RF Industries turns profitable with Q2 FY26 net income of $879,000
RF Industries returned to profitability in Q2 FY26 with a net income of $879,000, compared to a loss of $245,000 in the prior year. Revenue rose 9% year-over-year to $20.7 million, while gross profit margin improved 360 basis points to 35.1%. Adjusted EBITDA nearly doubled to $2 million, supported by robust bookings of $26.3 million and a growing backlog.
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RF Industries, Ltd. reported consolidated net income of $879,000, or $0.08 per diluted share, for the second quarter of fiscal year 2026 ended April 30, 2026. This result marks a turnaround from a consolidated net loss of $(245,000), or $(0.02) per diluted share, in the same period last year. The company attributes the profitability to solid demand, disciplined execution, and an improved product mix.
Net sales for the quarter reached $20.7 million, a 9% increase from $18.9 million in the prior-year period and a 9% rise from $19.0 million in the first quarter of fiscal 2026. The company recorded second quarter bookings of $26.3 million, resulting in a backlog of $20 million at quarter-end, which has since grown to $20.1 million.
Operational efficiency improved significantly, with gross profit margin expanding to 35.1%, a 360-basis point improvement from 31.5% in the prior year period. Operating income was $1.1 million, an improvement of $1 million from operating income of $106,000 year-over-year. Adjusted EBITDA nearly doubled to $2 million from $1.1 million in the second quarter of fiscal 2025.
Non-GAAP net income was $1.6 million, or $0.14 per diluted share, compared to non-GAAP net income of $701,000, or $0.07 per diluted share, in the prior year. Robert Dawson, Chief Executive Officer of RF Industries, highlighted that the strategy to diversify into higher-value applications such as small cell, DAC, and custom cabling solutions helped mitigate concentration and access dynamic sectors like aerospace and data centers.
The following table outlines the key financial metrics for the reported quarter:
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Net Sales | $20.7 million | $18.9 million | 9% |
| Gross Profit Margin | 35.1% | 31.5% | 360 bps |
| Operating Income | $1.1 million | $106,000 | Improvement of $1 million |
| Consolidated Net Income | $879,000 | $(245,000) | Turned Profitable |
| Adjusted EBITDA | $2 million | $1.1 million | Increase |
RF Industries trades on the NASDAQ under the ticker symbol RFIL. The company's ability to expand margins and generate positive net income underscores its strengthened market position and operational leverage.
Can the current 35.1% gross margin be sustained as the company scales production for new high-value applications?
How does management plan to convert the $20.1 million backlog into revenue over the remainder of fiscal 2026?
What are the specific revenue growth targets for the aerospace and data center sectors over the next year?
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