Resources Connection reported second quarter revenues of $117.7 million, down from $145.6 million in the year-ago quarter, representing an 18.4% decline on a same-day constant currency basis. Billable hours fell by 18.4%, while the average bill rate dipped 1.2% overall but rose 2.5% in the U.S. The top-line contraction reflects reduced demand for traditional finance roles as clients accelerate automation and AI adoption.

Gross margin narrowed to 37.1% from 38.5%, driven by higher self-insured healthcare costs, an extra holiday pay period and lower salaried consultant utilization. GAAP SG&A expenses increased to $54.4 million (46.2% of revenue) from $51.3 million (35.2% of revenue) due to $5.9 million in CEO transition severance, $3.1 million in related stock-based compensation and $2.6 million in restructuring charges, partially offset by reductions in employee compensation, technology transformation and occupancy expenses.

On-Demand Talent revenue declined 19% to $43.0 million, with billable hours down 21.5% offset by a 2.6% rate increase. Consulting fell 29% to $42.6 million as hours dropped 33.8% despite a 6.6% rate improvement. Europe & Asia Pacific grew 0.6% to $20.1 million, led by a 12.6% increase in European hours and higher regional bill rates. Outsourced Services was flat at $9.4 million with a 1.3% rise in hours offset by a 5% rate decline, while All Other rose 10.4% to $2.6 million on a 2.9% rate gain.

New CEO Roger Carlile emphasized decisive cost-structure realignment and a refocus of On-Demand offerings to match evolving client needs. He highlighted a strong balance sheet but cautioned that restoring revenue momentum and scaling high-value consulting solutions will require time and disciplined execution. The board declared a cash dividend of $0.07 per share, underscoring confidence in the long-term value creation plan.