Radcom (NASDAQ:RDCM) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Radcom (NASDAQ:RDCM) released its quarterly earnings data on Wednesday. The technology company reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.05, FiscalAI reports. Radcom had a return on equity of 3.71% and a net margin of 6.40%. The firm had revenue of $14.04 million during the quarter, compared to the consensus estimate of $13.54 million.

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 Price Performance

Shares of RDCM stock opened at $10.61 on Friday. Radcom has a 1-year low of $9.40 and a 1-year high of $16.74. The stock’s 50-day moving average is $10.24 and its 200 day moving average is $12.02. The company has a market cap of $181.01 million, a P/E ratio of 44.21 and a beta of 0.77.

Analyst Ratings Changes

A number of research analysts have commented on RDCM shares. Weiss Ratings downgraded shares of Radcom from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, September 9th. Zacks Research raised shares of Radcom from a “strong sell” rating to a “hold” rating in a research report on Monday, October 12th. Needham & Company LLC increased their price objective on shares of Radcom from $14.00 to $16.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Wall Street Zen raised shares of Radcom from a “sell” rating to a “hold” rating in a report on Saturday, September 12th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $16.00.

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

Radcom Company Profile

RADCOM Ltd. develops network intelligence and service assurance solutions for communications service providers. Its software helps operators monitor network performance, identify service issues and analyze customer experience across mobile and other communications networks. The company’s portfolio includes cloud-native monitoring and analytics products designed for modern virtualized networks, including 5G. RADCOM’s solutions collect and analyze network data to help providers troubleshoot problems and manage service quality.