Resources Connection, Inc. announced its financial results for the fourth quarter and full fiscal year ended May 31, 2025. For the fourth quarter, revenue was $139.3 million, a decrease from $148.2 million in the prior year quarter, though it exceeded the high end of the company's outlook range.
The company reported a net loss of $73.3 million, or -$2.23 per diluted share, for the fourth quarter, primarily due to a non-cash goodwill impairment charge of $69.0 million in the Consulting segment. This compares to a net income of $10.5 million, or $0.31 per diluted share, in the fourth quarter of fiscal 2024.
For the full fiscal year 2025, total revenue decreased by 12.9% to $551.3 million from $632.8 million in fiscal 2024. The company recorded a net loss of $191.8 million, or -$5.80 per diluted share, a significant decline from the net income of $21.0 million, or $0.62 per diluted share, in the prior fiscal year.
Total non-cash goodwill impairment charges for fiscal year 2025 amounted to $194.4 million, impacting the On-Demand Talent ($70.2 million), Consulting ($98.6 million), and Europe and Asia ($25.6 million) segments. Gross margin for the full year was 37.6%, down from 38.9% in the prior year.
Despite the overall financial declines, management highlighted that Q4 revenue and gross margin exceeded the high end of their outlook. They also noted sequential revenue growth and improved average bill rates across multiple segments, attributing this to a focus on value-based pricing and a shift towards higher-value consulting projects.
Looking ahead to the first quarter of fiscal year 2026, RGP anticipates revenue in the range of $115 million to $120 million. Gross margin is expected to be between 36% and 37%, with run rate SG&A expenses projected between $46 million and $48 million.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.