Third-Quarter Revenue Drops 19.6% to $107.9M, Q4 Outlook of $104M–$109M
Resources Connection's Q3 revenue fell 19.6% year-over-year to $107.9 million while posting a $9.5 million net loss (28 cents per share), though adjusted loss was 9 cents. The firm holds $82.8 million cash, no debt, and guides Q4 revenue of $104 million–$109 million, projecting a 16% organic decline with growth returning in late FY2027.
1. Company Reports Third-Quarter Results
In Q3 fiscal 2026, Resources Connection posted consolidated revenue of $107.9 million, down 19.6% on a constant currency same-day basis, and recorded a net loss of $9.5 million (28 cents per share), with adjusted loss per share of 9 cents. Gross margins remained in line with guidance and SG&A expenses came in below expectations.
2. Strong Balance Sheet Supports Shareholder Returns
The company ended the quarter with $82.8 million in cash and no outstanding debt, providing flexibility for strategic investments, dividend payments, and potential share repurchases as management evaluates market conditions and liquidity needs.
3. Fourth-Quarter and Fiscal 2027 Outlook
Management projects Q4 revenue between $104 million and $109 million, representing an organic year-over-year decline of approximately 16% at the top of the range. Management anticipates a return to revenue growth in the latter half of fiscal 2027 as new hires mature and consulting initiatives scale.
4. Strategic Priorities and AI Tailwind
Resources Connection is executing four strategic priorities—refocusing on-demand talent, scaling consulting, simplifying operations, and aligning cost structure with revenue levels—and expects artificial intelligence to serve as a tailwind by improving cost structure and client offerings over the next 12 to 24 months.