Resources Connection, Inc. (RGP): Business Model Canvas [Dec-2025 Updated]

You're digging into Resources Connection, Inc. (RGP) right now, trying to map out its strategy after that significant $194.4 million goodwill impairment charge in fiscal 2025, even as they banked $551.3 million in total revenue that same year. Honestly, the core challenge is understanding how their on-demand talent deployment meshes with the higher-value Veracity consulting and the Countsy outsourced services, all while maintaining relationships with 88% of the Fortune 100. To see the full architecture-from their key activities like deploying their 2,300+ experts to how they manage that cost structure-you need to break down the nine building blocks of their current Business Model Canvas right here.

Resources Connection, Inc. (RGP) - Canvas Business Model: Key Partnerships

You're looking at how Resources Connection, Inc. (RGP) builds its external support structure to deliver its consulting and talent solutions. This block is all about who RGP works with to scale its reach and expertise.

Strategic alliances with tech firms like ServiceNow, SAP, and Oracle are central to RGP's technology-enabled consulting approach, Veracity by RGP^TM. RGP explicitly lists partnerships with these major enterprise platform providers, alongside Workday and BlackLine, to activate its solutions across digital transformation, data, and finance/HR domains. The firm emphasizes that the right technology is only half the equation, relying on its people to make these platforms click for clients.

The acquisition of Reference Point for financial-services advisory boost was a key strategic move. Resources Connection, Inc. completed this acquisition on July 1, 2024, for an initial cash consideration of approximately $23.215 million (net of cash acquired). Reference Point focuses on Strategy & Management, Risk & Regulatory Compliance, Digital & Technology, and Data & Analytics within the financial services sector, which is one of RGP's key verticals.

RGP maintains a vast global network of independent consultants and subject matter experts to power its On-Demand by RGP^TM and Consulting offerings. As of May 2025, RGP annually engaged with over 1,600 clients globally, operating from 41 physical practice offices and multiple virtual offices.

The firm's financial stability, which supports its partnership agreements and operational flexibility, is anchored by its balance sheet. At the end of fiscal year 2025 (May 31, 2025), Resources Connection, Inc. reported $86.1 million in cash and cash equivalents and zero debt outstanding. The share repurchase program had approximately $79 million remaining available for future repurchases at the end of that quarter.

Here is a snapshot of the scale of the network and key financial markers as of late 2025:

The collaboration with specialized firms like BlackLine and Workday directly supports the capabilities offered under the Countsy by RGP^TM brand for outsourced services, as well as broader finance and HR transformation consulting engagements.

The relationship with financial institutions for credit facilities and capital access is currently characterized by a strong liquidity position, as evidenced by the zero outstanding debt reported at the end of fiscal year 2025.

RGP's partnership ecosystem is also reflected in its recognition:

• Recognized by Forbes as one of America's Best Management Consulting Firms for 2025.
• Recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work for.

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Canvas Business Model: Key Activities

You're looking at how Resources Connection, Inc. (RGP) actually puts its people to work to generate revenue, so let's break down the core things they do every day based on their latest numbers.

Deploying On-Demand Talent for client resource gaps

This is about getting experienced professionals into client roles quickly to fill immediate skill or bandwidth needs. It's the bread-and-butter of the On-Demand segment. For the first quarter of fiscal 2025, the revenue from this segment saw a significant drop, declining by 32.7% to $52.5 million compared to $78.0 million in the prior year quarter. Overall for the full fiscal year 2025, billable hours across the firm were down 13.5% year-over-year, which directly impacts this activity. Still, RGP served 88% of the Fortune 100 as of May 2025, showing the caliber of client they engage with for these deployments.

• Deploying experts to fill skill set gaps quickly.
• Utilizing HUGO by RGP®, a digital engagement tool for self-serve assignments.
• Filling bandwidth needs for project execution.

Executing business transformation via Veracity Consulting arm

The Veracity by RGP brand focuses on deeper transformation across processes and technology, often in finance, digital, risk & compliance, and supply chain. This falls under RGP's broader Consulting segment. For the third quarter of fiscal 2025, Consulting segment revenue was $52.6 million, down 5.8% from $55.8 million the year prior. That decline was mostly because billable hours dropped by 18.8%, though RGP managed to increase its average bill rate by 12.8% (or 13.5% on a constant currency basis) due to value-based pricing initiatives. To be fair, in the second quarter of fiscal 2025, this segment actually saw growth, increasing revenue by 2.7% to $60.6 million, thanks to that higher average bill rate.

