Oct 7, 2026 earnings call — Revenue and utilization pressure
Revenue $98.1 million with gross margin 37.4% and adjusted SG&A $40.3 million this quarter.
Revenue $0.1B (est $0.1B) · EPS $-0.16 (est $-0.17) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"Improving consulting utilization is one of our highest near-term priorities, and we are focused on project staffing and resource management."
"We have added sales capacity, clarified regional accountability, aligned more of our talent organization with sales leadership, introduced additional sales training and increased the rigor of activity and pipeline management."
"That means clarifying roles, reducing duplicative work, improving systems and processes, aligning incentives, increasing accountability and using technology more effectively."
Analyst Q&A 2
Recovery timing and consultant utilization rate
Q (Joseph Gomes · NOBLE Capital): When will demand recover, and is there any sign of improvement now? Also, what was salaried consultant utilization this quarter and how does low utilization affect retention of on-demand consultants?
A: Management said the market decline has lasted longer than anyone wants but they see signs of stabilization and expect sequential growth, though it is not certain. They said salaried and on-demand consulting businesses do not have to trade off against each other; when large projects need many people on site they supplement with on-demand talent. They reported salaried consultant utilization was "high 50s."
"Salaried consultant utilization was similar, slightly lower sort of high 50s." — Jessica Block (CFO)
Performance of new sales hires and SG&A plans
Q (Kartik Mehta · Northcoast): Are the new sales hires performing as you expected in aggregate? And regarding SG&A, will cost actions just hold SG&A steady or can you lower SG&A if revenue stays around $100 million per quarter?
A: They said the sales investment is "ramping about as expected" and that most of the impact should show in the "latter 2 quarters" of the fiscal year; some hires are already doing well. On SG&A they said most hiring investment is done but some remaining costs have a full-year impact and are in go-to-market activity. They are looking at actions to lower SG&A and improve gross margin, including salaried consultant utilization, so the actions could both maintain or reduce SG&A depending on revenue.
"I think by and large, the investment in the sales team is probably ramping about as expected." — Roger Carlile (CEO)