Resources Connection Shares Surge as Earnings Expectations Exceed

NEW YORK - Resources Connection, Inc. (NASDAQ:RGP) saw a 5% increase in its shares as its second-quarter results for the fiscal year 2025 exceeded expectations, despite ongoing challenges in the professional staffing market.

The professional services firm reported adjusted earnings of $0.18 per share, significantly surpassing analysts' estimate of $0.01. Revenue reached $145.6 million, exceeding the consensus estimate of $137.02 million, although it marked a 10.7% decline compared to the same period last year.

While demand continues to be volatile, RGP recorded a sequential revenue growth of 6.3% compared to the first quarter. The company's Consulting segment grew by 2.7% year-over-year to reach $60.6 million, largely due to the recent acquisition of Reference Point.

CEO Kate W. Duchene stated, "We exceeded expectations this quarter as we executed our strategy to provide diversified support to our clients who are working to transform their businesses." Duchene also noted improvements in gross profit margin and adjusted EBITDA results compared to the first quarter.

RGP reported a net loss of $68.7 million, which included goodwill impairment that required no cash outflow of $79.5 million. Adjusted EBITDA decreased to $9.7 million, down from $16.1 million in the same quarter last year, reflecting a 9.8% margin decrease to a 6.6% margin.

The company maintained its quarterly dividend of $0.14 per share.