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Segment Information and Enterprise Reporting | 3 Months Ended
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Aug. 30, 2025
Segment Reporting [Abstract] |
Segment Information and Enterprise Reporting | Segment Information and Enterprise Reporting The Company's reportable segments are as follows: •On-Demand Talent – provides businesses with a go-to source for bringing in experts when they need them, serving predominantly the office of the CFO. •Consulting – drives transformation across people, processes and technology across domain areas including finance, technology and digital, risk and compliance and operational performance. •Europe & Asia Pacific – a geographically defined segment that offers both on-demand and consulting services (excluding the digital consulting business, which is included in our Consulting segment) to clients throughout Europe & Asia Pacific. •Outsourced Services – operating under the Countsy by RGP TM brand, this segment offers finance, accounting and HR services provided to startups, spinouts and scale-up enterprises, utilizing a technology platform and fractional team. •Sitrick – a crisis communications and public relations firm that provides corporate, financial, transactional and crisis communication and management services. The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. Performance measurement is based on segment Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) before amortization expense, depreciation expense, interest and income taxes excluding stock-based compensation expense, amortized Enterprise Resource Planning (“ERP”) system costs, technology transformation costs, goodwill impairment, acquisition costs, gain on sale of assets, and restructuring costs. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate. The Company’s CODMs do not evaluate segments using asset information. The table below represents a reconciliation of the Company’s net loss to Adjusted EBITDA for all periods presented (in thousands):
| Three Months Ended |  |  |
| August 30, 2025 |  | August 24, 2024 |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |  |
On-Demand Talent | $ | 44,442 |  | $ | 52,473 |  |  |  |  |  |  |
Consulting | 43,641 |  | 55,025 |  |  |  |  |  |  |
Europe & Asia Pacific | 19,888 |  | 17,983 |  |  |  |  |  |  |
Outsourced Services | 9,994 |  | 9,491 |  |  |  |  |  |  |
All Other | 2,264 |  | 1,963 |  |  |  |  |  |  |
Total consolidated revenue | $ | 120,229 |  | $ | 136,935 |  |  |  |  |  |  |
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |
On-Demand Talent | $ | 4,422 |  | $ | 2,559 |  |  |  |  |  |  |
Consulting | 5,045 |  | 7,753 |  |  |  |  |  |  |
Europe & Asia Pacific | 837 |  | 227 |  |  |  |  |  |  |
Outsourced Services | 2,330 |  | 1,394 |  |  |  |  |  |  |
All Other | 183 |  | (467) |  |  |  |  |  |  |
Unallocated items (1) | (9,752) |  | (9,146) |  |  |  |  |  |  |
Adjustments: |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense | (2,281) |  | (1,561) |  |  |  |  |  |  |
Amortized ERP system costs (2) | (702) |  | — |  |  |  |  |  |  |
Technology transformation costs (3) | — |  | (1,858) |  |  |  |  |  |  |
Acquisition costs (4) | (425) |  | (1,289) |  |  |  |  |  |  |
Goodwill impairment (5) | — |  | (3,855) |  |  |  |  |  |  |
Gain on sale of assets (6) | — |  | 3,420 |  |  |  |  |  |  |
Restructuring costs (7) | — |  | 47 |  |  |  |  |  |  |
Amortization expense | (1,193) |  | (1,485) |  |  |  |  |  |  |
Depreciation expense | (348) |  | (540) |  |  |  |  |  |  |
Interest (expense) income, net | (44) |  | 148 |  |  |  |  |  |  |
Loss before income tax expense | (1,928) |  | (4,653) |  |  |  |  |  |  |
Income tax expense | (477) |  | (1,054) |  |  |  |  |  |  |
Net loss | $ | (2,405) |  | $ | (5,707) |  |  |  |  |  |  |
