What is RF Industries's gross profit margin?

What does RF Industries do and what are its main business segments?

Did RF Industries beat or miss consensus estimates last quarter?

What were the key takeaways from RF Industries’s earnings call?

What is RF Industries's latest dividend and current dividend yield?

What were the key takeaways from RF Industries's earnings call?

What factors drove the changes in RF Industries's revenue and profit?

What guidance did RF Industries's management provide for the next earnings period?

- **Record Fiscal 2025 Performance**: Revenue up 24% to $80.6 million, gross margin expanded to 33%, and adjusted EBITDA surged to $6.1 million (12x prior year).
- **Q4 2025 Standout**: 23% YoY sales growth, 37% gross margin, and 11.5% EBITDA margin, exceeding 10% target.
- **Strategic Diversification**: Reduced telecom dependency to 50% of revenue, with growth in aerospace, transportation, and public safety.
- **2026 Outlook**: Anticipated sales growth with Q1 seasonality, followed by accelerating quarters. Interest savings of $1 million+ expected from improved credit terms.
- **Operational Excellence**: Inventory reduction, cost controls, and IT/process improvements driving profitability.


**【Management Opening Remarks】**
- Donni Case provided introductory remarks, outlining the purpose of the call and reminding participants of forward-looking statements and non-GAAP financial measures.

**【CEO Summary Section】**
- **Q4 2025 Results**: Net sales grew 23% YoY to $22.7 million, with gross profit margin improving to 37% (up 600 basis points YoY). Adjusted EBITDA was 11.5% of net sales, exceeding the 10% target.
- **Fiscal 2025 Highlights**: Full-year revenue increased 24% to $80.6 million, gross profit margin rose to 33% (up 400 basis points), and adjusted EBITDA reached $6.1 million (vs. $0.8 million in 2024).
- **Strategic Transformation**: Shift from component supplier to technology solutions provider, diversifying into aerospace, transportation, and public safety markets. Customer concentration reduced, with no single customer dominating growth.
- **2026 Outlook**: Anticipate another year of growth, with Q1 expected to be seasonally lower but accelerating in subsequent quarters.

**【COO Summary Section】**
- **Market Performance**: Strong demand in infrastructure (stadiums, airports), aerospace, and telecommunications. Supported 130+ projects in Q4, positioning for multiyear opportunities like the L.A. Olympics.
- **Operational Improvements**: Inventory alignment with demand, cost reduction initiatives, and IT/process enhancements for forecast accuracy. Cross-functional prioritization of high-value opportunities.
- **2026 Priorities**: Execute reliable growth, advance product roadmap, and improve business predictability.

**【CFO Financial Commentary】**
- **Q4 2025 Financials**: Non-GAAP net income of $2.1 million ($0.20 per share), up from $0.04 per share in Q4 2024. Full-year non-GAAP net income was $4.4 million ($0.40 per share), vs. a loss in 2024.
- **Balance Sheet Strength**: Reduced net debt by $4.6 million YoY. Cash of $5.1 million, working capital of $14.1 million, and a current ratio of 1.7:1.
- **Backlog**: $15.5 million as of Q4 end, reflecting project-based demand variability.
- **Cost Management**: Negotiated improved credit facility terms, reducing interest costs by ~$1 million annually.

**【Q&A Highlights】**
- **Growth Trajectory**: 2026 expected to follow 2025's accelerating trend, with Q1 seasonality followed by sequential growth.
- **Gross Margin Drivers**: Higher sales volume, favorable product mix (e.g., custom cabling for aerospace), and operational leverage.
- **Cost Challenges**: Wage inflation and supply chain costs offset by pricing and sales growth. 2026 interest savings projected at $1 million+.
- **New Products**: DAC, small cell, and thermal cooling systems gaining traction. Custom cabling and legacy products remain steady contributors.
- **Capital Allocation**: Debt reduction prioritized, with share buybacks and M&A on the horizon if opportunities arise.


RF Industries, Ltd. (RFIL) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 sales up 17.5% YoY to $19.8M, with 34% gross margin (vs. 29.5% last year) driven by high-margin aerospace, transportation, and DAC solutions.
- **Profitability Breakthrough**: Operating profit of $719K (vs. loss), 8% EBITDA ($1.6M), and non-GAAP net income of $1.1M, marking 4 straight quarters of profitability.
- **Diversification Payoff**: 34% of bookings from new markets, including aerospace repeat orders and U.S. airport projects. 100+ venues pipeline for 2026+ events.
- **Growth Momentum**: Q4 revenue expected to match Q3, with DAC and small cell solutions leading the way. 10% EBITDA target achievable via sales growth and operational efficiency.
- **Risk Management**: Tariff impacts minimal so far; inventory managed to support $19.8M+ sales levels.


