Part I. FINANCIAL INFORMATION [Item 1: Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for RF Industries, Ltd. and its subsidiaries, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, significant accounts, and recent financial activities for the periods ended July 31, 2025, and October 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The company's total assets increased to $73.2 million as of July 31, 2025, from $71.0 million at October 31, 2024, driven primarily by an increase in cash and trade accounts receivable | Metric | July 31, 2025 (Unaudited) (in thousands) | October 31, 2024 (Note 1) (in thousands) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $3,000 | $839 | | Trade accounts receivable, net | $15,348 | $12,119 | | Inventories | $14,169 | $14,725 | | Total Current Assets | $34,086 | $29,113 | | Total Property and equipment, net | $4,368 | $4,813 | | Operating lease right-of-use assets, net | $14,255 | $15,265 | | Goodwill | $8,085 | $8,085 | | Amortizable intangible assets, net | $10,675 | $11,908 | | Total Assets | $73,201 | $71,046 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $4,806 | $3,798 | | Accrued expenses | $6,334 | $4,247 | | Line of credit | $7,828 | $8,197 | | Total Current Liabilities | $21,013 | $18,090 | | Operating lease liabilities | $17,209 | $18,680 | | Total Liabilities | $38,429 | $36,980 | | Total Stockholders' Equity | $34,772 | $34,066 | | Total Liabilities and Stockholders' Equity | $73,201 | $71,046 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended July 31, 2025, net sales increased by 17.6% year-over-year, leading to a significant improvement from an operating loss to an operating income and a net income of $0.4 million | Metric (in thousands, except per share) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $19,790 | $16,836 | $57,900 | $46,404 | | Cost of sales | $13,071 | $11,875 | $39,514 | $33,316 | | Gross profit | $6,719 | $4,961 | $18,386 | $13,088 | | Operating income (loss) | $720 | $(419) | $882 | $(2,919) | | Income (loss) before income taxes | $480 | $(757) | $161 | $(3,595) | | Consolidated net income (loss) | $392 | $(705) | $(98) | $(6,361) | | Basic EPS | $0.04 | $(0.07) | $(0.01) | $(0.61) | | Diluted EPS | $0.04 | $(0.07) | $(0.01) | $(0.61) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) Stockholders' equity increased from $34.066 million at November 1, 2024, to $34.772 million at July 31, 2025, primarily due to stock-based compensation expense and the exercise of stock options | Metric (in thousands, except shares) | Balance, Nov 1, 2024 | Exercise of stock options | Stock-based compensation expense | Issuance of restricted stock | Tax withholding | Consolidated net loss | Balance, July 31, 2025 | | :----------------------------------- | :------------------- | :------------------------ | :------------------------------- | :--------------------------- | :-------------- | :-------------------- | :--------------------- | | Common Stock Shares | 10,544,431 | 50,623 | - | 82,500 | (10,107) | - | 10,667,447 | | Common Stock Amount | $106 | $1 | - | - | - | - | $107 | | Additional Paid-in Capital | $26,988 | $206 | $640 | - | $(43) | - | $27,791 | | Retained Earnings | $6,972 | - | - | - | - | $(98) | $6,874 | | Total | $34,066 | $207 | $640 | - | $(43) | $(98) | $34,772 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended July 31, 2025, net cash provided by operating activities was $2.481 million, resulting in a net increase in cash and cash equivalents of $2.161 million | Cash Flow Category (in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $2,481 | $3,409 | | Net cash used in investing activities | $(158) | $(564) | | Net cash used in financing activities | $(162) | $(5,978) | | Net increase (decrease) in cash and cash equivalents | $2,161 | $(3,133) | | Cash and cash equivalents, beginning of period | $839 | $4,897 | | Cash and cash equivalents, end of period | $3,000 | $1,764 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes provide essential context and detail for the unaudited condensed consolidated financial statements, covering accounting policies, significant estimates, segment information, and specific financial instruments and liabilities [Note 1 – Unaudited interim condensed consolidated financial statements](index=9&type=section&id=Note%201%20%E2%80%93%20Unaudited%20interim%20condensed%20consolidated%20financial%20statements) The interim financial statements are prepared in accordance with GAAP for interim reporting, assuming the company will continue as a going concern - The company generated operating income of **$0.719 million** for the three months ended July 31, 2025, and **$0.882 million** for the nine months ended July 31, 2025, compared to operating losses of **$0.419 million** and **$2.919 million** for the same periods last year, respectively. This improvement is attributed to increased sales and cost-cutting measures, including facility consolidation[23](index=23&type=chunk) - On March 15, 2024, the Company entered into a loan and security agreement with Eclipse Business Capital (EBC), using proceeds to repay and terminate the prior revolving credit facility and term loan with Bank of America, N.A[24](index=24&type=chunk) [Note 2 – Concentrations of credit risk](index=11&type=section&id=Note%202%20%E2%80%93%20Concentrations%20of%20credit%20risk) The company faces credit risk primarily from cash and cash equivalents held in high-credit quality financial institutions and from accounts receivable - As of July 31, 2025, cash and cash equivalent balances exceeded federally insured limits by approximately **$2.7 million**[31](index=31&type=chunk) | Customer | Three Months Ended July 31, 2025 (Net Sales) | Three Months Ended July 31, 2024 (Net Sales) | Nine Months Ended July 31, 2025 (Net Sales) | Nine Months Ended July 31, 2024 (Net Sales) | | :--------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Wireless provider A | 11% | 11% | - | - | | Distributor A | 15% | - | - | - | | Distributor B | - | 13% | - | - | - For the three months ended July 31, 2025, Wireless provider A accounted for **17%** of total net accounts receivable, and Distributor A accounted for **22%**. For the nine months ended July 31, 2025, these same customers