.8M | 96.76M | 48.08M | 22.44M | 22.67M | 29.49M | 18.5M |
| EBITDA Margin % | -15.37% | -34.28% | 5.88% | 10.49% | 11.42% | 5.1% | 6.74% | 8.04% | 5.66% | 6.49% | 9.58% | 9.24% | 7.63% | 8.26% | 14.37% | 11.68% | 2.05% | 7.4% | 11.19% | 13.17% | 15.74% | 18% | 7.65% | 11.11% | 12.48% | 15.54% | 14.64% |
| EBITDA Growth % | 33.09% | -608.03% | -54.26% | -11.51% | 186.55% | -32.35% | -19.14% | 58.42% | -2.22% | -34.01% | 5.12% | 26.04% | -5.84% | -44.06% | 29.01% | 521.33% | -79.79% | -46.05% | -3.01% | -2.87% | 3.14% | 101.24% | 114.24% | -1.02% | -23.1% | 59.37% | - |
| D&A (Non-Cash Add-back) | 8.7M | 7.75M | 8.43M | 8.56M | 8.48M | 9.13M | 10.76M | 8.48M | 6.39M | 3.45M | 3.56M | 4.31M | 5.32M | 6.27M | 9.1M | 12.25M | 12.04M | 10.28M | 9.57M | 7.59M | 4.82M | 4.1M | 3.92M | 2.26M | 1.71M | 3.65M | 2.87M |
| EBIT | -13.97M | 2.75M | 32.88M | 76.14M | 84.03M | 24.28M | 37.29M | 50.16M | 30.62M | 34.4M | 53.8M | 50.41M | 38.14M | 39.88M | 73.09M | 51.45M | -1.13M | 40.44M | 84.45M | 89.34M | 100M | 94.79M | 40.54M | 20.18M | 20.97M | 25.84M | 15.63M |
| Net Interest Income | 423K | 544K | 1.06M | -552K | -1.06M | -1.6M | -2.06M | -2.19M | -1.74M | -629K | 186K | 148K | 168K | 175K | 252K | 473K | 656K | 1.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 467K | 544K | 1.06M | 0 | 0 | 0 | 0 | 0 | 132K | 144K | 186K | 148K | 168K | 175K | 252K | 473K | 656K | 1.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 44K | 0 | 0 | 552K | 1.06M | 1.6M | 2.06M | 2.19M | 1.87M | 773K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -4.68M | 682K | 1.05M | -170K | -470K | -269K | -1.42M | -2.19M | -1.74M | -629K | 186K | 148K | 168K | 175K | 252K | 473K | 656K | 1.59M | 5.6M | 8.94M | 5.01M | 2.13M | -3.03M | 1.08M | 1.18M | -3M | -4.72M |
| Pretax Income | -87.98M | -196.07M | 29.83M | 72.62M | 82.97M | 22.68M | 35.23M | 47.97M | 28.89M | 33.77M | 53.99M | 50.41M | 38.14M | 39.88M | 73.34M | 51.92M | -1.13M | 42.04M | 90.06M | 98.28M | 100M | 94.79M | 41.13M | 21.26M | 22.15M | 23.8M | 10.91M |
| Pretax Margin % | -18.13% | -35.56% | 4.71% | 9.36% | 10.31% | 3.6% | 5.01% | 6.58% | 4.42% | 5.79% | 9.02% | 8.53% | 6.73% | 7.17% | 12.83% | 9.52% | -0.23% | 6.13% | 10.72% | 13.36% | 15.78% | 17.63% | 6.55% | 10.52% | 12.19% | 12.54% | 8.64% |
| Income Tax | 9.86M | -4.29M | 8.79M | 18.26M | 15.79M | -2.54M | 6.94M | 16.5M | 10.06M | 15.12M | 23.55M | 22.9M | 18.26M | 19.37M | 32.2M | 27.07M | 10.62M | 24.27M | 40.87M | 43.52M | 39.4M | 38.73M | 16.8M | 8.72M | 8.86M | 9.52M | 4.36M |
| Effective Tax Rate % | -11.21% | 2.19% | 29.48% | 25.14% | 19.04% | -11.22% | 19.71% | 34.4% | 34.83% | 44.78% | 43.61% | 45.43% | 47.86% | 48.58% | 43.91% | 52.13% | -938.82% | 57.74% | 45.38% | 44.28% | 39.4% | 40.86% | 40.84% | 41% | 40% | 40% | 40% |
| Net Income | -97.84M | -191.78M | 21.03M | 54.36M | 67.17M | 25.23M | 28.29M | 31.47M | 18.83M | 18.65M | 30.44M | 27.51M | 19.89M | 20.5M | 41.14M | 24.86M | -11.75M | 17.76M | 49.19M | 54.77M | 60.6M | 56.06M | 24.33M | 12.54M | 13.29M | 13.71M | 6.55M |
| Net Margin % | -20.16% | -34.78% | 3.32% | 7.01% | 8.34% | 4.01% | 4.02% | 4.32% | 2.88% | 3.2% | 5.09% | 4.66% | 3.51% | 3.69% | 7.2% | 4.56% | -2.35% | 2.59% | 5.85% | 7.44% | 9.56% | 10.43% | 3.87% | 6.21% | 7.32% | 7.22% | 5.18% |
| Net Income Growth % | 9.41% | -1011.76% | -61.31% | -19.08% | 166.26% | -10.8% | -10.12% | 67.16% | 0.94% | -38.73% | 10.67% | 38.33% | -3.01% | -50.16% | 65.53% | 311.55% | -166.14% | -63.88% | -10.19% | -9.62% | 8.1% | 130.36% | 94.02% | -5.64% | -3.02% | 109.37% | - |
| Net Income (Continuing) | -97.84M | -191.78M | 21.03M | 54.36M | 67.17M | 25.23M | 28.29M | 31.47M | 18.83M | 18.65M | 30.44M | 27.51M | 19.89M | 20.5M | 41.14M | 24.86M | -11.75M | 17.76M | 49.19M | 54.77M | 60.6M | 56.06M | 24.33M | 12.54M | 13.29M | 13.71M | 6.55M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.93 | -5.80 | 0.62 | 1.59 | 2.00 | 0.78 | 0.88 | 0.98 | 0.60 | 0.56 | 0.81 | 0.72 | 0.51 | 0.50 | 0.94 | 0.53 | -0.26 | 0.39 | 1.03 | 1.08 | 1.17 | 1.11 | 0.50 | 0.28 | 0.29 | 0.36 | 0.21 |
| EPS Growth % | 9.67% | -1035.48% | -61.01% | -20.5% | 156.41% | -11.36% | -10.2% | 63.33% | 7.14% | -30.86% | 12.5% | 41.18% | 2% | -46.81% | 77.36% | 303.85% | -166.67% | -62.14% | -4.63% | -7.69% | 5.41% | 122% | 78.57% | -3.45% | -19.44% | 71.43% | - |
