Company Sees Q4 Gross Margin at 36.5%-37.5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2026
0mins
Should l Buy RGP?
Sees Q4 gross margin 36.5%-37.5%. Sees Q4 run-rate SG&A expenses $39M-$41M. Sees Q4 non-run rate and non-cash expenses $13M-$15M. Says early fourth quarter weekly revenue trends are tracking below third quarter levels based on current visibility. Says saw an uptick in the volume of closed contracts during the quarter. Says AI remains a prominent topic in the market and continues to work with clients to size the opportunity. Says implemented an additional reduction in force in January. Says combined with prior actions in the current fiscal year, the company expects total annualized cost savings of approximately $12M to $14M, with a portion of those savings being selectively reinvested to support growth in fiscal 2027. Comments and guidance taken from Q3 earnings conference call.
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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: 3.850
Low
10.00
Averages
10.00
High
10.00
Current: 3.850
Low
10.00
Averages
10.00
High
10.00
About RGP
Resources Connection, Inc. is a professional services firm. The Company's segments include On-Demand Talent, Consulting, Europe & Asia Pacific, Outsourced Services, and All Other. Its On-Demand Talent segment provides businesses with a go-to source for bringing in experts when they need them, serving predominately the office of the CFO. Its Consulting segment drives transformation across people, processes and technology across domain areas including finance, technology and digital, risk and compliance and operational performance. Its Europe & Asia Pacific is a geographically defined segment that offers both on-demand and consulting services to clients throughout Europe & Asia Pacific. Its Outsourced Services segment operates under the Countsy by RGP brand, this segment offers finance, accounting and human resource services provided to startups, spinouts and scale-up enterprises, utilizing a technology platform and fractional team.
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 LUKE BARNETT AS HEAD OF TECHNOLOGY STRATEGY AND ENABLEMENT TO FOSTER ENTERPRISE TRANSFORMATION
Leadership in Technology: The article discusses the importance of strong leadership in technology sectors, emphasizing the need for strategic vision and innovation.
Enterprise Transformation: It highlights the ongoing transformation within enterprises, focusing on how technology can drive efficiency and adaptability in business operations.
See More
RGP Reports Q3 Earnings with Revenue Decline and Strategic Focus
- Revenue Decline: RGP's consolidated revenue for Q3 was $107.9 million, reflecting a 19.6% year-over-year decline, indicating significant pressure in the market, particularly from a 32.5% drop in consulting revenue, which may lead to future financial challenges.
- Gross Margin Improvement: Despite the revenue drop, gross margin increased from 35.1% to 35.7% year-over-year, suggesting effective cost control measures that could support future profitability amid declining revenues.
- Strategic Priorities: The company is focusing on four strategic priorities, including refocusing on-demand talent, scaling consulting, simplifying operations, and aligning cost structures with revenue levels, which are expected to drive future revenue growth despite current challenges.
- Strong Balance Sheet: RGP maintains a robust balance sheet with $82.8 million in cash and no debt, providing flexibility for strategic investments and shareholder returns through dividends and potential share buybacks, even as it navigates revenue declines.
See More
Resources Connection Q3 Earnings Report Analysis
- Earnings Performance: Resources Connection reported a Q3 Non-GAAP EPS of -$0.09, beating expectations by $0.02, indicating a slight improvement in profitability despite overall poor performance.
- Revenue Decline: The company’s Q3 revenue of $107.9 million represents a 16.6% year-over-year decline, missing market expectations by $0.29 million, reflecting challenges in the current economic environment.
- Market Reaction: Following disappointing Q2 results and increasing AI competition, Resources Connection's shares have significantly declined, undermining investor confidence in future growth and potentially impacting financing and expansion plans.
- Industry Dynamics: Amid heightened geopolitical uncertainty, investors are increasingly focused on industrial stocks with high dividend yields, prompting Resources Connection to reassess its market positioning to attract investment.
See More
RGP Appoints Ed Tracy, Jr. as Financial Services Industry Leader
- Leadership Appointment: RGP has appointed Ed Tracy, Jr. as the Financial Services Industry leader, aimed at driving client revenue growth and market expansion, thereby enhancing the company's competitiveness in the financial services sector.
- Response to Industry Demand: This appointment underscores RGP's ongoing investment in senior leadership to meet the surging demand from financial institutions navigating AI adoption, regulatory complexity, and digital modernization.
- Experienced Background: Tracy brings over 25 years of industry experience, having held senior leadership roles at JPMorgan, Deloitte, and others, which will provide RGP clients with expertise in M&A integration and digital transformation.
- Strategic Execution: Tracy emphasizes that the financial services industry is at a critical intersection of strategy and execution, and RGP's model, combining on-demand talent with deep industry expertise, is uniquely positioned to help institutions transition from ambition to outcomes.
See More
RGP Releases M&A Human Value Gap Report
- Human Value Gap Revealed: RGP's latest research report highlights that 81% of CFOs view intangible assets like culture, talent, and knowledge as critical to M&A success, yet only 18% believe their organizations effectively protect these assets, indicating a significant underinvestment in human systems.
- Leadership Turnover Risk: The study finds that 74% of respondents report moderate to high turnover of leadership or critical talent within the first year of an acquisition, which not only impacts short-term performance but also poses risks to long-term value creation.
- Extended Cultural Integration Timeline: While financial and operational synergies are often realized within 18 to 36 months, true cultural integration may take 5 to 7 years, underscoring the importance of prioritizing human capital in M&A to prevent potential value erosion.
- Challenges for Future M&A Leaders: RGP emphasizes that future M&A leaders must close the Human Value Gap by optimizing leadership alignment, cultural integration, and employee experience to achieve competitive advantages and ensure the long-term success of acquisitions.