accounted for **17%** and **22%** of total net accounts receivable, respectively[32](index=32&type=chunk) [Note 3 – Inventories and major vendors](index=11&type=section&id=Note%203%20%E2%80%93%20Inventories%20and%20major%20vendors) Inventories are valued at the lower of cost or net realizable value using the weighted average cost method, decreasing to $14.169 million at July 31, 2025 | Inventory Category (in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------ | :------------ | :--------------- | | Raw materials and supplies | $9,586 | $10,886 | | Work in process | $793 | $530 | | Finished goods | $3,790 | $3,309 | | Totals | $14,169 | $14,725 | - No single vendor accounted for **10% or more** of inventory purchases for the three or nine months ended July 31, 2025 and 2024[33](index=33&type=chunk) [Note 4 – Other current assets](index=13&type=section&id=Note%204%20%E2%80%93%20Other%20current%20assets) Other current assets increased to $1.569 million at July 31, 2025, primarily driven by an increase in prepaid expenses | Other Current Assets (in thousands) | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | Prepaid taxes | $139 | $262 | | Prepaid expense | $1,001 | $699 | | Deposits | $378 | $329 | | Other | $51 | $140 | | Totals | $1,569 | $1,430 | [Note 5 – Accrued expenses and other current liabilities](index=13&type=section&id=Note%205%20%E2%80%93%20Accrued%20expenses%20and%20other%20current%20liabilities) Accrued expenses significantly increased to $6.334 million at July 31, 2025, mainly due to higher wages payable and accrued receipts | Accrued Expenses (in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------ | :------------ | :--------------- | | Wages payable | $2,993 | $2,357 | | Accrued receipts | $1,602 | $762 | | Deferred revenue | $521 | - | | Other accrued expenses | $1,218 | $1,128 | | Totals | $6,334 | $4,247 | [Note 6 – Income (Loss) per share](index=13&type=section&id=Note%206%20%E2%80%93%20Income%20%28Loss%29%20per%20share) Basic and diluted income (loss) per share are calculated based on net income (loss) and weighted average common shares outstanding | Weighted Average Shares Outstanding | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Basic | 10,668,375 | 10,495,082 | 10,632,566 | 10,466,862 | | Diluted | 10,774,304 | 10,495,082 | 10,632,566 | 10,466,862 | - Potentially dilutive securities that were out-of-the-money totaled **50,000 shares** for the three and nine months ended July 31, 2025, and **846,889 shares** for the same periods in 2024, and were excluded from diluted EPS calculations due to their anti-dilutive effect[36](index=36&type=chunk) [Note 7 – Stock-based compensation and equity transactions](index=13&type=section&id=Note%207%20%E2%80%93%20Stock-based%20compensation%20and%20equity%20transactions) The company granted restricted stock and incentive stock options to officers and managers, with $919,000 in expenses for nonvested options yet to be recognized - Grants of restricted stock and incentive stock options occurred on November 1, 2023 (**15,202 restricted shares**), January 11, 2024 (**110,099 restricted shares** and **220,001 options**), April 16, 2024 (**25,000 options**), December 2, 2024 (**47,500 options**), and January 13, 2025 (**82,500 restricted shares** and **165,000 options**)[38](index=38&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) | Black-Scholes Assumption | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :----------------------- | :------------------------------ | :------------------------------ | | Weighted average volatility | 44.37% | 51.30% | | Expected dividends | 0.00% | 0.00% | | Expected term (in years) | 6.14 | 7.00 | | Risk-free interest rate | 4.54% | 4.00% | | Weighted average fair value of options granted | $1.85 | $3.97 | | Weighted average fair value of options vested | $2.38 | $5.08 | | Stock Option Activity (Nine Months Ended July 31, 2025) | Shares or Price Per Share | Weighted Average Exercise Price | | :------------------------------------------------------ | :------------------------ | :------------------------------ | | Outstanding at beginning of November 1, 2024 | 874,816 | $5.10 | | Options granted | 212,500 | $3.97 | | Options exercised | (50,623) | $4.07 | | Options canceled or expired | (25,000) | $8.69 | | Options outstanding at July 31, 2025 | 1,011,693 | $4.82 | | Options exercisable at July 31, 2025 | 562,868 | $5.52 | | Options vested and expected to vest at July 31, 2025 | 1,011,693 | $4.82 | - Stock-based compensation expense was **$0.219 million** for the three months ended July 31, 2025 (vs. **$0.241 million** in 2024) and **$0.640 million** for the nine months ended July 31, 2025 (vs. **$0.744 million** in 2024), classified in selling and general expense[46](index=46&type=chunk) [Note 8 – Segment information](index=16&type=section&id=Note%208%20%E2%80%93%20Segment%20information) The company operates in two segments: RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly, with Custom Cabling showing significant growth - The company has two reportable segments: **RF Connector and Cable Assembly (RF Connector)** and **Custom Cabling Manufacturing and Assembly (Custom Cabling)**. The RF Connector segment primarily sells through distribution, while Custom Cabling uses a combination of distribution and direct sales[47](index=47&type=chunk)[49](index=49&type=chunk) | Geographic Area (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | United States | $18,432 | $15,473 | $52,952 | $41,948 | | Foreign Countries: | | | | | | Canada | $1,052 | $765 | $3,678 | $2,595 | | Germany | $138 | $23 | $305 | $118 | | All Other | $168 | $575 | $965 | $1,743 | | Totals | $19,790 | $16,836 | $57,900 | $46,404 | | Segment Performance (in thousands) | RF Connector (3M 2025) | Custom Cabling (3M 2025) | Corporate (3M 2025) | Total (3M 2025) | RF Connector (3M 2024) | Custom Cabling (3M 2024) | Corporate (3M 2024) | Total (3M 2024) | | :--------------------------------- | :--------------------- | :----------------------- | :------------------ | :-------------- | :--------------------- | :----------------------- | :------------------ | :-------------- | | Net sales | $9,230 | $10,560 | - | $19,790 | $9,697 | $7,139 | - | $16,836 | | (Loss) income before