RCM Technologies, Inc. Announces Second Quarter Results

Rhea-AI Summary

RCM Technologies (NASDAQ:RCMT) reported strong Q2 2025 financial results with notable growth across all segments. Revenue increased 13.0% to $78.2 million compared to Q2 2024. The company achieved GAAP net income of $3.8 million, or $0.50 per diluted share, and adjusted EBITDA of $8.1 million.

Key highlights include: gross profit growth of 11.4% to $22.3 million, adjusted net income per diluted share increase of 21.1% to $0.69, and strong performance across Specialty Health Care, Engineering, and Life Sciences segments. For the first half of 2025, revenue grew 15.3% to $162.6 million with net income of $8.0 million.

Insights

Financial Analyst

RCM Technologies delivered solid Q2 growth with 13% revenue increase and 21.1% higher adjusted EPS, suggesting strengthening operational momentum.

RCM Technologies reported $78.2 million in Q2 2025 revenue, marking a 13.0% increase from the $69.2 million reported in Q2 2024. This double-digit growth demonstrates the company's expanding market presence across its three business segments. Gross profit increased to $22.3 million, up 11.4% year-over-year, though gross margin slightly compressed from 28.9% to 28.5%.

GAAP net income remained stable at $3.8 million year-over-year, but diluted EPS improved from $0.47 to $0.50 per share, likely benefiting from a reduced share count. More notably, adjusted diluted EPS jumped 21.1% to $0.69, compared to $0.57 in the prior year period, reflecting stronger operational performance when excluding non-recurring items.

The company's adjusted EBITDA grew to $8.1 million from $7.2 million, representing a 12.9% increase and demonstrating improved operational efficiency. This positive trend extended to the year-to-date results, with six-month revenue up 15.3% to $162.6 million and adjusted EBITDA increasing 13.6% to $15.9 million.

Looking at segment performance, Specialty Health Care led revenue growth with $42.8 million (16.0% increase), followed by Engineering at $26.5 million (17.8% increase). The Life Sciences, Data and Solutions segment was the only underperformer, declining 9.3% to $8.8 million. Despite this mixed segment performance, management's comments indicate building momentum in Engineering and confidence in a strong second half of 2025.

The balance sheet shows total assets of $135.6 million with $5.5 million in cash and borrowings of $34.0 million under its credit line, indicating reasonable financial flexibility. Overall, RCM's Q2 results reflect a company with solid growth momentum across most business lines and improving profitability metrics despite some margin pressures.

PENNSAUKEN, N.J., Aug. 06, 2025 (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 health care, and information technology services, today announced financial results for the thirteen and twenty-six weeks ended June 28, 2025.

RCM Technologies reported revenue of $78.2 million for the thirteen weeks ended June 28, 2025 (the current quarter), an increase of 13.0% compared to $69.2 million for the thirteen weeks ended June 29, 2024 (the comparable prior quarter). Gross profit was $22.3 million for the current quarter, an 11.4% increase compared to $20.0 million for the comparable prior quarter. The Company experienced GAAP net income of $3.8 million, or $0.50 per diluted share, for the current quarter compared to $3.8 million, or $0.47 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $8.1 million for the current quarter, as compared to $7.2 million for the comparable prior quarter. The Company experienced $0.69 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.57 for the comparable prior quarter, an increase of 21.1%.

RCM Technologies reported revenue of $162.6 million for the twenty-six weeks ended June 28, 2025 (the current period), an increase of 15.3% compared to $141.1 million for the twenty-six weeks ended June 29, 2024 (the comparable prior-year period). Gross profit was $44.3 million for the current period, a 9.6% increase compared to $40.4 million for the comparable prior-year period. The Company experienced GAAP net income of $8.0 million, or $1.04 per diluted share, for the current period compared to $7.7 million, or $0.95 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA (non-GAAP) of $15.9 million for the current period, as compared to $14.0 million for the comparable prior-year period. The Company experienced $1.32 of adjusted net income per diluted share (non-GAAP) for the current period as compared to $1.11 for the comparable prior-year period, an increase of 18.9%.

Bradley Vizi, Executive Chairman of RCM Technologies, commented, “The second quarter exhibited consistent growth across all three segments demonstrating the resilience of the model as we build towards an expected strong second half of the year.”

Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “Momentum within Engineering continues to build as we unlock the next leg of growth in the business.”

Conference Call
On Thursday, August 7, 2025, RCM Technologies will host a conference call to discuss these results. The call will begin at 11:30 a.m. Eastern Time. The dial-in number is (888) 272-8703.

