Thu, Apr 3, 9:25 PM (23 days ago)
**Resources Connection, Inc. (RGP, Ticker: RGP) Q3 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $129.4M (Q3 2025) vs. $151.3M (Q3 2024), a 14.5% decrease. - **Net Loss:** $44.1M (Q3 2025) vs. $2.6M (Q3 2024), a significant increase in losses. - **Gross Profit Margin:** 35.1% (Q3 2025) vs. 37% (Q3 2024). - **Operating Loss:** $49.7M (Q3 2025) vs. $4.3M (Q3 2024). - **Cash Flow from Operations:** $2.1M (Q3 2025) vs. $18.8M (Q3 2024). - **Goodwill Impairment:** $42M (Q3 2025) due to slow recovery in On-Demand Talent and Consulting segments. **Segment Performance:** - **On-Demand Talent:** Revenue down 26.6%, Adjusted EBITDA down 65%. - **Consulting:** Revenue down 5.8%, Adjusted EBITDA down 32.6%. - **Europe & Asia Pacific:** Revenue down 5.4%, Adjusted EBITDA down 37.3%. - **Outsourced Services:** Revenue flat, Adjusted EBITDA flat. - **All Other:** Revenue down 21.7%, Adjusted EBITDA down 198%. **Trends & Uncertainties:** - **Market Trends:** Economic uncertainty, cautious client spending, and competitive landscape. - **Strategic Focus:** Evolving business segments, launching new brand identity, enhancing digital capabilities. - **Liquidity:** $72.5M in cash, $173.5M available under credit facility. **Future Operations Impact:** - **Restructuring:** $2.9M in restructuring costs (Q3 2025). - **Acquisitions:** Reference Point acquisition contributed $4M in revenue (Q3 2025). - **Technology:** $21.6M capitalized for technology platform initiative. **Management's Outlook:** - **Challenges:** Economic downturn, competitive pressures, and market uncertainties. - **Opportunities:** Strategic acquisitions, digital expansion, and operational efficiencies. **Key Metrics:** - **Revenue Growth:** -14.5% (Q3 2025 vs. Q3 2024). - **Profit Margin:** -34% (Q3 2025) vs. 1.7% (Q3 2024). - **Cash Flow:** $2.1M (Q3 2025) vs. $18.8M (Q3 2024). **Conclusion:** RGP faces significant challenges due to economic uncertainty and competitive pressures, leading to decreased revenue and increased losses. The company is focusing on strategic initiatives to drive growth and improve operational efficiencies. However, the outlook remains uncertain due to ongoing market uncertainties and potential economic downturns.