Resources Connection Revenue Falls 17% to $107.9M in Q3 FY2026

Resources Connection, Inc., a professional services and consulting firm, reported revenue of $107.9 million for the quarter ending February 28, 2026, down 16.6% from $129.4 million in the same period a year earlier. The company posted a net loss of $9.5 million, or $0.28 per diluted share, compared to a loss of $44.1 million, or $1.34 per share, in the prior-year quarter. Read more earnings reports.

For the nine months ending February 28, 2026, total revenue fell to $345.9 million from $412.0 million in the year-earlier period, a decline of 16.0%. The net loss for the nine-month period was $24.5 million, or $0.74 per share, versus a loss of $118.5 million, or $3.58 per share, in the comparable prior-year period.

Quarterly Operating Results

Gross profit for the third quarter was $38.6 million, down from $45.4 million a year earlier. The company reported an operating loss of $8.3 million for the quarter, compared to an operating loss of $49.7 million in the prior-year period. Selling, general, and administrative expenses totaled $45.8 million, down from $51.2 million a year ago.

Cost of goods sold for the quarter was $69.4 million, compared to $84.1 million in the same quarter last year. The company recorded an income tax expense of $696,000 for the quarter, compared to a tax benefit of $5.6 million in the year-earlier period.

Balance Sheet and Cash Position

Total assets stood at $274.1 million as of February 28, 2026, down from $304.7 million at the end of the prior fiscal year on May 31, 2025. Cash and cash equivalents totaled $82.8 million, compared to $86.1 million at the end of fiscal 2025.

Accounts receivable decreased to $79.3 million from $99.2 million at the prior fiscal year-end. Total stockholders' equity was $186.7 million as of February 28, 2026, down from $207.1 million at May 31, 2025. The company had 34.1 million common shares outstanding as of the quarter-end.

Cash Flow and Operations

Cash used in operations for the nine-month period was $666,000, compared to cash generated of $2.1 million in the prior-year period. Cash used in investing activities was $543,000, while cash used in financing activities totaled $5.1 million.

The company recorded depreciation and amortization of $4.1 million for the nine months ending February 28, 2026, down from $6.5 million in the year-earlier period. Total liabilities decreased to $87.4 million from $97.6 million at the end of fiscal 2025.