Company Sees Q3 Gross Margin at 35%-36%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Sees Q3 gross margin 35%-36%. Sees Q3 run-rate SG&A expense $40M-$42M. Says Q3 non-holiday weekly revenue run rate has been largely consistent with Q2. Says in Q2, exceeded expectations in adjusted EBITDA despite revenue coming in below consensus. Says achieved meaningful improvement in gross margins. Comments and guidance taken from Q2 earnings conference call.
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Analyst Views on RGP
Wall Street analysts forecast RGP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RGP is 10.00 USD with a low forecast of 10.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 4.240
Low
10.00
Averages
10.00
High
10.00
Current: 4.240
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 (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.
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