RADCOM Reports Third Quarter 2026 Results

The authorized buyback remains unused, with repurchases expected after the earnings-related blackout at management's discretion.

Rhea-AI Summary

RADCOM (Nasdaq: RDCM) reported third-quarter 2026 revenue of $14.0 million, alongside a return to quarterly non-GAAP operating profitability. Revenue rose 19.4% sequentially but fell 23.6% year over year. GAAP operating loss was $893,000 versus operating income of $2.415 million a year earlier. GAAP diluted earnings fell to $0.03 from $0.21; non-GAAP diluted earnings declined to $0.11 from $0.29.

Positive quarterly cash flow was $1.7 million, with cash, equivalents and short-term deposits reaching $111.4 million and no debt. Nine-month revenue declined 15.7% to $44.4 million. RADCOM reaffirmed its revised 2026 revenue outlook of $57–$63 million. It added VNPT and CETIN Networks as customers, including a multi-year CETIN contract. The company sees signs that some deployments delayed in 2026 will begin moving forward in early 2027.

11 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Authorized repurchases cover up to $20 million of ordinary shares, expected to last up to 18 months. 12% of market cap
• Moderate pointCash, equivalents and short-term deposits reached $111.4 million from $109.7 million sequentially, with no debt.
• Moderate pointQuarterly non-GAAP operating profitability returned at $689,000, versus $3.848 million a year earlier.
• Moderate pointCETIN Networks booked a multi-year contract with RADCOM, replacing its incumbent assurance provider.
• Minor pointThird-quarter cash flow was positive at $1.7 million.

6 minor points

• Minor pointVNPT selected RADCOM as a new customer, replacing its incumbent assurance vendor.
• Minor point. Forward-looking: it has not happened yet and may not happen.RADCOM reaffirmed revised full-year 2026 revenue guidance of $57–$63 million, with a $60 million midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.RADCOM sees signs some delayed deployments will begin moving forward in early 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.RADCOM is investing in RADCOM ACE and its agentic AI roadmap to pursue growth.
• Minor pointThird-quarter operating expenses fell to $11.117 million from $11.609 million a year earlier.
• Minor pointFinancial income increased to $1.493 million quarterly and $3.513 million over nine months, from $1.163 million and $3.076 million.

Negative

• Moderate pointThird-quarter revenue of $14.0 million fell 23.6% year over year, despite rising 19.4% sequentially.
• Moderate pointThird-quarter GAAP operating loss was $893,000, versus $2.415 million operating income a year earlier.
• Moderate pointQuarterly GAAP net income fell to $441,000, or $0.03 diluted, from $3.471 million, or $0.21.
• Moderate pointCustomer deployments were delayed in 2026.
• Minor pointQuarterly non-GAAP net income fell to $1.933 million, or $0.11 diluted, from $4.926 million, or $0.29.

9 minor points

• Minor pointNine-month revenue declined 15.7% year over year to $44.4 million from $52.6 million.
• Minor pointNine-month GAAP operating loss reached $2.473 million, versus $5.617 million operating income a year earlier.
• Minor pointNine-month non-GAAP operating income fell to $2.251 million from $10.430 million a year earlier.
• Minor pointNine-month GAAP net income fell to $404,000, or $0.02 diluted, from $8.349 million, or $0.50.
• Minor pointNine-month non-GAAP net income fell to $5.147 million, or $0.30 diluted, from $13.211 million, or $0.79.
• Minor pointQuarterly gross profit fell to $10.224 million from $14.024 million a year earlier.
• Minor pointNine-month gross profit declined to $33.126 million from $39.814 million a year earlier.
• Minor pointNine-month operating expenses increased to $35.599 million from $34.197 million a year earlier.
• Minor pointIncome taxes rose to $159,000 quarterly and $636,000 over nine months, from $107,000 and $344,000.

