RCM Technologies, Inc. Announces Second Quarter Results

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 Avenueinfo@rcmt.comBradley S. ViziPennsauken, NJ 08109www.rcmt.comExecutive Chairman Kevin D. Miller Chief Financial Officer

RCM Technologies, Inc. Announces Second Quarter Results

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