RF Industries (RFIL) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $24 million, up 21% year-over-year and 16% sequentially, driven by strong custom cabling and interconnect sales, while integrated systems declined due to order timing.

• Net income for the quarter was $1.44 million ($0.12 per diluted share), a 267% increase from $392,000 ($0.04 per share) in Q3 2025; non-GAAP net income was $2.2 million.

• Adjusted EBITDA reached $2.7 million (11.1% of sales), up 71% year-over-year.

• Diversified business mix and expanded customer base across aerospace, data centers, AI infrastructure, industrial, and public safety drove results.

• For the nine months ended July 31, 2026, revenue grew 9.9% to $63.6 million, with net income of $2.3 million versus a net loss of $0.1 million in the prior year period.

Financial highlights

• Gross profit increased 27% to $8.5 million; gross margin expanded to 35.6% from 34% year-over-year, aided by operational efficiencies and a one-time $0.3 million tariff refund.

• Operating income for the quarter was $1.8 million, up from $0.7 million year-over-year.

• Bookings in Q3 were $22.5 million with a book-to-bill ratio of 0.94x; backlog at quarter-end was $18.6 million, now $19.8 million.

• Custom cabling sales rose 41.6% in the quarter, interconnect product sales increased 26.1%, while integrated systems sales declined 6.7% due to delayed small cell deployments.

• Year-to-date sales up 10% to $63.6 million; gross profit up 19% to $21.9 million; gross margin at 34.5%.

Outlook and guidance

• Q4 sales expected to be at or above Q3’s record level, with continued organic growth and cost reduction initiatives supporting profitability.

• Backlog and opportunity pipeline provide a solid foundation for continued growth, with DAC sales expected to exceed $10 million for the year.

• Cash and available credit are expected to be sufficient to fund operations and planned investments for at least the next 12 months.