Resources Connection reports Q2 adjusted EPS 18c vs 28c last year

Reports Q2 revenue $145.6M, consensus $137.02M. “We exceeded expectations this quarter as we execute our strategy to deliver diversified support to our clients seeking to transform their businesses – especially finance, supply chain and human resources transformations involving technology and digital innovation,” said Kate W. Duchene, Chief Executive Officer. “While our second quarter financial performance was still down compared to the prior year, we delivered sequential revenue growth this quarter and we improved our gross margin and Adjusted EBITDA results significantly over the first quarter of fiscal 2025. Although On-Demand clients have recently expressed less need given lower talent movement, the demand environment has been leveling in the professional staffing space and we sequentially grew our Consulting segment during the quarter. We have been laser focused on execution including increasing cross-selling efforts, pushing for higher bill rates, driving higher consultant utilization and streamlining our fixed costs, all of which have yielded positive momentum. Based on pipeline activities and client dialogue this quarter, we are cautiously optimistic the new calendar year will bring a stronger demand environment and are confident in our strategic vision as reflected by the Board’s additional share repurchase authorization.”