About RCM
RCM Technologies (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 Health Care, 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
	June 28, 2025			June 29, 2024
Revenue	$78,166			$69,164
Cost of services		55,889			49,163
Gross profit		22,277			20,001
Selling, general and administrative		15,275			13,545
Depreciation and amortization of property and equipment		401			332
Amortization of acquired intangible assets		-			46
Potential stock issuance and financial transactions		-			259
Operating income		6,601			5,819
Other expense, net		929			574
Income before income taxes		5,672			5,245
Income tax expense		1,887			1,483
Net income	$3,785			$3,762
Diluted net earnings per share data	$0.50			$0.47
Diluted weighted average shares outstanding		7,537,787			7,955,943

	Twenty-Six Weeks Ended
	June 28, 2025			June 29, 2024
Revenue	$162,639			$141,103
Cost of services		118,384			100,735
Gross profit		44,255			40,368
Selling, general and administrative		30,246			27,744
Depreciation and amortization of property and equipment		825			619
Amortization of acquired intangible assets		-			91
Potential stock issuance and financial transactions		-			259
Operating income		13,184			11,655
Other expense, net		1,627			1,000
Income before income taxes		11,557			10,655
Income tax expense		3,586			2,941
Net income	$7,971			$7,714
Diluted net earnings per share data	$1.04			$0.95
Diluted weighted average shares outstanding		7,650,272			8,078,049

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 June 28, 2025 and June 29, 2024.

	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP operating income	$6,601			$5,819			$13,184			$11,655
Adjustments
Potential stock issuance and financing transactions		-			259			-			259
Equity compensation		1,133			752			1,906			1,387
Adjusted operating income (non-GAAP)	$7,734			$6,830			$15,090			$13,301
GAAP net income	$3,785			$3,762			$7,971			$7,714
Income tax expense		1,887			1,483			3,586			2,941
Interest expense, net		650			581			1,301			1,059
Depreciation of property and equipment		401			332			825			619
Amortization of acquired intangible assets		-			46			-			91
EBITDA (non-GAAP)	$6,723			$6,204			$13,683			$12,424
Adjustments
Potential stock issuance and financing transactions		-			259			-			259
Loss (gain) on foreign currency transactions		279			(7	)		326			(59	)
Equity compensation		1,133			752			1,906			1,387
Adjusted EBITDA (non-GAAP)	$8,135			$7,208			$15,915			$14,011

RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Continued) (Unaudited) (In Thousands)
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP net income	$3,785			$3,762			$7,971			$7,714
Adjustments
Potential stock issuance and financing transactions		-			259			-			259
Loss (gain) on foreign currency transactions		279			(7	)		326			(59	)
Equity compensation		1,133			752			1,906			1,387
Tax impact from normalized rate		(26	)		(204	)		(137	)		(364	)
Adjusted net income (non-GAAP)	$5,171			$4,562			$10,066			$8,937
GAAP diluted net earnings per share	$0.50			$0.47			$1.04			$0.95
Adjustments
Potential stock issuance and financing transactions		-		$0.03				-		$0.03
Loss (gain) on foreign currency transactions	$0.04				-		$0.05				-
Equity compensation	$0.15			$0.09			$0.25			$0.17
Tax impact from normalized rate		-		($0.02		)	($0.02		)	($0.04		)
Adjusted diluted net earnings per share (non-GAAP)	$0.69			$0.57			$1.32			$1.11

RCM Technologies, Inc. Summary of Selected Income Statement Data (Unaudited) (In Thousands)
	Thirteen Weeks Ended June 28, 2025
	Specialty Health Care			Engineering			Life Sciences, Data and Solutions			Consolidated
Revenue	$42,822			$26,521			$8,823			$78,166
Cost of services		30,545			20,031			5,313			55,889
Gross profit	$12,277			$6,490			$3,510			$22,277
Gross profit margin		28.7	%		24.5	%		39.8	%		28.5	%

	Thirteen Weeks Ended June 29, 2024
	Specialty Health Care			Engineering			Life Sciences, Data and Solutions			Consolidated
Revenue	$36,932			$22,508			$9,724			$69,164
Cost of services		26,293			16,542			6,328			49,163
Gross profit	$10,639			$5,966			$3,396			$20,001
Gross profit margin		28.8	%		26.5	%		34.9	%		28.9	%

	Twenty-Six Weeks Ended June 28, 2025
	Specialty Health Care			Engineering			Life Sciences, Data and Solutions			Consolidated
Revenue	$86,105			$58,663			$17,871			$162,639
Cost of services		61,624			45,989			10,771			118,384
Gross profit	$24,481			$12,674			$7,100			$44,255
Gross profit margin		28.4	%		21.6	%		39.7	%		27.2	%

