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RCM TECHNOLOGIES, INC. (RCMT)·Q3 2026 Earnings Summary
Executive Summary
- Q3 2026 results are not yet released; Wall Street consensus (S&P Global) expects Revenue ~$75.7M* and EPS ~$0.45*, based on a single estimate for each metric, implying mid-single-digit YoY revenue growth vs. Q3 2025 and a higher EPS run-rate as margin levers normalize* [Values retrieved from S&P Global].
- Q3 2025 actuals: Revenue $70.3M, Gross Profit $19.4M, GAAP EPS $0.30; adjusted EBITDA $5.5M and adjusted diluted EPS $0.42, with record 2026 Engineering backlog and momentum in Healthcare cited by management .
- Management guided post-Q3 2025 that Q4 2025 would deliver the highest quarterly gross profit and adjusted EBITDA of fiscal 2025, setting a stronger base entering 2026; watch conversion of record Engineering backlog and school-seasonality tailwinds in Healthcare .
- Key watch items for the stock: excess medical costs (expected to persist into Q4 2025), cash collection/admin issues in schools, and visa timing for nurse pipeline—all cited in Q3 2025 commentary and Q&A .
What Went Well and What Went Wrong
What Went Well
- Record Engineering backlog for 2026 as of end-October and continued Healthcare momentum, positioning for strong backlog conversion as infrastructure and energy projects ramp .
- Engineering delivered strong performance in Q3 2025, with management highlighting best quarter in segment history and improved gross margin trajectory quarter-over-quarter .
- Positive school-season trends in Healthcare (management referenced ~20.7% YoY school revenue growth in Q3 2025 commentary across sources), with expanding partner roster and deeper client commitments into the 2025–2026 school year .
What Went Wrong
- Excess medical costs (~$1.8M YTD through Q3 2025) weighed on profitability and were expected to persist into Q4 2025 before structural mitigation benefits in 2026 .
- Administrative cash collection issues with two large school clients impacted cash flow in Q3 2025, a near-term operational headwind the team is addressing .
- Life Sciences/Data & Solutions gross profit declined modestly YoY in Q3 2025, with macro/regulatory shifts (tariffs, favored-nation drug pricing, process automation) cited as market context .
Financial Results
Headline Comparison: Prior Actuals vs. Consensus
Note: Q3 2026 consensus estimates marked with an asterisk (*) are Values retrieved from S&P Global.
Margins (Actuals)
Note: Asterisk (*) indicates Values retrieved from S&P Global.
Segment Breakdown (Q3 2025 Actuals)
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “As we exit our seasonal third quarter, we are entering the fourth quarter from a position of strength, demonstrating record 2026 Engineering backlog as of the end of October and continued momentum in Healthcare.” — Bradley Vizi, Executive Chairman .
- “We expect our fourth quarter will yield our highest quarterly gross profit and adjusted EBITDA in fiscal 2025, and we are excited about our momentum heading into 2026.” — Kevin Miller, CFO .
- “We are building the use of AI analytics into our process, with a focus on generating deeper insights and supporting innovation across the enterprise.” — Q3 2025 call remarks .
Q&A Highlights
- Nurse immigration pipeline: ~300 nurses ready pending visas; 50–60 could arrive if retrogression dates move; investments expected to benefit 2026 as the pendulum shifts back .
- Excess medical costs: expected to persist into Q4 2025 before structural mitigation, with more material improvements targeted for 2026 .
- Cash collections: administrative issues with two large school clients affected cash from operations in Q3 2025; management working to resolve .
- Engineering outlook: after best quarter in segment history, backlog conversion and EPC/data center infra opportunities highlighted into 2026 .
Estimates Context
- Wall Street consensus (S&P Global) for Q3 2026: Revenue ~$75.7M*, EPS ~$0.45*, based on 1 estimate each; limited coverage increases uncertainty around beats/misses* [Values retrieved from S&P Global].
- Historically, Q3 2025 revenue was $70.3M and GAAP EPS $0.30, suggesting consensus embeds YoY revenue growth and higher EPS trajectory as cost factors abate .
- Key variables that could drive estimate revisions near report: pace of Engineering backlog conversion, Healthcare school revenue and visa timing, and persistence of excess medical costs .
Key Takeaways for Investors
- With limited consensus coverage for Q3 2026, monitor pre-announcement signals and backlog-to-revenue conversion to gauge potential top-line variance* [Values retrieved from S&P Global].
- Engineering is the swing factor: record 2026 backlog plus EPC/grid infra ramp can offset Healthcare cost noise; sustained margin improvement would support EPS trajectory .
- Healthcare watch items: excess medical costs and collections in schools; any evidence of stabilization or recovery would be a positive catalyst .
- Visa timing for nurse pipeline could amplify 2026 growth—updates on retrogression and throughput are material to Healthcare profitability and staffing capacity .
- LS&D remains a smaller drag under macro/regulatory shifts; any improvement or client wins here would be incremental to consolidated margins .
- Trading setup: near-term reaction will hinge on delivery vs. light consensus and narrative on costs/collections; medium-term thesis centers on backlog conversion, disciplined capital structure, and segment mix improving ROE .
Important note:
- Q3 2026 8-K 2.02 press release and earnings call transcript were not available to read in full at this time; prior quarter primary sources and company website press releases and transcripts were read and cited above where applicable .
- Consensus estimates are from S&P Global and are marked with an asterisk (*) with the following disclaimer: Values retrieved from S&P Global.