Industry Overview - Semiconductor sales have been experiencing rapid growth, driven by optimism surrounding artificial intelligence (AI) and demand from various industries [1][10] - Global semiconductor sales reached $64.9 billion in August, marking a 4.4% increase from July and a 21.7% rise year-over-year from $53.3 billion in August 2024 [3][10] - The semiconductor market is expected to maintain double-digit growth through 2025, fueled by rising demand for data center processors and memory components as AI investments increase [6][10] Regional Performance - Sales growth in August was particularly strong in the Asia Pacific and the Americas, with year-over-year increases of 43.1% and 25.5% respectively [4] - China and Europe also saw sales growth, with increases of 12.4% and 4.4% year-over-year [4] Company Highlights - Advanced Energy Industries, Inc. (AEIS) focuses on power-conversion solutions for the semiconductor industry, with an expected earnings growth rate of 53.1% for the current year and a Zacks Rank of 2 [7][8] - Analog Devices (ADI) specializes in analog, mixed-signal, and digital signal processing integrated circuits, with an expected earnings growth rate of 21.5% and a Zacks Rank of 1 [9][11] - RF Industries, Ltd. designs and manufactures coaxial connectors, with an expected earnings growth rate of over 100% and a Zacks Rank of 1 [12]

Market Overview - The U.S. stock market has reached record highs following the Fed's first rate cut of the year, reducing rates by 25 basis points to 4-4.25% [1] - The Fed's indication of potential further cuts through 2026 and 2027 has bolstered investor confidence in supportive monetary policy despite slowing growth [1] Investment Strategy - Relative price strength is emphasized as a strategy to identify market leaders likely to outperform [2] - Stocks such as Tutor Perini Corporation (TPC), RF Industries, Ltd. (RFIL), and A-Mark Precious Metals, Inc. (AMRK) are recommended based on their relative price strength [2] Stock Performance Metrics - A stock's potential for returns is primarily assessed through earnings and valuation ratios, alongside its price performance relative to peers [3] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [4] Earnings Estimates and Analyst Sentiment - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and show solid fundamentals are considered optimal for investment [5] - Positive revisions in earnings estimates are crucial, as upward revisions typically lead to price gains [6] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [7] - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are included in the screening process [8] Company-Specific Insights - Tutor Perini Corporation (TPC) has a 2025 earnings estimate indicating 220.8% growth, with shares up 153.1% over the past year [9][11] - RF Industries (RFIL) projects a 422.2% growth in 2025 earnings, with shares surging 132.2% in a year [9][13] - A-Mark Precious Metals (AMRK) has a 2026 earnings estimate showing 58.1% year-over-year growth, although shares have declined by 40.3% in the past year [9][15]

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 A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [4]. Performance Metrics - Over the past week, RFIL shares increased by 4.59%, matching the performance of the Zacks Semiconductors - Radio Frequency industry [6]. - In a longer timeframe, RFIL's monthly price change is 27.31%, significantly outperforming the industry's 2.66% [6]. - Over the last quarter, RFIL shares rose by 34%, and over the past year, they increased by 134.32%, while the S&P 500 only moved 12.64% and 18.69% respectively [7]. Trading Volume - RFIL's average 20-day trading volume is 183,731 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, one earnings estimate for RFIL has increased, raising the consensus estimate from $0.24 to $0.29 [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, RFIL is positioned as a promising investment opportunity with a Momentum Score of A [12].