(1) Unallocated items are generally comprised of unallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments. (2) Amortized ERP system costs represent the amortization of capitalized technology transformation costs related to a newly implemented ERP system, which was recorded within selling, general, and administrative expenses on the Consolidated Statement of Operations. (3) Technology transformation costs represent costs included in net loss related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based ERP system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized. (4) Acquisition costs primarily represent costs included in net loss related to the Company’s business acquisition. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company's broker, legal counsel, and other professional services firms. See Note 4 – Acquisitions in the Notes to Consolidated Financial Statements for further discussion. (5) The effect of the goodwill impairment charge recognized during the three months ended August 24, 2024 was related to the Europe & Asia Pacific segment. See Note 5 – Goodwill and Intangible Assets in the Notes to Consolidated Financial Statements for further discussion. (6) Gain on sale of assets was related to the Company’s sale of its Irvine office building, which was completed on August 15, 2024. (7) Restructuring costs during the three months ended August 24, 2024 represent costs incurred in connection with the U.S Restructuring Plan, which was authorized in October 2023 and was substantially completed during fiscal 2024. The tables below disclose the Company’s revenue, gross profit, significant expenses, and Adjusted EBITDA by segment (in thousands):
|  | Three Months Ended August 30, 2025
|  | On-Demand Talent |  | Consulting |  | Europe & Asia Pacific |  | Outsourced Services |  | All Other |  |  |  |
Revenue |  | $ | 44,442 |  |  | $ | 43,641 |  |  | $ | 19,888 |  |  | $ | 9,994 |  |  | $ | 2,264 |  |  |  |  |
Cost of services |  | 26,617 |  |  | 26,571 |  |  | 12,923 |  |  | 5,537 |  |  | 1,112 |  |  |  |  |
Gross Profit |  | 17,825 |  | 17,070 |  | 6,965 |  | 4,457 |  | 1,152 |  |  |  |
Compensation, bonus and commissions (1) |  | 11,738 |  |  | 8,892 |  |  | 4,557 |  |  | 1,694 |  |  | 415 |  |  |  |  |
Other segment expenses (2) |  | 1,665 |  |  | 3,133 |  |  | 1,571 |  |  | 433 |  |  | 554 |  |  |  |  |
Adjusted EBITDA |  | $ | 4,422 |  | $ | 5,045 |  | $ | 837 |  | $ | 2,330 |  | $ | 183 |  |  |  |
|  | Three Months Ended August 24, 2024
|  | On-Demand Talent |  | Consulting |  | Europe & Asia Pacific |  | Outsourced Services |  | All Other |  |  |  |
Revenue |  | $ | 52,473 |  |  | $ | 55,025 |  |  | $ | 17,983 |  |  | $ | 9,491 |  |  | $ | 1,963 |  |  |  |  |
Cost of services |  | 33,081 |  |  | 34,789 |  |  | 11,690 |  |  | 6,037 |  |  | 1,351 |  |  |  |  |
Gross Profit |  | 19,392 |  | 20,236 |  | 6,293 |  | 3,454 |  | 612 |  |  |  |
Compensation, bonus and commissions (1) |  | 13,184 |  |  | 10,017 |  |  | 4,307 |  |  | 1,528 |  |  | 506 |  |  |  |  |
Other segment expenses (2) |  | 3,649 |  |  | 2,466 |  |  | 1,759 |  |  | 532 |  |  | 573 |  |  |  |  |
Adjusted EBITDA |  | $ | 2,559 |  | $ | 7,753 |  | $ | 227 |  | $ | 1,394 |  | $ | (467) |  |  |  |
(1)The significant expense category and amounts align with the segment-level information that is regularly provided to the CODMs. (2)Other segment expenses include occupancy expenses, business expenses, marketing expenses, recruiting expenses and other operating expenses. The table below represents the Company’s revenue and long-lived assets by geographic location (in thousands):
| Revenue for the Three Months Ended |  | Long-Lived Assets (1) as of
| August 30, 2025 |  | August 24, 2024 |  | August 30, 2025 |  | May 31, 2025
United States | $ | 95,556 |  |  | $ | 112,452 |  |  | $ | 24,556 |  |  | $ | 25,297 |
International | 24,673 |  |  | 24,483 |  |  | 2,022 |  |  | 1,677 |
Total | $ | 120,229 |  | $ | 136,935 |  | $ | 26,578 |  | $ | 26,974
(1)Long-lived assets are comprised of property and equipment and right of use assets.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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