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what it is
RCM sells specialized workers and engineering help to hospitals, utilities, manufacturers, and companies that need technical talent fast.
how it gets paid
Last year Rcm Technologies made -$2M in revenue.
what just happened
Third-quarter 2025 revenue hit $70.3 million and GAAP EPS came in at $0.30, showing the business is still producing real profit.
At a glance
C++ balance sheet — some cracks in the foundation
35/100 earnings predictability — expect surprises
12.3x trailing p/e — the market's not buying it — or you found a deal
20.8% return on capital — every dollar works hard here
$1.68 fy2024 eps est
xvary composite: 28/100 — weak
What they do
RCM sells specialized workers and engineering help to hospitals, utilities, manufacturers, and companies that need technical talent fast.
RCM wins by showing up where talent is scarce and delays are expensive. It had 3,710 employees in the latest company description, and that scale matters when your customer needs nurses, engineers, or IT specialists now. Staffing moat (hard-to-replace recruiting network → faster placements → customers stay because empty seats cost money) is not glamorous, but it gets paid.
How they make money
-$2M
annual revenue · revenue was roughly flat last year
total revenue
-$2M
0.0%
The products that matter
healthcare and it staffing
Specialized Staffing
~$240M · about three-quarters of segment mix shown
This is still the bulk of the business. In the current snapshot, it accounts for roughly 77.5% of segment mix and grew 4%, which tells you stability matters more here than speed.
core revenue base
engineering project services
Engineering Solutions
~$70M · +16.4% growth
This segment had a record backlog in 2026 and grew 16.4%. That's the growth engine, but it's also tied to the margin pressure showing up in the latest quarter.
record backlog
Key numbers
20.8%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: RCMT is producing strong economics for a company trading at only 12.3x earnings.
12.3x
trailing p/e
P/E → price compared with yearly profit per share → so what: you are not paying a growth-stock multiple for a business that grew sales 17.0% historically.
$36M
long-term debt
Debt is 20% of capital, which means leverage exists but does not yet dominate the story on a roughly $141 million market cap.
$278M
2024 revenue
That revenue base means every 1 point of margin is worth about $2.8 million, which is a big deal for a company this small.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $36M (20% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for RCMT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Third-quarter 2025 revenue hit $70.3 million and GAAP EPS came in at $0.30, showing the business is still producing real profit.
The company reported adjusted EBITDA of $5.5 million in the third quarter of 2025. Gross margin slipped 50 basis points to 25%, so the quiet part is simple: revenue held up, but mix and pricing got a little worse.
$70.3M
revenue
$0.30
eps
25.0%
gross margin
the number that mattered
The 25.0% gross margin mattered most because a 50 basis point decline on $70.3 million of quarterly revenue is roughly $0.35 million less gross profit.
source: company earnings report, 2025
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What could go wrong
the #1 risk is engineering backlog converting into lower-quality revenue.
high
margin compression
Gross margin fell 50 basis points to 25%. In a business with a 4.23% net profit margin, that is not rounding error.
A few more quarters like that and the cheap multiple stops looking cheap.
high
no moat in a fragmented market
Management is competing on execution, relationships, and pricing. There is no structural advantage here to protect returns when demand softens.
That makes every contract and staffing cycle matter more than the valuation headline.
med
limited financial flexibility
The balance sheet is graded C++, long-term debt is $36M, and risk rank is 4. That is a thin cushion for a $141M company.
You do not need a crisis here. A modest operating miss can be enough.
med
earnings volatility
A 35 / 100 earnings predictability score means forecasting this business is hard. Staffing and project work can look steady until they don't.
If you own it, expect revisions and uneven quarters rather than smooth compounding.
A $141M company with 25% gross margin, 4.23% net margin, and $36M of long-term debt does not have much room for operational mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q4 2025 earnings report
Expected around march 11, 2026. Analysts project $0.58 in EPS, which would be 18.4% above the prior-year period. The real question is whether margin stabilizes with it.
trend
engineering backlog conversion
The record 2026 backlog is the growth story. If it converts cleanly, the stock looks too cheap. If it converts at lower margin, that cheapness is doing exactly what cheap stocks do.
metric
gross margin at 25%
This is the number to watch. Revenue already showed up at $70.3M. Now you need to see whether management can keep more of each dollar.
risk
thin analyst coverage
Quoted price targets in the current snapshot range from $30 to $32, but the coverage base is sparse. Thin coverage can create opportunity, and it can also leave you alone with your thesis.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts do not trust this business to print clean, repeatable quarters.
risk rank
4
This means safer than about 20% of stocks. Translation: riskier than most.
price stability
10 / 100
The stock has not behaved like a calm compounder. If you own it, expect movement.
balance sheet grade
C++
Below average balance sheet grade. You are not buying fortress-balance-sheet safety here.
source: institutional data
Institutional activity
institutional ownership data for RCMT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$21
current price
n/a
target midpoint · n/a from current
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