Providing outsourced accounting/HR services through Countsy

Countsy by RGP™ targets startups, scaleups, and spinouts with outsourced finance, accounting, and HR services, often using a technology platform and fractional team model. This is a smaller but growing area. In the second quarter of fiscal 2025, revenue for the Outsourced Services segment grew by 4.0% to $9.4 million from $9.1 million the year before. That growth came from a 2.2% increase in the average bill rate and a 1.7% increase in billable hours. For the third quarter of fiscal 2025, revenue held steady at $9.4 million, consistent with the prior year quarter.

Developing and integrating AI tools like rIQ for consulting

RGP is focused on modernizing its technology platforms and helping clients with technology transformation, including preparation for AI adoption. While I don't have the specific utilization numbers for RGP's proprietary tool, rIQ, the market context shows this is a major focus area. Industry data suggests that 58% of leaders prioritize increased investment in digital transformation/AI if capital were unlocked. Furthermore, RGP noted increasing opportunity around ERP cloud migration and preparation for AI adoption as key areas where their consulting expertise is needed.

• Focus on technology transformation initiatives.
• Addressing client needs in areas like ERP cloud migration.
• Integrating AI adoption preparation into consulting services.

Managing global consultant utilization and client engagement

Managing the utilization of their professional staff is critical, as lower utilization directly impacts gross margin. For the full fiscal year 2025, gross margin was 37.6%, down from 38.9% the prior year, primarily due to lower utilization of salaried consultants. RGP annually engages with over 1,600 clients globally from 41 physical practice offices. As of May 25, 2024, RGP had approximately 2,585 consultants available to deploy.

Here's a quick look at how the main service segments contributed to the overall $551.3 million in revenue for the full fiscal year 2025, compared to the prior year:

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Canvas Business Model: Key Resources

You're looking at the core assets Resources Connection, Inc. (RGP) deploys to deliver its services, which is what this section of the Business Model Canvas is all about. These aren't just line items; they're the actual engines driving client engagements right now.

The firm's talent pool is central. Resources Connection, Inc. (RGP) maintains a global network of over 2,300+ experts worldwide, ready to step into critical roles. To be fair, as of May 31, 2025, the firm also cited a referral network of approximately 2,400 consultants and about 700 management and administrative employees, showing the depth behind that expert number.

You see their market penetration through their brand equity. Resources Connection, Inc. (RGP) has C-Suite access, demonstrated by serving 88% of the Fortune 100 as of May 2025. That kind of access is a hard-to-replicate resource.

On the technology side, they rely on their proprietary AI accelerator platform, rIQ. While I don't have a specific dollar value for rIQ, its existence supports their strategic pivot toward digital transformation and automation-focused programs, which management highlighted in their Q1 Fiscal 2026 commentary.

The physical footprint is still important for global reach. Resources Connection, Inc. (RGP) operates a global infrastructure that includes 41 physical practice offices worldwide, though reports from earlier in 2025 mentioned 42 offices. They annually engage with over 1,600 clients around the world from these locations and multiple virtual offices.

Here's a quick look at the financial foundation supporting these operations as of their latest reported quarter, Q1 FY26, which ended August 30, 2025:

This strong balance sheet, featuring $77.5 million in cash and zero outstanding debt in Q1 FY26, gives them flexibility. It lets them invest in areas like consulting and technology transformation even when the market slows down, like the 13.9% decline in same-day constant currency revenue seen in Q1 FY26 compared to the prior year quarter.

The key operational statistics underpinning the service delivery are:

• Global client engagement count: Over 1,600 annually
• Fortune 100 clients served: 88%
• Consultants in referral network: Approximately 2,400
• Physical offices: 41

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Canvas Business Model: Value Propositions

You're looking at how Resources Connection, Inc. (RGP) delivers value to clients, which centers on providing specialized expertise exactly when and how it's needed. This isn't just about filling seats; it's about a flexible deployment model that hits complex business needs.

Agility and speed via On-Demand Talent for immediate needs

The On-Demand by RGP™ brand is your go-to source for immediate expert injection. This agility is key when you need to staff up quickly for a project or cover a critical gap. While the operating environment in the US remained choppy, the focus on margin shows value extraction even with lower volume. For the fiscal first quarter ended August 31, 2025, the On-demand segment generated revenue of $44.4 million, which was down 16% from the prior year quarter. However, the segment adjusted EBITDA improved significantly to $4.4 million, representing a 10% margin, up from a 4.9% margin in the prior year period, driven by cost reduction efforts. This shows that even with lower demand, the talent deployed is priced effectively for the immediate need.

