Radcom (RDCM) Q2 2026 Earnings Report

The call presents a mix of material near-term challenges and clear long-term strengths. Key negatives include a substantial quarterly revenue decline (down 33.4% YoY), operating and GAAP losses, and deployment timing delays driven by sharply higher server infrastructure costs and FX-related expense pressure. Offsetting positives are a strong cash balance ($109.7M) positive quarterly cash flow, recent post-quarter contract wins and renewals (including CETIN), new product launch (RADCOM ADM) and industry recognition for RADCOM Neura, a healthy and advancing pipeline, reaffirmed FY2026 guidance, and a $20–25M share repurchase authorization. Management expects to remain non-GAAP profitable for 2026 and to return to double-digit growth in 2027, but near-term visibility remains constrained by customers' infrastructure timing.

RADCOM reaffirmed its revised full‑year 2026 revenue outlook of $57–$63 million (midpoint $60M), expects to remain profitable on a non‑GAAP basis for 2026 and to be free‑cash‑flow‑positive in H2 2026, and said deployment activity could begin returning to a more normal pace in Q1 2027 (with one or more projects possibly moving in Q4 2026) and that it expects to return to double‑digit percentage revenue growth in 2027; Q2 2026 revenue was $11.8M (down 33.4% YoY from $17.7M) with 76.3% gross margin, an operating loss of $2.2M (‑18.5% of revenue), a non‑GAAP net loss of $1.5M ($0.09/diluted share) versus a GAAP net loss of $3.1M ($0.18/sh), H1 operating income of $1.6M (5.1% of revenue), Q2 R&D of $5.3M (+15.9% YoY), Q2 sales & marketing of ~$4.7M (+8.8% YoY), ending cash and equivalents of $109.7M, positive quarterly cash flow of $1.3M, 331 employees, a short‑term shekel hedging program through 2026, and a planned $20–$25M share repurchase program.