RF Industries turned in a strong fiscal Q3 2025, notching year-over-year growth, improved profitability, and meaningful traction in newer end-markets.
In the quarter ended July 31, net sales climbed to about $19.8 million, up 17.5% from the prior year and 4.7% sequentially. Gross margin widened to 34%—comfortably above management’s 30% target—powered by a richer mix and ongoing cost discipline. Operating income reached roughly $720,000 versus an operating loss a year ago, while adjusted EBITDA came in near $1.6 million (about 8% of sales). RF Industries also exited the quarter with $24.5 million in bookings and a $19.7 million backlog, implying a book-to-bill above 1.0.
On the bottom line, the company reported non-GAAP net income of about $1.1 million, or $0.10 per diluted share, reflecting the margin gains and operating leverage flowing through the model.
Diversifying beyond traditional telecom
Management highlighted continued progress diversifying the customer base and leaning into higher-value solutions across aerospace, transportation, and data centers—while staying positioned for upcoming stadium and large-venue buildouts tied to global events. That mix shift is a key driver behind the margin improvement and the company’s string of quarterly operating profits.
Fresh follow-on orders reinforce the trend
In mid-July, RF Industries announced $2.3 million in follow-on awards supporting a major satellite program and a state-of-the-art spacecraft assembly line—evidence of growing credibility in aerospace.
And in late June, the company disclosed $1.7 million in follow-on orders from a Tier-1 U.S. carrier for 5G deployments, underscoring staying power with top operators.
According to analysts, taken together—double-digit revenue growth, sustained gross margin expansion, four straight quarters of operating profit, and expanding exposure to secular growth arenas like 5G densification and commercial space—RF Industries looks to be executing on its transformation from components supplier to solutions partner. The solid bookings and healthy backlog add visibility into the coming quarters, even as management remains watchful about macro factors like tariffs and general market conditions.
