RF INDUSTRIES LTD (NASDAQ:RFIL) Q3 Earnings Surpass Estimates, Stock Rises

RF INDUSTRIES LTD (NASDAQ:RFIL) has reported its third-quarter fiscal 2025 earnings, delivering results that notably exceeded analyst expectations on both revenue and earnings per share. The company’s performance has been met with a positive market reaction, as reflected in after-hours trading and recent stock momentum.

Earnings and Revenue Performance

The company posted net sales of $19.8 million for the quarter ended July 31, 2025, marking a 17.5% increase compared to the same period last year. This figure also came in ahead of the analyst consensus estimate of $18.89 million. On the bottom line, RF Industries reported non-GAAP earnings per share of $0.10, significantly surpassing the estimated $0.0612.

Key financial highlights from the quarter include:

• Revenue of $19.8M vs. estimate of $18.89M
• Non-GAAP EPS of $0.10 vs. estimate of $0.0612
• Gross margin improved to 34%, up from 29.5% year-over-year
• Operating income of $720,000, reversing an operating loss from the prior year
• Adjusted EBITDA reached $1.6 million, compared to $460,000 a year ago

Market Reaction and Price Action

The market response to these results has been notably positive. In after-hours trading following the earnings release, the stock showed an increase of approximately 4.65%. This builds on recent momentum, with the stock posting gains over the past week (0.19%), two weeks (0.12%), and month (0.06%). The strong performance relative to estimates, particularly on profitability metrics, appears to have reinforced investor confidence in the company's turnaround and growth trajectory.

Strategic Developments and Management Outlook

Management highlighted several factors contributing to the strong quarter, including improved operational execution, higher-value product adoption, and diversification into new end markets such as aerospace, transportation, and data centers. CEO Robert Dawson expressed confidence in the company's strategy, noting that adjusted EBITDA reached 8% of net sales and affirming the company's goal of achieving at least 10% adjusted EBITDA margins.

While the press release did not provide specific quantitative forward guidance, the company indicated optimism about future prospects, citing a solid backlog of $19.7 million at quarter-end and continued demand in key growth areas such as thermal cooling solutions and small cell products. The management commentary suggests alignment with analyst expectations for the upcoming periods, where estimates for Q4 revenue stand at $20.14 million and non-GAAP EPS at $0.0816.

Broader Context and Investor Takeaway

RF Industries’ results reflect a company in the midst of a operational and financial rebound, with four consecutive quarters of operating profitability. The expansion into higher-margin products and diversification beyond traditional telecom markets appears to be paying off, as evidenced by the improved gross margins and stronger earnings.

For further details on historical earnings, future estimates, and additional performance metrics, readers can review the full earnings and estimates data available here.

---

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.