| EPS (Basic) | - | -5.80 | 0.63 | 1.63 | 2.04 | 0.78 | 0.88 | 1.00 | 0.61 | 0.57 | 0.82 | 0.73 | 0.51 | 0.50 | 0.94 | 0.54 | -0.26 | 0.39 | 1.06 | 1.13 | 1.26 | 1.19 | 0.53 | 0.28 | 0.32 | 0.39 | 0.21 |
| Diluted Shares Outstanding | 33.35M | 33.06M | 33.9M | 34.19M | 33.56M | 32.55M | 32.23M | 32.21M | 31.21M | 33.47M | 37.61M | 38.25M | 39.31M | 41.15M | 43.6M | 46.49M | 45.89M | 45.73M | 47.93M | 50.64M | 51.68M | 50.48M | 48.78M | 45.79M | 45.72M | 38.84M | 31.43M |
| Basic Shares Outstanding | 33.35M | 33.06M | 33.45M | 33.41M | 32.95M | 32.44M | 31.99M | 31.6M | 30.74M | 32.85M | 37.04M | 37.83M | 39.22M | 41.11M | 43.54M | 46.12M | 45.89M | 45.02M | 46.55M | 48.35M | 48.05M | 47.07M | 45.98M | 43.7M | 42.48M | 35.73M | 31.26M |
| Dividend Payout Ratio | - | - | 89.5% | 34.56% | 27.69% | 72.26% | 62.16% | 51.34% | 75.79% | 75.9% | 46.27% | 42.71% | 53.43% | 46.32% | 20.19% | 22.28% | - | - | 123.31% | - | - | - | - | - | - | - | - |
Persistent Revenue Contraction
As evidenced by recent quarterly filings, RGP has experienced a persistent decline in top-line performance, with revenue falling to $107.9M in 2026Q3, representing a significant 16.6% year-over-year contraction that underscores the company's ongoing struggle to maintain project volume in a tightening corporate discretionary spending environment.
The consistent negative growth trajectory suggests that the firm's reliance on project-based consulting is highly sensitive to current macroeconomic headwinds. Investors should monitor whether this trend reflects a structural loss of market share or merely a cyclical deferral of transformation projects by core enterprise clients.
Based on reported financial data, RGP's gross margin has faced notable volatility, compressing to 34.7% in 2026Q3, which indicates that the firm is struggling to maintain pricing power while managing the variable costs associated with its specialized consultant network during a period of declining demand.
The inability to sustain gross margins above the 40% threshold observed in previous periods suggests that competitive pressures for high-end accounting talent may be outpacing the firm's ability to pass costs to clients. This margin erosion warrants further investigation into the firm's long-term ability to defend its premium service positioning.
According to historical income statements, RGP's operating leverage has deteriorated significantly, with operating margins plummeting to -35.69% on a trailing twelve-month basis, a figure that highlights a severe misalignment between fixed administrative overhead and the company's rapidly retreating revenue base in recent quarters.
The data suggests that management has not yet successfully right-sized the fixed cost structure to match the lower revenue reality, leading to significant operating losses. This lack of operational agility implies that the firm's current cost base may be too rigid for a project-based business model facing cyclical downturns.
While the market may view RGP as a distressed asset due to its recent negative operating margins, as reported in financial statements, the company maintains a low-debt profile that could theoretically allow for a rapid recovery if the M&A and transformation consulting markets experience a sudden rebound.
Short-sellers likely focus on the persistent revenue declines and the potential for further impairment charges to erode the remaining cash cushion. However, the counter-argument remains that the firm's variable labor model provides a unique, albeit currently underutilized, mechanism for rapid profitability restoration once demand stabilizes.
Quick answers to the most common questions about buying RGP stock.
For fiscal year 2025, Resources Connection, Inc. (RGP) reported total revenue of $551.3M. This represents a 336.4% increase compared to $126.3M in 2000.
Resources Connection, Inc. (RGP) reported a net loss of $191.8M for the fiscal year ending 2025.
Resources Connection, Inc. (RGP) reported an operating income of $-196.8M, resulting in an operating profit margin of -35.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Resources Connection, Inc. (RGP) generated $207.4M in gross profit for the year, representing a gross profit margin of 37.6%. This demonstrates the company's core pricing power and production efficiency.