RF Industries Reports Fourth Quarter and Fiscal Year 2025 Financial Results
Rhea-AI Summary
RF Industries (NASDAQ:RFIL) reported fourth quarter and fiscal 2025 results. Q4 net sales were $22.7M (+23% YoY) with backlog of $15.5M at quarter-end (now $12.4M). Q4 gross margin was 37% (≈+600 bps YoY); operating income was $903k; consolidated net income was $174k (EPS $0.02). Non-GAAP net income was $2.1M (EPS $0.20) and Adjusted EBITDA was $2.6M. For fiscal 2025, net sales were $80.6M (+24% YoY), gross margin 33%, operating income $1.8M, Adjusted EBITDA $6.1M, cash $5.1M, and inventory $13.7M (−7% YoY).
Management highlighted margin expansion, improved profitability, reduced net debt by $4.6M, and an ongoing strategic shift toward technology solutions; a conference call and webcast were scheduled for January 14, 2026.
Positive
- Q4 net sales +23% YoY to $22.7M
- Fiscal 2025 net sales +24% YoY to $80.6M
- Gross margin improvement: Q4 37% (+~600 bps YoY)
- Adjusted EBITDA Q4 $2.6M (from $908k prior-year)
- Fiscal 2025 Adjusted EBITDA $6.1M (from $838k prior-year)
- Net debt reduced by $4.6M year-over-year
Negative
- Backlog fell to $12.4M from $15.5M at quarter-end
- Year-end cash and equivalents $5.1M
News Market Reaction
On the day this news was published, RFIL gained 8.26%, reflecting a notable positive market reaction. Argus tracked a peak move of +31.2% during that session. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $99M at that time. Trading volume was exceptionally heavy at 16.5x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers in Electrical Equipment & Parts show mixed to negative moves, with names like PPSI (-4.09%) and SKYX (-1.8%) weaker, while ULBI is flat. RFIL’s setup appears more company-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 06 | Earnings date notice | Neutral | +1.1% | Announcement of Q4 and FY2025 earnings release and conference call. |
| Oct 22 | Aerospace order win | Positive | -5.4% | Additional $2M custom cabling order from leading aerospace customer. |
| Sep 11 | Q3 2025 earnings | Positive | -13.1% | Strong Q3 growth, higher margins, positive income, and elevated backlog. |
| Sep 02 | Earnings call scheduling | Neutral | +1.3% | Scheduled Q3 FY2025 results release and conference call details. |
| Jul 15 | Follow-on aerospace orders | Positive | -1.5% | $2.3M follow-on aerospace orders via Cables Unlimited division. |
RFIL has often seen negative price reactions to positive operational news, particularly around earnings and large order announcements.
Over the past six months, RF Industries has steadily reported improving results and growing demand. Q1–Q3 FY2025 earnings releases highlighted rising net sales, expanding gross margins, and a shift from operating losses to income, supported by strong backlogs and diversification into higher-value markets. Interim news on aerospace orders reinforced this momentum but sometimes coincided with share price pullbacks. Today’s Q4 and full-year 2025 results, with higher sales and profitability, continue this trajectory of operational improvement and strategic expansion.
Market Pulse Summary
The stock moved +8.3% in the session following this news. A strong positive reaction aligns with the substantial improvement RF Industries reported in both Q4 and full-year 2025, including higher net sales, margin expansion to 37% in Q4, and a swing to operating income. Historically, however, the stock has sometimes pulled back after good news, as seen following prior earnings and large order wins. Investors monitoring such a move would typically weigh the durability of growth, backlog trends, and valuation against this improved operating profile.
Key Terms
non-gaap financial measures financial
adjusted ebitda financial
basis points financial
AI-generated analysis. Not financial advice.
SAN DIEGO, CA / ACCESS Newswire / January 14, 2026 / RF Industries, Ltd, (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, today announced financial results for the fourth quarter and fiscal year ended October 31, 2025.
