RF Industries Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Core Insights - RF Industries reported a strong financial performance for the fourth quarter and fiscal year ended October 31, 2025, with significant increases in net sales and profitability [1][5][6]. Fourth Quarter Fiscal 2025 Highlights and Operating Results - Net sales reached $22.7 million, marking a 23% increase year-over-year from $18.5 million [5][6]. - Gross profit margin improved to 37%, up approximately 600 basis points from 31% in the prior year quarter [6]. - Adjusted EBITDA for the quarter was $2.6 million, representing 11.5% of net sales, exceeding the company's target of 10% [5][6]. - Consolidated net income was $174,000, or $0.02 per diluted share, a turnaround from a net loss of $238,000 in the same quarter last year [6][18]. Fiscal 2025 Highlights and Operating Results - For the full fiscal year 2025, net sales totaled $80.6 million, a 24% increase compared to $64.9 million in fiscal year 2024 [6][18]. - Gross margins for the year were 33%, an improvement of approximately 400 basis points from 29% in the prior year [6]. - Adjusted EBITDA for the year was $6.1 million, significantly up from $838,000 in fiscal 2024 [6][22]. - The company reduced its net debt by $4.6 million compared to the same period last year [7]. Management Commentary - The CEO expressed satisfaction with the team's performance, highlighting the strategic transformation that has led to increased operating leverage and profitability [5][7]. - The company aims to continue its momentum into fiscal 2026, focusing on diversifying end markets and launching new products [7]. Backlog and Bookings - The backlog at the end of the fourth quarter was $15.5 million, with bookings of $18.5 million [6][15]. - As of the report date, the backlog stands at $12.4 million [6]. Cash and Inventory - Cash and cash equivalents at year-end were $5.1 million, a significant increase from $839,000 the previous year [6][17]. - Inventory decreased by 7% to $13.7 million year-over-year due to improvements in procurement and supply chain processes [6]. Company Overview - RF Industries designs and manufactures a wide range of interconnect products for various markets, including telecommunications and data communications [9]. - The company is headquartered in San Diego, California, with additional operations in New York, Connecticut, and New Jersey [9].