RCM Technologies Reports 16.4% Revenue Growth to $70.3 Million in Latest Quarter

RCM Technologies, Inc. reported a notable increase in financial performance for the thirteen weeks ended September 27, 2025, with revenues reaching $70.3 million, a 16.4% increase from $60.4 million in the same period last year. The company's net income for the quarter was $2.3 million, down from $2.7 million in the prior year, resulting in diluted earnings per share of $0.30 compared to $0.35. The increase in revenue was primarily driven by growth in the Engineering segment, which saw a $7.3 million increase, while the Specialty Health Care segment contributed an additional $3.4 million. However, the Life Sciences, Data and Solutions segment experienced a decline of $0.8 million.

In the thirty-nine weeks ended September 27, 2025, RCM Technologies reported total revenues of $232.9 million, up from $201.5 million in the previous year, marking a 15.5% increase. The cost of services also rose, totaling $169.3 million compared to $143.3 million, leading to a gross profit of $63.7 million, up from $58.2 million. Operating income for the period was $17.1 million, slightly higher than the $16.0 million reported in the prior year. The company’s effective tax rate increased to 31.3% from 27.5%, reflecting changes in permanent tax differences.

Operationally, RCM Technologies has seen a shift in its customer base, particularly in the Specialty Health Care segment, where revenue from school clients increased significantly. The company reported that revenue from school clients reached $98.9 million for the thirty-nine weeks, up from $82.9 million, while non-school client revenue decreased. The Engineering segment's revenue growth was attributed to increased activity in Energy Services and Aerospace, while the Life Sciences segment faced challenges due to project timing and a strategic deemphasis on legacy staffing services.

The company has also made strategic investments in its infrastructure, including enhancements to its SAP software system, which went live in April 2024. RCM Technologies continues to focus on optimizing its business model and expanding its service offerings, particularly in areas involving advanced technologies and outsourcing solutions. The company maintains a strong liquidity position, with total current assets of $94.9 million against current liabilities of $48.0 million as of September 27, 2025. Looking ahead, RCM Technologies anticipates continued growth driven by its strategic focus on high-margin solutions and project management services, despite the competitive landscape and potential economic fluctuations.