Fourth Quarter Fiscal 2025 Highlights and Operating Results:
Net sales were
$22.7 million , an increase of23% from$18.5 million year-over-year and an increase of15% from$19.8 million in the third quarter of fiscal 2025.Backlog of
$15.5 million at quarter-end on fourth quarter bookings of$18.5 million . As of today, the backlog stands at$12.4 million .Gross profit margin was
37% , an improvement of approximately 600 basis points from31% in the prior year quarter.Operating income was
$903,000 , an improvement from operating income of$96,000 year-over-year.Consolidated net income was
$174,000 , or$0.02 per diluted share, an improvement from a consolidated net loss of$238,000 , or$0.02 per diluted share year-over-year.Non-GAAP net income was
$2.1 million , or$0.20 per diluted share, compared to non-GAAP net income of$394,000 , or$0.04 per diluted share, in the fourth quarter of fiscal 2024.Adjusted EBITDA was
$2.6 million , up from$908,000 year-over-year.
Fiscal 2025 Highlights and Operating Results:
Net sales were
$80.6 million , an increase of24% from$64.9 million year-over-year.Gross profit margin was
33% , an improvement of approximately 400 basis points from29% for fiscal year 2024.Operating income was
$1.8 million , a major swing from the$2.8 million operating loss in fiscal 2024.Adjusted EBITDA was
$6.1 million , up from$838,000 in the prior-year period.Cash and cash equivalents at year end were
$5.1 million .Inventory decreased
7% to$13.7 million year-over-year through designed improvements to procurement and supply chain processes.
See "Note Regarding Use of Non-GAAP Financial Measures," "Unaudited Reconciliation of GAAP to non-GAAP Net Income (Loss)," "Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA" and the description of bookings and backlog below for additional information.
Management Commentary
"I am extremely pleased with our team's performance in the fourth quarter. Net sales were
"Our results accelerated throughout the year, and for the full 2025 fiscal year, net sales were
"Fiscal 2025 feels like a breakout year for RFI and we hope to continue that momentum into FY2026. While the general operating environment continues to have its share of uncertainties and increased costs, our team plans to continue to execute our long-term strategic plan to squarely position RFI from a product seller to a technology solutions provider. In fiscal 2026, we remain intensely focused on diversifying our end markets, driving further customer and market penetration, and launching new products and solutions that will help deliver another year of the strong sales growth and profitability that our operating model is capable of producing. I'm proud of our team and appreciate their hard work and commitment to delivering on our goals and driving shareholder value," concluded Dawson.
Conference Call and Webcast
RF Industries will host a conference call and live webcast today, January 14, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its fiscal fourth quarter and full year 2025 financial results. To access the live call, dial 877-545-0320 (US and Canada) or 973-528-0002 (International) and give the participant access code 602471. A live audio webcast of the call will also be available on the Investor Relations section of RFI's website at www.rfindustries.com and will be archived for replay.
About RF Industries
Connecting the next generation with tomorrow's technology, RF Industries designs and manufactures a broad range of interconnect products across diversified, growing markets, including wireless/wireline telecom, data communications and industrial. The Company's products include high-performance components used in commercial applications such as RF connectors and adapters, RF passives including dividers, directional couplers and filters, coaxial cables, data cables, wire harnesses, fiber optic cables, custom cabling, energy-efficient cooling systems and integrated small cell enclosures. The Company is headquartered in San Diego, California with additional operations in New York, Connecticut, and New Jersey. Please visit the RF Industries website at www.rfindustries.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to future events. Forward-looking statements include, among others, statements concerning our expectations about profitability, revenues, industry trends, markets and demand for our products, backlog, financial goals, growth opportunities and the expected benefits and desirability of our products, in each case which are subject to a number of factors that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to: our cash and liquidity needs; our ability to continue as a going concern; non-compliance with terms and covenants in our credit facility; changes in the telecommunications industry and materialization and timing of expected network buildouts; timing and breadth of new products; our ability to realize increased sales; successfully integrating new products and teams; our ability to execute on our go-to-market strategies and channel models; our reliance on certain distributors and customers for a significant portion of anticipated revenues; the impact of existing and additional future tariffs imposed by U.S. and foreign nations; our ability to expand our OEM relationships; our ability to continue to deliver newly designed and custom fiber optic and cabling products to principal customers; our ability to maintain strong margins and diversify our customer base; our ability to initiate operating efficiencies, cost savings and expense reductions; our ability to address the changing needs of the market and capitalize on new market opportunities; our ability to add value to our customer's needs; the success of any product launches; and our ability to increase revenue, gross margins or obtain profitability in a timely manner. Further discussion of these and other potential risks and uncertainties may be found in the Company's public filings with the Securities and Exchange Commission (www.sec.gov) including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements are based upon information available to the Company on the date they are published, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or new information after the date of this release.
