Top-line reacceleration to 20.0% growth and $93.8M revenue in 2026Q2 is offset by gross margin erosion to 25.7% from 29.6% eight quarters ago, with operating margin confined to a 5.6%–9.2% band as SG&A rose 20% to $15.6M in line with revenue.
RCM Technologies, Inc. (RCMT) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Jan'15 | Dec'13 | Feb'13 | Dec'11 | Jan'11 | Jan'10 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Jan'05 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 333.62M | 319.4M | 278.38M | 263.24M | 284.68M | 203.88M | 150.41M | 191.1M | 200.35M | 186.74M | 176.45M | 185.74M | 193.77M | 170.78M | 145.82M | 143.81M | 162.02M | 189.39M | 209.28M | 214.21M | 201.92M | 180.62M | 169.28M | 206.61M | 186.65M | 224.89M | 296M | 313.4M | 201.5M | 114M | 61M |
| Revenue Growth % | 11.24% | 14.74% | 5.75% | -7.53% | 39.63% | 35.55% | -21.29% | -4.62% | 7.29% | 5.83% | -5% | -4.15% | 13.46% | 17.12% | 1.39% | -11.24% | -14.45% | -9.5% | -2.3% | 6.09% | 11.79% | 6.7% | -18.07% | 10.69% | -17% | -24.02% | -5.55% | 55.53% | 76.75% | 86.89% | 126.77% |
| Cost of Goods Sold | 245.47M | 233.38M | 198.6M | 186.54M | 201.75M | 150.75M | 111.55M | 142.51M | 151.04M | 138.35M | 129.42M | 133.85M | 142.08M | 126.42M | 106.1M | 103.08M | 115.83M | 142.56M | 155.3M | 161.23M | 151.41M | 137.94M | 128.3M | 162.01M | 139.99M | 162.1M | 217.52M | 236.7M | 153M | 86.8M | 48.8M |
| COGS % of Revenue | - | 73.07% | 71.34% | 70.86% | 70.87% | 73.94% | 74.17% | 74.57% | 75.39% | 74.09% | 73.35% | 72.07% | 73.32% | 74.02% | 72.76% | 71.67% | 71.49% | 75.27% | 74.21% | 75.27% | 74.99% | 76.37% | 75.79% | 78.42% | 75% | 72.08% | 73.48% | 75.53% | 75.93% | 76.14% | 80% |
| Gross Profit | 88.14M | 86.03M | 79.78M | 76.7M | 82.93M | 53.12M | 38.85M | 48.59M | 49.31M | 48.39M | 47.03M | 51.88M | 51.69M | 44.36M | 39.72M | 40.74M | 46.19M | 46.84M | 53.98M | 52.98M | 50.51M | 42.68M | 40.97M | 44.59M | 46.66M | 62.8M | 78.49M | 76.7M | 48.5M | 27.2M | 12.2M |
| Gross Margin % | 26.42% | 26.93% | 28.66% | 29.14% | 29.13% | 26.06% | 25.83% | 25.43% | 24.61% | 25.91% | 26.65% | 27.93% | 26.68% | 25.98% | 27.24% | 28.33% | 28.51% | 24.73% | 25.79% | 24.73% | 25.01% | 23.63% | 24.21% | 21.58% | 25% | 27.92% | 26.52% | 24.47% | 24.07% | 23.86% | 20% |
| Gross Profit Growth % | - | 7.83% | 4.02% | -7.51% | 56.1% | 36.72% | -20.04% | -1.46% | 1.91% | 2.89% | -9.36% | 0.37% | 16.53% | 11.7% | -2.51% | -11.8% | -1.38% | -13.23% | 1.89% | 4.89% | 18.34% | 4.17% | -8.12% | -4.44% | -25.69% | -19.99% | 2.33% | 58.14% | 78.31% | 122.95% | 171.11% |
| Operating Expenses | 62.34M | 60.93M | 57.45M | 53M | 54.13M | 38.99M | 49.8M | 42.02M | 42.32M | 42.4M | 41.63M | 44.03M | 41.07M | 36.63M | 34.49M | 33.73M | 37.17M | 45.51M | 98.04M | 42.86M | 42.75M | 36.67M | 37.71M | 40.47M | 74.31M | 85.5M | 61.49M | 51.1M | 32M | 18.7M | 9.2M |
