RCM Technologies (RCMT) Q3 2027 earnings summary

Executive summary

• Q3 revenue rose 4.4% YoY to $73.4M; operating income increased to $4.5M from $3.9M and net income to $2.7M from $2.3M.

• 39-week revenue grew 7.4% to $250.3M and net income rose to $11.5M from $10.2M.

• Q3 adjusted EBITDA increased 14.2% to $6.3M; 39-week adjusted EBITDA rose to $23.8M from $21.4M and adjusted diluted EPS to $2.01 from $1.73.

Financial highlights

• Q3 gross profit increased 2.7% to $19.9M; SGA was $14.8M vs. $14.9M, and operating margin improved to 6.2% from 5.6%.

• Q3 diluted GAAP EPS was $0.37 vs. $0.30; adjusted diluted EPS was $0.53 vs. $0.42.

• 39-week gross profit was $66.0M, up 3.7%; operating income was $18.4M vs. $17.1M.

• 39-week operating cash flow was $9.8M vs. $7.5M; capex was $0.5M vs. $1.4M.

Outlook and guidance

• Management expects outsourcing demand to rise for complex, business-critical systems involving AI, Agentic AI, Quality by Design and automation, while customers prioritize ROI amid budget constraints.

• Forward-looking priorities include service demand, revenue and cash flow, pipeline and potential project wins, and investment and growth.

• Liquidity is expected to cover needs for at least 12 months; operating cash flow and the revolving facility are primary funding sources. Capital use is expected to focus on working capital; acquisitions may require debt or potentially dilutive securities.