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RCM Technologies, Inc. Announces Second Quarter Results

1. RCM Technologies reported a 13% revenue increase this quarter, reaching $78.2 million. 2. GAAP net income remained stable at $3.8 million with improved diluted EPS. 3. Adjusted EBITDA rose by 12.5% to $8.1 million compared to last year. 4. The company anticipates strong growth momentum through the second half of 2025. 5. All business segments showed consistent growth, indicating resilience in operations.

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Why Bullish?

RCMT's solid earnings report reflects strong operational performance and revenue growth, suggesting positive momentum, reminiscent of past performance spikes following similar earnings improvements.

How important is it?

The article contains critical financial data and growth projections that directly impact investor confidence and can lead to stock price appreciation.

Why Short Term?

The immediate positive financial results are likely to influence investor sentiment and stock prices in the short term, similar to historical patterns following earnings announcements.

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ACNHCMCPTHIMX
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

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