Flexible, high-impact solutions across Finance, HR, and Technology

RGP structures its offerings to address core operational and growth functions. Countsy by RGP™ specifically targets outsourced services for accounting, human resources and equity, helping scale-ups and spinouts focus on growth. The results in this area show traction: for the fiscal first quarter ended August 31, 2025, the Outsourced Services segment revenue totaled $10 million, marking a 4% year-over-year increase. The segment's profitability was strong, with adjusted EBITDA reaching $2.3 million, yielding a 23.3% margin, a substantial improvement from 14.7% in the prior year. This segment's growth in Q4 of fiscal 2025 was also noted at 4% year-over-year, benefiting from new engagements with AI start-ups seeking scalable solutions.

Deep functional expertise for complex transformation projects

For deeper, more structural change, Veracity by RGP™ drives transformation across people, processes & technology. This is where you bring in the functional experts for complex initiatives. The Consulting segment, which houses this expertise, saw revenue of $43.6 million in the fiscal first quarter ended August 31, 2025, a year-over-year decline of 22%. Still, the segment delivered segment adjusted EBITDA of $5 million, representing an 11.6% margin. This segment also saw a significant bill rate increase; the consulting segment average bill rate improved 11% year-over-year, moving from $144 to $160 in that quarter.

Integrated offerings: On-Demand, Consulting, and Outsourced Services

The value proposition is amplified by combining these three engagement models. For the full fiscal year 2025, Resources Connection, Inc. reported total annual revenue of $551.33 million, a decrease of 12.87% year-over-year. The total revenue for the most recent reported quarter, the fiscal first quarter ended August 31, 2025, was $120.2 million. The company engages with over 1,700 clients annually from 43 physical practice offices worldwide.

Here's a quick look at how the primary service lines contributed to the Q1 FY2026 revenue:

Value-based pricing model for higher average bill rates

The focus on value-based pricing is a direct lever for financial performance, especially when utilization or hours are soft. For the fiscal first quarter ended August 31, 2025, the enterprise-wide average bill rate stood at $120 (constant currency), an increase from $118 in the prior year. This pricing discipline is evident across the board, as the gross margin for that quarter reached 39.5%, which was 300 basis points higher than the prior year quarter. In Q4 of fiscal 2025, the average bill rate improvement was 4.2% year-over-year, which the company directly attributed to this value-based pricing strategy and a revenue mix shift toward higher value consulting projects. The overall gross margin for the full fiscal year 2025 was 37.6%.

The impact of this pricing strategy is clearer when looking at the bill rate changes:

• Enterprise-wide average bill rate (Q1 FY2026): $120 (constant currency).
• Consulting segment average bill rate (Q1 FY2026): $160.
• Consulting segment bill rate improvement (Q1 FY2026 vs prior year): 11%.
• Average bill rate improvement (Q4 FY2025 vs prior year quarter): 4.2%.

Resources Connection, Inc. (RGP) - Canvas Business Model: Customer Relationships

You're looking at how Resources Connection, Inc. (RGP) keeps its clients close, especially when the macro environment is making budget approvals take longer. The core of their customer relationship strategy is moving beyond simple task assignment to becoming an embedded, trusted advisor.

High-touch, trusted partner relationship with the C-Suite

Resources Connection, Inc. (RGP) explicitly structures its service delivery to provide CFOs and other C-Suite leaders with flexibility to solve pressing challenges on their terms. This focus is evident in their service offerings, which unite strategy, execution, and talent across key areas like CFO advisory, digital transformation, data, and cloud capabilities. As of their September 2025 Proxy Statement, Resources Connection, Inc. (RGP) annually engages with over 1,600 clients globally, with a significant footprint among top-tier companies. To be precise, as of February 2025, Resources Connection, Inc. (RGP) was proud to have served 88% of the Fortune 100. This level of penetration suggests deep, high-level trust is being established and maintained with executive leadership. The company emphasizes a relationship-oriented approach over a transaction-oriented one, addressing client needs from a client-centric, not geographic, perspective. This focus on the executive level is key to securing the larger, more complex transformation work that commands higher bill rates. For example, in the third quarter of fiscal 2025, the average consolidated bill rate rose to $123 (or $124 constant currency) year-over-year, showing pricing power derived from the perceived value delivered to these senior roles.

