Lumida
/RGP
⌘K
Resources Connection Inc

Resources Connection Inc

RGP
$4.64USD↓-1.07%-0.05 today

MARKET CAP

159.3M

P/E (TTM)

29.0x

FWD P/E

—

DAY RANGE

$5 – $5

52W RANGE

$3
$6

AI Summary

Stalk
Sell NowMedium

RGP remains in a clear Stage 4 decline, with all EMAs sloping lower and price marking lower highs and lows. Recent attempts to rally into the declining 9/21 EMAs and the 50 DMA were promptly rejected, reinforcing the medium-term bearish bias established by the support failure and bearish pivot patterns. Short-term momentum has rolled over following resistance tests, presenting a timely sell opportunity into the 50 DMA and former support zone now acting as resistance.

  • ↑Q4 2026 revenue guidance of $104–109M implies FY27 growth.
  • ↑Q3 ended with $82.8M cash, zero debt and $79M buyback capacity.
  • ↓Q3 revenue down 19.6% YoY to $107.9M, reflecting soft demand.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Resources Connection, Inc. (RGP) operates in the professional services sector, providing specialized consulting and staffing solutions focusing primarily on the needs of Chief Financial Officers. With a strategic pivot from traditional staffing to an integrated model combining on-demand talent with consulting and outsourcing services, RGP aims to leverage technology, particularly AI, to meet evolving client demands.

Bull says

  • ↑Q4 2026 revenue guidance of $104–109M implies FY27 growth.
  • ↑Q3 ended with $82.8M cash, zero debt and $79M buyback capacity.
  • ↑SG&A expenses down 10% YoY; targeting $12–14M annual cost savings.
  • ↑Gross margin improved to 35.7%, up 60bps YoY.
  • ↑High earnings yield and 2.4% dividend yield attract income investors.
  • ↑Expanding CFO advisory and digital transformation services amid stabilizing bill rates.

Bear says

  • ↓Q3 revenue down 19.6% YoY to $107.9M, reflecting soft demand.
  • ↓Adjusted EBITDA loss of $1.4M underscores weak profitability factors.
  • ↓High share volatility and elevated short interest signal market stress.
  • ↓Limited institutional ownership indicates skepticism from large investors.
  • ↓Geopolitical uncertainty and cautious corporate spending pose risks.
  • ↓Delayed client decision-making for larger projects may stall recovery.

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 04-11-2026neutral

Transcript signals

Bull points

  • average bill rates increased year-over-year and sequentially in most segments, reflecting our continued focus on disciplined pricing higher-value consulting projects, and more specialized on-demand talent skill sets.
  • we expect total annualized cost savings of approximately $12 to $14 million, with a portion of those savings being selectively reinvested to support growth in fiscal 2027.
  • our balance sheet remains strong. We ended the quarter with $82.8 million of cash and cash equivalents and no outstanding debt.

Bear points

  • Adjusted EBITDA for the quarter was negative 1.4 million.
  • consolidated revenue for the quarter was $107.9 million, representing a 19.6% decline on a same-day constant currency basis compared to the prior year.
  • Early fourth quarter weekly revenue trends are tracking below third quarter levels.
Read full transcript analysis ›