Resources Connection (RGP) reported a mixed Q2 2025, delivering meaningful sequential revenue growth but reporting a substantial non-cash impairment that drove a sharp deterioration in net income and operating income. Revenue rose 5% sequentially to $145.6 million, and gross margin expanded to 38.5% on improved pay-bill dynamics and bench utilization; however, profitability was crushed by a non-cash goodwill impairment totaling $79.5 million (On-Demand: $57.8M; Europe & APAC: $21.7M). Excluding the impairment, near-term operating performance had shown improvement through stronger execution of cross-selling, pricing discipline, and the initial benefits of a technology platform modernization (Workday Financials/PSA, HCM, Salesforce) now live in North America with plans to roll out internationally. Management communicated a diversified services strategy (professional staffing, consulting, Outsourced Services) designed to cushion cyclicality, with Europe/Asia Pac and consulting (including Reference Point) contributing meaningful sequential gains. The company also signaled ongoing investment in technology and talent to drive efficiency and cross-sell opportunities, while guiding to a modest Q3 revenue range and continued margin pressures from seasonality and amortization of transformation costs. The combination of headwinds (impairment and near-term margin pressure) and strategic accelerants (cross-sell, pricing, platform modernization) creates a nuanced investment thesis: near-term weakness tied to one-time charges and holiday effects, with a path to earnings leverage through operating improvements and higher-adoption of the new platform. Investors should monitor: (1) pace of cost-out versus ongoing non-cash impairments, (2) execution of cross-sell and pipeline conversion, (3) contribution from Reference Point and other differentiated offerings, (4) stabilization of On‑Demand and Europe/APAC segments, and (5) cadence of free cash flow as the transformation costs amortize.