RF Industries 2025 Q2 Earnings Narrowed Losses as Net Income Improves 95%

Generated by AI AgentAinvest Earnings Report Digest
Tuesday, Jun 17, 2025 3:04 am ET2min read
RF Industries (RFIL) reported its fiscal 2025 Q2 earnings on Jun 16th, 2025. The total revenue of increased by 17.4% to $18.91 million in 2025 Q2, up from $16.11 million in 2024 Q2. This performance beat expectations as the company showed significant improvement in profitability metrics. RF Industries anticipates continued momentum into the back half of the year, supported by a growing backlog of $18.4 million. The company remains optimistic about achieving its financial targets.

Revenue
RF Industries experienced a substantial revenue increase for fiscal 2025 Q2, with total sales reaching $18.91 million, marking a 17.4% rise compared to the same period in 2024. The RF Connector and Cable Assembly segment generated $9.36 million, while the Custom Cabling Manufacturing and Assembly segment contributed $9.55 million, driving the overall revenue growth.

Earnings/Net Income
RF Industries narrowed its losses to $0.02 per share in 2025 Q2 from a loss of $0.41 per share in 2024 Q2, marking a 95.1% improvement. The company also reduced its net loss to $245,000 in 2025 Q2, a significant 94.3% decrease compared to the $4.29 million net loss reported in 2024 Q2. This improvement in earnings per share reflects a positive trend.

Price Action
The stock price of RF Industries jumped 8.76% during the latest trading day, climbed 7.97% during the most recent full trading week, and increased 12.88% month-to-date.

Post-Earnings Price Action Review
The strategy of buying stock when revenues exceeded expectations and holding for 30 days resulted in poor performance. Despite the company's recent financial improvements, this approach yielded a return of -62.02%, significantly underperforming the benchmark return of 34.61%. The strategy had an excess return of -96.63% and a compound annual growth rate (CAGR) of -23.34%, indicating a failure to capitalize on market gains. Additionally, it experienced a high maximum drawdown of -69.02%, suggesting substantial risk. The Sharpe ratio stood at -0.73, indicating that the risk taken did not provide satisfactory returns, highlighting the strategy's ineffectiveness.

CEO Commentary
“Following an exceptionally strong first quarter, our team closed out a very successful second quarter that continued to reflect RFI’s evolution from a cable and connector company to a valued partner offering innovative, data and technology-driven solutions for diverse end markets. Fiscal second quarter net sales grew 17% to $18.9 million, and gross profit margin was 31.5%, exceeding our target goal of 30%. Our non-GAAP net income was $701 thousand, and adjusted EBITDA was $1.1 million. We are on a different and faster track than the old RFI, yet our foundational values remain the same,” said Robert Dawson, Chief Executive Officer of RF Industries.

Guidance
With our growing backlog currently at $18.4 million, we anticipate that momentum will continue into the back half of the year. We are focused on achieving our targets with optimism, and we expect our adjusted EBITDA margin to approach 10% as we drive innovation and expand our reach across new markets. Despite uncertainties surrounding tariffs, we are executing on our plan and remain committed to delivering high-value solutions while maintaining a diverse supply chain primarily based in the U.S.

Additional News
In recent non-earnings related news, RF Industries has been actively expanding its leadership team, announcing the appointment of a new Chief Operating Officer to drive operational efficiencies and support the company's strategic growth initiatives. This move aligns with RF Industries' ongoing transformation from a traditional cable and connector manufacturer to a comprehensive technology solutions provider. Additionally, the company has been focusing on strengthening its supply chain by increasing U.S.-based production capabilities, which is expected to enhance supply chain resilience and appeal to customers concerned with security. Furthermore, RF Industries continues to explore new markets and partnerships, particularly in the wireless and aerospace sectors, to diversify its business portfolio and capitalize on emerging industry trends.

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