News Explained

The board authorized up to $20 million of share repurchases, but the company reported none in the third quarter; it expects purchases to begin after the earnings blackout ends, at management’s discretion, so the release reports authorization, not completed repurchases.

Key Figures

Quarterly revenue: $14.0 million GAAP operating loss: $0.9 million Non-GAAP operating income: $0.7 million +4 more

Quarterly revenue

$14.0 million

Q3 2026; up 19.4% sequentially and down 23.6% year over year

GAAP operating loss

$0.9 million

Q3 2026

Non-GAAP operating income

$0.7 million

Q3 2026; the company returned to non-GAAP operating profitability

Cash flow

$1.7 million

Positive cash flow in Q3 2026

Cash and deposits

$111.4 million; no debt

As of September 30, 2026

FY2026 revenue outlook

$57 million to $63 million

Reaffirmed revised full-year outlook

Share repurchase authorization

Up to $20 million

Authorized in September 2026; expected to remain in effect for up to 18 months

Previous Earnings Reports

1 past event · Latest: Aug 12

Same Type 1 event

1. Aug 12

   Q2 earnings report

   24h Move

   +2.7%

   Q2 report showed revenue decline and GAAP and non-GAAP losses while reaffirming outlook.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, request for proposal (rfp), radio access network (ran), share repurchase program

4 terms

non-gaap financial

"returned to non-GAAP operating profitability"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

request for proposal (rfp) financial

"Following a competitive request for proposal (RFP) process"

A request for proposal (RFP) is a formal document an organization issues when it wants outside firms to compete to provide a specific product, service, or project, describing needs, evaluation criteria, and timelines. For investors it matters because RFPs reveal where future revenue or costs may come from—winning a bid can mean new contracts and growth, while the pool of competitors and requirements can affect profit margins and delivery risk, much like homeowners soliciting multiple contractor quotes before a big renovation.

radio access network (ran) technical

"from the radio access network (RAN) to the core"

A radio access network (RAN) is the collection of antennas, base stations and related equipment that connects mobile devices to the broader phone and internet network, acting like a bridge and traffic controller for wireless signals. It matters to investors because RAN design and upgrades determine how fast and reliably networks deliver services, influence a carrier’s costs and rollout speed for new technologies (like 5G), and shape which vendors or operators gain revenue and competitive advantage.

share repurchase program financial

"authorized a share repurchase program of up to $20 million"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Increased revenue 19.4% sequentially, returned to quarterly non-GAAP operating income, and maintained positive cash flow

TEL AVIV, Israel, Nov. 11, 2026 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced today its financial results for the third quarter ended September 30, 2026.

Third-quarter revenues were $14.0 million, up 19.4% sequentially and down 23.6% year over year. Although RADCOM recorded a GAAP operating loss, it returned to non-GAAP operating profitability. RADCOM also generated $1.7 million in positive cash flow and ended the quarter with $111.4 million in cash, cash equivalents, and short-term bank deposits and no debt, up from $109.7 million as of June 30, 2026.

"We returned to non-GAAP operating profitability this quarter and added two new customers, VNPT and CETIN Networks, each replacing the incumbent vendor through a competitive process," said Benny Eppstein, RADCOM's Chief Executive Officer. "Our solutions remain integral to how customers manage their networks and end-user service quality, and our customer relationships remain strong. Operators continue to invest in their networks, and we are working closely with them on their deployment plans. Based on those discussions, we see positive signs that some deployments delayed in 2026 will begin to move forward in early 2027."

"We are reaffirming our revised full-year outlook," Eppstein continued. "With $111.4 million in cash and no debt, we are investing in RADCOM ACE and our agentic AI roadmap to drive growth. We expect to begin repurchasing shares after the current earnings-related blackout period ends, at management's discretion. Looking ahead, we remain open to partnerships and targeted acquisitions that expand our solution portfolio, enhance customer value, and deliver greater returns to stakeholders. Together, these steps reflect our confidence in the business and our commitment to building long-term value for our shareholders."

