RF Industries (RFIL) investor relations material

Executive summary

• Net sales grew 17.9% year over year to $19.8 million, marking the third consecutive quarter of strong results, led by Custom Cabling segment growth.

• Gross profit margin reached 34%, a 450 basis point improvement year over year, reflecting favorable product mix and new market penetration.

• Operating profit was $719,000, reversing a loss of $419,000 in the prior year period.

• Net income for Q3 2025 was $0.4 million ($0.04 per share), reversing a net loss of $0.7 million in Q3 2024.

• For the nine months ended July 31, 2025, net sales increased 24.8% to $57.9 million, with a net loss of $0.1 million, a significant improvement from a $6.4 million loss in the prior year.

Financial highlights

• Revenue increased 17.9% year over year and 4.7% sequentially to $19.8 million.

• Gross margin improved to 34% from 29.5% year over year, driven by higher sales and favorable product mix.

• Operating income was $719,000, up from a loss of $419,000 last year.

• Net income was $392,000 ($0.04 per share); non-GAAP net income was $1.1 million ($0.10 per share).

• Adjusted EBITDA rose to $1.6 million from $460,000 in the prior year quarter.

Outlook and guidance

• Fiscal Q4 net sales are expected to be similar to Q3 levels.

• Gross margin is expected to remain above 30%, with potential to stay in the low to mid-30% range depending on product mix.

• Management expects to continue cost reduction and operational efficiency initiatives, aiming for organic growth in revenue and profitability.

• Backlog remained stable at $19.7 million, indicating steady demand, though future order timing remains unpredictable.

• Sufficient liquidity is anticipated from cash on hand and available credit to meet near-term needs.