Radcom (RDCM)
NASDAQ:RDCM
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Radcom
(NASDAQ:RDCM)
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Rating:76Outperform
Price Target:
$15.00
▲(16.64% Upside)
Action:Reiterated
Date:12/30/25
The score is driven primarily by improving financial performance (profitability/cash flow turnaround and very low leverage) and a strong earnings update with supportive growth guidance. Offsetting factors are a more neutral technical setup and a valuation that looks reasonable but not clearly cheap, with no dividend support.
Positive Factors
Revenue Growth
Radcom's significant revenue growth reflects strong market demand for its solutions, indicating robust business expansion and increased market penetration, which is crucial for sustaining long-term growth.
Negative Factors
Cash Flow Challenges
The decline in free cash flow suggests potential challenges in cash generation, which could impact Radcom's ability to fund operations and growth initiatives without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Radcom's significant revenue growth reflects strong market demand for its solutions, indicating robust business expansion and increased market penetration, which is crucial for sustaining long-term growth.
Read all positive factors
Radcom (RDCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$257.77M
Dividend YieldN/A
Average Volume (3M)254.24K
Price to Earnings (P/E)19.4
Beta (1Y)0.56
Revenue Growth15.77%
EPS Growth40.61%
CountryUS
Employees307
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.73
Shares Outstanding16,738,377
10 Day Avg. Volume215,865
30 Day Avg. Volume254,238
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.94
Price to Sales (P/S)3.09
P/FCF Ratio0.00
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue3.38
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda24.43
Forecast
1Y Price Target
$18.00Price Target Upside39.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.18
Revenue Forecast (FY)$78.14M
Radcom Business Overview & Revenue Model
Company Description
RADCOM Ltd. provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, an...
How the Company Makes Money
Radcom makes money primarily through the sale of its software solutions and related services to telecommunications operators. The company's revenue model is based on software licensing, where telecom operators pay for the right to use Radcom's net...
Radcom Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveys a predominantly positive tone: the company delivered double-digit revenue growth (12% YoY), improved margins and profitability, launched a strategic AI product (RADCOM Neura), strengthened partnerships, and highlighted large-scale deployments and strong TCO validation. Headwinds are largely execution and timing related — increased R&D spending, long telco sales cycles, and dependence on partner-led conversions — but these are framed as strategic investments rather than operational failures. Given the breadth of tangible wins, healthy cash balance, and reaffirmed guidance, the positives materially outweigh the lowlights.Positive Updates
Revenue Growth
Q1 revenue of $18.6 million, up 12% year-over-year, marking a continued positive trajectory from prior quarters and a strong start to 2026.
Negative Updates
Increasing R&D Investment
Gross R&D expenses rose to $5.1 million, up 19.7% year-over-year as the company increases strategic product and AI investments — a deliberate margin tradeoff that could pressure near-term operating cash if not matched by faster revenue conversion.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Q1 revenue of $18.6 million, up 12% year-over-year, marking a continued positive trajectory from prior quarters and a strong start to 2026.