Third Quarter of 2026 Financial Highlights:

• Total revenues for the third quarter of 2026 were $14.0 million, up 19.4% sequentially from $11.8 million in the second quarter of 2026, and down 23.6% year over year from $18.4 million in the third quarter of 2025.
• GAAP operating loss for the third quarter of 2026 was $0.9 million, or (6.4%) of revenue, compared to GAAP operating income of $2.4 million, or 13.1% of revenue, for the third quarter of 2025.
• Non-GAAP operating income for the third quarter of 2026 was $0.7 million, or 4.9% of revenue, compared to non-GAAP operating income of $3.8 million, or 20.9% of revenue, for the third quarter of 2025.
• GAAP net income for the third quarter of 2026 was $0.4 million, or $0.03 per diluted share, compared to GAAP net income of $3.5 million, or $0.21 per diluted share, for the third quarter of 2025.
• Non-GAAP net income for the third quarter of 2026 was $1.9 million, or $0.11 per diluted share, compared to non-GAAP net income of $4.9 million, or $0.29 per diluted share, for the third quarter of 2025.
• Cash flow for the third quarter of 2026 was positive at $1.7 million. As of September 30, 2026, the Company had cash, cash equivalents and short-term bank deposits of $111.4 million and no debt, compared to $109.7 million as of June 30, 2026.

First Nine Months of 2026 Financial Highlights:

• Total revenues for the first nine months of 2026 were $44.4 million, compared to $52.6 million in the first nine months of 2025, a decline of 15.7% year over year.
• GAAP operating loss for the first nine months of 2026 was $2.5 million, or (5.6%) of revenue, compared to GAAP operating income of $5.6 million, or 10.7% of revenue, for the first nine months of 2025.
• Non-GAAP operating income for the first nine months of 2026 was $2.3 million, or 5.1% of revenue, compared to non-GAAP operating income of $10.4 million, or 19.8% of revenue, for the first nine months of 2025.
• GAAP net income for the first nine months of 2026 was $0.4 million, or $0.02 per diluted share, compared to GAAP net income of $8.3 million, or $0.50 per diluted share, for the first nine months of 2025.
• Non-GAAP net income for the first nine months of 2026 was $5.1 million, or $0.30 per diluted share, compared to non-GAAP net income of $13.2 million, or $0.79 per diluted share, for the first nine months of 2025.

Recent Highlights:

• In the third quarter, VNPT (Vietnam Posts and Telecommunications Group), one of Vietnam's largest telecom operators with over 30 million subscribers, selected RADCOM to provide AI-native, cloud-native service assurance for its roaming network. Following a competitive request for proposal (RFP) process, RADCOM will replace VNPT's incumbent assurance vendor, deploying the cloud-native RADCOM ACE platform across multiple cloud environments with AI and machine learning (ML)-based anomaly detection to recognize issues before they affect the customer experience.
• RADCOM booked a multi-year contract with new customer CETIN Networks in Slovakia in the third quarter to deploy end-to-end, AI-driven assurance across its mobile network, from the radio access network (RAN) to the core, replacing the incumbent assurance provider. CETIN Networks is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries.
• In September 2026, RADCOM's Board of Directors authorized a share repurchase program of up to $20 million of the Company's ordinary shares, expected to remain in effect for up to 18 months. No shares were repurchased during the third quarter, and the Company expects to begin repurchases at management's discretion, after the current earnings-related blackout period ends.

Outlook

RADCOM reaffirms its revised full-year 2026 revenue outlook of $57 to $63 million, with a midpoint of $60 million, as announced on July 30, 2026.

Conference Call and Webcast

RADCOM's management will host an interactive conference call on Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) to discuss the results and answer questions.

Conference call details:

Date / Time: Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel Time
USA Toll-Free: 1-866-652-8972
USA Toll-Free (alternate): 1-800-994-4498
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.

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.