Core Viewpoint - RF Industries, Ltd. reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing a significant improvement from a loss of $0.01 per share a year ago [1] Financial Performance - The company achieved revenues of $19.79 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 6.86%, compared to $16.84 million in the same quarter last year [2] - Over the last four quarters, RF Industries has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - RF Industries shares have increased approximately 96.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 11.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $19.75 million, and for the current fiscal year, it is $0.24 on revenues of $76.37 million [7] - The estimate revisions trend for RF Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Semiconductors - Radio Frequency industry, to which RF Industries belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [4][17] - Gross profit margin improved by 450 basis points to 34%, exceeding the target margin of 30% [4][17] - Operating profit was $719,000 compared to a loss of $419,000 in the same period last year [4][17] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [5][19] - Consolidated net income was $392,000 or $0.04 per share, compared to a net loss of $705,000 in Q3 2024 [18] Business Line Data and Key Metrics Changes - Strong growth was noted across aerospace, venues, telecommunications, and broadband networks [14] - The company is diversifying its product offerings and customer base, reducing reliance on tier one carrier customers [6][7] - Significant orders were received in the transportation market, including a terminal infrastructure project at a major U.S. airport [8] Market Data and Key Metrics Changes - The company is seeing contributions from fast-growing markets such as aerospace, transportation, and data centers [6][7] - The backlog at the end of the quarter was $19.7 million, with current backlog at $16.1 million [5][21] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider [6] - Focus on building deeper relationships with existing customers and expanding into new markets [10][11] - Emphasis on operational efficiency and cost structure to improve profitability without compromising quality [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels [12][16] - The company is mindful of potential tariff impacts and ongoing supply chain constraints but remains optimistic about its sales pipeline [16][20] - The management highlighted the importance of execution in achieving results and capitalizing on future opportunities [16] Other Important Information - The company has a strong balance sheet with $3 million in cash and cash equivalents and a current ratio of approximately 1.6 to 1 [20] - Inventory levels were managed carefully, with a slight increase from the previous quarter [20] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells versus mix? - Management indicated that the mix of higher-value items, including DAC thermal cooling systems and aerospace projects, is contributing to the improved gross margin [23][24] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, with potential fluctuations based on product mix and sales levels [25][26] Question: Can you characterize the competition between traditional wireless business and newer end markets? - Management noted that contributions are coming from various markets, indicating a diverse customer base and product lines [27][28] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [29][30] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [31]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year-over-year to $19.8 million [4][17] - Gross profit margin improved to 34%, a 450 basis point increase from the previous year [4][17] - Operating profit was $719,000 compared to a loss of $419,000 in the same period last year [4][17] - Adjusted EBITDA was $1.6 million, representing 8% of net sales, with a goal of reaching at least 10% [5][18] Business Line Data and Key Metrics Changes - Strong growth was observed across aerospace, venues, telecommunications, and broadband networks [14] - The company is diversifying its product offerings and customer base, reducing reliance on tier one carrier customers [6][10] - New partnerships and deeper relationships with existing customers are contributing to revenue growth [10][11] Market Data and Key Metrics Changes - Fast-growing markets such as aerospace, transportation, and data centers are now contributing to the sales pipeline [6][8] - Significant orders have been received for infrastructure projects in transportation, particularly at major U.S. airports [8] - The company is seeing a revival in stadium and venue buildouts, with a pipeline of over 100 venues [9] Company Strategy and Development Direction - The company is transitioning from a component supplier to a technology solutions provider [6] - Focus on profitability and operational efficiency is emphasized, with a cost structure that supports improved margins [5][12] - The strategy includes diversifying the supply chain to mitigate tariff impacts and enhance inventory availability [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining steady revenue in Q4, similar to Q3 levels [12][16] - The company is mindful of potential tariff impacts and ongoing supply chain constraints but remains optimistic about its sales pipeline [16] - The focus on execution and collaboration is seen as crucial for capitalizing on future opportunities [16] Other Important Information - The company ended the quarter with a backlog of $19.7 million, which has since decreased to $16.1 million [5][21] - Cash and cash equivalents stood at $3 million, with a current ratio of approximately 1.6 to 1 [20] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC systems and small cells versus mix? - Management indicated that the mix of higher value items, including DAC systems and aerospace projects, is contributing to the improved gross margin [23][24] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, with potential fluctuations based on product mix and sales levels [25][26] Question: Can you characterize the competition between traditional wireless business and newer end markets? - Management noted that contributions are coming from various markets, indicating a diverse customer base and product lines [27][28] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with a long sales cycle for such projects [29][30] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales numbers as key factors in reaching the EBITDA target [31][32]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [5][18] - Gross profit margin improved to 34%, a 450 basis point increase from 29.5% in the same quarter last year [5][18] - Operating profit was $719,000 compared to a loss of $419,000 in the prior year [5][18] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [6][19] Business Line Data and Key Metrics Changes - The company has diversified its product offerings, with significant contributions from aerospace, transportation, and data centers [7][9] - Strong growth was noted in aerospace, with repeat orders from a leading market player [8] - The transportation market is seen as a significant opportunity, with meaningful orders for infrastructure projects [9] Market Data and Key Metrics Changes - The company is experiencing growth across various markets, including aerospace, venues, telecommunications, and broadband networks [15] - The sales pipeline includes over 100 venues, with projects related to major events like the Olympics and World Cup [10][31] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider, focusing on product diversification and deeper customer relationships [7][8] - Partnerships with tier one carriers and new manufacturers are being leveraged to expand market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels, despite potential tariff impacts [13][17] - The company is focused on operational efficiency and profitability, with a strong sales pipeline and disciplined operations [16][19] Other Important Information - The company ended the quarter with a backlog of $19.7 million, which has since decreased to $16.1 million [6][22] - Inventory levels were managed carefully, with a slight increase from the previous quarter [21] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells? - Management indicated that the product mix, including higher-value items, has contributed to the margin improvement, alongside increased sales volume [24][25] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, but specific quarter-to-quarter predictions are challenging due to fluctuations in sales [26][27] Question: How is competition characterized between traditional wireless business and newer markets? - Management noted contributions from various markets, emphasizing the importance of diversification in customer base and product lines [28][29] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [31][32] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [33][34]