income taxes | $(1,424) | $2,144 | $(240) | $480 | $(715) | $297 | $(339) | $(757) | | Total assets | $45,675 | $22,398 | $5,128 | $73,201 | $49,355 | $18,112 | $4,393 | $71,860 | | Expenditures for Segment Assets | $60 | $48 | - | $108 | $249 | $3 | - | $252 | | Segment Performance (in thousands) | RF Connector (9M 2025) | Custom Cabling (9M 2025) | Corporate (9M 2025) | Total (9M 2025) | RF Connector (9M 2024) | Custom Cabling (9M 2024) | Corporate (9M 2024) | Total (9M 2024) | | :--------------------------------- | :--------------------- | :----------------------- | :------------------ | :-------------- | :--------------------- | :----------------------- | :------------------ | :-------------- | | Net sales | $27,311 | $30,589 | - | $57,900 | $28,406 | $17,998 | - | $46,404 | | (Loss) income before income taxes | $(4,209) | $5,265 | $(894) | $161 | $(3,104) | $386 | $(877) | $(3,595) | | Total assets | $45,675 | $22,398 | $5,128 | $73,201 | $49,355 | $18,112 | $4,393 | $71,860 | | Expenditures for Segment Assets | $83 | $86 | - | $169 | $544 | $20 | - | $564 | [Note 9 – Income taxes](index=19&type=section&id=Note%209%20%E2%80%93%20Income%20taxes) The company recorded an income tax provision of $88,000 for the three months ended July 31, 2025, and is evaluating the impact of the 'One Big Beautiful Bill Act' | Income Tax Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Provision (benefit) | $88,000 | $(52,000) | $259,000 | $2,766,000 | | Effective tax rate | 18.3% | 6.9% | 160.9% | (76.9%) | - Unrecognized tax benefits were **$0.241 million** as of July 31, 2025, which, if recognized, would result in a net tax benefit of **$0.195 million**[54](index=54&type=chunk) - The company has a partial valuation allowance against its deferred tax assets, totaling **$4.146 million** as of July 31, 2025, due to the assessment that it is not more likely than not that all deferred tax assets will be realized[55](index=55&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), signed into law on July 4, 2025, includes corporate tax provisions like restored **100% bonus depreciation** and immediate expensing of R&E expenditures. The company is evaluating its impact for fiscal 2026[56](index=56&type=chunk)[57](index=57&type=chunk) [Note 10 – Intangible assets](index=20&type=section&id=Note%2010%20%E2%80%93%20Intangible%20assets) Amortizable intangible assets, net, decreased to $10.675 million at July 31, 2025, primarily due to ongoing amortization | Intangible Asset Category (in thousands) | July 31, 2025 (Net) | October 31, 2024 (Net) | | :--------------------------------------- | :------------------ | :--------------------- | | Non-compete agreement | $0 | $0 | | Customer relationships | $1,920 | $2,210 | | Backlog | $0 | $0 | | Patents | $135 | $160 | | Tradename | $1,313 | $1,398 | | Proprietary technology | $7,307 | $8,140 | | **Totals (Amortizable)** | **$10,675** | **$11,908** | | Trademarks (Non-amortizable) | $1,174 | $1,174 | - Amortization expense for the nine months ended July 31, 2025, was **$1.233 million**. The weighted-average amortization period for amortizable intangible assets is **6.91 years** as of July 31, 2025[59](index=59&type=chunk) [Note 11 – Commitments](index=20&type=section&id=Note%2011%20%E2%80%93%20Commitments) The company has operating leases for corporate offices, manufacturing facilities, and storage units, with future minimum lease payments amounting to $25.2 million | Operating Lease Cost (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease cost | $733 | $749 | $2,212 | $2,217 | - As of July 31, 2025, operating lease right-of-use assets were **$14.3 million** and operating lease liabilities totaled **$19.3 million**, with **$2.0 million** classified as current. Future minimum lease payments under non-cancellable leases are **$25.2 million**[61](index=61&type=chunk) [Note 12 – Term Loan and Line of credit](index=21&type=section&id=Note%2012%20%E2%80%93%20Term%20Loan%20and%20Line%20of%20credit) The company entered into a new loan and security agreement with Eclipse Business Capital (EBC), providing a senior secured revolving loan facility of up to $15.0 million - The EBC Credit Agreement provides for a senior secured revolving loan facility of up to **$15.0 million** and an additional senior secured revolving credit facility of up to **$1.0 million** (modified to decrease over time)[63](index=63&type=chunk) - Interest rates for the EBC Revolving Loan Facility are Adjusted Term SOFR plus **5.00%**, and for the EBC Additional Line, Adjusted Term SOFR plus **6.50%**, both with a **2.00% SOFR floor**. A commitment fee of **0.50%** per annum applies to the unused portion of the revolving loan facility[64](index=64&type=chunk) - Financial covenants include maintaining Excess Availability (greater of **$1.0 million** or **10%** of Adjusted Borrowing Base) and a capital expenditure limitation of **$2.5 million** per fiscal year[65](index=65&type=chunk) - As of July 31, 2025, outstanding borrowings under the EBC Credit Agreement were **$7.828 million**, classified as current liabilities[67](index=67&type=chunk) [Note 13 – Cash dividend and declared dividends](index=22&type=section&id=Note%2013%20%E2%80%93%20Cash%20dividend%20and%20declared%20dividends) The company did not pay any dividends during the three or nine months ended July 31, 2025, nor during the comparable periods in 2024 - No dividends were paid during the three or nine months ended July 31, 2025, or July 31, 2024[68](index=68&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operational results, highlighting key performance drivers, liquidity, and capital resources [Cautionary Note Regarding Forward-Looking Statements](index=22&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises readers that the report contains forward-looking statements about future events and financial performance, which are predictions and may differ materially from actual results - The report contains forward-looking statements that are predictions about future events or financial performance, identifiable by terms like 'may,' 'will,' 'should,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' or 'continue'[69](index=69&type=chunk) - Actual events or results may differ materially from these forward-looking