Key Highlights

  • RADCOM shares are trading down 5.60% at $10.79 versus a prior close of $11.43.
  • Third quarter Revenue was $14.04 million, up 19.4% from the second quarter but down 23.6% from a year ago.
  • Full-year 2026 revenue guidance of $57 million to $63 million was reaffirmed.
  • Cash and short-term deposits were $111.4 million with no debt.
  • A $20 million buyback was authorized.

RADCOM (NASDAQ:RDCM) is trading down 5.60% at $10.79 as investors focus on a steep year-over-year revenue decline. Third quarter revenue was $14.04 million, up 19.4% from $11.8 million in the second quarter but down 23.6% from $18.4 million a year ago.

Profitability Holds

Non-GAAP gross Margin was 73.8%, and non-GAAP Operating Income was $0.7 million, 4.9% of revenue. GAAP Net Income was $441,000, or $0.03 per share.

Outlook Reaffirmed

Full-year 2026 revenue guidance was reaffirmed at $57 million to $63 million, with a midpoint of $60 million. Management expects non-GAAP profitability for the full year and aims to be free Cash Flow positive in the second half of 2026. It believes it is positioned to return to double-digit revenue growth in 2027.

Deployment Delays

Deployment delays tied to server infrastructure costs and Supply constraints are viewed as timing issues. Contract-to-revenue timing runs six to 12 months depending on scope, and the pipeline is described as broad, with higher single-digit multiple Tier 1 proofs of concept and field trials across North America and Europe.

New Customers

RADCOM won two new logos through competitive requests for proposals, CETIN Networks and VNPT, replacing incumbent vendors as operators modernize for 5G and roaming.

Balance Sheet and Buyback

Cash and short-term deposits were $111.4 million with no debt, up from $109.7 million, on positive cash flow of $1.7 million. A $20 million buyback over up to 18 months was authorized, and the creditor objection period passed with no objections. Repurchases are expected to start after the blackout period ends, and none were made in the third quarter.

Analyst View

The one analyst covering the stock is bullish with a $16 target. The stock trades in a 52-week range of $9.40 to $16.74.

Fourth Quarter Delivery Decides the Next Move

The $57 million to $63 million guide implies a large fourth quarter after nine-month revenue, so deployment timing is key. Investors will watch whether delayed programs release revenue in the fourth quarter, when Buybacks begin and whether new logos convert to revenue within six to 12 months.

The return to double-digit growth in 2027 is the longer-term marker.