Northcoast Research Begins Coverage of Resources Connection (RGP) with a Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 25 2025
0mins
Should l Buy RGP?
Source: NASDAQ.COM
Analyst Coverage and Price Target: Northcoast Research initiated coverage of Resources Connection (NasdaqGS:RGP) with a Buy recommendation, projecting a 117.23% upside based on an average one-year price target of $11.22/share, up from a closing price of $5.16/share.
Fund Sentiment and Ownership Changes: There are 404 funds reporting positions in Resources Connection, with a slight decrease in ownership. Notable changes include Royce & Associates reducing its stake by 7.56%, while Hotchkis & Wiley Capital Management increased its holdings by 27.27%.
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Analyst Views on RGP
Wall Street analysts forecast RGP stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 3.950
Low
10.00
Averages
10.00
High
10.00
Current: 3.950
Low
10.00
Averages
10.00
High
10.00
About RGP
Resources Connection, Inc. is a global consulting firm. The Company’s segments include On-Demand Talent, Consulting, Europe & Asia Pacific, Outsourced Services, and Sitrick. The On-Demand Talent operates under the On-Demand by RGP brand, this segment provides businesses with a go-to source for bringing in experts when they need them. The Consulting operates under the Veracity by RGP brand, this segment drives transformation across people, processes and technology across domain areas including finance and technology and digital. The Europe & Asia Pacific segment offers both on-demand and consulting services (excluding the digital consulting business) to clients throughout Europe and Asia Pacific. The Outsourced Services operates under the Countsy by RGP brand, this segment offers finance, and accounting services. The Sitrick is a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RGP Appoints New Chief Strategy & Experience Officer
- Executive Appointment: RGP has announced the promotion of Jennifer Jones to Chief Strategy & Experience Officer, tasked with aligning the company's strategic objectives with industry trends, customer needs, and market opportunities to drive growth and efficiency.
- Leadership in Transformation: Throughout her career, Jennifer has led large-scale transformations across brand, customer experience, and service design, leveraging human-centered design to modernize organizations while enhancing connections with their clients.
- Marketing Innovation: As the former Chief Marketing Officer, Jennifer spearheaded the relaunch of RGP's global brand, significantly elevating market awareness and accelerating pipeline growth through a data-driven marketing transformation.
- Vision for the Future: Jennifer emphasized that future success lies in connecting ambition with humanity, where strategy and execution are intertwined, and that a people-centered approach will be crucial for driving RGP into its next phase of growth.
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RGP (RGP) Q2 2026 Earnings Call Transcript
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Resources Connection, Inc. Reports 18.4% Revenue Decline in Q2 FY2026
- Revenue Decline: Resources Connection, Inc. reported Q2 revenue of $117.7 million, down 18.4% from $145.6 million year-over-year, indicating a lack of positive momentum in market execution that could impact future market share.
- Gross Margin Decline: Gross margin decreased from 38.5% to 37.1%, primarily due to rising healthcare costs and increased holiday pay, highlighting challenges in cost control that may affect profitability.
- Net Loss Improvement: The net loss for Q2 was $12.7 million, significantly improved from $68.7 million in the prior year, with the net loss margin decreasing from 47.2% to 10.8%, indicating progress in aligning cost structure with revenue levels.
- Adjusted EBITDA Decline: Adjusted EBITDA was $4.0 million, down 58.8% from $9.7 million year-over-year, reflecting ongoing challenges in restoring profitability, which may affect investor confidence.
See More
Resources Connection to Announce Q2 FY2026 Results on January 7, 2026
- Earnings Announcement Timing: Resources Connection will release its second quarter fiscal 2026 results after market close on January 7, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Arrangement: Following the release, a conference call is scheduled for 5:00 p.m. ET on January 7, enhancing investor engagement and improving information accessibility.
- Replay Availability: A limited-time replay of the webcast will be available post-conference, ensuring that investors who cannot participate live can still access key information, thereby enhancing interaction between the company and its investors.
- Company Background: RGP is a global consulting firm with three decades of experience, serving 88% of the Fortune 100, showcasing its leadership and market influence in the professional services sector.
See More
RGP to Announce Q2 FY2026 Results and Host Conference Call on January 7, 2026
- Earnings Announcement Timing: RGP will release its Q2 FY2026 financial results on January 7, 2026, after market close, highlighting the company's commitment to transparency and investor communication.
- Conference Call Schedule: The subsequent conference call is set for January 7, 2026, at 5:00 PM ET, featuring a live webcast, demonstrating the company's ongoing dedication to investor relations.
- Participation Recommendation: The company advises participants to dial in 15 minutes early to avoid delays, reflecting its emphasis on efficient communication.
- Replay Availability: A replay of the call will be accessible on the company's Investor Events section, ensuring that investors who cannot attend live can still access critical information.
