RF Industries, Ltd. (RFIL) Earnings

metirFinance

Oct 2026upcoming

Next quarter

Expected to report Jan 13, 2027 — estimated from last year’s reporting date.

Consensus is $0.18 EPS for Oct 2026 across 1 estimates, ranging $0.18 to $0.18.

RFIL Jul 2026

Reported Sep 14, 2026 · before the open

: 11.11%

: $0.18
: $0.16
: —
: $23.96M

Reported results

: $23.96M; from $19.79M
: 35.63%; from 33.95%
: $1.76M; from $720.00K
: 7.34%; from 3.64%
: $1.44M; from $392.00K
: $0.12; from $0.04

Highlights

Record sales: Q3 FY2026 revenue reached $23.96 million, up 21.1% year over year and 16% from Q2’s $20.7 million.
EPS measures differ: The supplied expectations data shows reported EPS of $0.16 versus $0.18 consensus, an 11.1% miss; the company reported GAAP diluted EPS of $0.12 and non-GAAP diluted EPS of $0.19.
Profitability improved: Operating income rose to $1.76 million from $0.72 million a year earlier and $1.1 million in Q2; net income was $1.44 million versus $0.39 million a year earlier and $0.9 million in Q2.
Margins expanded: Gross margin was 35.6%, up from 34.0% a year ago, though a $0.3 million tariff refund lifted the reported rate; excluding it, margin was 34.2%.
Custom cabling led growth: Revenue increased 41.6% year over year to $10.1 million; interconnect rose 26.1% to $7.8 million, while integrated systems declined 6.7% to $6.0 million.
Backlog and bookings: Quarter-end backlog was $18.6 million on $22.5 million of bookings, and backlog stood at $19.8 million as of September 14.
Liquidity and cash generation: Cash was $4.45 million and line-of-credit borrowings were $5.72 million at July 31; nine-month operating cash flow was $1.56 million, down from $2.48 million.

Analysis

RF Industries posted a record $23.96 million of Q3 FY2026 sales, 21.1% above the year-ago quarter and 16% above Q2. Profitability rose with the higher revenue: operating income was $1.76 million, compared with $0.72 million a year ago and $1.1 million last quarter; net income was $1.44 million, versus $0.39 million and $0.9 million, respectively. The supplied expectations data records EPS of $0.16 against $0.18 consensus, an 11.1% miss. The company’s filings report GAAP diluted EPS of $0.12 and non-GAAP diluted EPS of $0.19, so those figures are on different reported bases.

The print was defined by growth in custom cabling and interconnect, improving gross margin, and stronger order activity. Custom cabling rose 41.6% year over year, while integrated systems fell 6.7%, largely reflecting timing in wireless small-cell orders and shipments. Gross margin reached 35.6%, but included a $0.3 million tariff refund; excluding it, margin was 34.2%. Quarter-end backlog was $18.6 million, and the company reported $19.8 million as of September 14. For the first nine months, sales rose 9.9% to $63.6 million and net income was $2.27 million, versus a $0.10 million loss a year earlier, while operating cash flow declined to $1.56 million from $2.48 million.

Sales and product mix

Custom cabling and interconnect drove the quarter’s growth, while integrated systems remained more exposed to the timing of project-based customer orders. Management linked custom cabling gains to industrial-market growth and increased demand from a tier-one carrier, and interconnect gains to more wireless infrastructure deployments.

Custom cabling: Revenue increased 41.6% to $10.1 million from $7.2 million a year earlier, expanding from 36% to 42% of sales.
Interconnect: Revenue rose 26.1% to $7.8 million from $6.2 million, or 33% of sales versus 32%.
Integrated systems: Revenue decreased 6.7% to $6.0 million from $6.4 million, or 25% of sales versus 32%; lower small-cell shipments were partly offset by thermal cooling.
Nine-month mix: Custom cabling rose 35.9% to $25.0 million and interconnect rose 22.9% to $21.6 million; integrated systems fell 22.4% to $17.0 million, primarily due to delayed small-cell orders and shipments.

Margins and earnings

Gross margin improvement and operating leverage lifted earnings substantially from the prior-year quarter. The reported gross-margin expansion was partly supported by a one-time tariff refund, while the company attributed the broader improvement to product mix and operating efficiencies. Expenses also rose, including engineering investment and variable compensation.

Gross profit: Increased to $8.54 million from $6.72 million; gross margin improved to 35.6% from 34.0%. Excluding the $0.3 million tariff refund, Q3 gross margin would have been 34.2%.
Operating income: Rose to $1.76 million from $0.72 million a year earlier and $1.1 million in Q2; operating expenses increased to $6.78 million from $6.00 million year over year.
Net income and EPS: GAAP net income was $1.44 million, or $0.12 diluted EPS, versus $0.39 million and $0.04 a year earlier. Non-GAAP net income was $2.22 million, or $0.19 diluted EPS, versus $1.11 million and $0.10.
Adjusted EBITDA: Increased to $2.65 million from $1.56 million a year earlier.
Expense drivers: Engineering expense rose to $1.07 million from $0.76 million, while selling and general expense increased to $5.71 million from $5.24 million; selling and general declined as a share of revenue, to 23.8% from 26.5%.

Orders and backlog

Orders and backlog provide evidence of demand beyond the quarter, but the filing cautions that backlog can move with project timing and may be canceled. The increase in backlog from fiscal year-end was primarily tied to shipments against integrated-systems orders.

Bookings: Q3 bookings were $22.5 million.
Backlog: Backlog was $18.6 million at July 31, up from $15.5 million at October 31, 2025; the company said it stood at $19.8 million as of September 14.
Visibility caveat: Management noted that large project orders, particularly in integrated systems, can make backlog and shipment timing fluctuate; customer purchase orders do not require minimum purchases.

Cash and financing

The company remained profitable and reduced its revolving borrowings during the first nine months, but operating cash flow was lower year over year as receivables and other working-capital uses absorbed cash. Management said cash on hand and availability under its credit facility should meet anticipated needs for at least 12 months from the filing date.

Balance sheet: Cash was $4.45 million at July 31, compared with $5.08 million at October 31, 2025; line-of-credit borrowings declined to $5.72 million from $7.84 million.
Operating cash flow: Nine-month cash provided by operations was $1.56 million versus $2.48 million a year earlier. A $2.20 million increase in receivables and a $0.86 million reduction in accrued expenses were among the cash uses.
Other cash movements: The company spent $0.38 million on capital expenditures and repaid $2.12 million on its line of credit during the nine months.
Working capital: The company reported $18.4 million of working capital and a current ratio of approximately 2.0 to 1 at July 31.

Taxes and outlook

The quarter’s tax provision was modest, and the filing describes a possible future tax benefit if improved profitability is sustained. That outcome is not assured: the company continues to weigh recent earnings against its history of cumulative losses when assessing deferred tax assets.

Tax rate: The Q3 tax provision was $84,000, an effective rate of 5.5%, compared with $88,000 and 18.3% a year earlier.
Valuation allowance: The company maintained a partial valuation allowance of $4.2 million at July 31, down from $4.72 million at October 31, 2025. It said a significant reduction could be appropriate in a future period if profitability and future taxable income are sustained.

RF Industries, Ltd.

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