Radcom (NASDAQ:RDCM) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Radcom (NASDAQ:RDCM) issued its quarterly earnings data on Tuesday. The technology company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01, FiscalAI reports. The company had revenue of $18.59 million during the quarter, compared to the consensus estimate of $18.61 million. Radcom had a return on equity of 11.53% and a net margin of 16.77%.

Here are the key takeaways from Radcom’s conference call:

• Q1 revenue rose 12% year over year to $18.6 million, while non-GAAP operating income increased to $3.7 million and operating margin expanded to 20.1%. Management said this reflects strong operating discipline and reaffirmed full-year 2026 revenue growth guidance of 8%-12%.
• The company signed a multi-year renewal with a tier 1 customer and expanded RADCOM ACE into more AI-driven use cases. Management said the broader deployment should deepen automation, speed issue resolution, and strengthen its role in 5G network assurance.
• RADCOM launched RADCOM Neura, an AI agent suite for telecom operators, and added a second certified ServiceNow connector. The company positioned these releases as concrete monetizable products that can be sold as standalone use cases, bundles, or through partner-led motions.
• Management highlighted growing traction with ecosystem partners such as ServiceNow, AWS, NVIDIA, Infosys, and others. They said partner-led selling is expanding reach, shortening adoption barriers, and helping pipeline growth without proportional increases in direct sales and marketing spend.
• The balance sheet remained strong, with $108.4 million in cash and short-term deposits at quarter-end. Cash flow was slightly negative in the quarter, mainly because of annual bonus payments.

Radcom Stock Performance

Shares of RDCM opened at $14.34 on Wednesday. The firm has a market cap of $240.05 million, a P/E ratio of 19.92 and a beta of 0.75. The business has a 50-day moving average of $13.19 and a 200 day moving average of $12.86. Radcom has a fifty-two week low of $10.41 and a fifty-two week high of $16.74.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on RDCM shares. Needham & Company LLC reissued a “buy” rating and issued a $18.00 price target on shares of Radcom in a research note on Wednesday, February 11th. Wall Street Zen lowered Radcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, March 21st. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $18.00.

Institutional Trading of Radcom

A number of hedge funds and other institutional investors have recently made changes to their positions in RDCM. Raymond James Financial Inc. bought a new position in shares of Radcom in the second quarter worth $34,000. Lazard Asset Management LLC boosted its holdings in Radcom by 171.1% during the 2nd quarter. Lazard Asset Management LLC now owns 8,136 shares of the technology company’s stock valued at $110,000 after acquiring an additional 5,135 shares during the period. Bank of America Corp DE increased its stake in shares of Radcom by 93.8% in the third quarter. Bank of America Corp DE now owns 9,014 shares of the technology company’s stock worth $131,000 after buying an additional 4,364 shares during the period. Jump Financial LLC purchased a new position in shares of Radcom in the second quarter valued at about $165,000. Finally, XTX Topco Ltd bought a new position in Radcom during the 4th quarter valued at approximately $196,000. 48.32% of the stock is currently owned by institutional investors.

About Radcom

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.