Note Regarding Use of Non-GAAP Financial Measures
To supplement our unaudited condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation, amortization (Adjusted EBITDA), non-GAAP net income (loss) and non-GAAP earnings (loss) per share, basic and diluted (non-GAAP EPS).
We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance by excluding certain non-cash and other one-time expenses that we believe are not indicative of our operating results.
In computing Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP EPS, we exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock options and other non-cash awards granted to employees, non-cash and other one-time charges, severance, amortization expense and provision from income taxes. For Adjusted EBITDA, we also exclude depreciation and interest expense. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expense and non-recurring costs and expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as provides us with an important tool for financial and operational decision-making and for evaluating our own core business operating results over different periods of time.
Our Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP EPS measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP EPS are not measurements of financial performance under GAAP and should not be considered as an alternative to operating or net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP measures to be a substitute for, or superior to, the information provided by GAAP financial results. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance. A reconciliation of specific adjustments to GAAP results is provided in the last two tables at the end of this press release.
In addition, we have included order bookings and backlog in this earnings release. Bookings represent new orders that have been received inclusive of any modification or cancellation of previous orders. Backlog represents orders that have been received where revenue has not been recognized as of the specified date. We believe both Bookings and Backlog are indicators of future revenues that the Company expects to generate based on orders that management believes to be firm.
RF Industries Contact:
Peter Yin
SVP and CFO
(858) 549-6340
rfi@rfindustries.com
IR Contact:
Donni Case
Financial Profiles, Inc.
(310) 622-8224
RFIL@finprofiles.com
RF INDUSTRIES, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
Oct. 31, | Oct. 31, | |||||||
2025 | 2024 | |||||||
ASSETS | (unaudited) | (audited) | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 5,079 | $ | 839 | ||||
Trade accounts receivable, net | 14,871 | 12,119 | ||||||
Inventories | 13,735 | 14,725 | ||||||
Other current assets | 1,284 | 1,430 | ||||||
TOTAL CURRENT ASSETS | 34,969 | 29,113 | ||||||
Property and equipment, net | 4,229 | 4,813 | ||||||
Operating right of use asset, net | 13,848 | 15,265 | ||||||
Goodwill | 8,085 | 8,085 | ||||||
Amortizable intangible assets, net | 10,264 | 11,908 | ||||||
Non-amortizable intangible assets | 1,174 | 1,174 | ||||||
Other assets | 477 | 688 | ||||||
TOTAL ASSETS | $ | 73,046 | $ | 71,046 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 10,746 | $ | 8,045 | ||||
Line of Credit | 7,836 | 8,197 | ||||||
Current portion of operating lease liabilities | 2,054 | 1,848 | ||||||
Income taxes payable | 260 | - | ||||||
TOTAL CURRENT LIABILITIES | 20,896 | 18,090 | ||||||
Operating lease liabilities | 16,699 | 18,680 | ||||||
Deferred tax liabilities | 247 | 210 | ||||||
TOTAL LIABILITIES | 37,842 | 36,980 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, authorized 20,000,000 shares of | ||||||||
10,713,801 and 10,544,431 shares issued and outstanding at | ||||||||
October 31, 2025 and October 31, 2024, respectively | 107 | 106 | ||||||
Additional paid-in capital | 28,050 | 26,988 | ||||||
