RCM Technologies (RCMT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 13% year-over-year to $78.2 million, with record gross profit of $22.3 million, the highest in 13 quarters.

• Adjusted EBITDA grew 12.9% to $8.1 million; adjusted EPS increased 21.1% to $0.69; GAAP net income was $3.8 million ($0.50 per diluted share).

• Growth was driven by strong performance in Specialty Health Care and Engineering, with some offset from a decline in Life Sciences, Data and Solutions.

• The company maintained compliance with all financial covenants and reported a solid liquidity position.

• Inclusion in the Russell 2000 Growth Index marked a significant milestone.

Financial highlights

• Q2 2025: Revenue $78.2M (+13% YoY), gross profit $22.3M (+11.4% YoY), adjusted EBITDA $8.1M (+12.9% YoY), adjusted EPS $0.69 (+21.1% YoY).

• First half 2025: Revenue $162.6M (+15% YoY), net income $8.0M, adjusted EPS $1.32, cash from operations $8.8M.

• Gross margin for Q2 2025 was 28.5%, with segment margins: Specialty Health Care 28.7%, Engineering 24.5%, Life Sciences/Data Solutions 39.8%.

• Diluted weighted average shares outstanding decreased to 7.54 million in Q2 2025.

• $5.5 million was used for share repurchases in the first half.

Outlook and guidance

• Management expects continued low double-digit adjusted EBITDA growth and a strong second half of 2025, with Q4 projected as the highest adjusted EBITDA quarter.

• Anticipate record year for Aerospace and Defense Group in 2025.

• Growth in K-12 healthcare expected regardless of immigration trends; immigration could further boost results.

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