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

Radcom (NASDAQ:RDCM) issued its earnings results on Wednesday. The technology company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.06 by $0.05, FiscalAI reports. Radcom had a return on equity of 6.51% and a net margin of 10.47%. The company 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

NASDAQ:RDCM opened at $11.43 on Thursday. The firm has a 50-day moving average of $10.23 and a 200-day moving average of $12.03. The company has a market cap of $195.00 million, a PE ratio of 27.21 and a beta of 0.77. Radcom has a one year low of $9.40 and a one year high of $16.74.

More Radcom News

These are some of the RDCM news items that stood out recently:

• Positive Sentiment: Radcom reported Q3 adjusted earnings of $0.11 per share, above the $0.06 consensus, and revenue of $14.04 million, topping the $13.54 million estimate. Radcom Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Revenue increased 19.4% from the prior quarter, and the company returned to quarterly non-GAAP operating income while maintaining positive cash flow—signs of a sequential recovery. RADCOM Reports Third Quarter 2026 Results
• Negative Sentiment: Despite beating estimates, Q3 revenue fell 23.6% year over year, and earnings declined from $0.29 per share a year earlier. Radcom Q3 Income Drops

Radcom declared that its Board of Directors has initiated a share repurchase plan on Thursday, September 17th that allows the company to repurchase $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 plans are usually a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

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

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.