RCM Technologies, Inc. Announces Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) PENNSAUKEN, N.J., Nov. 12, 2026 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of solutions designed to enhance the operational performance of its customers through the deployment of advanced engineering, specialty healthcare, and information technology services, today announced financial results for the thirteen and thirty-nine weeks ended October 3, 2026.

RCMT reported revenue of $73.4 million for the thirteen weeks ended October 3, 2026 (the current quarter), an increase of 4.4% compared to $70.3 million for the thirteen weeks ended September 27, 2025 (the comparable prior quarter). Gross profit was $19.9 million for the current quarter, a 2.7% increase from $19.4 million for the comparable prior quarter. The Company experienced GAAP net income of $2.7 million, or $0.37 per diluted share, for the current quarter compared to $2.3 million, or $0.30 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $6.3 million for the current quarter, as compared to $5.5 million for the comparable prior quarter, an increase of 14.2%. The Company experienced $0.53 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.42 for the comparable prior quarter, an increase of 26.2%.

RCMT reported revenue of $250.3 million for the thirty-nine weeks ended October 3, 2026 (the current period), an increase of 7.4% compared to $232.9 million for the thirty-nine weeks ended September 27, 2025 (the comparable prior-year period). Gross profit was $66.0 million for the current period, a 3.7% increase from $63.7 million for the comparable prior-year period. The Company experienced GAAP net income of $11.5 million, or $1.56 per diluted share, for the current period compared to $10.2 million, or $1.34 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA (non-GAAP) of $23.8 million for the current period, as compared to $21.4 million for the comparable prior-year period, an increase of 11.0%. The Company experienced $2.01 of adjusted net income per diluted share (non-GAAP) for the current period as compared to $1.73 for the comparable prior-year period, an increase of 16.2%.

About RCM
RCM Technologies, Inc. (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Healthcare, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. .

The statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995. They are subject to various risks, uncertainties, and other factors that could cause the Company's actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as“may,”“will,”“expect,”“anticipate,”“continue,”“estimate,”“project,”“intend,”“believe,”“plan,”“seek,”“could,”“can,”“should,”“are confident” or similar expressions. In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, and our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate in these circumstances. Forward-looking statements include, but are not limited to, those relating to demand for the Company's services, expectations regarding our future revenues and other financial results, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and growth in our business. Such statements are based on current expectations that involve several known and unknown risks, uncertainties, and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Risk, uncertainties, and other factors may emerge from time to time that could cause the Company's actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties, and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.

Tables to Follow

RCM Technologies, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Share and Per Share Amounts)
	Thirteen Weeks Ended
	October 3, 2026		September 27, 2025
Revenue	$73,401		$70,289
Cost of services		53,475			50,879
Gross profit		19,926			19,410
Selling, general and administrative		14,823			14,933
Depreciation and amortization of property and equipment		565			539
Operating income		4,538			3,938
Other expense, net		427			614
Income before income taxes		4,111			3,324
Income tax expense		1,395			1,065
Net income	$2,716		$2,259
Diluted net earnings per share data	$0.37		$0.30
Diluted weighted average shares outstanding		7,303,227			7,614,695

	Thirty-Nine Weeks Ended
	October 3, 2026		September 27, 2025
Revenue	$250,255		$232,928
Cost of services		184,225			169,263
Gross profit		66,030			63,665
Selling, general and administrative		45,920			45,179
Depreciation and amortization of property and equipment		1,677			1,364
Operating income		18,433			17,122
Other expense, net		1,726			2,241
Income before income taxes		16,707			14,881
Income tax expense		5,246			4,651
Net income	$11,461		$10,230
Diluted net earnings per share data	$1.56		$1.34
Diluted weighted average shares outstanding		7,358,846			7,656,929

RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis
(Unaudited)
(In Thousands, Except Per Share Amounts)

The following non-GAAP measures, which adjust for the categories of expenses described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures (“Adjusted operating income,”“EBITDA,”“Adjusted EBITDA,”“Adjusted net income” and“Adjusted diluted net earnings per share”) are useful information for investors, shareholders, and other stakeholders of our Company in gauging our results of operations on an ongoing basis and to enhance investors' overall understanding of our current financial performance and period-to-period comparisons. Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share should not be considered alternatives to operating income or net income, as the case may be, as an indicator of performance. In addition, Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share do not take into account changes in certain assets and liabilities and interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read-only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The following unaudited table presents the Company's GAAP operating income and GAAP net income and the corresponding adjustments used to calculate Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share for the thirteen and thirty-nine weeks ended October 3, 2026, and September 27, 2025.