See More
RGP Appoints New Chief Information Officer
- Executive Appointment: RGP has appointed Prashant Lamba as Chief Information Officer, aiming to leverage technology to reshape customer and employee experiences, thereby enhancing overall operational efficiency and market competitiveness.
- Technology Vision: Lamba will lead the advancement of a unified digital ecosystem that simplifies employee engagement with technology, improves operational performance, and ensures clients receive seamless, high-impact service experiences.
- Experience Background: With over 20 years of experience in technology delivery and enterprise transformation, Lamba previously served as Senior Managing Director at Ankura Consulting Group, successfully leading global teams to define product strategies and deliver large-scale systems.
- Strategic Significance: Lamba's addition will not only help RGP better leverage advanced technologies like AI and intelligent automation but also drive the company to provide greater value and support to clients navigating complex transformations.
See More
RGP APPOINTS LUKE BARNETT AS HEAD OF TECHNOLOGY STRATEGY AND ENABLEMENT TO FOSTER ENTERPRISE TRANSFORMATION
Leadership in Technology: The article discusses the importance of strong leadership in technology sectors, emphasizing the need for strategic vision and innovation.
Enterprise Transformation: It highlights the ongoing transformation within enterprises, focusing on how technology can drive efficiency and adaptability in business operations.
See More
RGP Reports Q3 Earnings with Revenue Decline and Strategic Focus
- Revenue Decline: RGP's consolidated revenue for Q3 was $107.9 million, reflecting a 19.6% year-over-year decline, indicating significant pressure in the market, particularly from a 32.5% drop in consulting revenue, which may lead to future financial challenges.
- Gross Margin Improvement: Despite the revenue drop, gross margin increased from 35.1% to 35.7% year-over-year, suggesting effective cost control measures that could support future profitability amid declining revenues.
- Strategic Priorities: The company is focusing on four strategic priorities, including refocusing on-demand talent, scaling consulting, simplifying operations, and aligning cost structures with revenue levels, which are expected to drive future revenue growth despite current challenges.
- Strong Balance Sheet: RGP maintains a robust balance sheet with $82.8 million in cash and no debt, providing flexibility for strategic investments and shareholder returns through dividends and potential share buybacks, even as it navigates revenue declines.
See More
Resources Connection Q3 Earnings Report Analysis
- Earnings Performance: Resources Connection reported a Q3 Non-GAAP EPS of -$0.09, beating expectations by $0.02, indicating a slight improvement in profitability despite overall poor performance.
- Revenue Decline: The company’s Q3 revenue of $107.9 million represents a 16.6% year-over-year decline, missing market expectations by $0.29 million, reflecting challenges in the current economic environment.
- Market Reaction: Following disappointing Q2 results and increasing AI competition, Resources Connection's shares have significantly declined, undermining investor confidence in future growth and potentially impacting financing and expansion plans.
- Industry Dynamics: Amid heightened geopolitical uncertainty, investors are increasingly focused on industrial stocks with high dividend yields, prompting Resources Connection to reassess its market positioning to attract investment.
See More
RGP Appoints Ed Tracy, Jr. as Financial Services Industry Leader
- Leadership Appointment: RGP has appointed Ed Tracy, Jr. as the Financial Services Industry leader, aimed at driving client revenue growth and market expansion, thereby enhancing the company's competitiveness in the financial services sector.
- Response to Industry Demand: This appointment underscores RGP's ongoing investment in senior leadership to meet the surging demand from financial institutions navigating AI adoption, regulatory complexity, and digital modernization.
- Experienced Background: Tracy brings over 25 years of industry experience, having held senior leadership roles at JPMorgan, Deloitte, and others, which will provide RGP clients with expertise in M&A integration and digital transformation.
- Strategic Execution: Tracy emphasizes that the financial services industry is at a critical intersection of strategy and execution, and RGP's model, combining on-demand talent with deep industry expertise, is uniquely positioned to help institutions transition from ambition to outcomes.
See More
RGP Releases M&A Human Value Gap Report
- Human Value Gap Revealed: RGP's latest research report highlights that 81% of CFOs view intangible assets like culture, talent, and knowledge as critical to M&A success, yet only 18% believe their organizations effectively protect these assets, indicating a significant underinvestment in human systems.
- Leadership Turnover Risk: The study finds that 74% of respondents report moderate to high turnover of leadership or critical talent within the first year of an acquisition, which not only impacts short-term performance but also poses risks to long-term value creation.
- Extended Cultural Integration Timeline: While financial and operational synergies are often realized within 18 to 36 months, true cultural integration may take 5 to 7 years, underscoring the importance of prioritizing human capital in M&A to prevent potential value erosion.
- Challenges for Future M&A Leaders: RGP emphasizes that future M&A leaders must close the Human Value Gap by optimizing leadership alignment, cultural integration, and employee experience to achieve competitive advantages and ensure the long-term success of acquisitions.
See More
RGP Appoints New Chief Information Officer
- Executive Appointment: RGP has appointed Prashant Lamba as Chief Information Officer, aiming to leverage technology to reshape customer and employee experiences, thereby enhancing overall operational efficiency and market competitiveness.
- Technology Vision: Lamba will lead the advancement of a unified digital ecosystem that simplifies employee engagement with technology, improves operational performance, and ensures clients receive seamless, high-impact service experiences.
- Experience Background: With over 20 years of experience in technology delivery and enterprise transformation, Lamba previously served as Senior Managing Director at Ankura Consulting Group, successfully leading global teams to define product strategies and deliver large-scale systems.
- Strategic Significance: Lamba's addition will not only help RGP better leverage advanced technologies like AI and intelligent automation but also drive the company to provide greater value and support to clients navigating complex transformations.
See More
