In This Story
Resources Connection Inc. (RGP+2.15%) has submitted its 10-Q filing for the quarterly period ended February 22, 2025.
The filing reports a decrease in revenue to $129.4 million from $151.3 million in the same quarter the previous year. The decline is attributed to reduced client spending amidst economic uncertainty.
Direct cost of services for the quarter was $84.1 million, representing 64.9% of revenue, compared to 63.0% in the same quarter of the previous year. This increase is due to lower utilization of salaried consultants and additional holiday pay.
The company reported a gross profit of $45.4 million for the quarter, compared to $56.0 million in the previous year, with the decline attributed to decreased revenue.
A non-cash goodwill impairment charge of $42.0 million was recorded, related to the On-Demand Talent and Consulting segments.
Selling, general, and administrative expenses increased to $51.2 million from $49.6 million, primarily due to restructuring costs and increased software expenses.
The company reported a net loss of $44.1 million for the quarter, compared to a net income of $2.6 million in the previous year.
Cash provided by operating activities was $2.1 million, while cash used in investing and financing activities was $13.1 million and $23.1 million, respectively.
Resources Connection had cash and cash equivalents of $72.5 million as of February 22, 2025. The company continues to focus on its strategic initiatives, including technology upgrades and organizational restructuring.
The filing also details amendments to the company's credit agreement, including waivers for financial covenant non-compliance due to goodwill impairments.
Resources Connection does not anticipate any changes to its dividend policy in the near future, subject to board approval each quarter.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Resources Connection Inc. quarterly 10-Q report dated April 3, 2025. To report an error, please email earnings@qz.com.