| OpEx % of Revenue | - | 19.08% | 20.64% | 20.14% | 19.01% | 19.12% | 33.11% | 21.99% | 21.12% | 22.71% | 23.59% | 23.71% | 21.2% | 21.45% | 23.65% | 23.45% | 22.94% | 24.03% | 46.85% | 20.01% | 21.17% | 20.3% | 22.28% | 19.59% | 39.81% | 38.02% | 20.77% | 16.3% | 15.88% | 16.4% | 15.08% |
| Selling, General & Admin | 61.78M | 60.93M | 56.79M | 52.19M | 53.4M | 42.02M | 37.79M | 40.44M | 40.76M | 40.64M | 40.06M | 42.57M | 39.87M | 35.51M | 33.17M | 32.58M | 35.83M | 43.88M | 52.66M | 41.42M | 41.24M | 35.46M | 36.49M | 32.56M | 33.32M | 43.09M | 54.85M | 48.1M | 30.5M | 18.1M | 8.9M |
| SG&A % of Revenue | - | 19.08% | 20.4% | 19.82% | 18.76% | 20.61% | 25.13% | 21.16% | 20.34% | 21.77% | 22.71% | 22.92% | 20.57% | 20.8% | 22.74% | 22.65% | 22.11% | 23.17% | 25.16% | 19.34% | 20.43% | 19.63% | 21.56% | 15.76% | 17.85% | 19.16% | 18.53% | 15.35% | 15.14% | 15.88% | 14.59% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.02% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 558K | 0 | 666K | 819K | 734K | -3.03M | 12.01M | 1.59M | -1.51M | -525K | -285K | -697K | 83K | 32K | 102K | 0 | 0 | 900 | 51.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 25.8M | 25.09M | 22.32M | 23.69M | 28.8M | 14.14M | -10.95M | 6.57M | 5.42M | 280K | 4.12M | 7.85M | 10.52M | 2.56M | 5.23M | 7.01M | 9.02M | 1.33M | -44.06M | 10.12M | 7.76M | 6.02M | 3.26M | 4.12M | -27.64M | -22.71M | 16.99M | 25.6M | 16.5M | 8.5M | 3M |
| Operating Margin % | 7.73% | 7.86% | 8.02% | 9% | 10.12% | 6.93% | -7.28% | 3.44% | 2.7% | 0.15% | 2.33% | 4.23% | 5.43% | 1.5% | 3.59% | 4.87% | 5.57% | 0.7% | -21.06% | 4.72% | 3.84% | 3.33% | 1.93% | 1.99% | -14.81% | -10.1% | 5.74% | 8.17% | 8.19% | 7.46% | 4.92% |
| Operating Income Growth % | - | 12.4% | -5.77% | -17.73% | 103.72% | 229.1% | -266.74% | 21.27% | 1833.93% | -93.2% | -47.59% | -25.36% | 311.66% | -51.13% | -25.41% | -22.3% | 578.78% | 103.02% | -535.6% | 30.41% | 28.94% | 84.51% | -20.89% | 114.91% | -21.72% | -233.65% | -33.63% | 55.15% | 94.12% | 183.33% | 233.33% |
| EBITDA | 28.01M | 27.01M | 24.43M | 25.82M | 30.84M | 16.3M | -9.56M | 8.15M | 6.98M | 2.04M | 5.68M | 9.32M | 11.72M | 3.67M | 6.55M | 8.16M | 10.4M | 2.95M | -42.01M | 11.56M | 9.26M | 7.22M | 4.48M | 5.35M | -26.36M | -15.29M | 23.64M | 28.6M | 18M | 9.1M | 3.3M |
| EBITDA Margin % | 8.4% | 8.46% | 8.77% | 9.81% | 10.83% | 7.99% | -6.36% | 4.27% | 3.48% | 1.09% | 3.22% | 5.02% | 6.05% | 2.15% | 4.49% | 5.67% | 6.42% | 1.56% | -20.07% | 5.4% | 4.59% | 4% | 2.65% | 2.59% | -14.12% | -6.8% | 7.99% | 9.13% | 8.93% | 7.98% | 5.41% |
| EBITDA Growth % | 9.73% | 10.58% | -5.41% | -16.26% | 89.26% | 270.38% | -217.28% | 16.8% | 242.76% | -64.16% | -39% | -20.5% | 219.72% | -44.02% | -19.72% | -21.59% | 252.68% | 107.02% | -463.24% | 24.83% | 28.29% | 61.24% | -16.2% | 120.28% | -72.4% | -164.69% | -17.34% | 58.89% | 97.8% | 175.76% | 230% |
| D&A (Non-Cash Add-back) | 2.21M | 1.92M | 2.1M | 2.13M | 2.04M | 2.16M | 1.39M | 1.59M | 1.57M | 1.76M | 1.57M | 1.47M | 1.2M | 1.11M | 1.32M | 1.15M | 1.38M | 1.62M | 2.06M | 1.45M | 1.51M | 1.21M | 1.22M | 1.22M | 1.28M | 7.42M | 6.65M | 3M | 1.5M | 600K | 300K |
