RCM Technologies, Inc. Announces Second Quarter 2026 Results
Rhea-AI Summary
RCM Technologies (NasdaqGM: RCMT) reported results for the thirteen and twenty-six weeks ended July 4, 2026. Q2 2026 revenue was $93.8 million, up 20.0% year over year, with gross profit of $24.1 million (up 8.1%). GAAP net income was $4.9 million, or $0.68 per diluted share, versus $3.8 million, or $0.50, a year earlier. Adjusted EBITDA (non-GAAP) for the quarter was $9.3 million, up 14.8%, and adjusted diluted EPS was $0.82, up 18.8%.
For the twenty-six weeks, revenue rose 8.7% to $176.9 million, GAAP net income was $8.7 million ($1.20 per diluted share), and adjusted EBITDA reached $17.5 million. Cash increased to $6.6 million, with $23.4 million outstanding on the revolving credit facility.
Positive
- Q2 2026 revenue up 20.0% YoY to $93.8 million
- Q2 GAAP diluted EPS increased to $0.68 from $0.50 YoY
- Q2 adjusted EBITDA rose 14.8% YoY to $9.3 million
- YTD 2026 revenue up 8.7% YoY to $176.9 million
- Cash balance increased to $6.6 million from $2.9 million since January 3, 2026
- Engineering segment Q2 revenue grew to $39.5 million from $26.5 million YoY
Negative
- Q2 2026 consolidated gross margin fell to 25.7% from 28.5% YoY
- YTD 2026 consolidated gross margin declined to 26.1% from 27.2% in the prior-year period
News Explained
Operating cash generation exceeded the cash increase because financing used cash; the period ended with $6,585 thousand.
RCM Technologies reported results for the quarter ended
The company’s adjusted EBITDA and adjusted per-share figures are supplemental non-GAAP measures, not substitutes for GAAP results, and they exclude some changes in assets and liabilities, interest and income taxes that can affect cash flow.
Operating activities provided
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Third-quarter earnings | Positive | -5.0% | Revenue and adjusted EBITDA increased, but the 24-hour price reaction was negative. |
| Aug 06 | Second-quarter earnings | Positive | -4.7% | Revenue, profit, and adjusted EBITDA grew, but shares declined over 24 hours. |
| May 07 | First-quarter earnings | Positive | +15.9% | Revenue, earnings, operating cash flow, and adjusted EBITDA all increased year over year. |
| Mar 12 | Fiscal-year earnings | Negative | -13.4% | Annual net income and adjusted EBITDA declined despite higher revenue and gross profit. |
| Nov 07 | Third-quarter earnings | Negative | +4.2% | Quarterly net income declined despite revenue and gross profit growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
In the tag-specific history, three of five earnings events diverged from their reported sentiment, including both prior-quarter earnings releases.
Key Terms
gaap financial
adjusted ebitda financial
non-gaap financial
gross profit margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
PENNSAUKEN, N.J., Aug. 13, 2026 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of solutions designed to enhance the operational performance of its customers through the deployment of advanced engineering, specialty healthcare, and information technology services, today announced financial results for the thirteen and twenty-six weeks ended July 4, 2026.
RCMT reported revenue of
RCMT reported revenue of
About RCM
RCM Technologies, Inc. (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Healthcare, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. www.rcmt.com.
The statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995. They are subject to various risks, uncertainties, and other factors that could cause the Company’s actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should,” “are confident” or similar expressions. In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, and our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate in these circumstances. Forward-looking statements include, but are not limited to, those relating to demand for the Company’s services, expectations regarding our future revenues and other financial results, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and growth in our business. Such statements are based on current expectations that involve several known and unknown risks, uncertainties, and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Risk, uncertainties, and other factors may emerge from time to time that could cause the Company’s actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties, and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.
