RF Industries(RFIL) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter of fiscal 2026 were $19.0 million, a 1% decrease from $19.2 million year-over-year and a 16% decrease from $22.7 million in the fourth quarter of fiscal 2025[7] - Gross profit margin improved by 250 basis points to 32.3%, up from 29.8% in the prior year quarter[7] - Operating income increased to $177,000, more than tripling from $56,000 year-over-year[7] - Adjusted EBITDA rose 22% to $1.1 million, compared to $867,000 in the same quarter last year[7] - Non-GAAP net income was $659,000, or $0.06 per diluted share, compared to $397,000, or $0.04 per diluted share, in the first quarter of fiscal 2025[7] - Consolidated net loss improved to $50,000, or $0.00 per diluted share, from a net loss of $245,000, or $0.02 per diluted share, year-over-year[7] - Consolidated net loss for the three months ended January 31, 2026, was $50 million, a significant improvement from a loss of $245 million in the same period of 2025[25] - Adjusted EBITDA increased to $1,059 million for the three months ended January 31, 2026, compared to $867 million in the same period of 2025, reflecting a growth of approximately 22%[25] Backlog and Future Expectations - Backlog at the end of the quarter was $14.4 million, with first quarter bookings of $17.9 million; current backlog stands at $18.6 million[7] - The management expects revenue growth to accelerate in the second half of fiscal 2026 due to a significant increase in backlog[8] Cost Management and Expenses - Stock-based compensation expense rose to $264 million in Q1 2026, up from $195 million in Q1 2025, indicating increased investment in employee incentives[25] - Other expenses decreased to $193 million in Q1 2026 from $265 million in Q1 2025, showing improved cost management[25] - Provision for income taxes was $34 million for the three months ended January 31, 2026, slightly down from $36 million in the same period of 2025[25] - Depreciation expense remained relatively stable at $207 million in Q1 2026 compared to $205 million in Q1 2025[25] - Amortization expense was consistent at $411 million for both Q1 2026 and Q1 2025, indicating no new significant intangible assets were added[25] Strategic Initiatives - The company aims to diversify its customer base and expand into new verticals such as wireline, cable, aerospace, and datacenters[8] - Total assets decreased to $70.335 million from $73.046 million as of October 31, 2025[19]