Resources Connection reported first-quarter fiscal 2027 revenue of $98.1 million, while management highlighted improving cost discipline, pricing strength in On-Demand Talent, and signs of stabilization across parts of the business.
Revenue compared with $120.2 million in the prior-year quarter, while gross margin was 37.4%. Adjusted selling, general and administrative expenses improved to $40.3 million from $44.5 million a year earlier.
Management said first-quarter revenue and gross margin were within the ranges communicated in July, while adjusted SG&A performed better than the company’s outlook.
RGP also pointed to several positive indicators, including disciplined pricing in its On-Demand Talent business, opportunities in the sales pipeline, and strong performance within several strategic client relationships.
The company’s On-Demand Talent segment generated $38.6 million in revenue during the quarter. While revenue was lower year-over-year, the average bill rate increased 4.1%, reflecting what RGP described as continued pricing discipline.
Consulting generated $32.4 million in revenue. RGP said it continues investing in consulting leadership and business development talent to strengthen its capabilities and go-to-market execution as client demand evolves.
Outsourced Services revenue remained essentially flat year-over-year, while billable hours increased 4.9%.
RGP also continued reducing its cost base. GAAP SG&A expenses improved by $4.8 million year-over-year to $43.1 million, helped by lower employee compensation and benefits, reduced consulting expenses, and lower facilities costs.
The company ended the quarter with $61.2 million in cash and cash equivalents and had up to $24.1 million of borrowing capacity available under its credit agreement with PNC Bank.
RGP also paid a quarterly dividend of $0.07 per share on October 1, representing approximately $2.4 million in aggregate distributions to shareholders.
The company continues to position its integrated model around on-demand talent, consulting, and managed services, with management focused on translating that model into more consistent growth, improved utilization, and stronger profitability.
RGP serves nearly 1,500 clients globally from approximately 35 physical practice offices and multiple virtual offices. As of August 2026, the company had served 90% of the Fortune 100.
KEY QUOTES:
“Our first-quarter results were within the revenue and gross margin ranges we communicated in July, with adjusted SG&A expense better than our outlook. However, our revenue and profitability remained below our potential, driven primarily by lower project volume and utilization in Consulting and ongoing caution in client decision-making. We are addressing this with urgency by continuing to strengthen sales execution, improving Consulting project staffing and related utilization, and ongoing efforts to reduce our cost structure. At the same time, we are seeing positive indicators in the business, including the benefit from disciplined pricing in On-Demand Talent, opportunities in our pipeline, and strong performance within several strategic client relationships.”
Roger Carlile, President and Chief Executive Officer of RGP
“We remain confident in the long-term demand for RGP’s integrated model, which combines on-demand talent, consulting, and managed services to help clients move from strategy to execution. Our focus is on translating that differentiated model into more consistent revenue growth, improved utilization, and stronger profitability. While these efforts will take time to be fully reflected in our results, we are committed to disciplined execution and to building sustainable long-term value.”
Roger Carlile, President and Chief Executive Officer of RGP
