Filing Flows › RCM Technologies (RCMT) › Q1 2025
RCM Technologies (RCMT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
RCM Technologies (RCMT) reported revenue of $84.5M for the first quarter 2025 (Q1 2025), +17% from a year earlier and +10% from the quarter before. Operating margin was 7.8%, net earnings $4.2M (5.0% of revenue).
RCM Technologies, Q1 2025: revenue $84.5M (+17% year over year), operating margin 7.8%, net earnings $4.2M, operating cash flow $16.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $84.5M | +10% | +17% |
| Gross profit | $22.0M | +2% | +8% |
| Operating profit | $6.6M | +5% | +13% |
| Net earnings | $4.2M | +46% | +6% |
| Operating cash flow | $16.7M | — | +159% |
| Free cash flow | $16.2M | — | +182% |
What changed
Revenue was $84.5M in Q1 2025, up 17% year over year and up 10% from the previous quarter. Health Care was the largest line at 51% of revenue. Engineering Services added $8.6M year over year (up 37%), 69% of the total change. Technology Service declined 12%.
Gross margin was 26.0%, down 2.3 points from a year earlier. Operating profit was $6.6M, a 7.8% margin (down 0.3 points year over year). Of the extra revenue versus a year earlier, 6% reached operating profit, below the 8% margin then. Operating expenses grew 6% against revenue growth of 17%. The fastest-growing cost line was Other operating costs (+28%). Net earnings were $4.2M, up 6% year over year. The effective tax rate was 28.9%.
Operating cash flow was $16.7M (up 159% year over year), 398% of net earnings. Non-cash charges added back $424K of depreciation and amortization and $773K of share-based compensation. Working capital and other items added $11.3M. Capital expenditures of $427K left free cash flow of $16.2M.
Questions
What was RCM Technologies' revenue in the first quarter 2025?
RCM Technologies (RCMT) reported revenue of $84.5M for the first quarter 2025 (Q1 2025), +17% from a year earlier and +10% from the quarter before.
Was RCM Technologies profitable in the first quarter 2025?
Operating profit was $6.6M (7.8% of revenue) and net earnings $4.2M.
Source: RCM Technologies 10-Q on SEC EDGAR.