| EBIT | 25.83M | 24.74M | 22.41M | 23.59M | 28.85M | 14.28M | -11.28M | 6.57M | 6.99M | 5.99M | 5.4M | 7.66M | 10.52M | 7.74M | 5.23M | 7.01M | 9.05M | 12.38M | -44.13M | 11.12M | 7.76M | 6.01M | 3.26M | 4.12M | -27.64M | -22.68M | -20.53M | 25.6M | 16.5M | 8.5M | 3M |
| Net Interest Income | -2.74M | -2.67M | -2.54M | -1.4M | -370K | -365K | -778K | -1.7M | -1.47M | -590K | -539K | -504K | -74K | -55K | -40K | -36K | -61K | -55K | -230K | 59K | -256.24K | -221K | -474.42K | -314.49K | -171.9K | -2.29M | -3.68M | 0 | -200K | -200K | -200K |
| Interest Income | 0 | 0 | -323K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 92K | 126K | 282.95K | 0 | 0 | 0 | 598.5K | 297.38K | 315.33K | 0 | 0 | 0 | 0 |
| Interest Expense | 2.74M | 2.67M | 2.21M | 1.4M | 370K | 365K | 778K | 1.7M | 1.47M | 590K | 528K | 504K | 74K | 55K | 40K | 36K | 61K | 55K | 322K | 67K | 539.19K | 221K | 474.42K | 314.49K | 770.4K | 2.59M | 3.99M | 0 | 200K | 200K | 200K |
| Other Income/Expense | -2.69M | -3.02M | -2.13M | -1.5M | -318K | -222K | -1.11M | -1.75M | -1.51M | -525K | -528K | -697K | 83K | 32K | 102K | -78K | -34K | 8.56M | -298K | 937K | -287.39K | -209K | -449.47K | -182.19K | -154.93K | -2.27M | -3.7M | -1.1M | 200K | -200K | -100K |
| Pretax Income | 23.11M | 22.07M | 20.19M | 22.2M | 28.48M | 13.91M | -12.06M | 4.82M | 3.91M | -245K | 3.3M | 7.15M | 10.6M | 2.59M | 5.33M | 6.93M | 8.99M | 11.11M | -44.36M | 11.05M | 7.47M | 5.81M | 2.81M | 3.94M | -27.8M | -24.98M | -25.52M | 24.5M | 16.7M | 8.3M | 2.9M |
| Pretax Margin % | 6.93% | 6.91% | 7.25% | 8.43% | 10% | 6.82% | -8.02% | 2.52% | 1.95% | -0.13% | 1.87% | 3.85% | 5.47% | 1.51% | 3.66% | 4.82% | 5.55% | 5.87% | -21.2% | 5.16% | 3.7% | 3.22% | 1.66% | 1.91% | -14.89% | -11.11% | -8.62% | 7.82% | 8.29% | 7.28% | 4.75% |
| Income Tax | 6M | 5.74M | 6.86M | 5.36M | 7.59M | 2.92M | -3.19M | 764K | 1.19M | -2.25M | 1.54M | 1.14M | 3.79M | 597K | 2.1M | 2.65M | 2.57M | 4.19M | -4.56M | 4.28M | 1.11M | 2.27M | 604.24K | 1.16M | -4.63M | -6.22M | -3.62M | 9.6M | 6.9M | 3.5M | 500K |
| Effective Tax Rate % | 25.97% | 26% | 33.99% | 24.17% | 26.65% | 21.02% | 26.44% | 15.84% | 30.53% | 920.41% | 46.76% | 15.92% | 35.72% | 23.08% | 39.46% | 38.28% | 28.6% | 37.69% | 10.27% | 38.76% | 14.91% | 39.11% | 21.49% | 29.46% | 16.65% | 24.91% | 14.19% | 39.18% | 41.32% | 42.17% | 17.24% |
| Net Income | 17.11M | 16.33M | 13.33M | 16.83M | 20.89M | 10.99M | -8.87M | 4.06M | 2.71M | 2.01M | 1.76M | 6.01M | 6.81M | 1.99M | 3.23M | 4.28M | 5.79M | 6.92M | -39.8M | 6.77M | 6.36M | 3.54M | 2.21M | 2.78M | -24.14M | -18.76M | -21.9M | 14.9M | 9.8M | 4.4M | 2.4M |
| Net Margin % | 5.13% | 5.11% | 4.79% | 6.39% | 7.34% | 5.39% | -5.9% | 2.12% | 1.36% | 1.08% | 1% | 3.24% | 3.52% | 1.17% | 2.21% | 2.97% | 3.58% | 3.65% | -19.02% | 3.16% | 3.15% | 1.96% | 1.3% | 1.35% | -12.93% | -8.34% | -7.4% | 4.75% | 4.86% | 3.86% | 3.93% |
