Resources Connection, Inc. (RGP): History, Ownership, Mission, How It Works & Makes Money

Resources Connection, Inc. (RGP) operates at the critical intersection of on-demand talent and strategic consulting, but how has this model defintely weathered the recent market shifts that drove its fiscal 2025 annual revenue to $551.3 million? Despite reporting a net loss of $191.8 million for the year, largely due to a $194.4 million non-cash goodwill impairment charge, RGP still maintains a strong foothold, serving 88 percent of the Fortune 100 with its unique blend of On-Demand Talent, Veracity consulting, and Countsy outsourced services. Since 75.39% of the company is held by institutional investors like Blackrock Inc., you need to understand the mechanics of how RGP makes money and what its mission is, so you can map out the real value proposition beyond the headline numbers.

Resources Connection, Inc. (RGP) History

You're looking for the foundation of Resources Connection, Inc. (RGP), and it starts not with a garage startup, but inside a Big Four accounting firm. The company's origin is a classic case of a successful internal unit needing to break free to avoid regulatory conflict and realize its full market potential.

The core idea was simple: provide experienced, senior-level financial professionals to corporations on a project basis, a flexible model that was cheaper than traditional top-tier consulting. This model, which is now a cornerstone of the professional services industry, was born from a need for agility and specialized, on-demand talent (ODT).

Resources Connection, Inc. (RGP) Founding Timeline

Year established

The company was established in June 1996 as a division of Deloitte & Touche LLP.

Original location

The original unit was led from Santa Ana, California, where Donald B. Murray headed a large auditing practice for Deloitte.

Founding team members

The founding team was led by Donald B. Murray, who was a senior partner at Deloitte & Touche at the time.

Initial capital/funding

The initial funding came from its parent company, Deloitte & Touche. The first major external capital injection occurred in December 2000 when the company completed its Initial Public Offering (IPO) on the NASDAQ, raising $78 million.

Resources Connection, Inc. (RGP) Evolution Milestones

Resources Connection, Inc. (RGP) Transformative Moments

The company's trajectory has been shaped by three critical shifts: the regulatory-driven spin-off, the move to a public market for growth capital, and the recent strategic pivot to a more integrated consulting model.

The 1999 management buyout was defintely the first big moment. It was a direct response to a looming regulatory environment-the one that eventually led to Sarbanes-Oxley-which restricted accounting firms from providing consulting services to their audit clients. The spin-off allowed RGP to keep serving those major clients without conflict, effectively turning a risk into a massive opportunity. That was a smart, decisive move.

More recently, the company has undergone a significant internal transformation, moving beyond its roots as purely an on-demand talent provider to a full-spectrum professional services firm. This is a critical pivot in a competitive market.

• Integrated Service Model: RGP now blends three offerings: On-Demand Talent, Consulting Teams, and Outsourced Services. This allows them to engage clients from strategy through execution, not just on staffing.
• Strategic Focus Areas: The company has honed its focus on two high-value areas: the Office of the CFO and Digital Transformation. This specialization targets where corporate spending is most resilient.
• Financial Reset in FY 2025: The company took a non-cash goodwill impairment charge of $194.4 million in fiscal year 2025. This charge, which led to a net loss of $191.8 million on $551.3 million in revenue, was an honest acknowledgment of the valuation of past acquisitions and a clear-the-decks move for the new strategy.
• Leadership for Transformation: The November 2025 appointment of Roger Carlile as CEO, a leader with experience in founding and running high-growth consulting firms, underscores the commitment to this new, more diversified, and consulting-heavy model.

To understand the depth of this strategic shift, you should review the core principles driving their current operations: Mission Statement, Vision, & Core Values of Resources Connection, Inc. (RGP).

Resources Connection, Inc. (RGP) Ownership Structure

Resources Connection, Inc. (RGP) is primarily controlled by institutional investors, a common structure for publicly traded consulting firms, but it also has a significant insider stake that aligns management and director interests with shareholder returns.

This ownership dynamic means major strategic decisions, like the recent CEO transition, are heavily influenced by the firm's largest institutional holders, still leaving a meaningful portion of the company in the hands of its founders and executives.

Given Company's Current Status

Resources Connection, Inc. is a publicly traded company, listed on the Nasdaq Global Select Market under the ticker symbol RGP. As of November 2025, the company has a market capitalization of approximately $161.28 million, reflecting its status as a smaller-cap player in the global professional services market.

Being publicly traded means the company must adhere to strict U.S. Securities and Exchange Commission (SEC) reporting requirements and is subject to the daily volatility of the stock market, which is why transparency in ownership is defintely crucial for investors.