statements, and the company is under no obligation to update them[69](index=69&type=chunk)[70](index=70&type=chunk) [Critical Accounting Estimates](index=24&type=section&id=Critical%20Accounting%20Estimates) Management confirms that there have been no material changes to the critical accounting estimates disclosed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2024 - No material changes occurred during the three months ended July 31, 2025, to the critical accounting estimates previously disclosed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[73](index=73&type=chunk) [Overview](index=24&type=section&id=Overview) RF Industries, Ltd. is a national manufacturer and marketer of interconnect products and systems, operating through two segments: RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly - RF Industries, Ltd. manufactures and markets interconnect products and systems, including RF connectors, adapters, coaxial cables, data cables, fiber optic cables, custom cabling, energy-efficient cooling systems, and integrated small cell enclosures[74](index=74&type=chunk) - The company operates through two segments: **RF Connector and Cable Assembly (RF Connector)** and **Custom Cabling Manufacturing and Assembly (Custom Cabling)**[75](index=75&type=chunk) - For the nine months ended July 31, 2025, Custom Cabling accounted for **53% of total sales**, and RF Connector accounted for **47%**. Custom Cabling's revenue is more volatile due to larger, customized orders, while RF Connector's revenue is more stable from standardized products[76](index=76&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved, with cash and cash equivalents increasing to $3.0 million at July 31, 2025, and working capital at $13.1 million - Cash and cash equivalents increased to **$3.0 million** as of July 31, 2025, from **$0.8 million** as of October 31, 2024[79](index=79&type=chunk) - As of July 31, 2025, working capital was **$13.1 million**, and the current ratio was approximately **1.6:1**[79](index=79&type=chunk) - Net cash provided by operating activities was **$2.5 million** for the nine months ended July 31, 2025, primarily due to decreased inventories, depreciation and amortization, and changes in accounts payable and accrued expenses[81](index=81&type=chunk) - The company had a backlog of **$19.7 million** as of July 31, 2025, compared to **$19.5 million** as of October 31, 2024[80](index=80&type=chunk) - Capital expenditures for the nine months ended July 31, 2025, totaled **$0.170 million**. The company may undertake acquisitions to diversify offerings and customer base, which could impact capital resources[82](index=82&type=chunk)[84](index=84&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) The company experienced significant improvements in its financial performance for both the three and nine months ended July 31, 2025, driven by strong growth in the Custom Cabling segment and improved gross margins [Three Months Ended July 31, 2025 vs. Three Months Ended July 31, 2024](index=26&type=section&id=Three%20Months%20Ended%20July%2031%2C%202025%20vs.%20Three%20Months%20Ended%20July%2031%2C%202024) Net sales increased by 17.9% to $19.8 million, primarily due to a 49.3% increase in the Custom Cabling segment, leading to a net income of $0.4 million - Net sales increased by **17.9%** (**$3.0 million**) to **$19.8 million**[85](index=85&type=chunk) - Custom Cabling segment net sales increased by **49.3%** (**$3.5 million**) to **$10.6 million**, driven by aerospace and new market penetration[85](index=85&type=chunk) - RF Connector segment net sales decreased by **5.2%** (**$0.5 million**) to **$9.2 million**, primarily due to timing of small cell applications[85](index=85&type=chunk) - Gross profit increased by **$1.7 million**, and gross margins improved to **34%** from **29.5%**, attributed to product mix and new market penetration[86](index=86&type=chunk) - Net income was **$0.4 million** (**$0.04 diluted EPS**) compared to a net loss of **$0.7 million** (**$0.07 diluted loss per share**) in the prior year[91](index=91&type=chunk) [Nine Months Ended July 31, 2025 vs. Nine Months Ended July 31, 2024](index=26&type=section&id=Nine%20Months%20Ended%20July%2031%2C%202025%20vs.%20Nine%20Months%20Ended%20July%2031%2C%202024) Net sales for the nine-month period increased by 24.8% to $57.9 million, largely driven by a 70.0% increase in the Custom Cabling segment, substantially reducing the net loss - Net sales increased by **24.8%** (**$11.5 million**) to **$57.9 million**[92](index=92&type=chunk) - Custom Cabling segment net sales increased by **70.0%** (**$12.6 million**) to **$30.6 million**, driven by tier one carrier applications for direct air cooling and small cell enclosures, and new market penetration[92](index=92&type=chunk) - RF Connector segment net sales decreased by **3.9%** (**$1.1 million**) to **$27.3 million** due to fluctuations in the distribution business[93](index=93&type=chunk) - Gross profit increased by **$5.3 million**, and gross margins improved to **31.8%** from **28.2%**, driven by direct air cooling, small cell enclosure offerings, and diverse custom cabling products[94](index=94&type=chunk) - Net loss was **$0.1 million** (**$0.01 diluted loss per share**) compared to a net loss of **$6.4 million** (**$0.61 diluted loss per share**) in the prior year[99](index=99&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a 'smaller reporting company,' RF Industries, Ltd. is exempt from providing the detailed quantitative and qualitative disclosures about market risk typically required under this Item - The company is a **'smaller reporting company'** and is not required to provide quantitative and qualitative disclosures about market risk[100](index=100&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of July 31, 2025 [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of July 31, 2025 - The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures and concluded they were **effective at a reasonable assurance level** as of July 31, 2025[103](index=103&type=chunk) [Changes in Internal Control Over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were no changes in the company's internal control over financial reporting during the third quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the third quarter of fiscal 2025[104](index=104&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an employee class action lawsuit filed on July 24, 2024, alleging California state law violations related to wages, meal/rest periods, expense reimbursement, and wage statements - On July 24, 2024, a former employee filed a class action lawsuit against the company and its subsidiary C Enterprises, Inc., alleging California state law violations regarding wages, meal/rest periods, business expense reimbursement, timely wage payments, and accurate wage statements[106](index=106&type=chunk) - The lawsuit also includes a cause of action under the **Private Attorneys General Act of 2004 (PAGA)**[107](index=107&type=chunk) - The parties reached a settlement in principle on August 7, 2025, which is currently being negotiated into a long-form agreement and is subject to Court approval[108](index=108&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors from the Annual Report, emphasizing the risks associated with changes in trade policies, tariffs, and import/export regulations by the U.S. and foreign governments - The company is subject to risks from changes in trade policies, tariffs, and import/export regulations by the U.S. and foreign governments[111](index=111&type=chunk) - These changes, such as tariffs on imports from China, Mexico, and Canada, could increase product costs, lead to lower gross profit and margins, and negatively affect business performance, financial condition, and relationships with stakeholders[112](index=112&type=chunk)[113](index=113&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and no issuer purchases of equity securities during the period - There were no unregistered sales of equity securities during the period[114](index=114&type=chunk) - There were no issuer purchases of equity securities during the period[115](index=115&type=chunk) [Item 3. Defaults upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - There were no defaults upon senior securities during the period[116](index=116&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[117](index=117&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarterly period ended July 31, 2025 - No director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarterly period ended July 31, 2025[118](index=118&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO under the Sarbanes-Oxley Act and various Inline XBRL documents - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[119](index=119&type=chunk) - The filing also includes various Inline XBRL documents (Instance Document, Taxonomy Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase, and Cover Page Interactive Data File)[119](index=119&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) The report is duly signed on behalf of RF Industries, Ltd. by Robert Dawson, Chief Executive Officer, and Peter Yin, Chief Financial Officer, on September 11, 2025 - The report was signed by Robert Dawson, Chief Executive Officer, and Peter Yin, Chief Financial Officer, on September 11, 2025[123](index=123&type=chunk)

[Press Release Overview](index=1&type=section&id=Press_Release_Overview) [Third Quarter Fiscal 2025 Highlights and Operating Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Highlights%20and%20Operating%20Results) RF Industries reported strong Q3 FY2025 results with 17.5% net sales growth, 34% gross profit margin, and a return to profitability Third Quarter Fiscal 2025 Key Financial Metrics | Metric | Q3 FY2025 (in thousands) | Q3 FY2024 (in thousands) | YoY Change (%) | | :-------------------------- | :----------------------- | :----------------------- | :------------- | | Net sales | $19,790 | $16,836 | 17.5% | | Gross profit margin | 34% | 29.5% | +4.5 ppts | | Operating income (loss) | $720 | $(419) | N/A | | Consolidated net income (loss) | $392 | $(705) | N/A | | Non-GAAP net income (loss) | $1,110 | $(95) | N/A | | Adjusted EBITDA | $1,556 | $460 | 238.3% | - Quarter-end backlog reached **$19.7 million**, with Q3 bookings of **$24.5 million**; current backlog is **$16.1 million**[8](index=8&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong execution, exceeding gross profit targets, achieving consistent operating profit, and successful diversification into new markets - Achieved **four consecutive quarters of operating profit** and a **34% gross profit**, surpassing the **30% target**[6](index=6&type=chunk) - The long-term strategy to become a technology-solutions provider is effective, with high-value solutions such as DAC thermal cooling and small cell products gaining traction[7](index=7&type=chunk) - Customer base successfully diversified into new end markets including aerospace, transportation, and data centers, preparing for future stadium and venue buildouts[7](index=7&type=chunk) [Company Information](index=2&type=section&id=Company_Information) [About RF Industries](index=2&type=section&id=About%20RF%20Industries) RF Industries manufactures and markets interconnect products and systems for diversified markets including telecom, data communications, and industrial sectors - RF Industries designs and manufactures interconnect products for diversified markets including wireless/wireline telecom, data communications, and industrial[11](index=11&type=chunk) - Product portfolio includes RF connectors, adapters, cables, wire harnesses, cooling systems, and integrated small cell enclosures[11](index=11&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements concerning future events, profitability, and market trends, subject to inherent risks and uncertainties - Forward-looking statements cover expectations regarding profitability, revenues, industry trends, market demand, backlog, and financial goals[12](index=12&type=chunk) - Actual results may differ due to factors like liquidity, going concern ability, credit facility compliance, telecom industry changes, new product timing, tariffs, and margin maintenance[12](index=12&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP_Financial_Measures_Explanation) [Note Regarding Use of Non-GAAP Financial Measures](index=3&type=section&id=Note%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) RF