Resources Connection guided first-quarter fiscal 2027 revenue to a range of $97 million to $102 million, with gross margin expected between 37% and 38% and run-rate SG&A expense of $41 million to $43 million. CFO Jennifer Ryu said the revenue outlook is relatively consistent with fourth-quarter levels after adjusting for normal summer seasonality and the Sitrick divestiture. Management also disclosed that consulting utilization currently sits in the low 60s and is targeting above 75% to 80%, which Ryu noted would imply roughly 200-plus basis points of gross margin improvement. CEO Roger Carlile reiterated that the payoff from completed fiscal 2027 investments is expected in the latter half of the year, citing a ramp-up period for new sales hires. Fourth-quarter consolidated revenue was $106.1 million with gross margin of 37.6%, and the company ended the quarter with $82.4 million in cash and no outstanding debt.
Resources Connection IncQ1 revenue guidance of $97M-$102M is below Q4's $106.1M, and consulting utilization in low 60s is far below 75%-80% target, implying weak near-term performance.