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Jun 29, 2024
RCM Technologies Q1 2025 Earnings Report
RCM Technologies reported strong financial results for the first quarter of 2025, with significant increases in revenue, gross profit, and net income compared to the prior year.
Key Takeaways
RCM Technologies, Inc. announced robust financial results for the thirteen weeks ended March 29, 2025, with revenue increasing by 17.4% to $84.5 million. The company also reported a 7.9% increase in gross profit and a rise in GAAP net income to $4.2 million, or $0.54 per diluted share. Adjusted EBITDA also saw a healthy increase, reflecting strong operational performance.
Revenue for Q1 2025 increased by 17.4% to $84.5 million, up from $71.9 million in Q1 2024.
Gross profit rose by 7.9% to $22.0 million in Q1 2025, compared to $20.4 million in Q1 2024.
GAAP net income for Q1 2025 was $4.2 million, or $0.54 per diluted share, an increase from $4.0 million, or $0.48 per diluted share, in Q1 2024.
Adjusted EBITDA (non-GAAP) for Q1 2025 was $7.8 million, up from $6.8 million in Q1 2024, indicating improved operational efficiency.
Revenue by Segment
Forward Guidance
The company's executive chairman expressed confidence in the strengthening business internals and the positive impact of their investment strategy and share count reduction on shareholder returns.
Positive Outlook
- Business internals continue to strengthen at an increasing rate.
- Company is well positioned due to thoughtful investment strategy.
- Significant reductions in share count are expected to enhance compounding of returns.
- Strong cash flow generation in the quarter ($16.7 million from operations).
- Reduced net debt by $12.0 million while retiring shares and growing earnings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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