| Net Income Growth % | 25.94% | 22.56% | -20.82% | -19.43% | 90.09% | 223.9% | -318.56% | 49.47% | 35.07% | 14.33% | -70.77% | -11.73% | 242.41% | -38.33% | -24.57% | -26.18% | -16.28% | 117.39% | -688.05% | 6.49% | 79.76% | 60.23% | -20.59% | 111.51% | -28.68% | 14.34% | -246.96% | 52.04% | 122.73% | 83.33% | 200% |
| Net Income (Continuing) | 17.11M | 16.33M | 13.33M | 16.83M | 20.89M | 10.99M | -8.87M | 4.06M | 2.71M | 2.01M | 1.76M | 6.01M | 6.81M | 1.99M | 3.23M | 4.28M | 6.42M | 7.72M | -39.8M | 6.77M | 6.36M | 3.54M | 2.21M | 2.78M | -23.17M | -18.74M | -21.95M | 14.9M | 9.8M | 4.8M | 2.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.25 | 2.15 | 1.68 | 1.96 | 2.00 | 0.95 | -0.73 | 0.31 | 0.22 | 0.16 | 0.14 | 0.47 | 0.54 | 0.16 | 0.26 | 0.33 | 0.44 | 0.54 | -3.15 | 0.54 | 0.53 | 0.30 | 0.19 | 0.26 | -2.28 | -1.78 | -2.09 | 1.37 | 1.07 | 0.68 | 0.55 |
| EPS Growth % | 27.27% | 27.98% | -14.29% | -2% | 110.53% | 230.14% | -335.48% | 40.91% | 37.5% | 14.29% | -70.21% | -12.96% | 237.5% | -38.46% | -21.21% | -25% | -18.52% | 117.14% | -683.33% | 1.89% | 76.67% | 57.89% | -26.92% | 111.4% | -28.09% | 14.83% | -252.55% | 28.04% | 57.35% | 23.64% | 83.33% |
| EPS (Basic) | - | 2.15 | 1.72 | 2.03 | 2.08 | 1.00 | -0.73 | 0.31 | 0.22 | 0.16 | 0.15 | 0.48 | 0.54 | 0.16 | 0.26 | 0.33 | 0.44 | 0.54 | -3.15 | 0.57 | 0.54 | 0.31 | 0.19 | 0.26 | -2.28 | -1.78 | -2.09 | 1.43 | 1.11 | 0.68 | 0.55 |
| Diluted Shares Outstanding | 7.61M | 7.61M | 7.94M | 8.59M | 10.44M | 11.63M | 12.15M | 12.97M | 12.34M | 12.19M | 12.56M | 12.9M | 12.73M | 12.44M | 12.41M | 13.14M | 13.2M | 12.82M | 12.65M | 12.54M | 11.99M | 11.79M | 11.68M | 10.9M | 10.59M | 10.52M | 10.5M | 10.95M | 9.16M | 6.56M | 4.32M |
| Basic Shares Outstanding | 7.61M | 7.61M | 7.93M | 8.31M | 10.05M | 11.04M | 12.15M | 12.91M | 12.33M | 12M | 11.95M | 12.66M | 12.52M | 12.42M | 12.3M | 12.98M | 13.05M | 12.82M | 12.65M | 11.97M | 11.77M | 11.46M | 11.33M | 10.72M | 10.59M | 10.52M | 10.5M | 10.5M | 8.83M | 6.56M | 4.32M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 606.67% | - | 208.3% | 371.94% | - | 382.24% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RCMT stock.
For fiscal year 2025, RCM Technologies, Inc. (RCMT) reported total revenue of $319.4M. This represents a 423.6% increase compared to $61.0M in 1996.
RCM Technologies, Inc. (RCMT) is profitable, generating $16.3M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
RCM Technologies, Inc. (RCMT) reported an operating income of $25.1M, resulting in an operating profit margin of 7.9%. This margin reflects the operational efficiency of the business before interest and taxes.
RCM Technologies, Inc. (RCMT) generated $86.0M in gross profit for the year, representing a gross profit margin of 26.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Gross margin compression
Metrics are mathematically derived from official filings.
