--- title: "Resources Connection | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 107.93 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/283993193.md" datetime: "2026-04-24T11:38:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283993193.md) - [en](https://longbridge.com/en/news/283993193.md) - [zh-HK](https://longbridge.com/zh-HK/news/283993193.md) --- # Resources Connection | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 107.93 B Revenue: As of FY2026 Q3, the actual value is USD 107.93 B, beating the estimate of USD 108.19 M. EPS: As of FY2026 Q3, the actual value is USD -0.28, missing the estimate of USD -0.225. EBIT: As of FY2026 Q3, the actual value is USD -8.522 B. #### Consolidated Operating Results (Three Months Ended February 28, 2026) - **Revenue**: Resources Connection, Inc. reported $107,930 thousand, a decrease of 16.6% from the prior year period. On a same-day constant currency basis, revenue decreased by 19.6%. - **Cost of Services**: Decreased by 17.5% to $69,351 thousand, representing 64.3% of revenue, compared to 64.9% in the prior year period. - **Gross Profit**: Was $38,579 thousand (35.7% of revenue), down from 35.1% of revenue in the prior year period. - **Selling, General and Administrative Expenses (SG&A)**: Totaled $45,849 thousand (42.5% of revenue), an improvement from 39.5% of revenue in the prior year period. - **Loss from Operations**: -$8,344 thousand, a significant improvement from -$49,725 thousand in the prior year period. - **Net Loss**: -$9,467 thousand, compared to -$44,052 thousand in the prior year period. #### Consolidated Operating Results (Nine Months Ended February 28, 2026) - **Revenue**: Resources Connection, Inc. reported $345,891 thousand, a decrease of 16.0% from the prior year period. On a same-day constant currency basis, revenue decreased by 17.3%. - **Cost of Services**: Decreased by 17.0% to $216,138 thousand, representing 62.5% of revenue, compared to 63.2% in the prior year period. - **Gross Profit**: Was $129,753 thousand (37.5% of revenue), down from 36.8% of revenue in the prior year period. - **Selling, General and Administrative Expenses (SG&A)**: Totaled $148,159 thousand (42.8% of revenue), an improvement from 36.7% of revenue in the prior year period. - **Loss from Operations**: -$22,504 thousand, a significant improvement from -$131,260 thousand in the prior year period. - **Net Loss**: -$24,533 thousand, compared to -$118,474 thousand in the prior year period. #### Segment Performance (Three Months Ended February 28, 2026) - **On-Demand Talent**: Revenue decreased by 13.1% to $40,917 thousand, while Adjusted EBITDA increased by 11.4% to $2,859 thousand. - **Consulting**: Revenue decreased by 29.8% to $36,911 thousand, and Adjusted EBITDA decreased by 71.6% to $1,682 thousand. - **Europe & Asia Pacific**: Revenue decreased by 2.7% to $18,066 thousand, with Adjusted EBITDA remaining relatively flat at $785 thousand. - **Outsourced Services**: Revenue increased by 1.6% to $9,516 thousand, but Adjusted EBITDA decreased by 4.0% to $1,434 thousand. - **All Other**: Revenue increased by 39.3% to $2,520 thousand, while Adjusted EBITDA decreased by 15.4% to -$839 thousand. #### Segment Performance (Nine Months Ended February 28, 2026) - **On-Demand Talent**: Revenue decreased by 16.1% to $128,383 thousand, and Adjusted EBITDA increased by 5.7% to $11,343 thousand. - **Consulting**: Revenue decreased by 26.8% to $123,165 thousand, and Adjusted EBITDA decreased by 52.2% to $11,179 thousand. - **Europe & Asia Pacific**: Revenue increased by 3.2% to $58,052 thousand, and Adjusted EBITDA improved by 21.5% to $3,096 thousand. - **Outsourced Services**: Revenue increased by 2.0% to $28,862 thousand, and Adjusted EBITDA increased by 23.7% to $5,483 thousand. - **All Other**: Revenue increased by 20.4% to $7,429 thousand, and Adjusted EBITDA increased by 82.3% to -$304 thousand. #### Cash Flow (Nine Months Ended February 28, 2026) - **Net cash (used in) provided by operating activities**: -$666 thousand, compared to $2,149 thousand provided in the prior year period. - **Net cash used in investing activities**: -$543 thousand, compared to -$13,083 thousand in the prior year period. - **Net cash used in financing activities**: -$5,135 thousand, compared to -$23,114 thousand in the prior year period. - **Cash and cash equivalents at end of period**: $82,764 thousand as of February 28, 2026, compared to $72,495 thousand as of February 22, 2025. #### Unique Metrics and Strategic Initiatives - **Goodwill Impairment**: No goodwill impairment was recorded during the three and nine months ended February 28, 2026, a change from $42,039 thousand (three months) and $125,376 thousand (nine months) recorded in the prior year. - **Restructuring Costs**: Totaled $4,377 thousand for the three months and $7,271 thousand for the nine months ended February 28, 2026, under the 2026 Transformation Initiative. - **CEO Transition Costs**: Amounted to $9,029 thousand for the nine months ended February 28, 2026, including $5.9 million in cash severance and $3.1 million in non-cash stock compensation expense. - **Stock Repurchase Program**: Approximately $79.2 million remained available for future repurchases as of February 28, 2026, with no shares repurchased in the current periods. - **Quarterly Dividend**: A regular quarterly dividend of $0.07 per share was approved on January 28, 2026. - **Long-Term Debt**: Resources Connection, Inc. entered into a new $50.0 million secured revolving loan facility, with no debt outstanding as of February 28, 2026, and $49.3 million of potential remaining capacity. - **Management and Administrative Headcount**: Decreased to 614 at the end of the third quarter of fiscal 2026, down from 680 in the prior year period. #### Future Outlook and Strategy Resources Connection, Inc. plans to expand cross-sell opportunities, scale high-value Consulting solutions, and refocus On-Demand Talent offerings to address evolving client needs, including AI and digital transformation. The company aims to improve its cost structure through ongoing discipline and transformation efforts, anticipating a $12.0 million to $14.0 million reduction in annual SG&A expenses from workforce reductions, and intends to leverage value-based pricing to enhance profitability. 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