The 20% revenue growth and 49% Engineering segment surge signal strong operational momentum, but the GAAP EPS miss and gross margin compression warrant monitoring. Watch for follow-through on margin recovery and any guidance updates in the next 10-Q.
Price Chart
Executive Summary
RCM Technologies reported Q2 2026 revenue of $93.8M (+20% YoY), beating consensus of $82.8M, but GAAP EPS of $0.68 missed the $0.70 estimate. The revenue beat was driven by strong Engineering segment growth (+49% YoY), while gross margin compressed from 28.5% to 25.7% due to a shift toward lower-margin Engineering revenue. Adjusted EPS of $0.82 grew 18.8% YoY, and operating cash flow improved to $10.9M from -$7.9M a year ago.
Key Financial Metrics
Key Facts
- Revenue of $93.8M beat consensus of $82.8M by 13.3% and grew 20.0% YoY
- GAAP EPS of $0.68 missed consensus of $0.70 by 2.9% but grew 36% YoY
- Adjusted EPS (non-GAAP) of $0.82 grew 18.8% YoY
- Engineering segment revenue surged 49% YoY to $39.5M, offsetting gross margin compression
- Operating cash flow improved to $10.9M from -$7.9M in the prior-year quarter
- Total debt (revolver) decreased slightly to $23.4M from $24.7M at year-end
Financial Impact
Revenue beat of $11.0M (13.3%) vs consensus; GAAP EPS miss of $0.02 (2.9%); adjusted EPS beat of $0.12 (17.1%) vs prior year
Risk Factors
- Gross margin compressed from 28.5% to 25.7% due to mix shift toward lower-margin Engineering revenue
- GAAP EPS missed consensus despite revenue beat, indicating cost pressures
- Share count declined 4.6% YoY due to buybacks, which may not be sustainable
- Deferred revenue declined sharply to $8.2M from $14.8M at year-end, potentially signaling weaker forward visibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3345068 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 8w ago | Insider Cluster | $41.53 | awaiting T+60 | — | $35.52 (−14.47%) |
Aug 31, 2026 8w ago | 8-K | $41.92 | awaiting T+60 | — | $35.52 (−15.27%) |
Aug 27, 2026 8w ago | Insider Cluster | $41.84 | awaiting T+60 | — | $35.52 (−15.11%) |
Aug 25, 2026 9w ago | Insider Cluster | $40.59 | awaiting T+60 | — | $35.52 (−12.49%) |
Aug 20, 2026 9w ago | Insider Cluster | $40.86 | awaiting T+60 | — | $35.52 (+13.07%) |
Aug 18, 2026 10w ago | Insider Cluster | $40.16 | awaiting T+60 | — | $35.52 (+11.55%) |
Aug 13, 2026 10w ago | Press Release | $35.05 | awaiting T+60 | — | $35.52 (+1.34%) |
May 4, 2026 25w ago | 10-K/A | $31.48 $28.48 | ▲ +9.55% | ▲ +12.29% | $35.52 (−12.83%) |
Apr 16, 2026 27w ago | Insider Cluster | $30.36 $27.51 | ▲ +9.39% | ▲ +16.43% | $35.52 (−17.00%) |
Apr 16, 2026 27w ago | Insider Cluster | $30.36 $27.51 | ▲ +9.39% | ▲ +16.43% | $35.52 (−17.00%) |
US Market Status
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