Dedicated account management for large, long-term enterprise clients

For Resources Connection, Inc. (RGP)'s largest and most strategic clients, the relationship management is clearly designed for longevity and cross-selling. The company is actively working to deepen and expand its consulting capabilities to become a trusted partner for larger transformations, which inherently require sustained, dedicated engagement rather than one-off placements. This strategy is paying off in deal size; as of the third quarter of fiscal 2025, the company doubled the number of $1M+ engagements won year-over-year, indicating success in securing larger, longer-term commitments from key accounts. Furthermore, management noted in their October 2025 commentary that the pipeline quality improved, with $5M+ opportunities increasing, which typically stem from established, high-trust relationships. The company's core value of Loyalty reinforces this, stating, 'We build long-term partnerships, going the extra mile to support clients and colleagues every day.'

Relationship-driven sales model for repeat business

The sales model at Resources Connection, Inc. (RGP) is clearly geared toward nurturing existing client relationships for sustained revenue. The CEO noted in July 2025 that 'Our client retention rates continue to be steady and strong.' This stability is crucial, especially when the volume of new opportunities can be soft, as seen in Q3 fiscal 2025. A significant portion of new pipeline additions in Q1 fiscal 2026 came from clients historically served through their on-demand talent channel, which speaks directly to the success of their integrated go-to-market strategy in converting transactional relationships into broader consulting engagements. The company is also focusing on extension management to ensure repeat business within current projects. This focus on retention and extension directly supports the goal of creating value for current clients while pursuing new growth.

Leveraging human connection to deliver practical solutions (Dare to Work Differently®)

The firm's guiding philosophy, Dare to Work Differently®, is fundamentally about the customer relationship-it centers on leveraging human connection and collaboration to deliver tangible results. This approach is positioned as a more effective way to work, favoring flexibility and agility as businesses face transformation pressures and skilled labor shortages. The company's research highlights that many organizations lack the internal skills for transformation, making the human element of RGP's delivery model a key differentiator. For instance, in early 2025, 40% of respondents in an RGP survey reported a skills gap in accounting, and 63% expected skills gaps to increase in 2025, creating demand for their human-centric solution. The company's core values, including Enthusiasm and Accountability, are meant to translate into a positive, energetic spirit and ownership on every client project, ensuring the practical solutions delivered are impactful.

Here is a snapshot of the scale of Resources Connection, Inc. (RGP)'s client engagement as of late 2025:

The firm's commitment to its people, as reflected in its core values, is directly tied to the quality of the relationship it can offer you and your peers. The focus on building teams with unique skills and perspectives is how Resources Connection, Inc. (RGP) aims to deliver on its promise of practical, human-centered results.

• Client relationships are addressed from a client-centric perspective.
• The company's success comes from building teams with unique skills, perspectives and backgrounds.
• They focus on processes, human-centered design, and technology that celebrate human-powered excellence.

Resources Connection, Inc. (RGP) - Canvas Business Model: Channels

You're looking at how Resources Connection, Inc. (RGP) gets its services into the hands of clients, which is a mix of old-school relationship building and modern reach. The channel strategy is clearly built around a direct, high-touch approach, which makes sense when you are selling C-Suite level expertise.

Direct sales force and relationship managers

The core of client acquisition relies on the direct sales force and relationship managers who nurture those key accounts. You know that in professional services, the relationship is the product, so this is critical. We saw some movement here; the proxy statement noted attrition within the sales team during the fiscal year, which is something to watch for near-term revenue impacts. The firm's overall human capital base as of May 31, 2025, consisted of approximately 2,400 consultants and about 700 management and administrative employees. This relationship-driven model is supported by a significant referral network, too.

Global network of 41 physical practice offices and virtual offices

RGP maintains a physical footprint to anchor its global presence, though the virtual component is clearly important for agility. As of their latest filings around May 2025, Resources Connection, Inc. (RGP) operated from 41 physical practice offices globally, supplemented by multiple virtual offices. This network supports their annual engagement with over 1,600 clients worldwide. The scale of their reach into the top tier of the market is impressive, having served 88% of the Fortune 100 as of May 2025. Here's a quick look at the scale of their operational reach as of late fiscal 2025:

This physical presence helps defintely in building trust for those larger, complex transformation projects.

