RCM Technologies, Inc. Announces Third Quarter Results

PENNSAUKEN, N.J., Nov. 05, 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 thirty-nine weeks ended September 27, 2025.

RCM Technologies reported revenue of $70.3 million for the thirteen weeks ended September 27, 2025 (the current quarter), an increase of 16.4% compared to $60.4 million for the thirteen weeks ended September 28, 2024 (the comparable prior quarter). Gross profit was $19.4 million for the current quarter, an 8.8% increase compared to $17.8 million for the comparable prior quarter. The Company experienced GAAP net income of $2.3 million, or $0.30 per diluted share, for the current quarter compared to $2.7 million, or $0.35 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $5.5 million for the current quarter, as compared to $5.6 million for the comparable prior quarter. The Company experienced adjusted net income of $0.42 per diluted share (non-GAAP) for both quarters presented.

RCM Technologies reported revenue of $232.9 million for the thirty-nine weeks ended September 27, 2025 (the current period), an increase of 15.6% compared to $201.5 million for the thirty-nine weeks ended September 28, 2024 (the comparable prior-year period). Gross profit was $63.7 million for the current period, a 9.4% increase compared to $58.2 million for the comparable prior-year period. The Company experienced GAAP net income of $10.2 million, or $1.34 per diluted share, for the current period compared to $10.5 million, or $1.31 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA (non-GAAP) of $21.4 million for the current period, as compared to $19.6 million for the comparable prior-year period. The Company experienced $1.73 of adjusted net income per diluted share (non-GAAP) for the current period as compared to $1.54 for the comparable prior-year period, an increase of 12.3%.

Bradley Vizi, Executive Chairman of RCM Technologies, commented, “As we exit our seasonal third quarter, we are entering the fourth quarter from a position of strength, demonstrating record 2026 Engineering backlog as of the end of October and continued momentum in Healthcare.”

Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “We expect our fourth quarter will yield our highest quarterly gross profit and adjusted EBITDA in fiscal 2025, and we are excited about our momentum heading into 2026.”

Conference Call
On Thursday, November 6, 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 September 27,
2025 September 28,
2024Revenue$70,289 $60,365Cost of services50,879 42,524Gross profit19,410 17,841Selling, general and administrative14,933 13,018Depreciation and amortization of property and equipment539 393Amortization of acquired intangible assets- 45Operating income3,938 4,385Other expense, net614 619Income before income taxes3,324 3,766Income tax expense1,065 1,020Net income$2,259 $2,746 Diluted net earnings per share data$0.30 $0.35Diluted weighted average shares outstanding7,614,695 7,789,446

Thirty-Nine Weeks Ended September 27,
2025 September 28,
2024Revenue$232,928 $201,468Cost of services169,263 143,259Gross profit63,665 58,209Selling, general and administrative45,179 40,762Depreciation and amortization of property and equipment1,364 1,012Amortization of acquired intangible assets- 136Potential stock issuance and financial transactions- 259Operating income17,122 16,040Other expense, net2,241 1,619Income before income taxes14,881 14,421Income tax expense4,651 3,961Net income$10,230 $10,460 Diluted net earnings per share data$1.34 $1.31Diluted weighted average shares outstanding7,656,929 7,990,238

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 thirty-nine weeks ended September 27, 2025 and September 28, 2024.

Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27,
2025 September 28,
2024 September 27,
2025 September 28,
2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP operating income$3,938 $4,385 $17,122 $16,040Adjustments Potential stock issuance and financing transactions- - - 259Equity compensation1,033 767 2,939 2,154Adjusted operating income (non-GAAP)$4,971 $5,152 $20,061 $18,453 GAAP net income$2,259 $2,746 $10,230 $10,460Income tax expense1,065 1,020 4,651 3,961Interest expense, net584 492 1,885 1,551Depreciation of property and equipment539 393 1,364 1,012Amortization of acquired intangible assets- 45 - 136EBITDA (non-GAAP)$4,447 $4,696 $18,130 $17,120 Adjustments Potential stock issuance and financing transactions- - - 259Loss on foreign currency transactions30 127 356 68Equity compensation1,033 767 2,939 2,154Adjusted EBITDA (non-GAAP)$5,510 $5,590 $21,425 $19,601

RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Continued) (Unaudited) (In Thousands) Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27,
2025 September 28,
2024 September 27,
2025 September 28,
2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP net income$2,259 $2,746 $10,230 $10,460 Adjustments Potential stock issuance and financing transactions- - - 259 Loss on foreign currency transactions30 127 356 68 Equity compensation1,033 767 2,939 2,154 Tax impact from normalized rate(119)(238)(257)(603)Adjusted net income (non-GAAP)$3,203 $3,402 $13,268 $12,338 GAAP diluted net earnings per share$0.30 $0.35 $1.34 $1.31 Adjustments Potential stock issuance and financing transactions- - - $0.03 Loss on foreign currency transactions$0.01 $0.01 $0.05 $0.01 Equity compensation$0.13 $0.09 $0.38 $0.27 Tax impact from normalized rate($0.02 )($0.03 )($0.04 )($0.08 )Adjusted diluted net earnings per share (non-GAAP)$0.42 $0.42 $1.73 $1.54

RCM Technologies, Inc. Summary of Selected Income Statement Data (Unaudited) (In Thousands) Thirteen Weeks Ended September 27, 2025 Specialty 
Health Care Engineering Life Sciences,
Data and
Solutions Consolidated Revenue$30,000 $31,419 $8,870 $70,289 Cost of services21,010 24,507 5,362 50,879 Gross profit8,990 6,912 3,508 19,410 Gross profit margin30.0%22.0%39.5%27.6%

