RADCOM Announces Preliminary Second Quarter Revenue and Updated Full-Year Guidance
Rhea-AI Summary
RADCOM (NASDAQ: RDCM) issued preliminary expectations for its second quarter 2026, projecting revenue of approximately $12 million, citing customer deployment delays driven by higher component costs and supply constraints that have postponed purchasing decisions. The company reported no cancellations or competitive losses and views the impact as timing-related.
RADCOM cut its full-year 2026 revenue outlook to $57–$63 million (midpoint $60 million) but continues to expect non-GAAP profitability for 2026. Management indicated these delays could affect revenue timing through 2026 and targets a return to double-digit growth in 2027. Second quarter results will be released and discussed on an August 12, 2026 earnings call.
Positive
- Full-year 2026 revenue outlook maintained at $57–$63 million despite delays
- Non-GAAP profitability still expected for full-year 2026
- No order cancellations or competitive losses reported alongside revenue delays
Negative
- Preliminary Q2 2026 revenue only about $12 million
- 2026 revenue guidance reduced to $57–$63 million
- Deployment delays may continue to impact revenue timing through 2026
Market reaction after 2Q26 guidance update: RDCM -21.66%
Following this news, RDCM has declined 21.66%, reflecting a significant negative market reaction. Our momentum scanner has triggered 18 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $9.96. Trading volume is exceptionally heavy at 7.7x the average, suggesting significant selling pressure.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Earnings date notice | Neutral | -1.2% | Announced the August 12 release date and conference call schedule. |
| Jun 22 | Product launch | Positive | +0.2% | Launched Analytics Designer Module for real-time, on-demand network analytics. |
| May 27 | Conference participation | Neutral | -1.2% | Management announced participation in William Blair's annual growth stock conference. |
| May 19 | First-quarter earnings | Positive | -6.2% | Reported 12% year-over-year revenue growth and reaffirmed 2026 guidance. |
| May 04 | Earnings date notice | Neutral | -1.0% | Announced the May 19 release date and conference call schedule. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news reactions were predominantly negative despite mixed or positive announcements, with four divergences among five events.
Key Terms
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Customer Deployment Delays Driven by Higher Component Costs and Supply Constraints Impact Second Quarter Revenue and Full-Year Outlook
Second Quarter Earnings Release Call to be held on August 12
Based on preliminary analysis, management currently expects second quarter revenue to be approximately
"These delays are impacting the purchasing decisions of several of our customers, affecting our second quarter revenue and full year guidance," commented RADCOM's Chief Executive Officer, Benny Eppstein. "These delays became evident during the last few weeks of the quarter, and, based on what we know today, they could continue to affect the timing of revenue through the balance of 2026."
As a result, management is reducing its full-year 2026 revenue outlook to a range of
Management expects RADCOM to remain profitable on a non-GAAP basis for full-year 2026, inclusive of these revenue headwinds.
"Demand for our solutions and our relationships with existing customers remain strong," Mr. Eppstein added. "Our focus is on executing against the opportunities in front of us, supporting our existing customers and positioning the Company to return to sustainable growth as customer deployment activity normalizes. We expect to return to double-digit growth in 2027."
Second quarter financial results conference call:
As previously disclosed, RADCOM will release its financial results for the second quarter ended June 30, 2026, on Wednesday, August 12, 2026, before the opening of the
Conference call details:
Date / Time: Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel Time
Local Access: 03-9180609
Webcast (live and replay): https://www.veidan-conferencing.com/radcom
An archived replay of the call will be available on the RADCOM website following the live event.
For all investor inquiries, please contact:
Investor Relations:
Rob Fink or Joey Delahoussaye
FNK IR
rdcm@fnkir.com
646-809-4048/312-809-1087
Company Contact:
Hod Cohen
CFO
+972-3-645-5055
hod.cohen@radcom.com
About RADCOM
RADCOM (NASDAQ: RDCM) is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities. Its flagship platform, RADCOM ACE, harnesses AI-driven analytics and generative AI (GenAI) to improve customer experiences. From lab testing to full-scale deployment, RADCOM utilizes cutting-edge networking technologies to capture and analyze real-time data. Its advanced 5G portfolio delivers end-to-end network observability, from the radio access network (RAN) to the core.
Designed to be open, vendor-neutral, and cloud-agnostic, RADCOM's solutions drive next-generation network automation, optimization, and efficiency. By leveraging AI-powered intelligence, RADCOM reduces operational costs, enables predictive customer insights, and seamlessly integrates with business support systems (BSS), operations support systems (OSS), and service management platforms. Offering a complete, real-time view of mobile and fixed networks, RADCOM empowers telecom operators to ensure exceptional service quality, enhance user experiences, and build customer-centric networks.
Risks Regarding Forward-Looking Statements
Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "believe," "may," "might," "potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its preliminary second quarter 2026 revenue expectations, its updated full-year 2026 revenue outlook and guidance, its expectation of continued Non GAAP profitability for full-year 2026, the expected timing, duration and impact of the customer deployment delays on the timing of revenue through the balance of 2026, its belief that these dynamics reflect timing considerations rather than changes in demand, its expectation of returning to sustainable growth as customer deployment activity normalizes, and its expectation of returning to double-digit growth in 2027, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and, specifically, a decline in demand for the Company's products, delays in customer deployments and purchasing decisions, the risk that the Company's preliminary results differ from its final reported results for the second quarter of 2026, the Company's ability to achieve its full-year 2026 revenue guidance and to return to growth, the inability to timely develop and introduce new technologies, products, and applications, the timing of customer collections and resulting fluctuations in operating cash flow, reliance on a concentrated customer base, loss of market share and pressure on prices resulting from competition, and the effects of the conflict in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.
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SOURCE RADCOM Ltd.