RCM Tech | 10-Q: FY2025 Q2 Revenue Misses Estimate at USD 78.17 M

Revenue: As of FY2025 Q2, the actual value is USD 78.17 M, missing the estimate of USD 80.42 M.

EPS: As of FY2025 Q2, the actual value is USD 0.5, missing the estimate of USD 0.54.

EBIT: As of FY2025 Q2, the actual value is USD 6.601 M.

Specialty Health Care

• Revenue: $42.8 million for the thirteen weeks ended June 28, 2025, increased by 15.9% from the prior year period.
• Gross Profit: $12.3 million, with a gross profit margin of 28.7%.
• Operating Income: $6.1 million, up from $5.3 million in the prior year period.

Engineering

• Revenue: $26.5 million for the thirteen weeks ended June 28, 2025, increased by 17.8% from the prior year period.
• Gross Profit: $6.5 million, with a gross profit margin of 24.5%.
• Operating Income: $3.3 million, up from $3.0 million in the prior year period.

Life Sciences, Data and Solutions

• Revenue: $8.8 million for the thirteen weeks ended June 28, 2025, decreased by 9.3% from the prior year period.
• Gross Profit: $3.5 million, with a gross profit margin of 39.8%.
• Operating Income: $2.0 million, up from $1.6 million in the prior year period.

Corporate

• SGA Expense: $4.7 million for the thirteen weeks ended June 28, 2025, increased by $1.0 million from the prior year period.

Cash Flow

• Operating Cash Flow: $8.7 million for the twenty-six weeks ended June 28, 2025, compared to $12.2 million in the prior year period.
• Investing Activities: Used $0.9 million for the purchase of property and equipment.
• Financing Activities: Used $7.1 million, including $5.1 million for share repurchases.

Future Outlook and Strategy

• Core Business Focus: The company aims to expand sales of higher-margin solutions and project management services, focusing on increasing revenue from school clients and expanding in the aerospace sector.
• Non-Core Business: The company is reducing services in non-school client areas, particularly in long-term care, to focus on more profitable segments.