	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	October 3, 2026		September 27, 2025		October 3, 2026	September 27, 2025
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP operating income	$4,538		$3,938		$18,433		$17,122
Adjustments
Excess professional fees		-			-			647			-
Equity compensation		1,191			1,033			3,023			2,939
Adjusted operating income (non-GAAP)	$5,729		$4,971		$22,103		$20,061
GAAP net income	$2,716		$2,259		$11,461		$10,230
Income tax expense		1,395			1,065			5,246			4,651
Interest expense, net		448			584			1,819			1,885
Depreciation of property and equipment		565			539			1,677			1,364
EBITDA (non-GAAP)	$5,124		$4,447		$20,203		$18,130
Adjustments
Excess professional fees		-			-			647			-
(Gain) loss on foreign currency transactions		(21	)		30			(93	)		356
Equity compensation		1,191			1,033			3,023			2,939
Adjusted EBITDA (non-GAAP)	$6,294		$5,510		$23,780		$21,425

RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis (Continued)
(Unaudited)
(In Thousands)
	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	October 3, 2026		September 27, 2025	October 3, 2026		September 27, 2025
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP net income	$2,716		$2,259		$11,461		$10,230
Adjustments
Excess professional fees		-			-			647			-
(Gain) loss on foreign currency transactions		(21	)		30			(93	)		356
Equity compensation		1,191			1,033			3,023			2,939
Tax impact from normalized rate		(31	)		(119	)		(231	)		(257	)
Adjusted net income (non-GAAP)	$3,855		$3,203		$14,807		$13,268
GAAP diluted net earnings per share	$0.37		$0.30		$1.56		$1.34
Adjustments
Excess professional fees		-			-		$0.08			-
(Gain) loss on foreign currency transactions	($0.00	)	$0.01		($0.01	)	$0.05
Equity compensation	$0.16		$0.13		$0.41		$0.38
Tax impact from normalized rate(a)	($0.00	)	($0.02	)	($0.03	)	($0.04	)
Adjusted diluted net earnings per share (non-GAAP)	$0.53		$0.42		$2.01		$1.73

(a)	Amount reflects an adjustment to income tax expense applied to non-GAAP adjusted consolidated taxable income. The Company used an estimated effective income tax rate of 27.0% for both periods presented, approximating the Company's federal USA income tax rate plus the tax-affected rate for states and Puerto Rico.

RCM Technologies, Inc.
Summary of Selected Income Statement Data
(Unaudited)
(In Thousands)
	Thirteen Weeks Ended October 3, 2026
	Specialty Healthcare		Engineering		Life Sciences, Data and Solutions		Consolidated
Revenue	$33,709		$30,743		$8,949		$73,401
Cost of services		25,113			22,783			5,579			53,475
Gross profit	$8,596		$7,960		$3,370		$19,926
Gross profit margin		25.5	%		25.9	%		37.7	%		27.1	%

	Thirteen Weeks Ended September 27, 2025
	Specialty Healthcare		Engineering		Life Sciences, Data and Solutions		Consolidated
Revenue	$30,000		$31,419		$8,870		$70,289
Cost of services		21,010			24,507			5,362			50,879
Gross profit		8,990			6,912			3,508			19,410
Gross profit margin		30.0	%		22.0	%		39.5	%		27.6	%

	Thirty-Nine Weeks Ended October 3, 2026
	Specialty Healthcare		Engineering		Life Sciences, Data and Solutions		Consolidated
Revenue	$126,541		$96,405		$27,309		$250,255
Cost of services		91,341			76,103			16,781			184,225
Gross profit	$35,200		$20,302		$10,528		$66,030
Gross profit margin		27.8	%		21.1	%		38.6	%		26.4	%

	Thirty-Nine Weeks Ended September 27, 2025
	Specialty Healthcare		Engineering		Life Sciences, Data and Solutions		Consolidated
Revenue	$116,105		$90,082		$26,741		$232,928
Cost of services		82,634			70,496			16,133			169,263
Gross profit		33,471			19,586			10,608			63,665
Gross profit margin		28.8	%		21.7	%		39.7	%		27.3	%

