RF Industries (RFIL) Q2 2026 earnings summary

Executive summary

• Q2 net sales rose 9.4% year-over-year to $20.7M and increased sequentially, driven by custom cabling and interconnect demand; integrated systems sales declined on wireless carrier order timing.

• Gross margin expanded 360 bps to 35.1%, while adjusted EBITDA nearly doubled to $2.0M.

• Net income was $879K, or $0.08 per diluted share, versus a $245K loss a year earlier.

• Bookings were $26.3M and quarter-end backlog was $20.0M, supporting expectations for continued momentum in H2 FY2026.

Financial highlights

• Operating income rose to $1.1M from $106K year-over-year; non-GAAP net income was $1.6M, or $0.14 per diluted share, versus $701K, or $0.07.

• Six-month net sales increased 4.1% to $39.7M, and net income was $0.8M versus a $0.5M loss in the prior-year period.

• Cash and cash equivalents were $3.4M at April 30, 2026, and working capital was $16.5M.

• Inventory was $14.4M versus $12.6M a year earlier, including products awaiting customer releases into Q3.

Outlook and guidance

• Q3 sales are expected to increase sequentially from Q2; integrated systems activity is expected to accelerate in H2.

• Small-cell activity is expected to resume and increase through the balance of the year after customer restructuring and M&A-related timing delays.

• Backlog, accelerating bookings, and operating leverage support expectations that the Q2 margin and earnings trajectory is sustainable.

• Management expects continued focus on cost reduction, operational efficiencies, and organic growth; liquidity is expected to be sufficient for at least 12 months.

• DAC demand is expected to grow over the next one to two years and beyond, particularly in edge data center deployments.