Full Transcript: Resources Connection Q4 2026 Earnings Call

Resources Connection (NASDAQ: RGP ) held its fourth-quarter earnings conference call on Wednesday.

Below is the complete transcript from the call.

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The full earnings call is available at Summary Resources Connection reported a consolidated revenue of $106.1 million for Q4, a decline of 18.3% compared to the prior year, with a gross margin of 37.6%.

The company is focusing on strategic priorities, including refocusing on on-demand talent, scaling consulting, AI integration, and streamlining operations.

AI is highlighted as a significant opportunity for both client service and internal efficiency, with new hires in AI leadership roles to drive this initiative.

Future guidance expects Q1 fiscal 2027 revenue between $97 to $102 million, with gross margins between 37% to 38%, considering typical seasonal dynamics.

Management expressed optimism about market stability and customer engagement, supported by a strong net promoter score and positive customer survey results.

Full Transcript OPERATOR Good afternoon and welcome to RGP's fourth quarter fiscal 2026 conference call.

Currently, all participants are in a listen-only mode.

Later we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this conference call is being recorded at this time.

I would like to remind everyone that management will be commenting on results for the fourth quarter ended May 30, 2026.

They will also refer to certain non-GAAP financial measures.

An explanation and reconciliation of these measures to the most comparable GAAP financial measures are included in the press release issued today.

Today's press release can be viewed in the Investor Relations section of RGP's website and filed today with the SEC.

Also during this call, management may make forward-looking statements regarding plans, initiatives and strategies and the anticipated financial performance of the company.

Such statements are predictions and actual events or results may differ materially.

Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 31, 2025 for a discussion of risks, uncertainties and other factors that may cause the company's business, results of operations and financial condition to differ materially from what is expressed or implied by forward-looking statements made during this call.

Such discussion will also be included in the Risk Factors section in RGP's report on Form 10-K for the year ended May 30, 2026, which is expected to be filed on or around July 23, 2026.

I will now turn the call over to RGP's CEO, Roger Carlile.

Roger Carlile — President & Chief Executive Officer Thank you, and welcome everyone to the call.

This is my third time speaking with you about our quarterly financial results.

I continue to learn about our markets, clients, employees and services as I work with our leaders to execute our strategy.

I remain optimistic about the future of our business as market conditions appear to be showing some stability, providing a more consistent backdrop for us to continue activating our strategic priorities and related investments.

Consistent with the prior quarter, our fourth quarter results were aligned with the outlook we provided for revenue, gross margin and run-rate SG&A expense.

You will hear more about this later in the call from our CFO, Jen Ru.

For now, let me touch on market conditions as we see them, results from our recently completed Voice of the Customer survey, and our progress against our strategic priorities.

From our perspective, global market conditions remain broadly consistent to the third quarter, with some regions and industry sectors showing more progress than others in the fourth quarter.

Revenue for our North American markets served by our on-demand talent, consulting and outsourced services segments performed as we expected compared to the outlook we provided.

Compared with the third quarter, North America's revenue was flat on a GAAP basis, but did exhibit a modest decline when adjusting for the number of business days and currency fluctuations.

Revenue in our Europe and Asia Pacific markets was softer this quarter, driven entirely by weakness in Europe.

Our Asia Pacific markets performed in line with both our outlook for the quarter and the prior quarter's results.

The trends we faced in our European markets appear to be non-systemic situations within our specific clients rather than larger economic or geopolitical issues.

In addition to this operational view of our markets, we very recently completed a Voice of the Customer survey in which we surveyed 500 decision makers and buyers from customers who are either currently working with RGP or who have worked with RGP in the past several years.