Resources Connection: AI Is Crushing Turnaround Hopes (Rating Downgrade)
Seeking Alpha reports that Resources Connection was downgraded to Strong Sell amid deteriorating fundamentals and persistent demand weakness. Q1 FY27 revenue fell 18.4% year over year to $98.1 million, net loss widened to $8 million, and adjusted EBITDA turned negative; the excerpt cites AI-driven pressure on core segments and lower billable hours and utilization.
Why it matters — The reported declines in revenue, profitability, and operating activity highlight ongoing challenges across RGP’s business.