RFIL Stock Is Ripping Higher — Breakout Q4 Earnings Confirm Turnaround Strategy Is Working

• The stock closed up nearly 22% on Thursday, hitting its best day in eight years after the company reported sales and gross margin growth.
• CEO Dawson said the general operating environment remains uncertain and has increased the company’s costs.
• B. Riley said that the results validated that fiscal 2025 was a breakout year driven by diversification beyond telecom into aerospace, transportation, and data centers.

Shares of RF Industries have surged nearly 61% in less than a month into the new year, drawing significant retail and investor interest in the telecom equipment manufacturer, as its latest financial results have boosted optimism.

The San Diego, California-based company on Thursday posted better-than-expected fourth-quarter profit and revenue, prompting bullish takes from Wall Street analysts as its push toward aerospace and data centers is starting to pay off. As a result, RFIL’s stock closed up nearly 22% on Thursday, marking its best session in eight years.

RF Industries is known for designing and manufacturing a broad range of interconnect products across diversified, growing markets, including wireless/wireline telecom, data communications, and industrial. The company's products include high-performance components for commercial applications, including RF connectors and adapters, data cables, wire harnesses, and fiber-optic cables.

RFIL’s Financials

For the fourth quarter, RFIL said net sales rose 23% to $22.7 million and reported a backlog of $15.5 million at quarter-end, driven by bookings of $18.5 million. The company also reported that gross profit margin was 37%, an improvement of about 600 basis points from 31% a year earlier.

In October, the company said that it received an additional $2 million order for custom cabling solutions from a leading aerospace company, strengthening its push into the aerospace industry.

“In fiscal 2026, we remain intensely focused on diversifying our end markets, driving further customer and market penetration, and launching new products and solutions that will help deliver another year of strong sales growth and profitability that our operating model is capable of producing,” said CEO Robert Dawson. He, however, added that the general operating environment remains uncertain and has increased the company’s costs.

Wall Street View

B. Riley raised the firm's price target on RF Industries to $10.25 from $9.25, according to TheFly. The firm said that the results validated that fiscal 2025 was a breakout year driven by diversification beyond telecom into aerospace, transportation, and data centers.

The results support a multi-year transformation to a higher-margin solutions provider, B. Riley said, and added that with operating leverage now evident and continued growth expected in fiscal 2026 from Direct-Air Cooling, small cells, and custom cabling.

What Is Retail Thinking?

Retail sentiment on RFIL stock jumped to ‘extremely bullish’ from ‘bullish’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. In the past year, the stock saw a 27% spike in followers on Stocktwits.

Shares of RF Industries have gained 125% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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