RF Industries Posts Record Sales as Margins Broaden

RF Industries crossed a threshold its recent cost-cutting program was designed to reach. Quarterly sales moved above $20 million, while profitability accelerated faster than revenue.

The San Diego-based interconnect-products maker reported fiscal third-quarter net sales of $23.96 million for the period ended July 31, 2026, up 21% from the year-earlier quarter and 16% from fiscal second-quarter revenue of $20.7 million. Gross profit climbed 27% to roughly $8.5 million, lifting gross margin to 35.6% from 34%.

The operating figures were sharper still. Operating income reached $1.8 million, compared with $720,000 a year earlier, while consolidated net income rose to $1.44 million, or 12 cents a diluted share, from $392,000, or 4 cents. Adjusted EBITDA increased about 71% to $2.7 million, equal to 11.1% of sales and above management’s long-stated 10% target. On a non-GAAP basis, net income doubled to $2.2 million, or 19 cents a share.

The mechanism matters. RF Industries has been steering the business away from lower-value component sales and toward integrated systems, custom cabling and application-specific products. Its prior annual report identified small-cell enclosures, direct-air-cooling systems and aerospace-oriented custom cabling as major growth areas, with demand also tied to telecommunications infrastructure, data centers and transportation.

Orders provided another signal that the quarter was not simply a shipment spike. Bookings totaled $22.5 million, and backlog stood at $18.6 million at the end of July before rising to $19.8 million by the earnings announcement. Management said fourth-quarter sales should be roughly in line with, or above, the third-quarter level, citing continued momentum in small-cell products and direct-air-cooling systems.

For investors, the question now shifts from whether RF Industries can grow to whether it can preserve this mix and margin profile as volumes expand. The latest quarter offers a stronger answer than the headline alone: revenue is scaling, but the earnings conversion is scaling faster.