NEW YORK - Resources Connection, Inc. (NASDAQ:RGP) saw its stock rise 5% after reporting better-than-expected second quarter fiscal 2025 results, despite ongoing challenges in the professional staffing market.
The professional services firm posted adjusted earnings per share of $0.18, significantly beating analyst estimates of $0.01. Revenue came in at $145.6 million, surpassing the consensus forecast of $137.02 million, though still down 10.7% YoY.
While demand remained choppy, RGP delivered sequential revenue growth of 6.3% compared to the first quarter. The company's Consulting segment grew 2.7% YoY to $60.6 million, helped by the recent acquisition of Reference Point.
"We exceeded expectations this quarter as we execute our strategy to deliver diversified support to our clients seeking to transform their businesses," said CEO Kate W. Duchene. She noted improved gross margin and adjusted EBITDA results compared to Q1.
RGP recorded a net loss of $68.7 million, including a $79.5 million non-cash goodwill impairment charge. Adjusted EBITDA was $9.7 million with a 6.6% margin, down from $16.1 million and 9.8% margin in the prior year quarter.
The company maintained its quarterly dividend of $0.14 per share.
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