Short answer
RESOURCES CONNECTION, INC. (RGP) filed its fiscal 2026 10-K annual report with the SEC on Jul 24, 2026. It reported revenue of $452M (−18.0% year over year) and net income of −$41M.
- Top risk flagged: Material weakness in ITGC controls over financial reporting, ongoing remediation could impact reporting accuracy and stock price
FY2026 key financial metrics · XBRL
- Revenue
- $452M
- −18.0% YoY
- Net income
- −$41M
- +78.8% YoY
- Operating margin
- -8.5%
- +27.2 pp YoY
- Gross margin
- 37.5%
- −0.1 pp YoY
- EPS (diluted)
- −$1.21
- +79.1% YoY
- ROE
- -23.9%
- +68.7 pp YoY
- Operating cash flow
- $1M
- −92.4% YoY
Source: XBRL data from the RESOURCES CONNECTION, INC. (RGP) FY2026 10-K on SEC EDGAR. USD.
RESOURCES CONNECTION, INC. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Global professional services firm offering On-Demand Talent, Consulting, and Outsourced Services to CFOs & C-suite, focused on project execution and workforce agility
- Divestiture of Sitrick crisis communications business completed May 2, 2026, eliminating "All Other" segment from operations
- Enhanced digital and AI consulting capabilities post-Reference Point acquisition (July 2024), expanding technology offerings in financial services
- Employee count steady at 3,006 with 2,415 consultants and 591 management/administrative staff as of May 30, 2026
- Renewed focus on marketing and brand refresh in fiscal 2026 with updated website and strategy to clarify value proposition and distinct market positioning
Management Discussion & Analysis
- Revenue $452.0M, down 18.0% YoY ($551.3M in FY25); same-day constant currency revenue down 17.4%
- Operating loss 8.5% of revenue vs loss 35.7% in FY25; SG&A 44.9% of revenue vs 36.6%; adjusted EBITDA margin 1.1% vs 4.3%
- Best segment Outsourced Services: revenue $39.2M (-1.0%), Adjusted EBITDA $7.6M flat; worst Consulting: revenue $159.8M (-27.1%), Adjusted EBITDA $13.5M (-57.4%)
- Operating cash flow +$1.4M vs +$18.9M prior; dividends paid $9.4M; capex $0.8M; proceeds from Sitrick sale $1.9M; no debt outstanding at FY26 end
- Management expects transformation initiatives complete H1 FY27; ongoing macroeconomic, geopolitical risks including AI impact and selective client demand remain uncertainties
Risk Factors
- Material weakness in ITGC controls over financial reporting, ongoing remediation could impact reporting accuracy and stock price
- Geopolitical risk from Middle East conflict and U.S. tariffs on China, Mexico, Canada disrupting global supply chains and client liquidity
- Transformation initiative including workforce reductions started in FY2026, risking loss of continuity and increased restructuring charges
- Competitive threat from AI adoption by peers affecting service demand and pricing, particularly from AI-enabled professional services firms
- 2026 Credit Facility with $30M revolver subject to covenants and SOFR-based variable interest increasing financial costs and liquidity risk
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