Gross margins have faced consistent downward pressure, retreating from a 30.0% peak in 2023Q4 to 25.9% in 2026Q1, reflecting challenges in passing through rising labor costs.
| 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 | 317.97M | 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 % | 9.3% | 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 | 232.03M | 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 | 85.94M | 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 % | 27.03% | 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 | 61.49M | 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 | 61.49M | 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 | 0 | 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 | 24.45M | 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 % | 7.69% | 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 | 26.87M | 28.18M | 24.43M | 24.91M | 29.84M | 15.24M | -8.07M | 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 % | 8.45% | 8.82% | 8.77% | 9.46% | 10.48% | 7.47% | -5.37% | 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 % | 6.54% | 15.36% | -1.92% | -16.53% | 95.82% | 288.73% | -199.01% | 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) | 2.42M | 3.08M | 2.1M | 1.21M | 1.04M | 1.1M | 2.88M | 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 | 24.45M | 25.09M | 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 | -2.64M | -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 | 2.64M | 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 | -2.88M | -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 | 21.56M | 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 % | 6.78% | 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 | 5.57M | 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 % | 25.84% | 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 | 15.99M | 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 % | 5.03% | 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 % | 17.93% | 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) | 15.99M | 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) | 2.10 | 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 % | 21.39% | 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% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Seasonal Revenue Volatility
As indicated by the quarterly income statement data, RCMT's revenue trajectory exhibits significant volatility, with year-over-year growth rates fluctuating between a contraction of 1.7% in 2026Q1 and a peak expansion of 17.4% in 2025Q1, largely driven by the inherent seasonality of its school-based staffing model.
The revenue profile suggests a heavy reliance on the academic calendar, which creates predictable but challenging lumpy performance throughout the fiscal year. Investors should monitor whether the recent deceleration in 2026Q1 represents a structural softening in demand or merely a temporary misalignment with project-based engineering cycles.
Based on reported financial figures, RCMT's gross margin has faced downward pressure, retreating from a high of 30.0% in 2023Q4 to 25.9% in 2026Q1, suggesting that the company may be struggling to fully pass through rising labor costs to its public sector and industrial clients.
This margin contraction appears to reflect the competitive nature of the specialized staffing market where wage inflation for clinicians and engineers often outpaces contract repricing. The inability to maintain the 30% threshold warrants further investigation into the company's pricing power within its core K-12 and engineering segments.
According to the provided income statements, RCMT's operating income has failed to scale consistently with gross profit, as evidenced by operating margins hovering between 5.6% and 11.1% over the last ten quarters, indicating that SG&A expenses remain a significant drag on overall profitability.
The data suggests that the company's overhead structure is relatively fixed, preventing meaningful operating leverage during periods of revenue expansion. This lack of scalability implies that management's current expense discipline may be insufficient to drive significant margin expansion without a substantial shift in the revenue mix toward higher-margin projects.
As reported in recent filings, RCMT's net income has experienced sharp quarterly swings, with EPS dropping from $0.80 in 2025Q4 to $0.50 in 2026Q1, a trend that appears partially influenced by the irregular timing of stock-based compensation expenses recorded in previous periods.
The variability in net income suggests that investors should focus on normalized earnings power rather than headline quarterly figures, which are often distorted by non-operating items. The presence of stock-based compensation in prior quarters indicates that dilution management remains a critical factor for long-term shareholders to monitor.
While RCMT maintains a niche market position, the income statement data suggests that the company's reliance on low-margin staffing placements may be unsustainable, as evidenced by the consistent decline in gross margins from the 30% level seen in late 2023 to current sub-26% levels.
Short-term observers may argue that the company's inability to defend its gross margins indicates a lack of true competitive moat against larger, more diversified staffing peers. If the company cannot pivot toward higher-value engineering contracts, the current profitability profile may remain vulnerable to further labor market tightening.
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.