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

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) 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 outlook; the timing of customer deployments generally; continued investment by operators in their networks; the strength of its customer relationships building long-term value for shareholders and its investments in RADCOM ACE and its agentic AI roadmap; potential partnerships and targeted acquisitions and the initiation, timing, amount and duration of repurchases of its shares under its share repurchase program, 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, delays in or cancellation of customer deployments, dependence on a limited number of customers, inability to timely develop and introduce new technologies, products, and applications, including AI-based capabilities, loss of market share and pressure on prices resulting from competition, market conditions, share price and other factors affecting whether and when the Company repurchases shares, 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, except as required by law.

 

 

 

RADCOM Ltd. Consolidated Statements of Operations Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenues	$ 14,041		$ 18,388		$ 44,386		$ 52,637
Cost of revenues	3,817		4,364		11,260		12,823
Gross profit	10,224		14,024		33,126		39,814
Research and development, gross	5,355		5,119		16,754		14,832
Less - royalty-bearing participation	-		189		113		214
Research and development, net	5,355		4,930		16,641		14,618
Sales and marketing	4,076		5,144		14,224		14,944
General and administrative	1,686		1,535		4,734		4,635
Total operating expenses	11,117		11,609		35,599		34,197
Operating (loss) income	(893)		2,415		(2,473)		5,617
Financial income, net	1,493		1,163		3,513		3,076
Income before taxes on income	600		3,578		1,040		8,693
Taxes on income	159		107		636		344
Net income	$ 441		$ 3,471		$ 404		$ 8,349
Basic net income per ordinary share	$ 0.03		$ 0.21		$ 0.02		$ 0.52
Diluted net income per ordinary share	$ 0.03		$ 0.21		$ 0.02		$ 0.50
Weighted average number of   ordinary shares used in computing basic net income per ordinary share	17,008,033		16,357,554		16,842,641		16,183,572
Weighted average number of   ordinary shares used in computing diluted net income per ordinary share	17,300,951		16,923,983		17,225,321		16,766,553
(*) Less than $ 0.01

 

 

 

RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended				Nine months ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP gross profit	$                  10,224		$              14,024		$                33,126		$            39,814
Stock-based compensation	88		99		267		298
Amortization of intangible assets	57		57		168		168
Non-GAAP gross profit	$                  10,369		$              14,180		$                  33,561		$           40,280
GAAP research and development, net	$                    5,355		$                4,930		$                 16,641		$           14,618
Stock-based compensation	437		421		1,385		1,308
Non-GAAP research and development, net	$                    4,918		$                4,509		$                15,256		$           13,310
GAAP sales and marketing	$                    4,076		$                5,144		$                 14,224		$           14,944
Stock-based compensation	521		504		1,634		1,709
Amortization of intangible assets	29		29		87		86
Non-GAAP sales and marketing	$                    3,526		$                4,611		$                12,503		$           13,149
GAAP general and administrative	$                    1,686		$                1,535		$                  4,734		$             4,635
Stock-based compensation	450		323		1,183		1,244
Non-GAAP general and administrative	$                    1,236		$                1,212		$                  3,551		$             3,391
GAAP total operating expenses	$                  11,117		$              11,609		$                35,599		$           34,197
Stock-based compensation	1,408		1,248		4,202		4,261
Amortization of intangible assets	29		29		87		86
Non-GAAP total operating expenses	$                    9,680		$              10,332		$                 31,310		$           29,850
GAAP operating (loss) income	$                    (893)		$                2,415		$                 (2,473)		$             5,617
Stock-based compensation	1,496		1,347		4,469		4,559
Amortization of intangible assets	86		86		255		254
Non-GAAP operating income	$                       689		$                3,848		$                    2,251		$            10,430

 

 

 

RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended September 30,				Nine months ended           September 30,
	2026		2025		2026		2025
GAAP income before taxes on income	$ 600		$ 3,578		$ 1,040		$ 8,693
Stock-based compensation	1,496		1,347		4,469		4,559
Amortization of intangible assets	86		86		255		254
Financial (income) expenses, net	(90)		22		19		49
Non-GAAP income before taxes on income	$ 2,092		$ 5,033		$ 5,783		$ 13,555
GAAP net income	$ 441		$ 3,471		$ 404		$ 8,349
Stock-based compensation	1,496		1,347		4,469		4,559
Amortization of intangible assets	86		86		255		254
Financial (income) expenses, net	(90)		22		19		49
Non-GAAP net income	$ 1,933		$ 4,926		$ 5,147		$ 13,211
GAAP net income per diluted share	$ 0.03		$ 0.21		$ 0.02		$ 0.50
Stock-based compensation	0.09		0.07		0.27		0.27
Amortization of intangible assets	(*)		0.01		0.01		0.02
Financial (income) expenses, net	(0.01)		(*)		(*)		(*)
Non-GAAP net income per diluted share	$ 0.11		$ 0.29		$ 0.30		$ 0.79
Weighted average number of shares used to compute diluted net income per share	17,300,951		16,923,983		17,225,321		16,766,553
(*) Less than $ 0.01

 

 

 

RADCOM Ltd. Consolidated Balance Sheets                                                                        Unaudited (thousands of U.S. dollars)
	As of		As of
	September 30, 2026		December 31, 2025
Current Assets
Cash and cash equivalents	$ 13,991		$ 30,486
Short-term bank deposits	97,449		79,437
Trade receivables, net	19,745		20,245
Inventories	549		318
Other accounts receivable and prepaid expenses	2,587		2,036
Total Current Assets	134,321		132,522
Non-Current Assets
Severance pay fund	3,297		3,431
Other long-term receivables	3,417		2,866
Property and equipment, net	1,242		988
Operating lease right-of-use assets	2,135		2,898
Goodwill and intangible assets, net	2,013		2,269
Total Non-Current Assets	12,104		12,452
Total Assets	$ 146,425		$ 144,974
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables	$ 2,676		$ 2,632
Deferred revenues and advances from customers	1,062		1,100
Employee and payroll accruals	4,405		7,325
Operating lease liabilities	1,141		1,099
Other liabilities and accrued expenses	10,587		10,872
Total Current Liabilities	19,871		23,028
Non-Current Liabilities
Accrued severance pay	4,581		4,790
Operating lease liabilities	1,329		2,135
Other liabilities and accrued expenses	1,164		916
Total Non-Current Liabilities	7,074		7,841
Total Liabilities	$ 26,945		$ 30,869
Shareholders' Equity
Share capital	$ 839		$ 809
Additional paid-in capital	172,151		167,172
Accumulated other comprehensive loss	(2,961)		(2,923)
Accumulated deficit	(50,549)		(50,953)
Total Shareholders' Equity	119,480		114,105
Total Liabilities and Shareholders' Equity	$ 146,425		$ 144,974

 

 

 

View original content:https://www.prnewswire.com/news-releases/radcom-reports-third-quarter-2026-results-302936352.html

SOURCE RADCOM Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did RADCOM perform in the third quarter of 2026?

RADCOM generated $14.0 million in revenue, up 19.4% sequentially and down 23.6% year over year. GAAP diluted earnings were $0.03, compared with $0.21 a year earlier. Non-GAAP operating income returned to positive territory at $689,000, while GAAP operating loss was $893,000.

What is RADCOM's full-year 2026 revenue outlook?

RADCOM reaffirmed its revised 2026 revenue outlook of $57 to $63 million, with a midpoint of $60 million. This is the outlook previously announced on July 30, 2026.

When will RADCOM start its authorized share buyback?

RADCOM expects repurchases to begin after the current earnings-related blackout period ends, at management's discretion. No shares were repurchased during the third quarter. The board authorized up to $20 million in ordinary-share repurchases in September 2026, with the program expected to remain in effect for up to 18 months.