Tables to Follow
| RCM Technologies, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, Except Share and Per Share Amounts) | ||||||
| Thirteen Weeks Ended | ||||||
| July 4, 2026 | June 28, 2025 | |||||
| Revenue | ||||||
| Cost of services | 69,734 | 55,889 | ||||
| Gross profit | 24,082 | 22,277 | ||||
| Selling, general and administrative | 15,568 | 15,275 | ||||
| Depreciation and amortization of property and equipment | 558 | 401 | ||||
| Operating income | 7,956 | 6,601 | ||||
| Other expense, net | 736 | 929 | ||||
| Income before income taxes | 7,220 | 5,672 | ||||
| Income tax expense | 2,319 | 1,887 | ||||
| Net income | ||||||
| Diluted net earnings per share data | ||||||
| Diluted weighted average shares outstanding | 7,187,516 | 7,537,787 | ||||
| Twenty-Six Weeks Ended | ||||||
| July 4, 2026 | June 28, 2025 | |||||
| Revenue | ||||||
| Cost of services | 130,751 | 118,384 | ||||
| Gross profit | 46,103 | 44,255 | ||||
| Selling, general and administrative | 31,097 | 30,246 | ||||
| Depreciation and amortization of property and equipment | 1,132 | 825 | ||||
| Operating income | 13,894 | 13,184 | ||||
| Other expense, net | 1,298 | 1,627 | ||||
| Income before income taxes | 12,596 | 11,557 | ||||
| Income tax expense | 3,851 | 3,586 | ||||
| Net income | ||||||
| Diluted net earnings per share data | ||||||
| Diluted weighted average shares outstanding | 7,316,974 | 7,650,272 | ||||
RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis
(Unaudited)
(In Thousands, Except Per Share Amounts)
The following non-GAAP measures, which adjust for the categories of expenses described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures (“Adjusted operating income,” “EBITDA,” “Adjusted EBITDA,” “Adjusted net income” and “Adjusted diluted net earnings per share”) are useful information for investors, shareholders, and other stakeholders of our Company in gauging our results of operations on an ongoing basis and to enhance investors’ overall understanding of our current financial performance and period-to-period comparisons. Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share should not be considered alternatives to operating income or net income, as the case may be, as an indicator of performance. In addition, Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share do not take into account changes in certain assets and liabilities and interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read-only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
The following unaudited table presents the Company’s GAAP operating income and GAAP net income and the corresponding adjustments used to calculate Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share for the thirteen and twenty-six weeks ended July 4, 2026, and June 28, 2025.
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| GAAP operating income | ||||||||||||
| Adjustments | ||||||||||||
| Excess professional fees | - | - | 647 | - | ||||||||
| Equity compensation | 824 | 1,133 | 1,832 | 1,906 | ||||||||
| Adjusted operating income (non-GAAP) | ||||||||||||
| GAAP net income | ||||||||||||
| Income tax expense | 2,319 | 1,887 | 3,851 | 3,586 | ||||||||
| Interest expense, net | 744 | 650 | 1,370 | 1,301 | ||||||||
| Depreciation of property and equipment | 558 | 401 | 1,112 | 825 | ||||||||
| EBITDA (non-GAAP) | ||||||||||||
| Adjustments | ||||||||||||
| Excess professional fees | - | - | 647 | - | ||||||||
| (Gain) loss on foreign currency transactions | (8 | ) | 279 | (72 | ) | 326 | ||||||
| Equity compensation | 824 | 1,133 | 1,832 | 1,906 | ||||||||
| Adjusted EBITDA (non-GAAP) | ||||||||||||
| RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Continued) (Unaudited) (In Thousands) | ||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| GAAP net income | ||||||||||||
| Adjustments | ||||||||||||
| Excess professional fees | - | - | 647 | - | ||||||||
| (Gain) loss on foreign currency transactions | (8 | ) | 279 | (72 | ) | 326 | ||||||
| Equity compensation | 824 | 1,133 | 1,832 | 1,906 | ||||||||
| Tax impact from normalized rate | 149 | (26 | ) | (200 | ) | (137 | ) | |||||
| Adjusted net income (non-GAAP) | ||||||||||||
| GAAP diluted net earnings per share | ||||||||||||
| Adjustments | ||||||||||||
| Excess professional fees | - | - | - | |||||||||
| (Gain) loss on foreign currency transactions | ( | ) | ||||||||||
| Equity compensation | ||||||||||||
| Tax impact from normalized rate(a) | - | ( | ) | ( | ) | |||||||
| Adjusted diluted net earnings per share (non-GAAP) | ||||||||||||
| RCM Technologies, Inc. Summary of Selected Income Statement Data (Unaudited) (In Thousands) | ||||||||||||
| Thirteen Weeks Ended July 4, 2026 | ||||||||||||
| Specialty Health Care | Engineering | Life Sciences, Data and Solutions | Consolidated | |||||||||
| Revenue | ||||||||||||
| Cost of services | 31,566 | 32,484 | 5,684 | 69,734 | ||||||||
| Gross profit | ||||||||||||
| Gross profit margin | 29.4 | % | 17.8 | % | 40.6 | % | 25.7 | % | ||||
| Thirteen Weeks Ended June 28, 2025 | ||||||||||||
| Specialty Health Care | Engineering | Life Sciences, Data and Solutions | Consolidated | |||||||||
| Revenue | ||||||||||||
| Cost of services | 30,545 | 20,031 | 5,313 | 55,889 | ||||||||
| Gross profit | ||||||||||||
| Gross profit margin | 28.7 | % | 24.5 | % | 39.8 | % | 28.5 | % | ||||
| Twenty-Six Weeks Ended July 4, 2026 | ||||||||||||
| Specialty Health Care | Engineering | Life Sciences, Data and Solutions | Consolidated | |||||||||
| Revenue | ||||||||||||
| Cost of services | 66,229 | 53,320 | 11,202 | 130,751 | ||||||||
| Gross profit | ||||||||||||
| Gross profit margin | 28.7 | % | 18.8 | % | 39.0 | % | 26.1 | % | ||||
| Twenty-Six Weeks Ended June 28, 2025 | ||||||||||||
| Specialty Health Care | Engineering | Life Sciences, Data and Solutions | Consolidated | |||||||||
| Revenue | ||||||||||||
| Cost of services | 61,624 | 45,989 | 10,771 | 118,384 | ||||||||
| Gross profit | ||||||||||||
| Gross profit margin | 28.4 | % | 21.6 | % | 39.7 | % | 27.2 | % | ||||
| RCM Technologies, Inc. Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts) | ||||||||
| July 4, | January 3, | |||||||
| 2026 | 2026 | |||||||
| Current assets: | ||||||||
| Cash | ||||||||
| Accounts receivable and contract assets, net of provision for credit losses of | 81,479 | 81,243 | ||||||
| Transit accounts receivable | 6,614 | 8,017 | ||||||
| Prepaid expenses and other current assets | 5,682 | 7,704 | ||||||
| Total current assets | 100,360 | 99,886 | ||||||
| Property and equipment, net | 6,355 | 7,265 | ||||||
| Other assets: | ||||||||
| Deposits | 262 | 261 | ||||||
| Deferred tax assets, foreign | 6 | 6 | ||||||
| Goodwill | 22,147 | 22,147 | ||||||
| Operating right of use asset | 4,876 | 4,832 | ||||||
| Total other assets | 27,291 | 27,246 | ||||||
| Total assets | ||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued expenses | |||||||||
| Transit accounts payable | 14,459 | 16,247 | |||||||
| Accrued payroll and related costs | 12,881 | 10,784 | |||||||
| Finance lease payable | 750 | 843 | |||||||
| Income taxes payable | 352 | 391 | |||||||
| Operating lease liabilities | 1,142 | 1,209 | |||||||
| Deferred revenue | 8,204 | 14,761 | |||||||
| Total current liabilities | 52,183 | 53,884 | |||||||
