RCM Technologies (RCMT) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended April 4, 2026, was $83.0 million, down 1.7% year-over-year, with net income of $3.8 million, a 8.2% decrease from the prior year.

• Specialty Healthcare segment drove growth, offset by declines in Engineering and Life Sciences, Data and Solutions segments.

• Operating income was $5.9 million, down from $6.6 million year-over-year, with gross profit margin stable at 26.5%.

Financial highlights

• Gross profit was $22.0 million, nearly flat year-over-year.

• Adjusted EBITDA was $8.1 million, up from $7.8 million in the prior year.

• Diluted EPS was $0.52, compared to $0.54 in the prior year; adjusted diluted EPS was $0.69, up from $0.63.

• Cash from operations was $2.7 million, down from $16.7 million in the prior year, mainly due to changes in accounts receivable.

Outlook and guidance

• Management expects continued demand for advanced technology, AI, and process automation solutions, with outsourcing trends supporting future growth.

• Fiscal discipline and diversification are expected to provide some insulation from adverse economic trends.