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RCM Technologies, Inc. Announces Second Quarter Results

By RCM Technologies, Inc. | August 06, 2025, 4:57 PM

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: 856.356.4500Corporate Contacts:
2500 McClellan Avenue[email protected]Bradley S. Vizi
Pennsauken, NJ 08109www.rcmt.comExecutive Chairman
  Kevin D. Miller
  Chief Financial Officer

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