RADCOM Delivers First Quarter 12% Y-o-Y Revenue Growth and Expanding Y-o-Y Operating Margins
Rhea-AI Summary
RADCOM (Nasdaq:RDCM) reported Q1 2026 revenue of $18.6 million, up 12% year-over-year, with expanding GAAP and non-GAAP operating margins. GAAP net income was $3.1 million ($0.18 per diluted share), and non-GAAP net income was $4.7 million ($0.28).
The company reaffirmed 2026 revenue guidance of 8%–12% growth, implying $78.6 million at the midpoint, held $108.4 million in cash and deposits with no debt, signed a multi-year Tier-1 renewal, launched RADCOM Neura, and announced the resignation of five directors ahead of a May 20, 2026 shareholder vote.
Positive
- Q1 2026 revenue grew 12% year-over-year to $18.6 million
- GAAP operating margin improved to 11.7% from 8.8% year-over-year
- Non-GAAP operating margin increased to 20.1% from 19.0% year-over-year
- GAAP net income rose to $3.1 million, $0.18 per diluted share
- Non-GAAP net income reached $4.7 million, $0.28 per diluted share
- Cash and deposits of $108.4 million with no debt as of March 31, 2026
- Reaffirmed 2026 revenue guidance of 8%–12% year-over-year growth
- Signed multi-year renewal with a Tier-1 operator expanding RADCOM ACE footprint
- Launched RADCOM Neura AI agent suite for autonomous, intent-driven networks
Negative
- Five directors resigned from the Board effective May 18–19, 2026
- Shareholders must elect new directors at an extraordinary meeting on May 20, 2026
News Market Reaction – RDCM
In the May 19 session, RDCM declined 6.21%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.8% during that session. Argus tracked a trough of -13.4% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | Earnings call timing | Neutral | -1.0% | Announced Q1 2026 results release date and conference call details. |
| Feb 24 | AI product launch | Positive | +0.6% | Launched RADCOM Neura AI agent suite for autonomous, intent-driven networks. |
| Feb 11 | Full-year 2025 results | Positive | -7.6% | Reported strong 2025 growth and margins with higher 2026 revenue guidance. |
| Jan 27 | Earnings call timing | Neutral | +0.7% | Set date and access details for Q4 and full-year 2025 earnings call. |
| Jan 06 | Conference participation | Neutral | +0.0% | Announced participation and 1x1 meetings at a growth investor conference. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
RADCOM has delivered steady growth and AI product launches, but notably saw a negative share reaction to its strong 2025 results and 2026 guidance.
Over the last six months, RADCOM reported record 2025 revenue of $71.5M with double‑digit growth and solid GAAP/non‑GAAP operating margins, while guiding 2026 revenue up 8–12%. The company launched its AI agent suite Neura in February 2026, reinforcing an AI‑driven strategy. It has also kept investors engaged through conference participation and scheduled earnings calls. Today’s Q1 2026 results, showing continued double‑digit growth and margin expansion, fit this pattern of profitable AI‑oriented execution.
Key Terms
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non-gaap financial
operating margin financial
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AI-generated analysis. How Rhea-AI works. Not financial advice.
"We delivered another quarter of sustained, profitable growth, with first-quarter revenue of
"Looking ahead, we're encouraged by customers' reception of RADCOM Neura, our AI agent suite designed for integration into agentic AI ecosystems," Eppstein continued. "We remain focused on disciplined execution, deepening installed-base relationships, winning new customers, and advancing our AI-native, event-driven assurance capabilities as networks move toward greater automation."
RADCOM is reaffirming its full-year 2026 revenue guidance of
First Quarter of 2026 Financial Highlights:
- Total revenues for the first quarter of 2026 were
$18.6 million $16.6 million 12.0% year-over-year growth. - GAAP operating income for the first quarter of 2026 was
$2.2 million 11.7% of revenue, compared to GAAP operating income of$1.5 million 8.8% of revenue, for the first quarter of 2025. - Non-GAAP operating income for the first quarter of 2026 was
$3.7 million 20.1% of revenue, compared to non-GAAP operating income of$3.1 million 19.0% of revenue, for the first quarter of 2025. - GAAP net income for the first quarter of 2026 was
$3.1 million $0.18 $2.4 million $0.15 - Non-GAAP net income for the first quarter of 2026 was
$4.7 million $0.28 $4.1 million $0.25 - As of March 31, 2026, the company had cash, cash equivalents, and short-term bank deposits of
$108.4 million
Recent Business Highlights:
- Signed a multi-year renewal with a Tier-1 operator that expands its RADCOM ACE footprint to power more AI-driven, automated network operations.