| Deferred income taxes, net, domestic | 5,673 | 5,673 | |||||||
| Finance lease payable, net of current position | - | 380 | |||||||
| Operating lease liabilities, net of current position | 3,945 | 3,813 | |||||||
| Borrowings under revolving credit facility | 23,383 | 24,673 | |||||||
| Total liabilities | 85,184 | 88,423 | |||||||
| Contingencies (note 16) and Commitments (note 15) | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, | |||||||||
| no shares issued or outstanding | - | - | |||||||
| Common stock, | |||||||||
| 18,088,821 shares issued and 7,087,614 shares outstanding at July 4, 2026 and 18,004,241 shares issued and 7,351,400 shares outstanding at January 3, 2026 | 904 | 900 | |||||||
| Additional paid-in capital | 123,220 | 122,244 | |||||||
| Accumulated other comprehensive loss | (3,034 | ) | (2,814 | ) | |||||
| Retained earnings | 19,141 | 10,396 | |||||||
| Treasury stock at cost, 11,001,207 shares at July 4, 2026 and 10,652,841 shares at January 3, 2026 | (91,409 | ) | (84,752 | ) | |||||
| Stockholders’ equity | 48,822 | 45,974 | |||||||
| Total liabilities and stockholders’ equity | |||||||||
| RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands) | |||||||
| Thirteen Weeks Ended | |||||||
| July 4, 2026 | June 28, 2025 | ||||||
| Net income | |||||||
| Adjustments to reconcile net income to cash used in operating activities | 1,731 | 1,796 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable and contract assets | 3,612 | (15,322 | ) | ||||
| Prepaid expenses and other current assets | 1,443 | 1,253 | |||||
| Net of transit accounts receivable and payable | (143 | ) | 2,722 | ||||
| Accounts payable and accrued expenses | 4,242 | (4,739 | ) | ||||
| Accrued payroll and related costs | 615 | (2,236 | ) | ||||
| Operating lease liabilities | (349 | ) | (294 | ) | |||
| Income taxes payable | (27 | ) | 501 | ||||
| Deferred revenue | (5,152 | ) | 4,681 | ||||
| Deposits | (3 | ) | (25 | ) | |||
| Total adjustments | 5,969 | (11,663 | ) | ||||
| Net cash provided (used in) by operating activities | 10,870 | (7,878 | ) | ||||
| Net cash used in investing activities | (104 | ) | (473 | ) | |||
| Net cash (used in) provided by financing activities | (6,768 | ) | 8,491 | ||||
| Effect of exchange rate changes on cash | (34 | ) | 151 | ||||
| Increase in cash | |||||||
| Twenty-Six Weeks Ended | |||||||
| July 4, 2026 | June 28, 2025 | ||||||
| Net income | |||||||
| Adjustments to reconcile net income to cash used in operating activities | 3,594 | 3,255 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable and contract assets | (280 | ) | (5,764 | ) | |||
| Prepaid expenses and other current assets | 2,019 | 3,040 | |||||
| Net of transit accounts receivable and payable | (385 | ) | (1,671 | ) | |||
| Accounts payable and accrued expenses | 4,952 | (3,381 | ) | ||||
| Accrued payroll and related costs | 2,108 | 429 | |||||
| Operating lease liabilities | (623 | ) | (535 | ) | |||
| Income taxes payable | (36 | ) | 430 | ||||
| Deferred revenue | (6,553 | ) | 5,037 | ||||
| Deposits | (1 | ) | (29 | ) | |||
| Total adjustments | 4,795 | 811 | |||||
| Net cash provided by operating activities | 13,540 | 8,782 | |||||
| Net cash used in investing activities | (201 | ) | (900 | ) | |||
| Net cash used in financing activities | (9,272 | ) | (7,092 | ) | |||
| Effect of exchange rate changes on cash | (404 | ) | (47 | ) | |||
| Increase in cash | |||||||
| RCM Technologies, Inc. | Tel: 856.356.4500 | Corporate Contacts: |
| 2500 McClellan Avenue | info@rcmt.com | Bradley S. Vizi |
| Pennsauken, NJ 08109 | www.rcmt.com | Executive Chairman |
| Kevin D. Miller | ||
| Chief Financial Officer |