Top-Line Reacceleration Masks Quarter Lumpiness
RCMT's revenue grew 20.0% year-over-year to $93.8M in 2026Q2, yet the immediately preceding quarter posted a -1.7% decline, underscoring an uneven sequential path. The ten-quarter trend supports a mid-teens organic growth narrative, but the volatility complicates reliable annualization of run-rate revenue.
Growth reacceleration from -1.7% in 2026Q1 to 20.0% in 2026Q2 is a wide swing for a staffing/engineering services model, and appears consistent with lumpy project-based contract awards rather than smooth volume expansion. Over the full 10-quarter window, revenue has compounded from $71.9M to $93.8M, so the directional trend is intact — but analysts should discount any extrapolation from the single strong quarter. The peer backdrop (KELYA at -1.9%, KFRC at -5.4%) suggests RCMT is taking share or exposed to a different end-market mix, which warrants scrutiny of contract duration and customer concentration.
Structural Gross Margin Erosion Underway
Gross margin has compressed roughly 390 basis points, from 29.6% in 2024Q3 to 25.7% in 2026Q2. Based on RCMT's reported figures, this downtrend has persisted across six consecutive quarters, suggesting a mix shift toward lower-priced service lines rather than a one-off input cost event.
The steady nature of the compression — 28-29% in 2024, mid-27s through 2025, mid-25s in 2026 — indicates a structural rather than cyclical driver, most plausibly a rebalancing of the revenue mix toward lower-margin commercial/engineering staffing. RCMT's gross margin now sits near Kforce (26.8%) and above Kelly/TrueBlue (20-21%), so the peer-relative position is still intact, but the gap to Huron (29.9%) has narrowed meaningfully. Investors should watch whether the 2026Q2 improvement (25.7% vs 25.9%) marks a floor or is simply noise within a continuing downtrend.
Overhead Growth Tracks Revenue, Limiting Upside
SG&A expense rose to $15.6M in 2026Q2 from $13.0M in 2024Q3, a 20% increase that essentially mirrors the revenue trajectory. As reported in RCMT's financial statements, operating margin has been contained within a narrow 5.6%–9.2% band, implying minimal incremental operating leverage has been captured.
In a services business, one would expect SG&A to grow sub-linearly as revenue scales, but RCMT's SG&A has expanded almost proportionally — 17.5% of revenue in 2026Q2 versus 19.1% in 2024Q3 — giving back only modest efficiency. The $8.0M operating income in both 2025Q4 and 2026Q2 on different revenue bases ($86.5M and $93.8M) illustrates the point: incremental dollars of revenue are not converting to meaningfully higher operating profit. This suggests either ongoing reinvestment or a cost structure that remains relatively fixed, either of which caps earnings upside if gross margin continues to slide.
EPS Growth Partly a Function of SBC Absence
RCMT's 28.0% diluted EPS growth in 2026Q2 coincided with $0 stock-based compensation, versus $1.0M in 2025Q2. Per RCM Technologies' disclosures, the absence of SBC in the most recent quarter removes roughly $0.12–$0.13 per share of drag, suggesting a meaningful portion of the earnings beat is non-recurring in nature.
The swing from consistent $0.7M–$1.1M quarterly SBC across nine periods to zero in 2026Q2 is unusual and may reflect a vesting-cycle lull, a change in grant policy, or a classification shift — none of which are resolvable from the income statement alone. Net margin of 5.2% in 2026Q2 is actually below the 2024Q2 level of 5.4%, which reinforces that headline EPS growth is flattered by the SBC anomaly. Analysts should normalize for SBC before extrapolating the 28.0% growth rate into forward estimates.
Growth Quality Undermined by Mix and Zero R&D
A skeptical read of RCMT's income statement points to simultaneous gross margin compression (29.6% → 25.7% over eight quarters) and $0 R&D spending throughout. This combination may indicate RCMT is winning revenue through price rather than differentiated capability, raising questions about the durability of the recent growth acceleration.
If RCMT is indeed a technology/engineering services provider, the persistent zero R&D line is itself notable — it suggests the model is fundamentally labor-arbitrage rather than IP-driven, which typically carries lower structural margins and higher cyclicality. Meanwhile, operating margin has failed to break above 9.2% across the entire period despite meaningful top-line expansion, which a short-seller would frame as evidence that growth is not compounding value. The Q1 2026 revenue decline (-1.7%) followed by a 20% rebound also invites scrutiny of whether project timing, rather than underlying demand, is driving the reported trajectory.