RF Industries Reports 21.1% Revenue Growth in Q3 2026

RF Industries, Ltd. reported a significant increase in financial performance for the third quarter and nine months ended July 31, 2026, as detailed in its latest 10-Q filing. The company achieved net sales of $24.0 million for the quarter, marking a 21.1% increase from $19.8 million in the same period last year. For the nine-month period, sales rose by 9.9% to $63.6 million compared to $57.9 million in the prior year. The growth was primarily driven by a 41.6% increase in custom cabling products, which reached $10.1 million, and a 26.1% rise in interconnect products, totaling $7.8 million. However, sales from integrated systems decreased by 6.7% to $6.0 million due to timing delays in small cell deployments.

The company's gross profit also improved, rising to $8.5 million for the quarter, up from $6.7 million, with gross margins increasing to 35.6% from 34.0%. This improvement was attributed to a favorable product mix and operational efficiencies, alongside a one-time tariff refund of $0.3 million that reduced costs. Operating income for the quarter was reported at $1.8 million, compared to $720,000 in the previous year, while net income reached $1.4 million, a notable increase from $392,000.

RF Industries has made strategic organizational changes, consolidating its operations into a single reportable segment to enhance efficiency. The company continues to focus on cost management and operational improvements, which have contributed to positive cash flow and increased liquidity. As of July 31, 2026, the company reported a backlog of $18.6 million, up from $15.5 million, indicating strong future demand, particularly in integrated systems.

Operationally, RF Industries has seen a rise in employee headcount and engagement metrics, reflecting its growth strategy. The company has also maintained a healthy cash position, with $4.5 million in cash and cash equivalents, and a current ratio of approximately 2.0:1. The management expressed confidence in sustaining profitability and cash flow, with plans for continued organic growth and potential acquisitions to diversify its product offerings.

Looking ahead, RF Industries aims to leverage its operational efficiencies and market demand to drive further growth. The company remains cautious about external factors that could impact its performance, including market conditions and customer demand fluctuations. Management is committed to ongoing improvements and strategic initiatives to enhance shareholder value and ensure long-term sustainability.