Read all positive updates
Company Guidance
RADCOM reaffirmed full-year 2026 revenue guidance of 8%–12% year‑over‑year growth; the call noted a strong Q1 start with revenue of $18.6M (+12% YoY), non‑GAAP operating income of $3.7M and a 20.1% operating margin (up from 19% in Q1 2025), gross margin of 76.5%, non‑GAAP net income of $4.7M or $0.28 per diluted share (vs. $4.1M/$0.25 year‑ago), GAAP net income of $3.1M or $0.18 per diluted share (vs. $0.15), Q1 R&D spend of $5.1M (+19.7% YoY), sales & marketing of $4.3M (+1.4% YoY), 328 employees, $108.4M in cash and equivalents, and a $1.5M negative cash flow for the quarter; management expects part of the broad, multiyear pipeline to convert in H2 2026 (notably Q4) and plans continued investment in the RADCOM Neura agent suite and AI roadmap.Radcom Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 71.49M | 61.01M | 51.60M | 46.05M | 40.28M |
| Gross Profit | 54.30M | 45.26M | 37.83M | 33.34M | 28.86M |
| EBITDA | 8.98M | 3.77M | 16.00K | -3.64M | -4.95M |
| Net Income | 11.99M | 6.97M | 3.71M | -2.26M | -5.26M |
Balance Sheet | |||||
| Total Assets | 144.97M | 130.57M | 107.53M | 101.00M | 91.66M |
| Cash, Cash Equivalents and Short-Term Investments | 109.92M | 94.67M | 82.17M | 73.66M | 70.57M |
| Total Debt | 3.23M | 3.40M | 1.62M | 2.48M | 1.94M |
| Total Liabilities | 30.87M | 34.90M | 25.04M | 28.22M | 21.51M |
| Stockholders Equity | 114.11M | 95.68M | 82.49M | 72.78M | 70.15M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 10.96M | 4.47M | 5.87M | 1.56M |
| Operating Cash Flow | 0.00 | 11.39M | 4.71M | 6.02M | 2.00M |
| Investing Cash Flow | 0.00 | -2.74M | -3.59M | -8.43M | -3.50M |
| Financing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Radcom Technical Analysis
Neutral
12.86
Price Trends
14.13
Positive
13.01
Positive
13.26
Positive
Market Momentum
0.14
Positive
47.84
Neutral
74.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDCM, the sentiment is Neutral. The current price of 12.86 is below the 20-day moving average (MA) of 15.26, below the 50-day MA of 14.13, and below the 200-day MA of 13.26, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 74.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDCM.
Radcom Risk Analysis
Radcom disclosed 45 risk factors in its most recent earnings report. Radcom reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our use of AI, GenAI, ML, data analytics and similar tools and technologies, or, collectively, AI and Related Tools, as well as applications, features, and functionality that we may introduce in the future, may result in difficulties, including with product development and integration and accuracy of the results and may otherwise not prove efficient or profitable, may not be widely or timely accepted by our customers or the market, may enhance intellectual property, cybersecurity, operational and technological risks, or may otherwise adversely impact our business or operations, or subject us to possible litigation. Q4, 2023
2.
Our business may be affected by sanctions, export controls and similar measures targeting Russia and other countries and territories in connection with the military conflict between Russia and Ukraine. Q4, 2023
Radcom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $257.77M | 19.39 | 11.33% | ― | 15.77% | 40.61% | |
75 Outperform | $325.13M | 64.64 | 6.99% | ― | 16.31% | 67.84% | |
73 Outperform | $485.55M | 50.55 | 10.01% | ― | 11.70% | ― | |
61 Neutral | $436.35M | -45.11 | -1.96% | 4.63% | 1.29% | 57.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $898.43M | -19.67 | -5.04% | 0.97% | 4.44% | -19.31% | |
56 Neutral | $588.30M | 17.47 | 7.85% | ― | -1.15% | ― |
* Communication Services Sector Average
RDCM
Radcom
14.68
1.45
10.96%
ATNI
ATN International
25.90
11.00
73.84%
CXDO
Crexendo
9.18
3.67
66.61%
SHEN
Shenandoah Telecommunications Co
15.79
2.69
20.53%
RBBN
Ribbon Communications
3.12
-0.46
-12.85%
OOMA
Ooma
16.88
3.70
28.07%
Radcom Corporate Events
RADCOM Reports Strong Q3 2025 Financial Results with 16% Revenue Growth
Nov 12, 2025
On November 12, 2025, RADCOM Ltd. reported its financial results for the third quarter of 2025, showcasing a 16% year-over-year revenue growth driven by AI and 5G adoption. The company achieved record revenue of $18.4 million and the highest opera...
RADCOM Appoints New CFO Amid Strategic Expansion
Oct 30, 2025
RADCOM Ltd. announced the appointment of Hod Cohen as the new Chief Financial Officer, effective January 11, 2026. Cohen, with extensive experience in the telecom industry, will succeed Hadar Rahav, who will remain in an advisory role through the ...
Radcom Ltd. Announces 2025 Annual General Meeting
Oct 29, 2025
Radcom Ltd. has announced its 2025 Annual General Meeting of Shareholders, scheduled for December 3, 2025, in Tel Aviv, Israel. The meeting will cover several key agenda items, including the re-approval of the company’s compensation policy, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.