Resources Connection (NASDAQ: RGP) reported it’s cautiously optimistic that demand will strengthen in 2025 based on its pipeline of activities. Still, RGP reported revenue fell 10.7% year over year to $145.6 million in its second quarter ended Nov. 23.

CEO Kate W. Duchene also noted in a press release that earnings exceeded expectations, with revenue and gross margin improving sequentially.

“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,” Duchene said.

The company has been focused on execution, including increasing cross-selling efforts.

“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,” Duchene said.

RGP’s gross margin edged down to 38.5% in the second quarter from 38.9% in the year-ago quarter. The company reported a second-quarter net loss of $68.7 million, including a noncash goodwill impairment charge of $79.5 million.

Resources Connection - Q2 2025

Revenue by segment

Share price

Shares in Resources Connection were up 1.75% to $8.87 as of 11:35 a.m. Eastern time. They were 12.31% above their 52-week low.