Revenue Plunges 24%, EBITDA Turns Negative as Demand Softens
RGP sits 51% above its 52-week low of $3.055.
Summary
Q4 revenue dropped 24% year-over-year to $106.12M, missing the already low bar set by a 16.6% decline in Q3. Adjusted EBITDA swung to a loss of $600K, driven by lower consultant utilization and negative operating leverage. The sale of the Sitrick unit and a shorter quarter further reduced billable hours by 20.9%. This follows the recent $30M credit facility replacement, signaling liquidity concerns amid deepening losses. With Europe remaining weak and no near-term demand recovery in sight, the company's pivot to AI and consulting scaling faces an uphill battle.
At the time of this announcement, RGP was trading at $4.61 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $158.3M. The 52-week trading range was $3.06 to $5.95. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.