RCM Technologies Reports 17.4% Revenue Growth to $84.5 Million in Latest Quarter

RCM Technologies, Inc. reported a significant increase in financial performance for the thirteen weeks ended March 29, 2025, with total revenue reaching $84.5 million, up 17.4% from $71.9 million in the same period last year. The company's net income also rose to $4.2 million, compared to $4.0 million in the prior year, resulting in basic and diluted earnings per share of $0.55 and $0.54, respectively. The gross profit margin, however, decreased slightly to 26.0% from 28.3%, attributed to rising costs of services, which increased to $62.5 million from $51.6 million.

The company experienced notable growth in its Specialty Health Care and Engineering segments, with revenues increasing by $5.1 million and $8.6 million, respectively. The Specialty Health Care segment generated $43.3 million, driven primarily by increased demand from school clients, while the Engineering segment's revenue surged to $32.1 million, bolstered by heightened activity in Energy Services and Aerospace. Conversely, the Life Sciences, Data and Solutions segment saw a decline in revenue, dropping to $9.0 million, primarily due to the timing of large projects and a strategic deemphasis on legacy staffing services.

Operationally, RCM Technologies reported a decrease in accounts receivable, which provided $9.6 million in cash flow, compared to a cash outflow of $2.8 million in the previous year. The company’s total current assets were $86.0 million, exceeding current liabilities of $53.2 million, resulting in a favorable liquidity position. The company also maintained a strong balance sheet with total assets of $121.0 million, although this was down from $132.1 million at the end of the previous fiscal year.

In terms of strategic developments, RCM Technologies continued to focus on enhancing its service offerings and operational efficiency. The company has been investing in its sales and recruiting infrastructure to support revenue growth, particularly in the Specialty Health Care segment. Additionally, RCM Technologies has been actively managing its capital structure, having repurchased 183,432 shares at an average price of $17.37 per share during the quarter, with $39.0 million remaining available for future repurchases under its Treasury Stock Repurchase Plan.

Looking ahead, RCM Technologies remains cautiously optimistic about its growth prospects, despite the cyclical nature of its market and potential economic uncertainties. The company plans to continue leveraging its diversified service offerings and strategic acquisitions to drive future growth. However, it acknowledges that external factors, including economic conditions and competitive pressures, may impact its performance. The company is committed to maintaining compliance with its financial covenants and believes it can meet its liquidity needs for the foreseeable future.