RF Industries, Ltd. (NASDAQ: RFIL) reported fourth‑quarter and full‑year 2025 results on January 14, 2026, delivering a net sales increase of 23% to $22.7 million and a net income of $174,000, or $0.02 per diluted share, compared with a net loss of $238,000 and $0.02 per diluted share a year earlier. Non‑GAAP net income rose to $2.1 million, or $0.20 per diluted share, versus $394,000, or $0.04 per diluted share in Q4 2024.
Gross profit margin expanded to 37%, a 600‑basis‑point gain over the 31% margin reported in the prior year’s fourth quarter. The jump reflects a shift toward higher‑margin custom cabling and integrated solutions, as well as pricing power in key markets. Adjusted EBITDA climbed to $2.6 million, up from $908,000 a year earlier, driven by the stronger mix and improved operating leverage.
For the full fiscal year, net sales totaled $80.6 million, up 24% from $64.9 million in 2024, while net debt decreased by $4.6 million. GAAP net income for the year was $75,000, or $0.01 per diluted share, compared with a consolidated net loss of $6.6 million, or –$0.63 per diluted share, in 2024. Non‑GAAP net income for the year reached $2.1 million, or $0.20 per diluted share, a 150% beat over the consensus estimate of $0.08.
The results underscore RF Industries’ strategic transformation from a component supplier to a technology solutions provider. Custom cabling accounted for 42% of total sales in 2024, while RF connectors made up 58%. The company’s focus on higher‑margin aerospace and transportation markets has broadened its customer base beyond the telecom sector, which now represents only 50% of sales. The favorable product mix and pricing power in these segments drove the margin expansion.
CEO Robert Dawson said the quarter demonstrated the company’s ability to execute its operating model, noting that sales above $19 million allow fixed overhead to be absorbed and incremental revenue to contribute more to the bottom line. CFO Peter Yin highlighted that the 600‑basis‑point margin gain was driven by higher sales and a more favorable mix. Management reiterated confidence in continued growth for fiscal 2026, projecting another year of sales expansion and maintaining profitability as the company scales its solutions portfolio.
Investors responded positively to the earnings, with analysts citing the strong EPS and revenue beats, the significant margin expansion, and the company’s successful shift toward higher‑margin solutions as key drivers of the favorable market reaction.
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