RGP Q1 Fiscal 2027 Earnings Call: Revenue Falls 18.5%, Q2 Guidance at $95M-$100M
Source Tradingkey
Key Takeaways
- RGP reported first-quarter fiscal 2027 revenue of $98.1 million, down 18.5% year over year on a same-day, constant-currency basis.
- Gross margin declined to 37.4% from 39.5%, mainly due to lower consultant utilization and less favorable leverage of indirect service costs.
- Adjusted EBITDA was negative $3.6 million. Run-rate SG&A fell 9.4% year over year to $40.3 million following cost actions implemented in fiscal 2026.
- Consulting remained the largest source of pressure. Segment revenue fell 25.8% year over year to $32.4 million, while salaried consultant utilization was in the high-50% range.
- RGP ended the quarter with $61.2 million in cash and cash equivalents, no outstanding debt and $24.1 million of available revolver capacity.
- Management expects second-quarter revenue of $95 million to $100 million, broadly consistent with the first quarter, and said activity appears to be stabilizing.
Core Financial Results
| Metric | Q1 Fiscal 2027 | Change / Commentary |
|---|---|---|
| Revenue | $98.1 million | Down 18.5% year over year on a same-day, constant-currency basis |
| Gross margin | 37.4% | 39.5% in the prior-year quarter |
| Adjusted EBITDA | Negative $3.6 million | Pressured by lower volume and utilization |
| Run-rate SG&A | $40.3 million | Down 9.4% year over year |
| Enterprise average bill rate | $114 | $121 a year earlier; affected by the Sitrick divestiture and geographic mix |
| Cash and cash equivalents | $61.2 million | No outstanding debt |
| Available revolver capacity | $24.1 million | Management said liquidity remains sufficient to support the business |
| Quarterly dividends paid | $2.4 million | — |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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