- Launched RADCOM Neura, an AI agent suite designed for integration into agentic AI ecosystems, created to transform service assurance from reactive monitoring into a foundational enabler of autonomous, intent-driven networks.
Board of Directors Update
Rami Schwartz, Rachel (Heli) Bennun, Yaron Ravkaie, and Oren Most stepped down from the Board of Directors, effective May 19, 2026, and Andre Fuetsch stepped down from the Board of Directors, effective May 18, 2026. Shareholders will vote on the election of new directors at an extraordinary general meeting on May 20, 2026, as detailed in the proxy materials filed on April 15, 2026, with the Securities and Exchange Commission.
"On behalf of the Company, I want to thank Rami, Heli, Andre, Yaron, and Oren for their significant contributions. With their help and guidance, the Company achieved four consecutive years of double-digit revenue growth, transforming from an unprofitable company to a profitable one and increasing the Company's net cash position by over
Rami Schwartz, the outgoing Chairman, said, "It has been a privilege to serve as Chairman of RADCOM and to work alongside a very talented, supportive, and dedicated Board for many years. The Company is in a strong position, with a track record of six consecutive years of revenue growth and four years of improved profitability, a capable management team, and committed employees. We decided to resign from the Board of Directors and not to conduct a proxy contest, as we preferred to focus on RADCOM's best interests and minimize potentially harmful effects of a prolonged process."
Mr. Schwartz added, "Moreover, the Company is now equipped with best-in-class AI-based solutions for 4G and 5G networks and is trusted and adopted by highly satisfied Tier-1 service providers, which continue to adopt more RADCOM solutions. Special thanks to Heli Bennun, who served as our Executive Chairman for almost a decade, spanning most of this successful period. She tirelessly pushed for the technical and business achievements we are so proud of. I thank RADCOM's CEO Benny Eppstein, COO Hilik Itman, the Company's executive team, and my fellow directors for their partnership and active pursuit of RADCOM's growth and success. We look forward to RADCOM's next successful chapter."
Conference Call
RADCOM's management will host an interactive conference call on Tuesday, May 19, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) to discuss the results and answer participants' questions.
Date / Time: Tuesday, May 19, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel Time
Local Access: +972-3-9180609
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.
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses) related to acquisitions, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.
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 full-year 2026 revenue guidance, future growth, the launch and reception of RADCOM Neura and its integration into agentic AI ecosystems, expansion within its installed customer base, winning new customers, advancing RADCOM's AI-native, event-driven assurance capabilities, and the trend of networks moving toward greater automation, 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, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, risks related to the development, launch, and market acceptance of new AI-based products including RADCOM Neura, the pace of customer adoption of agentic AI architectures, 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
RADCOM LTD. Consolidated Statements of Operations | |||
Unaudited | |||
(thousands of | |||
Three months ended | |||
2026 | 2025 | ||
Revenues | $ 18,585 | $ 16,591 | |
Cost of revenues | 4,512 | 4,092 | |
Gross profit | 14,073 | 12,499 | |
Research and development, gross | 5,618 | 4,749 | |
Less - royalty-bearing participation | 55 | 25 | |
Research and development, net | 5,563 | 4,724 | |
Sales and marketing | 4,835 | 4,864 | |
General and administrative | 1,498 | 1,449 | |
Total operating expenses | 11,896 | 11,037 | |
Operating income (loss) | 2,177 | 1,462 | |
Financial income, net | 1,215 | 1,120 | |
Income before taxes on income | 3,392 | 2,582 | |