**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales rose 17.5% YoY to $19.8 million, driven by higher-margin products and diversification into aerospace, transportation, and data centers.
- **Profitability**: Gross margin improved 450 bps to 34%, with operating profit of $719,000 (vs. loss last year). Adjusted EBITDA was $1.6 million (8% of sales), up from $460,000 in Q3 2024.
- **Diversification Strategy**: 34% of bookings from new end markets (aerospace, transportation, data centers), with repeat orders from a leading aerospace company and projects for major U.S. airports.
- **Backlog**: $19.7 million at quarter-end, reduced to $16.1 million by the call date, reflecting strong execution.

**【COO Remarks】**
- **Sales Execution**: Strong growth in aerospace, venues, and telecom, supported by marketing campaigns and cross-functional collaboration.
- **Operational Efficiency**: Inventory managed to mitigate tariffs, with cost reduction programs on track. Engineering focused on high-value solutions like small cell concealment and direct air cooling (DAC) systems.
- **Q4 Outlook**: Revenue expected to remain steady, with continued strength in DAC, aerospace, and venues.

**【CFO Financial Commentary】**
- **Financial Health**: $3 million cash, $13.1 million working capital, and a 1.6:1 current ratio. Inventory at $14.2 million, up from Q2 but managed to support demand.
- **Margins**: Non-GAAP net income of $1.1 million ($0.10 per share), up from a loss last year. Gross margin improvement due to higher mix of DAC and small cell solutions.
- **Leverage**: Operating leverage from higher sales (e.g., $19.8 million vs. $16.8 million last year) reduced fixed costs per unit.

**【Q&A Highlights】**
- **Gross Margin Drivers**: 34% margin driven by DAC, small cells, and aerospace projects. Q4 margin expected to remain strong but variable due to mix.
- **Pipeline Visibility**: 100+ venues pipeline for 2026+ events (e.g., Olympics, World Cup). Transportation and data center trials in process.
- **EBITDA Target**: 10% achievable through higher sales and operational improvements (e.g., streamlined supply chain, predictable project shipments).
- **Tariff Mitigation**: Nominal price increases so far; team actively managing supply chain risks.


RF Industries, Ltd. (RFIL) Q3 2025 Earnings Call Transcript

- **Revenue Surge**: 17.4% YoY growth to $18.9M, fueled by aerospace, public safety, and industrial markets.
- **Profitability Breakthrough**: 31.5% gross margin, $1.1M adjusted EBITDA (6% margin), and first Q2 operating profit in 5 years.
- **Backlog Boom**: $18.4M backlog (up 23% QoQ), with wins in small cells, DAC systems, and aerospace.
- **Tariff Resilience**: 80%+ domestic production; no material delays despite tariffs.
- **Credit Facility Upgrade**: New terms expected Q3/Q4 to reduce borrowing costs and enhance liquidity.
- **Growth Drivers**: DAC systems (70% OPEX savings vs. HVAC), small cell/DAS pipeline (100+ venues), and aerospace repeat business.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 net sales of $18.9 million, up 17.4% YoY, driven by diverse end markets including aerospace, public safety, and industrial OEMs.
- **Profitability**: Gross margin improved to 31.5% (vs. 29.9% YoY), operating profit of $106,000 (vs. $415,000 loss YoY), and adjusted EBITDA of $1.1 million (6% margin).
- **Backlog Expansion**: $15 million as of Q2 end, rising to $18.4 million by the call date, reflecting strong demand across wireless, DAC systems, and aerospace projects.
- **Market Diversification**: New wins in energy, transportation, and data centers; repeat business from a leading aerospace customer and growing small cell/DAS pipeline (100+ venues).
- **Tariff Resilience**: 80%+ domestically sourced production; cost control measures mitigate tariff impacts, with no material delays in Q2.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net loss of $0.02/share vs. $0.41 loss YoY; non-GAAP net income of $0.07/share vs. $0.01 YoY. Adjusted EBITDA up 92% YoY to $1.1 million.
- **Balance Sheet**: $3.6 million cash, $12.1 million working capital, and $8 million borrowed under revolving credit. Inventory down 14% YoY to $12.6 million.
- **Liquidity**: Exploring more favorable credit terms to reduce borrowing costs; strong lender interest reflects improved financial health.

**【Q&A Highlights】**
- **Backlog Composition**: $18.4 million spread across multiple product lines and customers, with varying project timelines (6-18 months). Book-and-ship business adds unpredictability.
- **Revenue Mix**: Wireless (small cells/DAS) and industrial/OEM (aerospace, DAC) driving growth. No single customer >11% of sales; top 5 customers stable at ~30%.
- **DAC Momentum**: Next-gen systems with NEMA 4 certification targeting wireline telecom, edge data centers, and energy. DAC funded by O&M budgets, reducing CapEx correlation.
- **Credit Facility**: Expect new terms in Q3/Q4 2025, potentially lowering interest rates and improving liquidity.
- **EBITDA Target**: 10% margin achievable via margin expansion (31.5% gross), SG&A control, and operational efficiency. DAC and small cell growth key to accelerating progress.