Industries uses non-GAAP measures like Adjusted EBITDA and non-GAAP net income to clarify operating trends by excluding non-cash and one-time expenses - Non-GAAP financial measures (Adjusted EBITDA, non-GAAP net income/loss, non-GAAP EPS) supplement GAAP results, offering insights into operating trends by excluding non-cash and one-time expenses[13](index=13&type=chunk)[14](index=14&type=chunk) - Non-GAAP exclusions include stock-based compensation, non-cash/one-time charges, severance, amortization expense, and for Adjusted EBITDA, depreciation and interest expense[15](index=15&type=chunk) - Bookings represent new orders received, while backlog signifies orders where revenue is not yet recognized, both indicating future revenues[17](index=17&type=chunk) [Financial Statements](index=5&type=section&id=Financial_Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets as of July 31, 2025, show increased total assets, driven by cash and receivables, with a corresponding rise in liabilities and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | Jul. 31, 2025 | Oct. 31, 2024 | | :-------------------- | :------------ | :------------ | | Cash and cash equivalents | $3,000 | $839 | | Trade accounts receivable, net | $15,348 | $12,119 | | Inventories | $14,169 | $14,725 | | TOTAL CURRENT ASSETS | $34,086 | $29,113 | | TOTAL ASSETS | $73,201 | $71,046 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Accounts payable and accrued expenses | $11,140 | $8,045 | | Line of Credit | $7,828 | $8,197 | | TOTAL CURRENT LIABILITIES | $21,013 | $18,090 | | TOTAL LIABILITIES | $38,429 | $36,980 | | TOTAL STOCKHOLDERS' EQUITY | $34,772 | $34,066 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $73,201 | $71,046 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Statements of operations for Q3 and 9 months ended July 31, 2025, show significant improvements, with 17.5% net sales growth and a return to profitability Condensed Consolidated Statements of Operations (in thousands, except per share) | (In thousands, except share and per share amounts) | Three Months Ended Jul. 31, 2025 | Three Months Ended Jul. 31, 2024 | Nine Months Ended Jul. 31, 2025 | Nine Months Ended Jul. 31, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $19,790 | $16,836 | $57,900 | $46,404 | | Cost of sales | $13,071 | $11,875 | $39,514 | $33,316 | | Gross profit | $6,719 | $4,961 | $18,386 | $13,088 | | Operating expenses | $5,999 | $5,380 | $17,504 | $16,007 | | Operating income (loss) | $720 | $(419) | $882 | $(2,919) | | Income (loss) before provision for income taxes | $480 | $(757) | $161 | $(3,595) | | Consolidated net income (loss) | $392 | $(705) | $(98) | $(6,361) | | Earnings (loss) per share - Diluted | $0.04 | $(0.07) | $(0.01) | $(0.61) | [Unaudited Reconciliation of GAAP to Non-GAAP Net Income (Loss)](index=7&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Loss)) This reconciliation adjusts GAAP net income to non-GAAP net income by adding back specific non-cash and one-time expenses, resulting in **$1.1 million** non-GAAP net income for Q3 FY2025 Unaudited Reconciliation of GAAP to Non-GAAP Net Income (Loss) (in thousands, except per share) | (In thousands, except share and per share amounts) | Three Months Ended Jul. 31, 2025 | Three Months Ended Jul. 31, 2024 | Nine Months Ended Jul. 31, 2025 | Nine Months Ended Jul. 31, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Consolidated net income (loss) | $392 | $(705) | $(98) | $(6,361) | | Provision (benefit) from income taxes | $88 | $(52) | $259 | $2,766 | | Stock-based compensation expense | $219 | $241 | $640 | $744 | | Non-cash and other one-time charges | - | - | $123 | $145 | | Severance | - | - | $51 | $56 | | Amortization expense | $411 | $421 | $1,233 | $1,266 | | Non-GAAP net income (loss) | $1,110 | $(95) | $2,208 | $(1,384) | | Non-GAAP earnings (loss) per share - Diluted | $0.10 | $(0.01) | $0.21 | $(0.13) | [Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=7&type=section&id=Unaudited%20Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) This reconciliation adjusts consolidated net income to Adjusted EBITDA by adding back various non-cash and one-time expenses, resulting in **$1.6 million** Adjusted EBITDA for Q3 FY2025 Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | (In thousands) | Three Months Ended Jul. 31, 2025 | Three Months Ended Jul. 31, 2024 | Nine Months Ended Jul. 31, 2025 | Nine Months Ended Jul. 31, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Consolidated net income (loss) | $392 | $(705) | $(98) | $(6,361) | | Stock-based compensation expense | $219 | $241 | $640 | $744 | | Non-cash and other one-time charges | - | - | $123 | $145 | | Severance | - | - | $51 | $56 | | Amortization expense | $411 | $421 | $1,233 | $1,266 | | Depreciation expense | $206 | $217 | $615 | $638 | | Other expense | $240 | $338 | $721 | $676 | | Provision (benefit) from income taxes | $88 | $(52) | $259 | $2,766 | | Adjusted EBITDA | $1,556 | $460 | $3,544 | $(70) | [Investor Relations](index=2&type=section&id=Investor_Relations) [Conference Call and Webcast](index=2&type=section&id=Conference%20Call%20and%20Webcast) RF Industries hosted a conference call and webcast on September 11, 2025, to discuss its fiscal Q3 2025 financial results - A conference call and live webcast were held on **September 11, 2025**, at **4:30 p.m. Eastern Time** to discuss Q3 FY2025 financial results[10](index=10&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact information for RF Industries' SVP and CFO, Peter Yin, and IR contact, Donni Case, is provided for inquiries - Contact information for RF Industries' SVP and CFO, Peter Yin, and IR Contact, Donni Case of Financial Profiles, Inc., is provided[18](index=18&type=chunk)

SAN DIEGO, CA / ACCESS Newswire / September 11, 2025 / RF Industries, Ltd, (NASDAQ:RFIL), a national manufacturer and marketer of interconnect products and systems, today announced third quarter fiscal year 2025 financial results for the fiscal quarter ended July 31, 2025. Third Quarter Fiscal 2025 Highlights and Operating Results: Net sales were $19.8 million, an increase of 17.5% from $16.8 million year-over-year and an increase of 4.7% from $18.9 million in the second quarter of fiscal 2025. ...

