RCM Technologies, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with total revenue reaching $78.2 million, up 13% from $69.2 million in the same period last year. The company’s net income for the quarter was $3.8 million, slightly higher than the $3.8 million reported in the prior year, resulting in diluted earnings per share of $0.50 compared to $0.47. The increase in revenue was primarily driven by growth in the Specialty Health Care and Engineering segments, which saw revenue increases of $5.9 million and $4.0 million, respectively.
In the first half of fiscal 2025, RCM Technologies generated total revenue of $162.6 million, a 15.3% increase from $141.1 million in the previous year. The company’s gross profit also improved, totaling $44.3 million, compared to $40.4 million in the prior year. However, the cost of services as a percentage of revenue increased to 72.8% from 71.4%, indicating rising operational costs. Selling, general, and administrative expenses rose to $30.2 million, reflecting investments in sales and recruiting infrastructure to support revenue growth.
Operationally, RCM Technologies experienced fluctuations in customer revenue, particularly in its Life Sciences, Data and Solutions segment, which saw a decline of $0.9 million in the second quarter. The company attributed this decrease to the timing of large projects and a strategic deemphasis on its legacy staffing business. Despite this, the Specialty Health Care segment reported strong performance, particularly from school clients, which contributed significantly to revenue growth.
The company continues to focus on strategic initiatives, including potential acquisitions and investments in technology solutions. As of June 28, 2025, RCM Technologies had $5.5 million in cash and cash equivalents, with total current assets of $100.7 million, exceeding current liabilities of $54.5 million. The company remains committed to maintaining compliance with its financial covenants and believes it can meet its liquidity needs for the foreseeable future. Looking ahead, RCM Technologies anticipates continued growth driven by demand for its services, although it acknowledges potential challenges from economic fluctuations and competitive pressures in the market.
About RCM TECHNOLOGIES, INC.
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