Resources Connection Inc (RGP) delivered a challenging Q3 2026 with a revenue decline reflecting multi-quarter macro softness and longer sales cycles, while taking meaningful actions to position the business for a return to growth. Consolidated revenue of $107.93 million declined 25.9% year over year on a constant-currency, same-day basis and 8.3% quarter over quarter, with gross margin expanding 60 basis points to 35.7% driven by a pay-to-bill improvement and lower consultant benefits costs. Despite the top-line weakness, EBITDA remained negative at $14.62 million and net income was a loss of $9.47 million, highlighting the ongoing need to align cost structure with revenue trajectory. Management reaffirmed four strategic priorities—refocus On-Demand Talent, scale the Consulting segment, simplify operations, and align costs with revenue—to drive sustainable growth, while also reducing complexity through portfolio simplification (including the Sitrick disposition). The company added AI leadership (Chief AI Officer Jessica Block) and a CIO (Prashant Lamba) to accelerate AI-enabled services and technology enablement, signaling a clearer path to higher-value engagements with CFO/CIO-led transformations. Management projects revenue growth in fiscal 2027, with a maturation horizon of 6–9 months for recent hires and leadership additions, targeting stronger top-line performance in the latter half of FY2027. Q4 guidance indicates continued sequential progress but expects a modest seasonal decline in revenue versus Q3, with gross margin normalization and ongoing cost actions. Overall, RGP’s near-term results reflect a transition phase, while the strategic investments and disciplined cost management are aimed at delivering higher operating leverage as revenue recovers.