RF Industries Ltd. (RFIL) had a very good Wednesday evening. Shares of the interconnect products manufacturer rocketed 20.94% in after-hours trading to $8.72 after the company reported fourth-quarter fiscal 2025 earnings that beat expectations and showed meaningful momentum across the business.
The Numbers Tell a Turnaround Story
The San Diego-based company posted fourth-quarter net sales of $22.7 million, representing a 23% increase from $18.5 million in the same period last year. That's also a solid 15% sequential bump from the third quarter's $19.8 million, suggesting the momentum isn't just year-over-year noise.
More importantly, RF Industries swung to profitability. The company reported consolidated net income of $174,000, or $0.02 per diluted share, compared to a loss of $238,000, or $0.02 per share, in the fourth quarter of fiscal 2024. That's a nice reversal, though the real story shows up in the non-GAAP numbers.
On a non-GAAP basis, net income came in at $2.1 million, or 20 cents per diluted share. That's a significant jump from just $394,000, or 4 cents per share, in the same quarter last year. When your adjusted earnings go from 4 cents to 20 cents, people tend to notice.
Perhaps the most impressive metric was the gross profit margin expansion. RF Industries hit a 37% gross margin in the quarter, up about 600 basis points from 31% a year earlier. That kind of margin improvement usually means either better pricing power, improved operational efficiency, or a favorable product mix shift. Whatever the company is doing, it's working.
Adjusted EBITDA reached $2.6 million, nearly tripling from $908,000 in the prior-year quarter.
Full-Year Performance Shows Sustained Growth
The strong quarter capped off a solid fiscal year. Net sales for fiscal 2025 totaled $80.6 million, up 24% from $64.9 million in fiscal 2024. The company also strengthened its balance sheet, reducing net debt by $4.6 million year-over-year.