RCM Technologies, Inc.

Consolidated Q3 2025 gross profit was $19.4 million, up 8.8% versus Q3 2024. Adjusted EBITDA was $5.5 million versus $5.6 million in Q3 2024, a decline of 1.4%. Adjusted EPS was $0.42 in both periods. In Healthcare, gross profit was $9.0 million, up 8.5%, with gross margin of 30.0% versus 31.2% last year; school revenue rose 20.7% to $24.4 million, while non-school revenue fell 11.3% to $5.6 million. In Engineering, gross profit was $6.9 million, up 17.3%, with gross margin of 22.0% versus 24.4% last year. In IT, Life Sciences and Data Solutions, gross profit was $3.5 million, down 4.2%, with gross margin of 39.5% versus 38.0%. Management said Energy Services backlog for 2026 is just over $70 million, versus $21 million for 2025 at the same point last year. They reiterated that Q4 should produce the highest quarterly gross profit and highest adjusted EBITDA in fiscal 2025, and that full-year fiscal 2025 operating cash flow should approximate net income.

Brad Vizi framed the quarter as one of growing operational strength, saying RCM is entering Q4 with record 2026 engineering backlog and continued healthcare momentum. He emphasized expanding penetration at existing clients, a stronger talent pipeline, and brand-building investments that are helping the company attract higher-quality candidates. His tone was constructive but measured: he repeatedly highlighted opportunity, while noting the company is being thoughtful about risk and not getting overextended.

Kevin Miller focused on the quarter’s financial details and the main pressure points. He cited $19.4 million of consolidated gross profit, $5.5 million of adjusted EBITDA, and $0.42 adjusted EPS, then pointed to segment gross profit growth in Healthcare and Engineering offset by a decline in IT, Life Sciences and Data Solutions. He said SG&A included $800,000 of excess medical claims in Q3 and $1.8 million year to date, described Q3 cash flow from operations as disappointing because of administrative collection issues at two large school clients, and said he expects Q4 cash flow to improve and full-year operating cash flow to approximate net income.

Analysts focused on the foreign nurse pipeline, excess medical costs, the Industrial Process business, Energy Services market opportunities, and capital allocation. Management said at least 300 nurses are already in the pipeline ready to come over if visas clear, but timing depends on visa retrogression; it also said medical costs likely remain elevated in Q4 and that Q3/Q4 costs should not improve materially until 2026. On Engineering, management said gross margin varies with mix and subcontracting, and on capital allocation it said buybacks remain a key lever, with the company having already repurchased about 45% of outstanding shares, while a dividend remains under consideration but not committed.