	Twenty-Six Weeks Ended June 29, 2024
	Specialty Health Care			Engineering			Life Sciences, Data and Solutions			Consolidated
Revenue	$75,114			$46,013			$19,976			$141,103
Cost of services		53,409			34,540			12,786			100,735
Gross profit	$21,705			$11,473			$7,190			$40,368
Gross profit margin		28.9	%		24.9	%		36.0	%		28.6	%

RCM Technologies, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands, Except Share Amounts)
			June 28,			December 28,
			2025			2024
			(Unaudited)
Current assets:
	Cash and cash equivalents		$5,472			$4,729
	Accounts receivable and contract assets, net of provision   for credit losses of $1,541 at June 28, 2025 and   $1,570 at December 28, 2024			83,749			77,960
	Transit accounts receivable			7,500			7,315
	Prepaid expenses and other current assets			3,988			7,034
		Total current assets		100,709			97,038
Property and equipment, net				7,433			7,368
Other assets:
	Deposits			259			230
	Deferred tax assets, foreign			135			120
	Goodwill			22,147			22,147
	Operating right of use asset			4,903			5,174
		Total other assets		27,444			27,671
		Total assets	$135,586			$132,077

Current liabilities:
	Accounts payable and accrued expenses		$9,762			$13,369
	Transit accounts payable			22,385			23,870
	Accrued payroll and related costs			10,369			9,929
	Finance lease payable			715			698
	Income taxes payable			788			346
	Operating lease liability			1,116			1,046
	Contingent consideration from acquisitions			212			212
	Deferred revenue			9,143			4,163
		Total current liabilities		54,490			53,633
Deferred income taxes, net, domestic				4,526			4,526
Finance lease payable, net of current position				750			1,112
Operating lease liability, net of current position				4,019			4,355
Borrowings under line of credit				34,015			34,967
		Total liabilities		97,800			98,593
Contingencies (note 15)
Stockholders’ equity:
	Preferred stock, $1.00 par value; 5,000,000 shares authorized;
		no shares issued or outstanding		-			-
	Common stock, $0.05 par value; 40,000,000 shares authorized;
		17,928,284 shares issued and 7,390,385 shares outstanding at June 28, 2025 and 17,838,372 shares issued and 7,602,113 shares outstanding at December 28, 2024		896			890
	Additional paid-in capital			120,088			118,845
	Accumulated other comprehensive loss			(2,723	)		(2,920	)
	Retained earnings (accumulated deficit)			2,033			(5,938	)
	Treasury stock, 10,537,899 shares at June 28, 2025 and
		10,236,259 shares at December 28, 2024		(82,508	)		(77,393	)
		Total stockholders’ equity		37,786			33,484
		Total liabilities and stockholders’ equity	$135,586			$132,077

RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands)
		Thirteen Weeks Ended
		June 28, 2025			June 29, 2024
Net income		$3,785			$3,762
Adjustments to reconcile net income to cash   used in operating activities			1,796			1,442
Changes in operating assets and liabilities:
	Accounts receivable and contract assets		(15,322	)		6,628
	Prepaid expenses and other current assets		1,253			(916	)
	Net of transit accounts receivable and payable		2,722			(527	)
	Accounts payable and accrued expenses		(4,739	)		(660	)
	Accrued payroll and related costs		(2,236	)		(2,462	)
	Operating lease liabilities		(294	)		(154	)
	Income taxes payable		501			(638	)
	Deferred revenue		4,681			(836	)
	Deposits		(25	)		86
Total adjustments			(11,663	)		1,963
Net cash (used in) provided by operating activities		($7,878		)	$5,725
Net cash used in investing activities			(473	)		(398	)
Net cash provided by (used in) financing activities			8,491			(3,796	)
Effect of exchange rate changes on cash and cash equivalents			151			(150	)
Increase in cash and cash equivalents		$291			$1,381

		Twenty-Six Weeks Ended
		June 28, 2025			June 29, 2024
Net income		$7,971			$7,714
Adjustments to reconcile net income to cash   used in operating activities			3,255			2,692
Changes in operating assets and liabilities:
	Accounts receivable and contract assets		(5,764	)		3,826
	Prepaid expenses and other current assets		3,040			(796	)
	Net of transit accounts receivable and payable		(1,671	)		(746	)
	Accounts payable and accrued expenses		(3,381	)		685
	Accrued payroll and related costs		429			(1,486	)
	Operating lease liabilities		(535	)		(458	)
	Income taxes payable		430			(187	)
	Deferred revenue		5,037			797
	Deposits		(29	)		110
Total adjustments			811			4,437
Net cash provided by operating activities		$8,782			$12,151
Net cash used in investing activities			(900	)		(1,067	)
Net cash used in financing activities			(7,092	)		(13,510	)
Effect of exchange rate changes on cash and cash equivalents			(47	)		(378	)
Increase (decrease) in cash and cash equivalents		$743			($	2,804	)

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