RCM Technologies, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
	October 3,		January 3,
	2026		2026
Current assets:
	Cash	$1,884		$2,922
	Accounts receivable and contract assets, net of provision for credit losses of $871 at October 3, 2026 and January 3, 2026		85,016			81,243
	Transit accounts receivable		6,272			8,017
	Prepaid expenses and other current assets		6,282			7,704
		Total current assets		99,454			99,886
Property and equipment, net		6,369			7,265
Other assets:
	Deposits		261			261
	Deferred tax assets, foreign		6			6
	Goodwill		22,147			22,147
	Operating right of use assets		4,945			4,832
		Total other assets		27,359			27,246
		Total assets	$133,182		$134,397

Current liabilities:
	Accounts payable and accrued expenses	$14,590		$9,649
	Transit accounts payable		8,993			16,247
	Accrued payroll and related costs		13,246			10,784
	Finance lease payables		799			843
	Income taxes payable		50			391
	Operating lease liabilities		1,194			1,209
	Deferred revenue		9,058			14,761
		Total current liabilities		47,930			53,884
Deferred income taxes, net, domestic		5,673			5,673
Finance lease payables, net of current portion		-			380
Operating lease liabilities, net of current portion		3,941			3,813
Borrowings under revolving credit facility		22,682			24,673
	Total liabilities		80,226			88,423
Contingencies (note 16) and Commitments (note 15)
Stockholders' equity:
		Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding		-			-
		Common stock, $0.05 par value; 40,000,000 shares authorized; 18,132,420 shares issued and 7,131,213 shares outstanding at October 3, 2026 and 18,004,241 shares issued and 7,351,400 shares outstanding at January 3, 2026		906			900
	Additional paid-in capital		124,755			122,244
	Accumulated other comprehensive loss		(3,164	)		(2,814	)
	Retained earnings		21,857			10,396
	Treasury stock at cost, 11,001,207 shares at October 3, 2026 and 10,652,841 shares at January 3, 2026		(91,398	)		(84,752	)
		Stockholders' equity		52,956			45,974
		Total liabilities and stockholders' equity	$133,182		$134,397

RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
	Thirteen Weeks Ended
	October 3 2026		September 27, 2025
Net income	$2,716		$2,259
Adjustments to reconcile net income to cash used in operating activities		1,581			1,825
Changes in operating assets and liabilities:
	Accounts receivable and contract assets		(3,208	)		515
	Prepaid expenses and other current assets		(599	)		(175	)
	Net of transit accounts receivable and payable		(5,124	)		(7,659	)
	Accounts payable and accrued expenses		203			3,312
	Accrued payroll and related costs		372			2,431
	Operating lease liabilities		(181	)		(274	)
	Income taxes payable		(301	)		(538	)
	Deferred revenue		819			(2,939	)
	Deposits		-			(19	)
Total adjustments		(6,438	)		(3,521	)
Net cash used in operating activities		(3,722	)		(1,262	)
Net cash used in investing activities		(276	)		(498	)
Net cash used in financing activities		(603	)		(2,379	)
Effect of exchange rate changes on cash		(100	)		(24	)
Decrease in cash	($4,701	)	($4,163	)

	Thirty-Nine Weeks Ended
	October 3 2026		September 27, 2025
Net income	$11,461		$10,230
Adjustments to reconcile net income to cash used in operating activities		5,175			5,080
Changes in operating assets and liabilities:
	Accounts receivable and contract assets		(3,488	)		(5,249	)
	Prepaid expenses and other current assets		1,420			2,865
	Net of transit accounts receivable and payable		(5,509	)		(9,330	)
	Accounts payable and accrued expenses		5,155			(69	)
	Accrued payroll and related costs		2,480			2,860
	Operating lease liabilities		(804	)		(809	)
	Income taxes payable		(337	)		(108	)
	Deferred revenue		(5,734	)		2,098
	Deposits		(1	)		(48	)
Total adjustments		(1,643	)		(2,710	)
Net cash provided by operating activities		9,818			7,520
Net cash used in investing activities		(477	)		(1,398	)
Net cash used in financing activities		(9,875	)		(9,471	)
Effect of exchange rate changes on cash		(504	)		(71	)
Decrease in cash	($1,038	)	($3,420	)

RCM Technologies, Inc.	Tel: 856.356.4500	Corporate Contacts:
2500 McClellan Avenue	...	Bradley S. Vizi
Pennsauken, NJ 08109		Executive Chairman
		Kevin D. Miller
		Chief Financial Officer

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