Radcom (NASDAQ:RDCM) Releases Earnings Results, Misses Expectations By $0.33 EPS

Radcom (NASDAQ:RDCM) posted its quarterly earnings data on Wednesday. The technology company reported ($0.09) EPS for the quarter, missing the consensus estimate of $0.24 by ($0.33), FiscalAI reports. Radcom had a return on equity of 11.68% and a net margin of 17.18%.The company had revenue of $11.76 million during the quarter, compared to analysts’ expectations of $15.57 million.

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

• Second-quarter revenue fell sharply to $11.8 million, down 33.4% year over year, resulting in a non-GAAP operating loss of $2.2 million and a $1.5 million net loss. Management attributed the decline primarily to delayed customer expansion deployments.
• Several Tier 1 customers postponed private-cloud and on-premise expansion projects because server infrastructure costs increased substantially. RADCOM said the projects have been delayed rather than canceled, but expects deployment activity to normalize no earlier than the first quarter of 2027, with some activity potentially resuming in the fourth quarter of 2026.
• Management reaffirmed its revised 2026 revenue outlook of $57 million-$63 million, expects to remain non-GAAP profitable for the year, and is targeting positive free cash flow in the second half. It also expects double-digit revenue growth in 2027 as deferred deployments return.
• RADCOM reported three post-quarter wins, including a multi-year European contract with CETIN Networks, a competitive Asia-Pacific Tier 1 win, and an existing-customer renewal. The company said its pipeline remains healthy, with multiple opportunities advancing from evaluations to commercial discussions.
• With $109.7 million in cash and no debt, RADCOM plans to establish a $20 million-$25 million share repurchase program. The company also launched its Analytics Designer Module and continues investing in AI products, including RADCOM Neura, to expand its installed base and strategic partnerships.

Radcom Stock Up 3.3%

NASDAQ:RDCM traded up $0.33 during trading hours on Wednesday, hitting $10.38. 161,738 shares of the stock traded hands, compared to its average volume of 150,486. Radcom has a 1 year low of $9.40 and a 1 year high of $16.74. The company has a market cap of $173.76 million, a price-to-earnings ratio of 13.84 and a beta of 0.74. The stock has a 50 day moving average price of $12.84 and a 200 day moving average price of $12.91.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered Radcom from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $18.00.

Institutional Trading of Radcom

A number of hedge funds and other institutional investors have recently modified their holdings of RDCM. Raymond James Financial Inc. purchased a new position in shares of Radcom during the 2nd quarter valued at $34,000. Lazard Asset Management LLC increased its stake in Radcom by 171.1% in the 2nd quarter. Lazard Asset Management LLC now owns 8,136 shares of the technology company’s stock worth $110,000 after buying an additional 5,135 shares in the last quarter. Bank of America Corp DE increased its stake in Radcom by 93.8% in the 3rd quarter. Bank of America Corp DE now owns 9,014 shares of the technology company’s stock worth $131,000 after buying an additional 4,364 shares in the last quarter. Jump Financial LLC bought a new stake in Radcom during the second quarter valued at about $165,000. Finally, XTX Topco Ltd bought a new stake in Radcom during the fourth quarter valued at about $196,000. 48.32% of the stock is owned by hedge funds and other institutional investors.

Radcom Company Profile

Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.

Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.