Radcom (NASDAQ:RDCM) Announces Earnings Results

Key Points

• Radcom beat quarterly estimates, reporting EPS of $0.11 versus $0.06 expected and revenue of $14.04 million versus $13.54 million expected. Revenue rose 19.4% sequentially but fell 23.6% year over year, and the company reaffirmed its 2026 revenue outlook of $57 million to $63 million.
• The company returned to non-GAAP operating income of $700,000, generated $1.7 million in quarterly cash flow, and ended the quarter with $111.4 million in cash and no debt. It plans to begin a previously authorized $20 million share repurchase after the blackout period.
• Radcom won contracts replacing incumbent vendors at CETIN Networks and Vietnam’s VNPT, but server costs and supply constraints have delayed some customer deployments into early 2027.

Radcom (NASDAQ:RDCM - Get Free Report) released its earnings results on Wednesday. The technology company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.05, FiscalAI reports. The business had revenue of $14.04 million for the quarter, compared to analyst estimates of $13.54 million. Radcom had a net margin of 10.47% and a return on equity of 6.51%.

Here are the key takeaways from Radcom's conference call:

• Third-quarter revenue was $14.04 million, up 19.4% sequentially but down 23.6% year over year. RADCOM reaffirmed its 2026 revenue outlook of $57 million to $63 million.
• RADCOM returned to non-GAAP operating income of $700,000 after a $2.2 million loss in Q2 and generated $1.7 million in quarterly cash flow. It ended with $111.4 million in cash and no debt, and expects to begin its authorized share buyback after the blackout period.
• The company closed two competitive wins, replacing incumbent vendors at CETIN Networks and Vietnam’s VNPT. The VNPT deal initially covers roaming assurance, with potential to expand across its wider network.
• Management said server costs and supply constraints have delayed customer deployments; some upgrades originally expected in 2026 are now anticipated in early 2027. Management cited encouraging signs, including orders received for that period.
• RADCOM reported multiple active proofs of concept and field trials, with management estimating a high-single-digit number across North America and Europe; contract-to-revenue timing can range from six months to a year. Its AI products are being evaluated by customers and prospects, but the company’s return to double-digit growth in 2027 remains an expectation.

Radcom Trading Up 10.0%

RDCM stock traded up $1.01 during midday trading on Wednesday, hitting $11.13. 109,872 shares of the company's stock were exchanged, compared to its average volume of 132,796. The business has a 50-day simple moving average of $10.20 and a two-hundred day simple moving average of $12.04. The stock has a market capitalization of $189.89 million, a PE ratio of 26.55 and a beta of 0.77. Radcom has a 1-year low of $9.40 and a 1-year high of $16.74.

Radcom declared that its Board of Directors has authorized a stock repurchase program on Thursday, September 17th that allows the company to repurchase $20 million in shares. This repurchase authorization allows the technology company to purchase up to 11.8% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

RDCM has been the topic of a number of recent research reports. Wall Street Zen raised Radcom from a "sell" rating to a "hold" rating in a research note on Saturday, September 12th. Zacks Research raised Radcom from a "strong sell" rating to a "hold" rating in a research note on Monday, October 12th. Needham & Company LLC reduced their price target on Radcom from $18.00 to $14.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Finally, Weiss Ratings lowered shares of Radcom from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, September 9th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, Radcom has a consensus rating of "Hold" and an average target price of $14.00.

Radcom Company Profile

RADCOM Ltd. is an Israeli provider of cloud-native network intelligence and service assurance solutions for communications service providers. Its software helps telecommunications operators monitor network performance, identify service issues, and improve customer experiences across mobile, fixed, 4G, and 5G networks. The company's offerings include RADCOM MaveriQ, a cloud-native network assurance platform, and RADCOM ACE, an analytics and automation solution designed to support real-time network visibility and service quality management.

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