Core Insights - RF Industries (RFIL) and Amphenol (APH) are key players in the electronic connectors and interconnect systems market, serving various end-markets, with Amphenol being significantly larger than RFIL [1][2] RF Industries (RFIL) - RF Industries is experiencing a growing adoption of its integrated solutions, with a backlog of $15 million at the end of Q2 2025, supported by bookings of $18.7 million [3][10] - The company is transitioning from a product-oriented model to an integrated solutions provider, which is expected to drive long-term top-line growth [4] - RFIL is expanding its presence in sectors such as wireless, aerospace, public safety, and industrial OEMs, with plans to enter energy, transportation, wireline telecom, and data centers [4] - The adoption of RFIL's small cell solutions is increasing, with 100 opportunities in the sales pipeline for Wireless DAS build-outs [5] - Inventory levels have decreased to $12.6 million in Q2 2025 from $14.7 million in the previous year, aided by a streamlined procurement and supply chain process [5] Amphenol (APH) - Amphenol's order growth surged by 36% year-over-year to $5.523 billion, with a book-to-bill ratio of 0.98:1, driven by a strong portfolio and targeted acquisitions [6][10] - The demand for high-speed interconnects is being fueled by rising AI workloads and cloud infrastructure upgrades, supporting growth in the Communications Solutions segment [7] - Amphenol's diverse acquisitions have enhanced its market reach and growth prospects, with a focus on communications, medical, and defense sectors [8] - The company anticipates Q3 2025 earnings between $0.77 and $0.79 per share, reflecting a year-over-year growth of 54% to 58%, with revenues expected between $5.4 billion and $5.5 billion [9][11] Comparative Performance - Year-to-date, RF Industries shares have increased by 74.2%, outperforming Amphenol's 58% rise [13] - In terms of valuation, Amphenol's forward price/sales ratio stands at 5.87X, significantly higher than RF Industries' 0.91X, indicating that both companies are currently overvalued [16] Investment Outlook - Amphenol is viewed as a stronger investment option compared to RF Industries, supported by its expanding portfolio and market traction, despite potential growth challenges for RFIL due to tariffs [19][20]

Core Insights - RF Industries (RFIL) shares have decreased by 24.6% over the past month, underperforming the broader Computer and Technology sector and the Semiconductor Radio Frequency industry [1] - The company is experiencing strong customer adoption, with a backlog of $15 million and bookings of $18.7 million at the end of Q2 2025 [2][9] - Gross margin improved by 160 basis points year-over-year to 31.5%, driven by a better product mix and cost-saving efforts [3][9] - Year-to-date, RFIL shares have increased by 64.1%, outperforming the sector's 11.8% and the industry's decline of 4.5% [4] Financial Performance - RF Industries expects Q3 fiscal 2025 sales to be approximately $18.5 million, consistent with Q2 sales of $18.9 million and a significant increase from $16.8 million in the same quarter last year [3][14] - The Zacks Consensus Estimate for fiscal 2025 earnings is 24 cents per share, with revenues projected at $76.4 million, indicating a 17.8% increase from fiscal 2024 [15] Market Position and Strategy - The company is transitioning from a product-oriented model to an integrated solutions provider, targeting sectors such as wireless, aerospace, public safety, and industrial OEM [11] - RF Industries is focusing on small cell solutions and has identified 100 opportunities in the sales pipeline for Wireless DAS build-outs [12] - A streamlined procurement process has reduced inventory from $14.7 million in the previous year to $12.6 million in Q2 2025, helping to mitigate tariff-related uncertainties [13] Valuation Metrics - RF Industries shares are considered overvalued, with a Value Score of C, and are trading at a forward price/cash flow ratio of 13.92X compared to the industry's 7.3X [16][18] - The company's valuation is higher than Qorvo's 11.53X and Skyworks' 7.16X, but lower than TE Connectivity's 15.97X [20]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: RF Industries, Ltd. (RFIL) - RFIL currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3]. - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4]. Price Performance - Over the past week, RFIL shares have increased by 16.36%, while the Zacks Semiconductors - Radio Frequency industry has decreased by 0.85% [6]. - In a longer timeframe, RFIL shares have risen by 94.21% over the past three months and 89.43% over the past year, significantly outperforming the S&P 500, which increased by 14.96% and 18.01% respectively [7]. Trading Volume - RFIL's average 20-day trading volume is 252,019 shares, which serves as a baseline for price-to-volume analysis, indicating bullish or bearish trends [8]. Earnings Outlook - In the last two months, one earnings estimate for RFIL has increased, raising the consensus estimate from $0.23 to $0.24 for the full year, with no downward revisions noted [10]. - For the next fiscal year, one estimate has also moved upwards, reflecting positive sentiment regarding RFIL's earnings potential [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, RFIL is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [12].

