RF Industries (RFIL) experienced a remarkable surge in its stock value during after-hours trading, with shares climbing over 20%. This impressive rally was fueled by the company's robust financial performance in the fourth quarter of fiscal 2025, as detailed in its latest earnings report. The positive results indicate a strong operational period, leading to heightened investor confidence and a significant uplift in market valuation.
The interconnect products manufacturer, based in San Diego, disclosed a substantial increase in its fourth-quarter net sales, reaching $22.7 million. This figure represents a 23% rise compared to the $18.5 million reported in the same period of the previous year. Furthermore, the company demonstrated a 15% sequential growth from the third quarter's $19.8 million, highlighting consistent upward momentum. A pivotal financial turnaround was also observed, with RF Industries moving from a consolidated net loss of $238,000, or $0.02 per diluted share, in Q4 2024 to a consolidated net income of $174,000, or $0.02 per diluted share, in Q4 2025. Non-GAAP net income showed an even more pronounced improvement, soaring to $2.1 million, or 20 cents per diluted share, from $394,000, or 4 cents per share, in the prior year.
Operational efficiency also saw considerable gains, with the gross profit margin expanding to 37%, a notable increase of approximately 600 basis points from 31% in the corresponding quarter of the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled, reaching $2.6 million, up from $908,000 a year earlier. For the entire fiscal year 2025, net sales totaled $80.6 million, marking a 24% increase from $64.9 million in fiscal 2024. Concurrently, the company successfully reduced its net debt by $4.6 million year-over-year, strengthening its financial position.
From a market perspective, RF Industries' Relative Strength Index (RSI) stood at 71.22, indicating strong buying interest. The company's market capitalization reached $76.91 million, with its shares fluctuating between a 52-week high of $9.56 and a 52-week low of $3.39. Over the past year, RF Industries Ltd. shares have appreciated by 75.43%, reflecting a robust bullish trend. Closing at $7.21 on Wednesday, an 8.26% increase, the stock is currently trading at 61.91% of its 52-week range, suggesting it is nearing its peak and warranting close observation for potential resistance. Benzinga's stock rankings further underscore a positive price trajectory across all timeframes for RFIL.
RF Industries' recent financial disclosures reveal a period of robust expansion and enhanced profitability. The company's strategic initiatives and operational improvements have translated into significant revenue growth and a strong bottom line. These positive indicators have been well-received by the market, driving a substantial increase in share value and solidifying the company's position within its sector. The consistent performance metrics, coupled with a healthy financial outlook, suggest a promising trajectory for RF Industries in the foreseeable future.