RESOURCES CONNECTION, INC. (RGP) FY2026 10-K Annual Report
RESOURCES CONNECTION, INC. (RGP) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
RESOURCES CONNECTION, INC. FY2026 10-K Analysis
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
RESOURCES CONNECTION, INC. FY2026 Key Financial MetricsXBRL
Revenue
$452M
▼ -18.0% YoY
Net Income
-$41M
▲ +78.8% YoY
Gross Margin
37.5%
▼ -8bp YoY
Operating Margin
-8.5%
▲ +2722bp YoY
Net Margin
-9.0%
▲ +2580bp YoY
ROE
-23.9%
▲ +6870bp YoY
Total Assets
$257M
▼ -15.5% YoY
EPS (Diluted)
$-1.21
▲ +79.1% YoY
Operating Cash Flow
$1M
▼ -92.4% YoY
Source: XBRL data from RESOURCES CONNECTION, INC. FY2026 10-K filing on SEC EDGAR. All figures in USD.
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