Company Overview - RF Industries, Ltd. (RFIL) shares increased by 12.7% to close at $8.51, with trading volume significantly higher than usual, and a total gain of 36.8% over the past four weeks [1] - The company is expanding its portfolio with new applications including small cells, distributed antenna systems, industrial connectivity, and DAC thermal cooling, in addition to its interconnect product offerings [1] Earnings Expectations - RF Industries is projected to report quarterly earnings of $0.06 per share, reflecting a year-over-year increase of 700% [2] - Expected revenues for the upcoming quarter are $18.52 million, which is a 10% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for RF Industries has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - RF Industries currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Industry Context - RF Industries is part of the Zacks Semiconductors - Radio Frequency industry, where another company, Qorvo (QRVO), has a consensus EPS estimate of $0.62, representing a year-over-year decline of 28.7% [4] - Qorvo holds a Zacks Rank of 3 (Hold), indicating a more cautious outlook compared to RF Industries [4]

Market Overview - Wall Street reached record-high levels despite a turbulent first half of 2025, with the second quarter being the best for U.S. stocks in the past year due to expectations of key trade deals and reduced recession fears [1] - The Federal Reserve indicated two more cuts in the benchmark lending rate for the second half of the year, contributing to a continued bull run in July, with the S&P 500 and Nasdaq Composite hitting all-time highs [2] Stock Performance - A selection of stocks has shown significant price strength, particularly those on a recent bull run, indicating potential for continued momentum [3] - Notable stocks include RF Industries Ltd. (RFIL), Legacy Education Inc. (LGCY), Primoris Services Corp. (PRIM), Allot Ltd. (ALLT), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last 12 weeks to indicate sustained momentum [5] - Stocks should have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Stocks must be trading at a minimum price of $5 and be within 85% of their 52-week high to ensure they are strong performers [7] Individual Stock Highlights - **RF Industries Ltd. (RFIL)**: Stock surged 74% in four weeks, with expected earnings growth over 100% for the current fiscal year [8][10] - **Legacy Education Inc. (LGCY)**: Stock price increased by 29.6% in four weeks, with an expected earnings growth rate of 0.8% [12] - **Primoris Services Corp. (PRIM)**: Stock climbed 23.4% in four weeks, with an expected earnings growth rate of 15.8% [14] - **Allot Ltd. (ALLT)**: Stock surged 19.8% in four weeks, with expected earnings growth over 100% [17] - **Euroseas Ltd. (ESEA)**: Stock advanced 12.6% in four weeks, with an expected earnings growth rate of 1.2% [19]

Industry Overview - The semiconductor industry is experiencing a significant recovery, driven by optimism surrounding artificial intelligence (AI), particularly generative AI, which has increased demand for microchips [1] - The robust demand across various sectors has resulted in substantial revenue growth for chipmakers, contributing significantly to overall market performance and last year's market rally [2] Sales Performance - Worldwide semiconductor sales rose 3.5% sequentially in May, increasing from $57 billion in April to $59 billion, with a year-over-year surge of 19.8%, marking the 11th consecutive month of growth above 17% [4] - SIA President and CEO John Neuffer noted that global semiconductor demand remains high, with first-quarter sales surpassing the previous year's figures, particularly driven by a 45% year-over-year increase in the Americas [5] Future Outlook - The semiconductor market is projected to continue expanding at a double-digit pace into 2025, supported by strong demand for data center chips and memory products [7] - Global semiconductor revenues reached $627.6 billion in 2024, up 19.1% from $526.8 billion in 2023, with the first quarter of 2025 generating $167.7 billion, an 18.8% increase from the previous year [6] Investment Opportunities - Recommended semiconductor stocks include Taiwan Semiconductor Manufacturing Company Limited (TSM), Advanced Energy Industries, Inc. (AEIS), and RF Industries, Ltd. (RFIL), all of which have strong earnings growth potential and favorable Zacks rankings [3] - TSM's expected earnings growth rate for the current year is 34.1%, with a 19.8% year-over-year sales increase in May [9] - AEIS is expected to see a 39.1% earnings growth rate, while RFIL's earnings growth rate is projected to exceed 100% [11][12]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [1] Group 1: Company Overview - RF Industries, Ltd. (RFIL) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 33%, with projected EPS growth of 366.7% this year, significantly outperforming the industry average of -4% [4] Group 2: Financial Metrics - RF Industries has an impressive asset utilization ratio (sales-to-total-assets ratio) of 1.03, indicating efficient asset use compared to the industry average of 0.54 [5] - The company's sales are expected to grow by 17.8% this year, while the industry average is projected at -0.4% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for RF Industries, with the Zacks Consensus Estimate for the current year increasing by 7.7% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 1 suggests that RF Industries is a potential outperformer and a solid choice for growth investors [10]