Taxes on income | (315) | (142) | |
Net income | $ 3,077 | $ 2,440 | |
Basic and diluted net income per ordinary share | $ 0.18 | $ 0.15 | |
Weighted average number of | 16,679,249 | 16,013,218 | |
Weighted average number of | 17,072,222 | 16,660,105 | |
RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of
| |||
Three months ended | |||
2026 | 2025 | ||
GAAP gross profit | $ 14,073 | $ 12,499 | |
Stock-based compensation | 89 | 99 | |
Amortization of intangible assets | 55 | 55 | |
Non-GAAP gross profit | $ 14,217 | $ 12,653 | |
GAAP research and development, net |
$ 5,563 |
$ 4,724 | |
Stock-based compensation | 483 | 459 | |
Non-GAAP research and development, net | $ 5,080 | $ 4,265 | |
GAAP sales and marketing |
$ 4,835 |
$ 4,864 | |
Stock-based compensation | 536 | 622 | |
Amortization of intangible assets | 29 | 29 | |
Non-GAAP sales and marketing | $ 4,270 | $ 4,213 | |
GAAP general and administrative |
$ 1,498 |
$ 1,449 | |
Stock-based compensation | 363 | 420 | |
Non-GAAP general and administrative | $ 1,135 | $ 1,029 | |
GAAP total operating expenses |
$ 11,896 |
$ 11,037 | |
Stock-based compensation | 1,382 | 1,501 | |
Amortization of intangible assets | 29 | 29 | |
Non-GAAP total operating expenses | $ 10,485 | $ 9,507 | |
GAAP operating income (loss) |
$ 2,177 |
$ 1,462 | |
Stock-based compensation | 1,471 | 1,600 | |
Amortization of intangible assets | 84 | 84 | |
Non-GAAP operating income | $ 3,732 | $ 3,146 | |
RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of
| |||
GAAP income before taxes on income | $ 3,392 | $ 2,582 | |
Stock-based compensation | 1,471 | 1,600 | |
Amortization of intangible assets | 84 | 84 | |
Financial expenses | 86 | 6 | |
Non-GAAP income before taxes on income | $ 5,033 | $ 4,272 | |
GAAP net income |
$ 3,077 |
$ 2,440 | |
Stock-based compensation | 1,471 | 1,600 | |
Amortization of intangible assets | 84 | 84 | |
Financial expenses | 86 | 6 | |
Non-GAAP net income | $ 4,718 | $ 4,130 | |
GAAP net income per diluted share |
$ 0.18 |
$ 0.15 | |
Stock-based compensation | 0.10 | 0.09 | |
Amortization of intangible assets | (*) | 0.01 | |
Financial expenses | (*) | (*) | |
Non-GAAP net income per diluted share | $ 0.28 | $ 0.25 | |
Weighted average number of shares used to compute diluted net income per share | 17,072,222 | 16,660,105 | |
(*) Less than | |||
RADCOM LTD. Consolidated Balance Sheets (Unaudited) | |||
As of | As of | ||
March 31, 2026 | December 31, 2025 | ||
Current Assets | |||
Cash and cash equivalents | $ 10,960 | $ 30,486 | |
Short-term bank deposits | 97,470 | 79,437 | |
Trade receivables, net | 24,656 | 20,245 | |
Inventories | 21 | 318 | |
Other accounts receivable and prepaid expenses | 2,560 | 2,036 | |
Total Current Assets |
135,667 | 132,522 | |
Non-Current Assets | |||
Severance pay fund | 3,459 | 3,431 | |
Other long-term assets | 2,504 | 2,866 | |
Property and equipment, net | 1,280 | 988 | |
Operating lease right-of-use assets | 2,648 | 2,898 | |
Goodwill and intangible assets, net | 2,184 | 2,269 | |
Total Non-Current Assets |
12,075 | 12,452 | |
Total Assets | $ 147,742 | $ 144,974 | |
Liabilities and Shareholders' Equity | |||
Current Liabilities | |||
Trade payables | $ 4,530 | $ 2,632 | |
Deferred revenues and advances from customers | 808 | 1,100 | |
Employee and payroll accruals | 5,784 | 7,325 | |
Operating lease liabilities | 1,110 | 1,099 | |
Other liabilities and accrued expenses | 9,243 | 10,872 | |
Total Current Liabilities |
21,475 | 23,028 | |
Non-Current Liabilities | |||
Accrued severance pay | 4,752 | 4,790 | |
Operating lease liabilities | 1,860 | 2,135 | |
Other liabilities and accrued expenses | 1,027 | 916 | |
Total Non-Current Liabilities |
7,639 | 7,841 | |
Total Liabilities | $ 29,114 | $ 30,869 | |
Shareholders' Equity | |||
Share capital | $ 818 | $ 809 | |
Additional paid-in capital | 168,635 | 167,172 | |
Accumulated other comprehensive loss | (2,950) | (2,923) | |
Accumulated deficit | (47,875) | (50,953) | |
Total Shareholders' Equity | 118,628 | 114,105 | |
Total Liabilities and Shareholders' Equity | $ 147,742 | $ 144,974 | |
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SOURCE RADCOM Ltd.