Retained earnings | 7,047 | 6,972 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 35,204 | 34,066 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 73,046 | $ | 71,046 | ||||
RF INDUSTRIES, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended | Fiscal Year Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(unaudited) | (audited) | (unaudited) | (audited) | |||||||||||||
Net sales | $ | 22,686 | $ | 18,453 | $ | 80,586 | $ | 64,857 | ||||||||
Cost of sales | 14,335 | 12,670 | 53,850 | 45,986 | ||||||||||||
Gross profit | 8,351 | 5,783 | 26,736 | 18,871 | ||||||||||||
Operating expenses: | ||||||||||||||||
Engineering | 858 | 723 | 2,982 | 2,782 | ||||||||||||
Selling and general | 6,590 | 4,964 | 21,969 | 18,912 | ||||||||||||
Total operating expenses | 7,448 | 5,687 | 24,951 | 21,694 | ||||||||||||
Operating income (loss) | 903 | 96 | 1,785 | (2,823 | ) | |||||||||||
Other expense | (251 | ) | (304 | ) | (972 | ) | (980 | ) | ||||||||
Income (loss) before provision for income taxes | 652 | (208 | ) | 813 | (3,803 | ) | ||||||||||
Provision for income taxes | 478 | 30 | 738 | 2,796 | ||||||||||||
Consolidated net income (loss) | $ | 174 | $ | (238 | ) | $ | 75 | $ | (6,599 | ) | ||||||
Earnings (loss) per share - Basic | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | $ | (0.63 | ) | ||||||
Earnings (loss) per share - Diluted | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | $ | (0.63 | ) | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 10,692,169 | 10,526,429 | 10,647,587 | 10,481,835 | ||||||||||||
Diluted | 10,980,051 | 10,526,429 | 10,770,802 | 10,481,835 | ||||||||||||
RF INDUSTRIES, LTD. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Net Income (Loss)
(In thousands, except share and per share amounts)
Three Months Ended | Fiscal Year Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Consolidated net income (loss) | $ | 174 | $ | (238 | ) | $ | 75 | $ | (6,599 | ) | ||||||
Provision from income taxes | 478 | 30 | 738 | 2,796 | ||||||||||||
Stock-based compensation expense | 231 | 180 | 871 | 924 | ||||||||||||
Non-cash and other one-time charges | 855 | - | 978 | 145 | ||||||||||||
Severance | - | - | 51 | 56 | ||||||||||||
Amortization expense | 410 | 422 | 1,643 | 1,688 | ||||||||||||
Non-GAAP net income (loss) | $ | 2,148 | $ | 394 | $ | 4,356 | $ | (990 | ) | |||||||
Non-GAAP earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.20 | $ | 0.04 | $ | 0.41 | $ | (0.09 | ) | |||||||
Diluted | $ | 0.20 | $ | 0.04 | $ | 0.40 | $ | (0.09 | ) | |||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 10,692,169 | 10,526,429 | 10,647,587 | 10,481,835 | ||||||||||||
Diluted | 10,980,051 | 10,526,429 | 10,770,802 | 10,481,835 | ||||||||||||
RF INDUSTRIES, LTD. AND SUBSIDIARIES
Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In thousands)
Three Months Ended | Fiscal Year Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Consolidated net income (loss) | $ | 174 | $ | (238 | ) | $ | 75 | $ | (6,599 | ) | ||||||
Stock-based compensation expense | 231 | 180 | 871 | 924 | ||||||||||||
Non-cash and other one-time charges | 855 | - | 978 | 145 | ||||||||||||
Severance | - | - | 51 | 56 | ||||||||||||
Amortization expense | 410 | 422 | 1,643 | 1,688 | ||||||||||||
Depreciation expense | 204 | 210 | 819 | 848 | ||||||||||||
Other expense | 251 | 304 | 972 | 980 | ||||||||||||
Provision from income taxes | 478 | 30 | 738 | 2,796 | ||||||||||||
Adjusted EBITDA | $ | 2,603 | $ | 908 | $ | 6,147 | $ | 838 | ||||||||
SOURCE: RF Industries, Ltd.
View the original press release on ACCESS Newswire
FAQ
What were RFIL Q4 2025 net sales and YoY growth?
How did RFIL's gross margins change in Q4 2025 and fiscal 2025?
What was RFIL's Adjusted EBITDA for Q4 and fiscal 2025?
What happened to RFIL's backlog at the end of Q4 2025?
Did RFIL report changes to inventory and cash at year-end FY2025?
Did RFIL provide fiscal 2026 guidance in the January 14, 2026 release?