See More
RGP Study Reveals Barriers to AI ROI in Finance
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- Uneven Governance Frameworks: While 69% of CFOs report having advanced or established AI risk governance frameworks, 31% are still developing or using informal frameworks, indicating a need for enhanced governance as AI becomes more embedded in operations and decision-making.
- Escalating Skills Gap: More than two-thirds of CFOs (68%) identify skills shortages as a significant challenge to achieving AI ROI, while weakened collaboration between CFOs and CHROs threatens the talent foundation necessary for AI transformation.
- Widening Competitive Divide: CFOs at companies with over $10 billion in revenue report stronger data foundations, more mature governance, and faster AI adoption, creating a competitive divide that mid-market firms must deliberately close.
See More
RGP Appoints New Chief Strategy & Experience Officer
- Executive Appointment: RGP has announced the promotion of Jennifer Jones to Chief Strategy & Experience Officer, tasked with aligning the company's strategic objectives with industry trends, customer needs, and market opportunities to drive growth and efficiency.
- Leadership in Transformation: Throughout her career, Jennifer has led large-scale transformations across brand, customer experience, and service design, leveraging human-centered design to modernize organizations while enhancing connections with their clients.
- Marketing Innovation: As the former Chief Marketing Officer, Jennifer spearheaded the relaunch of RGP's global brand, significantly elevating market awareness and accelerating pipeline growth through a data-driven marketing transformation.
- Vision for the Future: Jennifer emphasized that future success lies in connecting ambition with humanity, where strategy and execution are intertwined, and that a people-centered approach will be crucial for driving RGP into its next phase of growth.
See More
RGP (RGP) Q2 2026 Earnings Call Transcript
See More
Resources Connection, Inc. Reports 18.4% Revenue Decline in Q2 FY2026
- Revenue Decline: Resources Connection, Inc. reported Q2 revenue of $117.7 million, down 18.4% from $145.6 million year-over-year, indicating a lack of positive momentum in market execution that could impact future market share.
- Gross Margin Decline: Gross margin decreased from 38.5% to 37.1%, primarily due to rising healthcare costs and increased holiday pay, highlighting challenges in cost control that may affect profitability.
- Net Loss Improvement: The net loss for Q2 was $12.7 million, significantly improved from $68.7 million in the prior year, with the net loss margin decreasing from 47.2% to 10.8%, indicating progress in aligning cost structure with revenue levels.
- Adjusted EBITDA Decline: Adjusted EBITDA was $4.0 million, down 58.8% from $9.7 million year-over-year, reflecting ongoing challenges in restoring profitability, which may affect investor confidence.
See More
Resources Connection to Announce Q2 FY2026 Results on January 7, 2026
- Earnings Announcement Timing: Resources Connection will release its second quarter fiscal 2026 results after market close on January 7, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Arrangement: Following the release, a conference call is scheduled for 5:00 p.m. ET on January 7, enhancing investor engagement and improving information accessibility.
- Replay Availability: A limited-time replay of the webcast will be available post-conference, ensuring that investors who cannot participate live can still access key information, thereby enhancing interaction between the company and its investors.
- Company Background: RGP is a global consulting firm with three decades of experience, serving 88% of the Fortune 100, showcasing its leadership and market influence in the professional services sector.
See More
RGP to Announce Q2 FY2026 Results and Host Conference Call on January 7, 2026
- Earnings Announcement Timing: RGP will release its Q2 FY2026 financial results on January 7, 2026, after market close, highlighting the company's commitment to transparency and investor communication.
- Conference Call Schedule: The subsequent conference call is set for January 7, 2026, at 5:00 PM ET, featuring a live webcast, demonstrating the company's ongoing dedication to investor relations.
- Participation Recommendation: The company advises participants to dial in 15 minutes early to avoid delays, reflecting its emphasis on efficient communication.
- Replay Availability: A replay of the call will be accessible on the company's Investor Events section, ensuring that investors who cannot attend live can still access critical information.
See More
RGP Study Reveals Barriers to AI ROI in Finance
- Data Trust Deficiency: Over one-third of CFOs (35%) cite data trust as the top barrier to achieving AI ROI, yet investment in data foundations remains limited, creating a disconnect that may stall AI initiatives before they scale, undermining long-term impact.
- Uneven Governance Frameworks: While 69% of CFOs report having advanced or established AI risk governance frameworks, 31% are still developing or using informal frameworks, indicating a need for enhanced governance as AI becomes more embedded in operations and decision-making.
- Escalating Skills Gap: More than two-thirds of CFOs (68%) identify skills shortages as a significant challenge to achieving AI ROI, while weakened collaboration between CFOs and CHROs threatens the talent foundation necessary for AI transformation.
- Widening Competitive Divide: CFOs at companies with over $10 billion in revenue report stronger data foundations, more mature governance, and faster AI adoption, creating a competitive divide that mid-market firms must deliberately close.
See More
