RADCOM Revenue Rises 19.4% Quarter on Quarter to $14 Million Despite Annual Decline
Key Facts
RADCOM reported revenue of $14.0 million in the third quarter ended September 30, 2026, up 19.4% from the second quarter but down 23.6% from the same period a year earlier. In its results statement, the company said quarterly revenue rose from $11.8 million in the second quarter, after reaching $18.4 million in the third quarter of 2025. Results showed a return to operating profitability on a non-GAAP basis, while the company continued to report an operating loss under GAAP. The company recorded GAAP net income and generated positive cash flow during the quarter. The comparison shows that the improvement from the prior quarter did not erase the annual revenue decline.
The GAAP operating loss was about $0.9 million, or 6.4% of revenue, while non-GAAP operating income was about $0.7 million, or 4.9% of revenue. At the net income level, RADCOM posted GAAP profit of $0.4 million, or $0.03 per diluted share. Non-GAAP net income was $1.9 million, or $0.11 per diluted share. The company said it returned to non-GAAP operating profitability during the quarter. The results place adjusted profitability measures alongside the GAAP operating loss, without eliminating the difference between the two measures.
For the first nine months of 2026, revenue was $44.4 million, down 15.7% from $52.6 million in the same period of 2025. RADCOM had attributed weak revenue in the second quarter to delays in deploying its solutions at customer sites, after higher component costs and supply constraints slowed infrastructure buildouts and postponed purchasing decisions. After its second-quarter results, the company said none of the delayed deployments had been canceled or lost to a competitor. First-half results also showed non-GAAP net income falling to $3.2 million from $8.3 million in the first half of 2025. In the second quarter, the company reported a GAAP net loss of $3.1 million, compared with net income of $2.4 million a year earlier.
The company added VNPT and CETIN Networks to its customer base in the third quarter, saying each selected it after a competitive process to replace an incumbent provider. VNPT, the Vietnamese telecommunications group with more than 30 million subscribers, chose RADCOM’s service assurance solutions for its roaming network, according to the company’s statement. RADCOM also signed a multiyear contract with CETIN Networks to deploy AI-powered assurance solutions across its mobile network. CETIN is part of a broader group serving more than 12 million customers in four countries. Management said the two contract wins reflected the replacement of the incumbent supplier in each case through a competitive process.
RADCOM kept its updated 2026 revenue forecast at a range of $57 million to $63 million, with a midpoint of $60 million. In August, the company said it expected to remain profitable on a non-GAAP basis during 2026 and return to double-digit annual revenue growth in 2027. In management’s latest comments, Chief Executive Benny Epshtein said there were positive indications that some deployments delayed in 2026 would begin moving forward in early 2027. That signal links the earlier delays with execution expectations, while the company’s current annual revenue guidance remains as announced. The statement did not specify additional timing for the delayed projects.
RADCOM’s board authorized a share repurchase program in September for up to $20 million of common stock, to run for up to 18 months. The company made no purchases during the third quarter and said purchases were expected after the results-related trading blackout period, according to management’s estimate. The company generated positive cash flow of $1.7 million during the quarter and ended September with $111.4 million in cash, cash equivalents and short-term bank deposits, with no debt. The company’s shares closed at $10.12 in the November 10, 2026 session. The company presented its third-quarter results in its November 11 statement.