RCM Technologies 2025 Q2 Earnings Strong Performance as Net Income Surges 0.6%

RCM Technologies (RCMT) reported its fiscal 2025 Q2 earnings on August 7, 2025, delivering robust results driven by strong revenue and earnings growth. The company exceeded expectations with a 13.0% year-over-year revenue increase and maintained profitability, aligning with its forward-looking guidance. No significant changes in guidance were announced.

Revenue
RCM Technologies reported total revenue of $78.17 million for the quarter, a 13.0% increase from $69.16 million in the prior year. The growth was broad-based across its core business segments, with Specialty Health Care leading the charge at $42.82 million. Engineering services followed closely with $26.52 million, reflecting continued demand for IT staffing and technical solutions. Life Sciences, Data & Solutions generated $8.82 million, rounding out the revenue contribution. These results highlight RCM's ability to maintain and expand its market share across diverse service lines.

Earnings/Net Income
The company's earnings showed consistent improvement, with net income rising 0.6% to $3.79 million, or $0.51 per diluted share, compared to $0.48 in the same period last year. The EPS growth, while modest, indicates effective cost management and operational efficiency. The 6.3% increase in earnings per share underscores the company's ability to deliver solid financial returns despite a challenging economic backdrop.

Price Action
The stock price of RCM Technologies has experienced a downward trend in the recent period, with a 2.82% decline during the latest trading day, a 5.72% drop over the past week, and a 14.68% decline month-to-date.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing RCM Technologies shares following a revenue growth quarter has historically delivered favorable returns. Over the past three years, this approach has yielded a 60.97% return, outperforming the benchmark by 11.57%. The investment strategy, characterized by a 17.40% compound annual growth rate and zero maximum drawdown, has demonstrated strong risk-adjusted performance and reliability in capital preservation and appreciation.

CEO Commentary
Bradley Vizi, Executive Chairman of RCM Technologies, emphasized the company's consistent performance across all three segments, highlighting the model's resilience as the company moves toward a strong second half of 2025. Kevin Miller, Chief Financial Officer, noted the growing momentum within the Engineering segment, signaling potential for further expansion. The leadership team remains focused on disciplined capital allocation, talent development, and strategic investments in digital transformation to solidify RCM Technologies' competitive edge.

Guidance
RCM Technologies expects revenue to remain in line with recent trends for the upcoming quarter, with a focus on maintaining profitability. The company does not anticipate significant capital expenditures or changes in CAPEX in the near term. While no specific EPS targets were provided, the leadership expressed confidence in sustaining earnings performance given current operations and client demand.

Additional News
RCM Technologies, Inc. (NasdaqGM: RCMT) recently announced its second-quarter financial results for the thirteen and twenty-six weeks ended June 28, 2025. The company reported $78.2 million in revenue for the thirteen-week period, a 13.0% increase from $69.2 million in the same period a year ago. Gross profit rose 11.4% to $22.3 million. On a GAAP basis, the company reported net income of $3.8 million, or $0.50 per diluted share, compared to $0.47 per share in the prior year. On a non-GAAP basis, adjusted EBITDA increased to $8.1 million, and adjusted net income per diluted share reached $0.69, a 21.1% year-over-year increase. For the twenty-six-week period, revenue was $162.6 million, up 15.3% from $141.1 million. Gross profit was $44.3 million, and GAAP net income was $8.0 million, or $1.04 per diluted share. On a non-GAAP basis, adjusted EBITDA was $15.9 million, and adjusted net income per diluted share was $1.32, an 18.9% increase from the prior year. The company also announced a conference call for August 7, 2025, to discuss these results.