RF Industries (RFIL) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter ended April 30, 2026, increased 9.4% year-over-year to $20.7 million, driven by strong custom cabling and interconnect product demand, while integrated systems sales declined due to timing of wireless carrier orders.

• Gross profit margin improved to 35.1%, a 360-basis point increase from the prior year period, reflecting improved product mix and operational efficiencies.

• Adjusted EBITDA nearly doubled year-over-year to $2 million; net income was $879,000, reversing a net loss of $245,000 last year.

• Bookings reached $26.3 million, driving backlog to $20 million, providing strong visibility for the second half of the year.

• Operational discipline, diversification across end markets, and restructuring into a single segment are driving consistent growth and resilience.

Financial highlights

• Revenue increased to $20.7 million, up from $18.8 million in Q2 last year and $19.1 million last quarter.

• Gross profit margin rose to 35.1%, a 360-basis point improvement year-over-year.

• Operating income was $1.1 million, up from $106,000 last year.

• Non-GAAP net income was $1.6 million, or $0.14 per diluted share, versus $0.07 per share last year.

• Backlog increased to $20 million from $15.5 million at fiscal year-end, with bookings of $26.3 million.

Outlook and guidance

• Management expects fiscal Q3 sales to increase sequentially over Q2, with integrated systems activity accelerating in the back half of the year.

• Margin and earnings trajectory demonstrated in Q2 is expected to be sustainable.

• Inclusion in the Russell 3000 index on June 26th anticipated to enhance visibility and liquidity.

• Liquidity is expected to be sufficient for at least the next 12 months, supported by cash on hand and available credit.

• Diversification into aerospace, data centers, AI infrastructure, transportation, and public safety is expected to drive future growth.