If you want to understand the strategic direction driving this structure, check out the Mission Statement, Vision, & Core Values of Resources Connection, Inc. (RGP).

Given Company's Ownership Breakdown

The company's stock is highly concentrated in the hands of institutional investors, a clear sign that professional money managers see value here. As of the end of the first quarter of fiscal year 2026 (August 30, 2025), institutional ownership was dominant, with a smaller but impactful percentage held by company insiders.

Here's the quick math on who holds the shares:

What this breakdown shows is that a small number of institutional funds and key insiders hold the vast majority of voting power, so their decisions carry significant weight in corporate governance.

BlackRock, Inc. is one of the largest institutional holders, owning approximately 9.31% of the company's shares.

Given Company's Leadership

The leadership team, which steers the company's strategy, saw a significant change in November 2025, underscoring the shift toward a more integrated consulting model focused on digital transformation and CFO Advisory services.

The key leaders as of November 2025 are:

• Roger Carlile: President, Chief Executive Officer & Director (Appointed November 2025).
• A. Robert Pisano: Chair of the Board & Independent Director.
• Jenn Ryu: Chief Financial Officer.
• Bhadresh Patel: Chief Operating Officer.
• Kate W. Duchene: Executive Advisor (Former CEO, transitioned November 2025 and serving through January 3, 2026).

This new management structure, led by Roger Carlile, who was previously a board member, is tasked with delivering value from the company's strategic business model, especially as they focus on higher-value consulting work.

The average tenure of the management team is relatively short at 1.5 years, suggesting a new team is in place to drive the current transformation.

Resources Connection, Inc. (RGP) Mission and Values

Resources Connection, Inc. (RGP) is fundamentally driven by a people-first approach, aiming to be the next-generation human capital partner that helps C-suite leaders navigate complex change through flexible, high-impact solutions. This commitment goes beyond the bottom line, prioritizing a culture of belonging and corporate responsibility alongside creating value for stakeholders.

Given Company's Core Purpose

The core purpose of Resources Connection, Inc. is to 'Dare to Work Differently®,' which translates into a model that favors flexibility and agility to deliver practical, impactful results for clients facing transformation pressures and skilled labor shortages. This distinct approach is what enabled the firm to serve 88% of the Fortune 100 as of May 2025.

Official Mission Statement

The firm's mission centers on powering the operational needs and change initiatives of its client base, uniting strategy, execution, and expert talent across critical areas like digital transformation, data, and global scale. They are purpose-built to deliver flexibility, global connectivity, and exceptional service, helping clients solve problems quickly and confidently.

• Deliver flexible, high-impact solutions across Finance, HR, Operations, and Technology.
• Provide the C-suite with the agility to solve today's most pressing challenges on their terms.
• Leverage human connection and collaboration for more impactful results.

Vision Statement

Resources Connection, Inc.'s vision is to be the global professional services leader and trusted partner to the C-Suite, continuously evolving its operating model to enhance efficiency and unlock future growth. This means not just delivering projects, but driving transformation across people, processes, and technology.

• Be a next-generation human capital partner specializing in co-delivery of enterprise initiatives.
• Strengthen the foundation of the business to meet the needs of a changing world.
• Position the firm for growth by focusing on cross-sell execution and a unique 'one RGP' culture.

The company's focus on long-term value creation is clear, even as it navigated a challenging macro environment in fiscal 2025, which saw revenue of $551.3 million and a net loss of $73.3 million (including a large non-cash goodwill impairment charge). Honestly, that kind of loss highlights the difficulty of corporate transformation, but their commitment to a 'Human First' approach is a defintely long-term investment.

Given Company slogan/tagline

The company's registered slogan captures its commitment to an alternative service model that stands apart from traditional consulting firms.

• Dare to Work Differently®

This tagline reflects the firm's model of providing expert, on-demand talent and flexible consulting, which contrasts with the traditional pyramid model of deploying inexperienced talent. You can learn more about how this translates into their corporate culture and goals here: Mission Statement, Vision, & Core Values of Resources Connection, Inc. (RGP).

Resources Connection, Inc. (RGP) How It Works

Resources Connection, Inc. (RGP) operates as a global professional services firm that delivers high-impact, flexible solutions by blending three core offerings: on-demand expert talent, project-based consulting, and managed outsourced services. The company essentially acts as a next-generation human capital partner, providing clients with the specific expertise they need, from strategy through to execution, without the fixed cost or long timelines of traditional consulting firms.

