RGP Reports Financial Results for Third Quarter Fiscal 2026

The professional services firm saw revenue decline but improved gross margin and SG&A expenses in the quarter.

Apr. 8, 2026 at 8:06pm

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A high-end, photorealistic studio still-life photograph featuring a stack of polished metal cubes and a single glass sphere on a clean, white background, conceptually representing the abstract corporate strategy and financial markets.RGP's efforts to streamline its business and align costs aim to position the firm for improved financial performance in the face of broader economic challenges.Dallas Today

Resources Connection, Inc. (RGP), a professional services firm, reported its financial results for the third quarter of fiscal 2026 ended February 28, 2026. The company saw revenue decline 19.6% year-over-year on a same-day constant currency basis, but improved its gross margin to 35.7% and reduced SG&A expenses by $5.3 million compared to the prior year quarter.

Why it matters

RGP has faced challenges in recent quarters as it navigates an economic downturn and shifts in client demand. The company's focus on aligning its cost structure, refocusing its service offerings, and streamlining operations aims to position it for improved financial performance going forward.

The details

RGP's revenue in the third quarter was $107.9 million, down from $129.4 million a year earlier. The decline was driven by a 16.3% drop in billable hours and a 1% decrease in the average bill rate. Gross margin improved due to a better pay bill ratio, lower holiday pay, and reduced healthcare costs. SG&A expenses decreased by $5.3 million, primarily from lower employee compensation, technology transformation costs, and other cost savings initiatives. The company also announced the sale of its Sitrick crisis communications business as part of its portfolio streamlining efforts.

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The players

Resources Connection, Inc. (RGP)

A professional services firm that provides advisory, consulting, and managed services to clients across finance, digital transformation, data, and cloud.

Roger Carlile

Chief Executive Officer of RGP.

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What they’re saying

“'Third quarter results were aligned with our previously provided outlook for revenue and gross margin, and our run rate SG&A expense was better than the outlook.'”

— Roger Carlile, Chief Executive Officer

What’s next

The company will hold a conference call with analysts and investors on April 8, 2026 to discuss the quarterly results.

The takeaway

RGP's focus on cost-cutting, portfolio optimization, and strategic realignment of its service offerings aims to position the firm for improved financial performance, though the economic environment remains challenging.