Thirteen Weeks Ended September 28, 2024 Specialty
Health Care Engineering Life Sciences, 
Data and
Solutions Consolidated Revenue$26,554 $24,167 $9,644 $60,365 Cost of services18,271 18,273 5,980 42,524 Gross profit8,283 5,894 3,664 17,841 Gross profit margin31.2%24.4%38.0%29.6%

Thirty-Nine Weeks Ended September 27, 2025 Specialty
Health Care Engineering Life Sciences,
Data and
Solutions Consolidated Revenue$116,105 $90,082 $26,741 $232,928 Cost of services82,634 70,496 16,133 169,263 Gross profit33,471 19,586 10,608 63,665 Gross profit margin28.8%21.7%39.7%27.3%

Thirty-Nine Weeks Ended September 28, 2024 Specialty
Health Care Engineering Life Sciences,
Data and
Solutions Consolidated Revenue$101,668 $70,180 $29,620 $201,468 Cost of services71,672 52,818 18,769 143,259 Gross profit29,996 17,362 10,851 58,209 Gross profit margin29.5%24.7%36.6%28.9%

RCM Technologies, Inc.Condensed Consolidated Balance Sheets(Unaudited)(In Thousands, Except Share Amounts) September 27, December 28, 2025 2024 (Unaudited) Current assets: Cash and cash equivalents $1,309 $4,729 Accounts receivable and contract assets, net of provision for credit losses of $1,541 at September 27, 2025 and $1,570 at December 28, 2024 83,243 77,960 Transit accounts receivable 6,215 7,315 Prepaid expenses and other current assets 4,160 7,034 Total current assets 94,927 97,038 Property and equipment, net7,624 7,368 Other assets: Deposits 278 230 Deferred tax assets, foreign 131 120 Goodwill 22,147 22,147 Operating right of use asset 4,708 5,174 Total other assets 27,264 27,671 Total assets $129,815 $132,077

Current liabilities: Accounts payable and accrued expenses $13,080 $13,369 Transit accounts payable 13,440 23,870 Accrued payroll and related costs 12,795 9,929 Finance lease payable 889 698 Income taxes payable 247 346 Operating lease liability 1,121 1,046 Contingent consideration from acquisitions 212 212 Deferred revenue 6,230 4,163 Total current liabilities 48,014 53,633 Deferred income taxes, net, domestic4,526 4,526 Finance lease payable, net of current position566 1,112 Operating lease liability, net of current position3,796 4,355 Borrowings under line of credit31,535 34,967 Total liabilities 88,437 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; 17,948,409 shares issued and 7,410,510 shares outstanding at September 27, 2025 and 17,838,372 shares issued and 7,602,113 shares outstanding at December 28, 2024 898 890 Additional paid-in capital 121,453 118,845 Accumulated other comprehensive loss (2,757) (2,920)Retained earnings (accumulated deficit) 4,292 (5,938)Treasury stock, 10,537,899 shares at September 27, 2025 and 10,236,259 shares at December 28, 2024 (82,508) (77,393)Total stockholders’ equity 41,378 33,484 Total liabilities and stockholders’ equity $129,815 $132,077

RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands) Thirteen Weeks Ended September 27,
2025September 28,
2024Net income$2,259 $2,746 Adjustments to reconcile net income to cash used in operating activities1,825 1,508 Changes in operating assets and liabilities: Accounts receivable and contract assets515 (9,033)Prepaid expenses and other current assets(175) 321 Net of transit accounts receivable and payable(7,659) 435 Accounts payable and accrued expenses3,312 (1,445)Accrued payroll and related costs2,431 1,919 Operating lease liabilities(274) (228)Income taxes payable(538) 81 Deferred revenue(2,939) (636)Deposits(19) (12)Total adjustments(3,521) (7,090)Net cash (used in) operating activities($1,262 ) ($4,344 ) Net cash used in investing activities(498) (522)Net cash (used in) provided by financing activities(2,379) 4,375 Effect of exchange rate changes on cash and cash equivalents(24) 167 Decrease in cash and cash equivalents($4,163 ) ($324 )

Thirty-Nine Weeks Ended September 27,
2025 September 28,
2024 Net income$10,230 $10,460 Adjustments to reconcile net income to cash used in operating activities5,080 4,200 Changes in operating assets and liabilities: Accounts receivable and contract assets(5,249) (5,207)Prepaid expenses and other current assets2,865 (475)Net of transit accounts receivable and payable(9,330) (311)Accounts payable and accrued expenses(69) (760)Accrued payroll and related costs2,860 433 Operating lease liabilities(809) (686)Income taxes payable(108) (106)Deferred revenue2,098 161 Deposits(48) 98 Total adjustments(2,710) (2,653)Net cash provided by operating activities$7,520 $7,807 Net cash used in investing activities(1,398) (1,589)Net cash used in financing activities(9,471) (9,135)Effect of exchange rate changes on cash and cash equivalents(71) (211)Decrease in cash and cash equivalents($3,420 ) ($3,128 )

RCM Technologies, Inc.Tel:  856.356.4500Corporate Contacts:2500 McClellan [email protected] S. ViziPennsauken, NJ 08109www.rcmt.comExecutive Chairman Kevin D. Miller Chief Financial Officer