Resources Connection, Inc. (RGP)'s Product/Service Portfolio

RGP's value proposition centers on its ability to quickly deploy experienced, mid- to senior-level professionals-often with 10 to 20+ years of industry experience-to solve complex business problems, particularly in the critical areas of CFO Advisory and Digital Transformation. This diversified platform allows them to meet a broad spectrum of client needs, from filling a short-term resource gap to executing a multi-year global transformation program. You can learn more about their core beliefs in the Mission Statement, Vision, & Core Values of Resources Connection, Inc. (RGP).

Resources Connection, Inc. (RGP)'s Operational Framework

The operational framework is built on a 'co-delivery' model, which means RGP's professionals work side-by-side with your internal teams, not just handing you a big, expensive report. This integrated approach drives value by ensuring knowledge transfer and faster execution.

Here's the quick math on their scale: for the full fiscal year 2025, Resources Connection, Inc. generated $551.3 million in total revenue, even with a challenging macroeconomic environment. Their gross margin for the year was 37.6%, showing pricing discipline still matters.

• Global Talent Network: Maintain a deep bench of experienced, non-traditional consultants who have actually worked in your seat, not just consulted on it.
• Solution-Focused Delivery: Center the entire platform around two high-demand areas-CFO Advisory and Digital Transformation-to ensure relevance and higher bill rates.
• Cost Discipline: Managed Selling, General, and Administrative (SG&A) expenses down to $202.0 million in fiscal 2025 through restructuring and technology modernization, which helps profitability.
• Technology Stack: Investing in new talent and contract management systems to improve operational efficiency and the consultant/client experience.

Their model is defintely about speed and precision.

Resources Connection, Inc. (RGP)'s Strategic Advantages

Resources Connection, Inc.'s competitive edge isn't just about having a deep roster; it's about the structure that makes that roster agile and cost-effective compared to the 'Big Four' firms. In a choppy demand environment, this flexibility is crucial.

• Agility and Experience: Deploy mid- to senior-level practitioners who bring 10 to 20+ years of industry experience, allowing them to integrate and execute immediately, unlike many traditional consulting models.
• Diversified Service Platform: The ability to offer On-Demand Talent, Consulting, and Outsourced Services from a single platform provides clients with maximum choice and a seamless transition between service types.
• Financial Resilience: The company maintains a strong balance sheet with zero debt and generated $18.9 million in cash flow from operations in fiscal 2025, providing stability for long-term investment.
• Global Delivery Model: Leveraging global delivery centers, particularly in high-growth regions like India and Asia-Pacific, allows for quick access to specialized talent and cost-effective solutions for multinational clients.

What this estimate hides is the impact of the $194.4 million non-cash goodwill impairment charge in fiscal 2025, which drove the net loss to $191.8 million, but the underlying operations show a clear focus on improving gross margin and controlling costs for the long term.

Resources Connection, Inc. (RGP) How It Makes Money

Resources Connection, Inc. (RGP) generates revenue by providing professional services-primarily through deploying skilled, on-demand consultants and delivering project-based consulting solutions to clients undergoing major business transformations. The core of the business model is matching high-value, specialized talent, mainly in finance, accounting, and digital transformation, with client needs on a flexible, project-by-project basis.

Resources Connection, Inc. (RGP)'s Revenue Breakdown

For the fiscal year ended May 31, 2025, Resources Connection, Inc. reported total revenue of $551.3 million, a decline of 12.9% from the prior year, reflecting a challenging macroeconomic environment where clients delayed transformation projects. The revenue streams are segmented by the type of service and geography, with the largest portion coming from the core Consulting and On-Demand Talent offerings in the Americas.

Business Economics

The financial engine of RGP is fundamentally a professional services model with a high variable cost structure, which offers resilience in downturns but limits operating leverage when demand is soft. The company's primary cost of services is consultant compensation, both for salaried employees and independent contractors, which directly impacts the gross margin (the difference between what the client is billed and what the consultant is paid, or the pay/bill ratio).

• Pricing Power: The enterprise-wide average bill rate increased to $125 constant currency in the fourth quarter of fiscal 2025, up from $120 a year ago. This pricing discipline, especially a 13% increase in the Consulting segment's bill rate, shows the shift toward higher-value, project-based work, which is a key strategic move.
• Cost Flexibility: The variable nature of the On-Demand Talent segment, which relies heavily on independent contractors, allows RGP to quickly flex its cost of services with revenue, a crucial factor when billable hours decline by 13.5% for the full year.
• Strategic Pivot: The Consulting Services segment is now the largest revenue stream, accounting for 40.2% of the total. This shift is intentional, focusing on larger, more complex digital transformation and CFO advisory engagements, which inherently carry a higher average bill rate than traditional interim staffing.
• Growth Pockets: Outsourced Services, while small at 7.2% of revenue, is a growth area, with the segment revenue increasing due to higher billable hours and average bill rates, indicating strong demand for fixed-scope, managed solutions.