Market Performance - U.S. equities experienced a robust rally on September 11, 2025, with all three major indices closing at record highs, driven by optimism over a potential Federal Reserve interest rate cut [1][2] - The S&P 500 rose 0.9% to approximately 6586 points, marking a 17.69% increase year-over-year [2] - The Dow Jones Industrial Average surged 1.3%, closing above 46,000 for the first time, adding over 500 points [2] - The Nasdaq Composite climbed 0.7%, achieving a new record high, influenced by mixed performances among technology stocks [2] Economic Indicators - The Consumer Price Index (CPI) report for August indicated a headline annual inflation of 2.9% and core inflation steady at 3.1%, with a monthly rise of 0.4% in headline CPI [3] - Initial jobless claims reached a near four-year high, signaling a softening labor market, which reinforced expectations for a Federal Reserve rate cut [3] - Treasury yields eased in response to the economic reports, as traders anticipated the Fed's first rate cut of the year [3] Upcoming Events - The Federal Reserve's meeting on September 17, 2025, is highly anticipated, with expectations for the first interest rate cut of the year [4] - Key economic data releases are scheduled, including the Michigan Consumer Sentiment report and Retail Sales, Industrial Production, and Housing Starts [5] Corporate News - Oracle (ORCL) shares fell 3.6% after a previous surge of nearly 36% due to excitement over AI-related contracts [6] - Tesla (TSLA) gained 6%, while Apple (AAPL) rose over 1%, and Microsoft (MSFT) and Alphabet (GOOGL) saw slight increases [7] - Warner Bros. Discovery (WBD) shares soared 29% following news of a potential takeover bid from Paramount Skydance [8] - Synopsys Inc. (SNPS) plummeted 35.8% after missing earnings estimates, while GameStop Corp. (GME) rose 3.3% after beating expectations [10] Earnings Announcements - Adobe Inc. (ADBE) is expected to report earnings with a forecasted EPS of $4.21, a 10.50% increase year-over-year [11] - Other companies reporting include RH and RF Industries, with RF Industries expected to show a significant 200% increase in EPS year-over-year [11]

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)