RF Industries (RFIL)-16 Jun 25-2025 Q2 Earnings call transcript

- **Revenue Surge**: 42.7% YoY growth to $19.2M, driven by high-value solutions and OpEx spending.
- **Margin Milestone**: Gross margin hits 29.8%, targeting 30%+ with new product line maturity.
- **Market Diversification**: Aerospace win and non-carrier sales diversify risk, reducing reliance on wireless CapEx.
- **Cash Flow Strength**: Sequential growth defies seasonality, with $1.3M cash and $11.7M working capital supporting expansion.
- **Debt Management**: $8.1M debt position with plans to optimize financing as cash flow improves.

**【CEO Key Highlights】**
- Q1 2025 revenue surged 42.7% YoY to $19.2M, driven by higher-value solutions like DAC thermal cooling and small cell systems.
- Gross margin improved to 29.8%, aligning with the 30% target, supported by better product mix and cost efficiencies.
- Backlog remained stable at $15.2M, signaling strong demand despite seasonal trends.
- Expansion into aerospace and other non-carrier markets diversifies revenue streams, with a notable win from a leading aerospace company.
- Tariffs currently minimal impact (6% of revenue from exports), but monitoring ongoing trade policy changes.

**【CFO Financial Breakdown】**
- Non-GAAP EPS of $0.04, up from a loss of $0.14 YoY, reflecting improved profitability.
- Sequential revenue growth of 4% defied seasonal weakness, driven by OpEx-related sales (e.g., thermal cooling systems).
- Inventory reduced to $13.5M from $18M YoY, optimizing supply chain for 2025 demand.
- Cash position of $1.3M with $11.7M working capital, supporting liquidity and strategic investments.
- Debt at $8.1M, with plans to explore cheaper financing as cash flow improves.

**【Q&A Key Takeaways】**
- **Product Line Growth**: DAC thermal cooling and small cell solutions contributed significantly, with OpEx-driven sales outpacing traditional CapEx.
- **Gross Margin Outlook**: 30% target achievable, with potential upside from maturing new product lines and operational optimizations.
- **Sales Team Expansion**: Incremental hires focused on high-potential accounts, with minimal incremental costs.
- **Solutions Strategy**: Transition from components to integrated systems (e.g., small cell solutions) unlocks higher-margin opportunities.
- **Cash Flow & Debt**: Expect cash flow generation to support debt reduction, with focus on optimizing capital structure as performance improves.
- **Microlab Performance**: Stable contributor to bill of materials, benefiting from carrier densification trends, though quarterly variability persists.

RF Industries (RFIL)-17 Mar 25-2025 Q1 Earnings call transcript

- **Q4 2024 Strong Recovery**: $18.5M sales (16% YoY), 31.3% gross margin, first operating profit in years.
- **Debt Reduction Success**: $6M debt paydown to $8.2M, inventory optimized to $14.7M.
- **2025 Growth Plan**: Target 10%+ EBITDA via operational restructuring, stadium builds, and DAC thermal cooling expansion.
- **Key Market Shifts**: 50%+ OpEx revenue in carrier space, $42B stadium market opportunity by 2029.
- **Cost Efficiency**: FY2024 expenses down 10%, 2025 infrastructure redesign to drive scalability.


**【CEO Summary Section】**
- Q4 2024 net sales: $18.5M (16% YoY growth), driven by hybrid fiber shipments and backlog clearance.
- Gross margin improved to 31.3% (up 290bps YoY), with first operating profit in several quarters.
- FY2024 debt reduced by $6M to $8.2M, ending year with $14.7M inventory and $11M working capital.
- 2025 focus: sales growth, EBITDA margin >10%, and operational restructuring for scalability.

**【COO Sales & Ops Highlights】**
- Expanded carrier ecosystem presence, capturing OpEx spend alongside CapEx.
- Stadium/venue builds resuming, targeting $42B market by 2029 with interconnect solutions.
- Cost control: FY2024 expenses down 10%, despite wage/insurance pressures.
- New sales talent added with minimal expense impact, targeting Tier 1 wireless and industrial markets.

**【CFO Financial Details】**
- Q4 2024: 
  - Adjusted EBITDA: $908K (vs. -$108K YoY)
  - Non-GAAP EPS: $0.04 (vs. -$0.04 YoY)
  - Backlog: $19.5M at quarter-end, now $14.9M post-shipments.
- FY2024: 
  - Sales: $64.9M (10% YoY decline)
  - Adjusted EBITDA: $838K (vs. $460M YoY)
  - Cash: $839K, current ratio 1.6.

**【Q&A Key Themes】**
1. **Revenue Drivers**: Hybrid fiber shipments, stadium builds, DAC thermal cooling wins.
2. **Product Mix Shift**: Small cells (5G densification), DAC solutions, industrial interconnect.
3. **Operational Efficiency**: 
  - 2025 infrastructure redesign targeting 10%+ EBITDA margin.
  - East/West coast production balancing to reduce costs.
4. **Sales Team Strategy**: Experienced hires (e.g., stadium/industrial experts) with existing customer relationships.
5. **DAC Thermal Cooling**: 
  - 50-50 split between OpEx/CapEx in carrier space.
  - Multi-year deployment cycles reducing seasonality.


RFIL

RFIL fundamentals

Earnings Call

You can ask Aime