Radcom (NASDAQ:RDCM) Posts Earnings Results

Radcom (NASDAQ:RDCM) released its quarterly earnings results on Wednesday. The technology company reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.05, FiscalAI reports. The business had revenue of $14.04 million for the quarter, compared to the consensus estimate 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 Stock Performance

Shares of RDCM traded up $1.01 during mid-day 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 stock’s 50-day moving average is $10.20 and its 200-day moving average is $12.04. Radcom has a fifty-two week low of $9.40 and a fifty-two week high of $16.74. The company has a market cap of $189.89 million, a price-to-earnings ratio of 26.55 and a beta of 0.77.

Radcom announced that its Board of Directors has initiated a share buyback program on Thursday, September 17th that allows the company to buy back $20 million in shares. This buyback authorization allows the technology company to repurchase up to 11.8% of its shares through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

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