Resources Connection reports 1Q revenue of $98.1 million
Story updates
08:05:42 PM UTC
SquawkNews
Resources Connection, Inc. reported Q1 FY27 revenue of $98.1M, down from $120.2M, and a net loss of $8.0M versus a $2.4M loss. Gross margin was 37.4% and adjusted EBITDA was $(3.6)M.Material DetailsContext by AI AnalystThis is a continuation of recent softness, with lower utilization and delayed pr…
08:13:35 PM UTC
SquawkNews
Resources Connection reported first-quarter fiscal 2027 results with revenue of $98.1 million and a net loss of $8.0 million for the period ended August 29, 2026. Adjusted EBITDA was $(3.6) million and GAAP gross margin was 37.4%. Management cited lower Consulting project volume and utilization as…
08:14:51 PM UTC
SquawkNews
Consulting 32,380 (148) (5) 32,227 43,641 Europe & Asia Pacific 17,132 466 (360) 17,238 19,888 Outsourced Services 10,015 -- -- 10,015 9,994 All Other -- -- -- -- 2,264 ------ ---- --- ---- ----------- --------- Total Consolidated $ 98,086 $ 245 $ (365) $ 97,966 $ 120,229 ====== ==== === ==== =========== ========= Same-day Constant Currency Revenue by Segment - Sequential Period Comparison --------------------------------------------------------------------------------------- Three Months Ended --------------------------------------------------------------------- August 29, May 30, 2026 2026 ---------------------------------------------------- --------------- (Unaudited) (Unaudited) Same-day As constant reported Currency Business currency As reported (GAAP) impact days impact revenue (GAAP) ---------- ------------ ------------ ------------ --------------- On-Demand Talent $ 38,559 $ (4) $ -- $ 38,555 $ 40,413 Consulting 32,380 (23) (9) 32,348 36,632 Europe & Asia Pacific 17,132 126 (870) 16,388 17,087 Outsourced Services 10,015 -- -- 10,015 10,343 All Other -- -- -- -- 1,640 ------ --- --- ---- ----------- --------- Total Consolidated $ 98,086 $ 99 $ (879) $ 97,306 $ 106,115 ====== === === ==== =========== ========= RESOURCES CONNECTION, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts and percentages) Adjusted EBITDA to Net Loss Three Months Ended ----------------------------------------------------- % of % of August 29, Revenue August 30, Revenue 2026 (1) 2025 (1) ------------- ---------- ------------- ----------- Adjusted EBITDA: (Unaudited) (Unaudited) On-Demand Talent $ 2,057 5.3% $ 4,422 10.0% Consulting 1,661 5.1% 5,045 11.6% Europe & Asia Pacific (119) (0.7%) 837 4.2% Outsourced Services 1,533 15.3% 2,330 23.3% All Other -- --% 183 8.1% Unallocated items (2) (8,756) (9,752) --- ------- --- ------- Consolidated Adjusted EBITDA (3,624) 3,065 Adjustments: Stock-based compensation expense (1,422) (2,281) Amortized ERP system costs (3) (702) (702) Acquisition costs (4) (150) (425) Gain on sale of assets (5) (76) -- Restructuring costs (6) (417) -- Amortization expense (634) (1,193) Depreciation expense (263) (348) Interest expense (240) (44) --- ------- --- ------- Loss before income tax expense (7,528) (1,928) Income tax expense (442) (477) --- ------- --- ------- Net loss $ (7,970) $ (2,405) === ======= === ======= Adjusted Diluted Loss per Common Share - Three Months Ended August 29, 2026 and August 30, 2025 Three Months Ended ----------------------------------------------- % of August % of August 29, Revenue 30, Revenue Adjusted EBITDA 2026 (1) 2025 (1) ----------------- ----------- ----------- ------ ----------- Net loss $ (7,970) (8.1%) $(2,405) (2.0%) Adjustments: Amortization expense 634 0.6% 1,193 1.0% Depreciation expense 263 0.3% 348 0.3% Interest income, net 240 0.2% 44 --% Income tax expense 442 0.5% 477 0.4% ------ ----- --- ------ ----- --- EBITDA (6,391) (6.5%) (343) (0.