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what it is
RGP rents out finance, tech, risk, and operations talent to companies that need extra hands fast.
how it gets paid
Last year Resources Connect made $551M in revenue. On-Demand Talent was the main engine at $248M, or 45% of sales.
why growth slowed
Revenue fell 12.9% last year. The number that mattered was -$0.45 EPS, because revenue can bounce, but losses tell you the operating model is still under strain.
what just happened
Latest quarter revenue hit $238M, but EPS stayed negative at -$0.45, so the rebound is not reaching shareholders yet.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
26.6x trailing p/e — priced about right
7.8% dividend yield — cash in your pocket every quarter
5.0% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
RGP rents out finance, tech, risk, and operations talent to companies that need extra hands fast.
RGP wins on coverage, not magic. It has 3,055 employees across four service lines, so your client can hire a controller, a supply chain fixer, or a crisis PR team from one vendor. That breadth matters when customers want speed; one contract is easier than stitching together four specialists.
How they make money
$551M
annual revenue · their business grew -12.9% last year
On-Demand Talent
$248M
15.0%
Consulting
$193M
10.0%
Outsourced Services
$72M
+4.0%
Sitrick
$39M
+2.0%
The products that matter
temporary staffing and project work
Finance & Accounting
$331M · 60% of shown mix
It is 60% of the segment mix, so when finance projects slow, the whole story slows with it.
core revenue base
IT consulting and implementation
Information Technology
$165M · 30% of shown mix
This $165M line is already falling 12.9% from last year. If clients delay systems work or automate it away, you feel it here first.
budget-sensitive
business process and change consulting
Strategic Transformation
$55M · 10% of shown mix
At only 10% of the shown mix, this business needs to grow far faster than the core segments to matter. It has not done that yet.
too small to save it
Key numbers
35.7%
operating margin
Operating margin → what is left after paying to run the business → so what: RGP loses about $35.70 on every $100 of sales before interest and taxes.
$20M
long-term debt
Debt → money owed over time → so what: leverage is only 14% of capital, which means the balance sheet is not the main reason profits look broken.
7.8%
dividend yield
Dividend yield → annual cash payout versus stock price → so what: the payout looks huge, but it sits next to an estimated FY2025 loss of $5.80 a share.
$551M
annual revenue
Revenue → total sales → so what: this is still a real operating business, but sales fell 12.9%, which makes a turnaround harder.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $20M (14% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RGP right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter revenue hit $238M, but EPS stayed negative at -$0.45, so the rebound is not reaching shareholders yet.
Quarterly revenue doubled vs. prior year to $238M, while gross margin was 38.3%. The problem is that annual revenue still fell 12.9% to $551M and the business remains unprofitable.
$238M
revenue
$0.45
eps
38.3%
gross margin
the number that mattered
The number that mattered was -$0.45 EPS, because revenue can bounce, but losses tell you the operating model is still under strain.
source: company earnings report, 2026
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What could go wrong
the #1 risk is continued decline in project-based consulting demand.
high
Continued demand erosion
Revenue has fallen from a year ago for five straight quarters. When all three operating lines are shrinking at -12.9%, this is not one bad pocket of demand.
If project budgets stay tight, the turnaround becomes a cost-cutting story without a revenue recovery.
med
CEO execution risk
Roger Carlile took over in november 2025. New leadership can change the operating tempo, but it cannot manufacture demand overnight.
If the reset does not show up in better quarterly trends, investors will stop giving management time.
med
Dividend reset
The stock yields 7.8%, but the business runs at a 1.0% operating margin and just posted a quarterly GAAP loss.
A dividend cut would remove one of the few reasons income investors stay interested.
med
Thin-margin model
At 1.0% operating margin, small pricing pressure or consultant underutilization can wipe out a lot of earnings power fast.
This is why a B balance sheet does not automatically make the equity safe.
Five straight quarters of decline plus a 1.0% operating margin leave very little room for a 7.8% yield to stay untouched.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
quarterly revenue trend
The number to watch is not adjusted EPS. It is revenue. If the decline stays near -12.9%, the turnaround still has not started.
calendar
Q3 FY2026 earnings report
Next report is expected april 8, 2026. You want to see whether five straight declining quarters becomes six or finally starts to flatten.
risk
next dividend declaration
The next $0.07 quarterly payout matters. A cut would tell you management cares more about preserving cash than preserving the headline yield.
trend
turnaround traction under the new CEO
Carlile can trim costs quickly. What you need next is proof that client demand is stabilizing, not just expenses getting smaller.
Analyst rankings
earnings predictability
20 / 100
In human-speak, analysts should not pretend they have this quarter dialed in. The business is lumpy and the turnaround is early.
risk rank
3
That sits around the middle of the pack on safety. Not distress, not comfort.
source: institutional data
Institutional activity
institutional ownership data for RGP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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