Digital platforms for consultant and client connection

While the search results don't give specific usage metrics for their client-facing digital platforms, the firm clearly uses digital channels for communication and investor relations, evidenced by the availability of live webcasts for earnings calls. The business model supports flexible, high-impact solutions, which inherently requires digital tools to manage and deploy talent effectively across geographies. The focus on digital transformation within their service offerings suggests their internal channels are also evolving to support remote and hybrid delivery models.

• Use of webcasts for investor/analyst communication.
• Digital infrastructure supporting flexible, global talent deployment.
• Integration of new Enterprise Resource Planning (ERP) system in North America to streamline operations.

Targeted marketing to C-Suite and functional leaders

The marketing channel is highly focused on the top decision-makers. Resources Connection, Inc. (RGP) explicitly positions itself as a trusted partner to the C-Suite, including CFOs, for navigating change and executing critical initiatives. Their success in penetrating the largest US corporations underscores this targeting effectiveness. The firm's solutions span Finance, HR, Operations, and Technology, meaning marketing efforts must speak directly to the functional leaders owning those P&Ls and transformation agendas.

• Direct messaging to CFOs and C-Suite leaders.
• Focus on high-value engagements like digital, data, and cloud transformations.
• Brand reinforcement through recognition from Forbes and U.S. News & World Report in 2025.

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Canvas Business Model: Customer Segments

You're looking at the client base for Resources Connection, Inc. (RGP) as of late 2025, focusing on who they serve and the scale of those relationships. Honestly, the numbers show a heavy reliance on the very top tier of the market, but they are clearly pushing to diversify.

Large global enterprises (88% of the Fortune 100)

Resources Connection, Inc. (RGP) maintains deep relationships with the largest corporations globally. As of May 2025, RGP proudly served 88% of the Fortune 100. The firm's scale involves engaging with over 1,600 clients annually across the globe, supported by operations in 41 physical practice offices. To give you a sense of the historical footprint, in fiscal 2024, they engaged with 1,800 clients across 37 countries.

The client base is segmented by the delivery model, which reflects the type of need:

• On-Demand Talent by RGP™
• Veracity by RGP™ (Consulting)
• Countsy by RGP™ (Outsourced Services)

C-Suite executives focused on transformation and risk

The focus for engagement is squarely on senior leadership addressing major change and uncertainty. CFOs, for instance, are leading the charge in building agility and resilience. Research indicates that nearly 70% of respondents expect their organization to unlock new capital in digital transformation and AI in 2025. Furthermore, 57% of CFOs are directing the highest capital allocations toward technology and digital transformation initiatives. This directly maps to the C-suite's focus on risk mitigation and strategic advancement.

High-growth companies: startups, scaleups, and spinouts (Countsy clients)

The Countsy brand specifically targets the needs of rapidly expanding entities. Resources Connection, Inc. (RGP) expanded Countsy's total addressable market beyond just the startup ecosystem to also serve the finance, accounting, and HR needs for scale-ups and spinouts in fiscal 2024. This segment is crucial for capturing growth at the earlier stages of a company's lifecycle.

Clients needing expertise in Finance, HR, Operations, and Technology

The demand for expertise is concentrated in core functional areas undergoing modernization. For example, 31% of organizations surveyed are using more consulting talent to transform their finance functions. Key investment areas cited by financial decision-makers include enterprise resource planning (47%) and business process optimization/automation (46%). The revenue generated across the primary service lines for the full fiscal year 2025 illustrates where the bulk of the business activity lies:

The total revenue for Resources Connection, Inc. (RGP) in fiscal 2025 was $551.3 million.

Resources Connection, Inc. (RGP) - Canvas Business Model: Cost Structure

You're looking at the expenses Resources Connection, Inc. (RGP) incurred to run its business model in fiscal year 2025. For a professional services firm, the biggest cost driver is always the people delivering the service, so that's where we start.

Consultant compensation and benefits (Cost of Service)

The direct cost of consultants, which impacts gross margin, is closely tied to utilization and pay/bill ratios. While a specific total Cost of Service figure isn't explicitly itemized here, we see related impacts within SG&A. For instance, the full fiscal year 2025 saw a $9.2 million lower net employee compensation expense, which was largely a result of restructuring plans and aligning resource capacity to demand. Also, the gross margin for the full year was 37.6%, down from 38.9% the prior year, partly due to lower utilization of salaried consultants.

