Radcom (NASDAQ:RDCM) Posts Earnings Results

Radcom (NASDAQ:RDCM) announced its quarterly earnings data on Wednesday. The technology company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.06 by $0.05, FiscalAI reports. The company had revenue of $14.04 million for the quarter, compared to analyst estimates of $13.54 million. Radcom had a return on equity of 6.51% and a net margin of 10.47%.

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 NASDAQ RDCM traded up $1.08 during mid-day trading on Wednesday, reaching $11.20. 111,948 shares of the company’s stock were exchanged, compared to its average volume of 132,803. The company’s 50-day moving average is $10.20 and its 200-day moving average is $12.04. The firm has a market capitalization of $191.04 million, a price-to-earnings ratio of 26.61 and a beta of 0.77. Radcom has a 52-week low of $9.40 and a 52-week high of $16.74.

Radcom declared that its board has authorized a share repurchase program on Thursday, September 17th that allows the company to repurchase $20 million in shares. This buyback authorization allows the technology company to buy up to 11.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

RDCM has been the subject of several recent analyst reports. Needham & Company LLC cut their price objective on shares of Radcom from $18.00 to $14.00 and set a “buy” rating for the company in a research report on Wednesday, August 12th. Wall Street Zen upgraded shares of Radcom from a “sell” rating to a “hold” rating in a report on Saturday, September 12th. Zacks Research raised shares of Radcom from a “strong sell” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Weiss Ratings cut shares of Radcom from a “hold (c+)” rating to a “hold (c)” rating in a research note 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 stock. According to MarketBeat.com, the company presently 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.