The business is defintely pushing for higher-margin work, but volume remains a challenge.

Resources Connection, Inc. (RGP)'s Financial Performance

The fiscal year 2025 results reflect a company navigating a difficult market while executing a strategic pivot toward higher-value consulting. The headline numbers show pressure, but underlying metrics point to successful cost and pricing management.

• Gross Margin Resilience: Despite the revenue decline, the full-year gross margin was 37.6%, only a modest drop from 38.9% in the prior year. The strong gross margin of 40.2% achieved in Q4 2025 demonstrates the positive impact of improved pricing and a better pay/bill ratio.
• Profitability Headwinds: The company reported a significant GAAP net loss of $191.8 million for FY2025. This loss was primarily driven by a large, non-cash goodwill impairment charge of $194.4 million, which is an accounting write-down reflecting a slower-than-expected recovery in certain segments, not a cash loss from operations.
• Adjusted Profitability: A clearer picture of operational health is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which was $9.8 million (a 7.1% margin) in Q4 2025, marking the strongest quarter of the fiscal year. Full-year Adjusted Diluted EPS was $0.23.
• Liquidity and Capital: Resources Connection, Inc. maintains a solid balance sheet with zero debt, giving it financial flexibility to pursue strategic acquisitions like Reference Point LLC, which was completed in Q1 FY2025 to bolster its high-end consulting capabilities.

For a deeper dive into who is investing in this strategic shift, you should check out Exploring Resources Connection, Inc. (RGP) Investor Profile: Who's Buying and Why?

Resources Connection, Inc. (RGP) Market Position & Future Outlook

Resources Connection, Inc. (RGP) is navigating a choppy demand environment by aggressively shifting its focus toward higher-value consulting and technology-enabled services, moving past its traditional on-demand talent model. The company's future trajectory hinges on the success of its strategic pivot to the Office of the CFO (Chief Financial Officer) and the adoption of new AI-powered tools like the rIQ accelerator.

For the fiscal year 2025, RGP reported annual revenue of $551.3 million, a decline of 12.9% from the prior year, reflecting the market's caution, but its pivot to value-based pricing is starting to show with improved average bill rates in some segments. That said, the company booked a net loss of $191.8 million for the year, largely due to a non-cash goodwill impairment charge of $194.4 million. It's a tough environment, but they're making the necessary structural changes.

Competitive Landscape

RGP operates in a highly fragmented professional services market, competing against both the Big Four for large-scale transformation projects and specialized staffing firms for on-demand talent. The company's total market share is small, but its strength lies in its unique blended model-combining on-demand talent with consulting and outsourced services-which is particularly appealing to C-suite leaders who need flexible, rapid-deployment teams.

Here's the quick math: CBIZ's projected FY2025 revenue of $2.8 billion to $2.95 billion makes it significantly larger than RGP, illustrating the scale of the competition. CBIZ and CRA International are direct rivals in the mid-market and specialized consulting space, with CRA International's projected FY2025 revenue of up to $748.0 million putting it just ahead of RGP in size but focused on a different, highly specialized niche. For a deeper dive into who is betting on this model, check out Exploring Resources Connection, Inc. (RGP) Investor Profile: Who's Buying and Why?

Opportunities & Challenges

The company's near-term outlook is a classic risk/reward scenario: major strategic opportunities are balanced by persistent macroeconomic headwinds impacting client spending.

Industry Position

RGP's industry position is that of a specialized, flexible challenger, not a volume leader. The firm's reputation is built on its ability to provide experienced, non-traditional talent for critical, non-discretionary projects like regulatory compliance and financial transformation. They're a trusted partner for execution.

• Focus on the Office of the CFO: The company is strategically deepening its expertise in finance, accounting, and risk, aiming to be the go-to partner for CFOs facing system migrations and data modernization.
• Value-Based Pricing: RGP is actively moving away from a purely hourly staffing model to a value-based pricing strategy, which drove a 4.2% improvement in the average bill rate in the fourth quarter of fiscal 2025.
• Fortune 100 Penetration: As of May 2025, RGP had served 88% of the Fortune 100, which provides a strong, high-quality client base for cross-selling its consulting and outsourced services.

The core challenge is translating that high-quality client access into consistent revenue growth, especially when clients are defintely cautious about pulling the trigger on large-scale transformation spending.