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

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

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 Performance

Shares of NASDAQ RDCM traded down $0.15 during trading on Thursday, hitting $10.17. The company had a trading volume of 45,868 shares, compared to its average volume of 150,561. Radcom has a 12 month low of $9.40 and a 12 month high of $16.74. The firm has a market capitalization of $170.29 million, a P/E ratio of 13.55 and a beta of 0.74. The stock has a 50 day simple moving average of $12.76 and a 200 day simple moving average of $12.89.

Analyst Ratings Changes

A number of equities research analysts have commented on RDCM shares. Needham & Company LLC cut their target price on shares of Radcom from $18.00 to $14.00 and set a “buy” rating for the company in a research report on Wednesday. Wall Street Zen downgraded Radcom from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $14.00.

Institutional Investors Weigh In On Radcom

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Trexquant Investment LP raised its position in shares of Radcom by 19.9% during the 4th quarter. Trexquant Investment LP now owns 55,896 shares of the technology company’s stock valued at $731,000 after purchasing an additional 9,271 shares during the period. Squarepoint Ops LLC purchased a new stake in Radcom in the 4th quarter worth $823,000. Walleye Capital LLC bought a new stake in Radcom during the fourth quarter valued at about $741,000. Boston Partners lifted its position in shares of Radcom by 35.3% in the fourth quarter. Boston Partners now owns 25,624 shares of the technology company’s stock valued at $335,000 after acquiring an additional 6,681 shares in the last quarter. Finally, Jane Street Group LLC bought a new position in shares of Radcom in the fourth quarter worth about $365,000. Institutional investors own 48.32% of the company’s stock.

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.