RF Industries, Ltd. (RFIL) Earnings

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Jul 2026upcoming

Next quarter

Reports Sep 14, 2026, before the open.

Consensus is $0.18 EPS for Jul 2026 across 2 estimates, ranging $0.18 to $0.18.

RFIL Apr 2026

Reported Jun 15, 2026

: 71.43%
: -9.27%

: $0.07
: $0.12
: —
: $20.69M

Reported results

: $20.69M; from $18.91M
: 35.12%; from 31.46%
: $1.10M; from $106.00K
: 5.31%; from 0.56%
: $879.00K; from -$245.00K
: $0.08; from -$0.02

Highlights

Revenue growth: Second-quarter net sales rose 9% year over year and sequentially to $20.7 million, from $18.9 million a year ago and $19.0 million in Q1 FY2026.
Earnings beat: Reported EPS was $0.12 versus consensus of $0.07, a 71.4% surprise; the company’s filing reports $0.08 of GAAP diluted EPS and $0.14 of non-GAAP diluted EPS.
Margin expansion: Gross margin increased to 35.1% from 31.5% a year ago, adding $1.3 million of gross profit despite only $1.8 million of additional revenue.
Operating leverage: Operating income reached $1.1 million versus $106,000 a year ago and $0.2 million in the prior quarter; adjusted EBITDA rose to $2.0 million from $1.1 million.
Return to profitability: Net income was $879,000, or $0.08 per diluted share, versus a $245,000 loss, or $(0.02) per share, in Q2 FY2025 and a $105,000 loss in Q1 FY2026.
Backlog and bookings: Quarterly bookings were $26.3 million, leaving backlog at $20.0 million at April 30 versus $15.5 million at October 31; backlog was $20.1 million as of June 15.
Product mix: Custom cabling revenue increased 30% to $8.4 million and interconnect revenue rose 16% to $6.9 million, while integrated systems declined 17% to $5.3 million because of wireless order timing.
Liquidity: Cash declined to $3.4 million from $5.1 million at October 31, while the company used $47,000 of operating cash in the first half and had $6.1 million drawn on its revolving facility.

Analysis

RF Industries’ fiscal second quarter was a clear step-up in both growth and profitability. Revenue of $20.7 million increased 9% from Q2 FY2025 and Q1 FY2026, while operating income rose to $1.1 million from $106,000 a year ago and $0.2 million in the prior quarter. Net income was $879,000, or $0.08 of GAAP diluted EPS, compared with a $245,000 loss and $(0.02) of EPS a year ago and a $105,000 loss in Q1. The supplied earnings data shows reported EPS of $0.12 against $0.07 consensus, a 71.4% beat; the company separately reported $0.14 of non-GAAP diluted EPS.

The defining feature was margin conversion rather than top-line acceleration alone. Gross margin expanded 360 basis points to 35.1%, reflecting product mix and manufacturing efficiencies, and adjusted EBITDA nearly doubled to $2.0 million. Custom cabling and interconnect growth more than offset a decline in integrated systems tied to small-cell order timing. Forward visibility also improved, with $26.3 million of bookings and $20.0 million of quarter-end backlog. The main qualification is cash conversion: first-half operating cash flow was negative $47,000 as receivables, inventory and other working-capital items absorbed cash, although RF Industries repaid $1.7 million on its credit line.

Revenue and product mix

Sales growth was driven by the businesses RF Industries is emphasizing as it diversifies beyond more variable wireless projects. Custom cabling benefited from aerospace and industrial penetration, while interconnect demand reflected fiber applications and wireless infrastructure. Integrated systems remained weaker because small-cell orders and shipments followed customer budget cycles.

Custom cabling: Revenue rose 29.8% year over year to $8.4 million from $6.5 million, increasing to 41% of quarterly sales from 34%.
Interconnect: Revenue increased 15.9% to $6.9 million from $6.0 million, or 33% of sales versus 32% a year ago.
Integrated systems: Revenue fell 17.2% to $5.3 million from $6.4 million, reducing its mix to 26% from 34%.
Six-month trend: Through April, custom cabling revenue was $14.8 million, up 32.2%, and interconnect was $13.8 million, up 21.2%; integrated systems declined 28.9% to $11.0 million.

Margin and earnings recovery

The quarter showed the strongest earnings conversion in the reported periods on file. Gross profit increased 22% to $7.3 million, substantially faster than revenue, while operating expenses rose only 6% to $6.2 million. Engineering spending increased for new product development, but selling and general expense grew more slowly than sales as a percentage of revenue.

Gross margin: Margin improved to 35.1% from 31.5% a year ago and 32.3% in Q1 FY2026.
Operating income: Operating profit was $1.098 million, compared with $106,000 in Q2 FY2025 and $0.2 million in Q1 FY2026.
Adjusted EBITDA: Adjusted EBITDA was $1.987 million versus $1.121 million a year ago, with the margin increasing to approximately 9.6% from 5.9%.
Non-GAAP earnings: Non-GAAP net income rose to $1.627 million, or $0.14 diluted EPS, from $701,000, or $0.07, a year ago.
Cost structure: Selling and general expense increased to $5.3 million from $5.2 million, but declined to 25.4% of sales from 27.3%.

Backlog and end markets

Bookings and backlog support management’s view that the second half should benefit from better visibility. Backlog increased from the fiscal year-end level primarily through custom cabling and integrated systems orders, although the filing notes that project-based orders can fluctuate and may be cancelled.

Bookings: Second-quarter bookings were $26.3 million, above reported quarterly sales of $20.7 million.
Backlog: Backlog stood at $20.0 million on April 30, up from $15.5 million on October 31, and was $20.1 million as of June 15.
Diversification: Management identified aerospace, data centers and AI infrastructure, transportation, public safety and telecommunications as target markets for small-cell, DAC and custom cabling solutions.
Concentration: An aerospace customer represented 14% of quarterly sales and 20% of accounts receivable; customer agreements do not contain minimum purchase obligations.

Cash and balance sheet

Profitability has improved, but cash generation has not yet fully matched earnings. Working capital absorbed cash in the first half, particularly through higher receivables and inventory and lower accrued expenses. The company nevertheless reduced revolving debt and said cash plus available borrowing capacity should cover anticipated needs for at least the next 12 months.

Cash: Cash and equivalents were $3.4 million at April 30, down from $5.1 million at October 31.
Operating cash flow: First-half operating cash flow was negative $47,000 versus positive $2.8 million in the prior-year period.
Working capital: Accounts receivable increased $0.7 million and inventory increased $0.7 million during the first six months; current assets were $35.0 million against current liabilities of $18.6 million.
Debt: The company repaid $1.7 million on its revolving credit facility, leaving $6.1 million outstanding at quarter-end.
Capital spending: First-half capital expenditures were $250,000, compared with $61,000 a year earlier.

Restructuring and tax position

The margin improvement reflects the ongoing effects of facility consolidation, production synergies and cost controls implemented during the broader fiscal 2025 restructuring. RF Industries also continues to carry tax attributes that could affect future reported earnings if profitability remains sustainable.

Operating model: The company now reports as a single segment after consolidating manufacturing operations and moving to a unified sales organization.
Tax rate: The quarterly tax provision was $60,000, implying a 6.4% effective tax rate versus a 122.7% negative rate in the prior-year loss period.
Deferred tax assets: A $4.521 million valuation allowance remained against federal and state deferred tax assets at April 30.
Potential tax benefit: Management said sustained profitability could support a future reduction in the valuation allowance, creating a material tax benefit, but no such benefit was recorded this quarter.

RF Industries, Ltd.

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