• Pay/bill ratio remained consistent year over year for the full fiscal year 2025.
• In Q3 FY2025, there was an increase of $1.7 million in restructuring expenses impacting SG&A.

Selling, General & Administrative (SG&A) expenses of $202.0 million in FY 2025

RGP managed to bring down its overhead slightly in fiscal 2025 compared to the prior year. The total SG&A for the full fiscal year 2025 was $202.0 million, which was a 3.3% improvement from the $208.9 million reported in fiscal 2024. This improvement translated to an SG&A expense of $50.6 million for the fourth quarter of fiscal 2025.

Technology transformation and digital platform development costs

Investments in technology were a cost component, though RGP reported a reduction in this specific area contributing to the overall SG&A improvement for the full year. For the full fiscal year 2025, there was a $1.4 million decrease in technology transformation costs compared to the prior year. However, looking at the third quarter of fiscal 2025 specifically, there was a $1.1 million increase in computer software expenses tied to the technology transformation initiative.

Restructuring costs for efficiency and resource alignment

Restructuring activities were a clear cost factor during the year, aimed at efficiency. The lower net employee compensation expense in FY 2025 was largely attributed to these restructuring plans. For the third quarter of fiscal 2025, restructuring expenses increased SG&A by $1.7 million. In Q1 FY2026, the benefit from fiscal 2025 restructuring was noted as a $2.4 million reduction in employee compensation and benefits costs.

Non-cash goodwill impairment charge of $194.4 million (FY 2025)

A significant, non-cash charge hit the cost structure due to a decline in market capitalization and slow recovery in certain segments. Resources Connection, Inc. recorded a total non-cash goodwill impairment charge of $194.4 million for the full fiscal year 2025. This charge was broken down across segments: $70.2 million in the On-Demand Talent segment, $98.6 million in the Consulting segment, and $25.6 million in the Europe and Asia segment. The fourth quarter alone included a $69.0 million non-cash goodwill impairment charge in the Consulting segment.

• Total FY 2025 Goodwill Impairment: $194.4 million.
• Q4 FY 2025 Goodwill Impairment: $69.0 million.
• Q3 FY 2025 Goodwill Impairment: $42.0 million.
• Q2 FY 2025 Goodwill Impairment: $79.5 million.
• Q1 FY 2025 Goodwill Impairment: $3.9 million.

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Canvas Business Model: Revenue Streams

You're looking at how Resources Connection, Inc. (RGP) actually brings in the money right now, which is key for understanding its current valuation. The revenue streams are a mix of project-based consulting and more on-demand staffing, though the mix is shifting as the market dictates.

The total annual revenue for Resources Connection, Inc. (RGP) for the fiscal year ending May 31, 2025, was reported as $551.3 million. This figure reflects a challenging year, down from the prior year's $632.8 million.

To get a real-time pulse, we look at the most recent quarter, Q1 of Fiscal Year 2026 (ended August 30, 2025). The total revenue for that quarter was $120.2 million. This revenue is sourced from several distinct channels, which you can see broken down below:

The Consulting services fees, which fall under the Consulting segment, brought in $43.6 million in Q1 FY26. This segment saw a significant drop in billable hours, down a staggering 28.4%, even though the average bill rate increased by 11.1% as the company pushed for higher-value engagements.

Revenue from On-Demand Talent, which covers billable hours and fees for interim support, was $44.4 million in Q1 FY26. This stream was soft, with billable hours in this segment decreasing by 15.8%.

The Outsourced Services revenue, associated with Countsy, showed positive momentum. This segment generated $10.0 million in Q1 FY26, marking a year-over-year increase of 5.3%. To be fair, the prompt mentioned a 4% growth, and the reported revenue growth was $0.5 million year-over-year, which translates to 5.3%.

The international footprint is definitely growing, which is a bright spot. Revenue from the Europe & Asia Pacific segment was $19.9 million in Q1 FY26, representing a growth of 10.6% compared to the prior year quarter.

Here's a quick look at the key drivers for the Q1 FY26 segment performance:

• On-Demand Talent billable hours fell by 15.8%.
• Consulting segment billable hours dropped by 28.4%.
• Europe & Asia Pacific revenue grew by 10.6% to $19.9 million.
• Outsourced Services revenue grew by 5.3% to $10.0 million.
• Average bill rates increased by 2.2% across the board.

Finance: draft 13-week cash view by Friday.