Radcom (RDCM) AI Stock Analysis

• Market Cap: $208.70M
• Dividend Yield: N/A
• Average Volume (3M): 55.60K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.76
• Revenue Growth: 17.27%
• EPS Growth: 39.41%
• Country: US
• Employees: 307
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.29
• Shares Outstanding: 16,029,316
• 10 Day Avg. Volume: 27,110
• 30 Day Avg. Volume: 55,605
• PEG Ratio: 0.40
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 18.27
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 16.70
• 1Y Price Target: $18.00
• Price Target Upside: 38.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): $78.77M

• Rating: 76 Outperform
• Price Target: $15.00 ▲(15.38% Upside)

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.

Strategic Partnerships

The partnership with ServiceNow enhances Radcom's product offerings and market reach, fostering innovation and competitive advantage in network intelligence solutions, crucial for long-term success.

Balance Sheet Health

A strong balance sheet with low leverage provides Radcom with financial stability and flexibility to invest in growth opportunities, ensuring resilience against economic fluctuations.

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.

Higher Operating Expenses

Rising operating expenses may pressure profit margins and require careful management to ensure that increased spending translates into proportional revenue growth.

Steady Net Income

Despite revenue growth, stagnant net income indicates potential inefficiencies or cost pressures that could hinder profitability improvements, requiring strategic adjustments.

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, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution, voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly, as well as through a network of distributors and resellers in North America, Asia, Latin America, Europe, the Middle East, and Africa. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.

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 network intelligence solutions. Additionally, Radcom offers maintenance and support services, which provide a recurring revenue stream. The company may also engage in strategic partnerships and collaborations with major telecom companies, enhancing its market reach and customer base. These partnerships often contribute significantly to its earnings, especially as global demand for advanced network monitoring solutions continues to grow with the rollout of new technologies like 5G.

Radcom Financial Statement Overview

Summary

Radcom demonstrates solid financial health with strong revenue growth and improving profitability margins. The balance sheet is sturdy with low leverage and increasing equity, although recent cash flow performance indicates a need for improved cash management strategies. Overall, the company is well-positioned but must address cash flow challenges to sustain growth.

Income Statement

Radcom has shown strong revenue growth over the years, with a significant increase from $33.01M in 2019 to $61.01M in 2024. The gross profit margin improved to 74.2% in 2024 from 69.9% in 2019, indicating effective cost management. Net profit margin also turned positive, reaching 11.42% in 2024, showcasing improved profitability. EBIT and EBITDA margins have turned positive, further signifying enhanced operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.04 in 2024, indicating low financial leverage. The equity ratio stands at 73.3%, reflecting a strong capital structure. Return on equity improved significantly to 7.28% in 2024, showing better utilization of equity to generate profits. The steady increase in stockholders' equity over the years adds to financial stability.

Cash Flow

Radcom's cash flow statement shows some volatility with free cash flow falling to zero in 2024 after positive figures in previous years. Operating cash flow was also zero in 2024, a decline from $4.71M in 2023. Despite past positive free cash flow growth, the recent decline suggests challenges in cash generation that need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.90M	61.01M	51.60M	46.05M	40.28M	37.56M
Gross Profit	51.94M	45.26M	37.83M	33.34M	28.86M	26.80M
EBITDA	8.50M	3.77M	16.00K	-3.64M	-4.95M	-3.88M
Net Income	10.60M	6.97M	3.71M	-2.26M	-5.26M	-3.99M
Balance Sheet
Total Assets	139.15M	130.57M	107.53M	101.00M	91.66M	93.64M
Cash, Cash Equivalents and Short-Term Investments	106.69M	94.67M	82.17M	73.66M	70.57M	68.96M
Total Debt	3.39M	3.40M	1.62M	2.48M	1.94M	3.04M
Total Liabilities	30.21M	34.90M	25.04M	28.22M	21.51M	21.62M
Stockholders Equity	108.94M	95.68M	82.49M	72.78M	70.15M	72.02M
Cash Flow
Free Cash Flow	0.00	10.96M	4.47M	5.87M	1.56M	-477.00K
Operating Cash Flow	0.00	11.39M	4.71M	6.02M	2.00M	-50.00K
Investing Cash Flow	0.00	-2.74M	-3.59M	-8.43M	-3.50M	7.60M
Financing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00

Radcom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDCM, the sentiment is Negative. The current price of 13 is below the 20-day moving average (MA) of 13.22, below the 50-day MA of 13.11, and below the 200-day MA of 13.06, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDCM.

Radcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$208.70M	20.64	10.54%	―	17.27%	39.41%
CXDO	67 Neutral	$206.51M	48.33	7.87%	―	12.91%	222.63%
ATNI	63 Neutral	$335.36M	-23.87	-1.70%	4.63%	-3.10%	66.00%
OOMA	62 Neutral	$319.06M	145.98	2.59%	―	4.22%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SHEN	50 Neutral	$634.62M	-16.17	-4.41%	0.97%	11.59%	-106.83%
RBBN	50 Neutral	$487.41M	-11.47	-11.40%	―	7.38%	20.81%

Radcom Corporate Events

RADCOM Reports Strong Q3 2025 Financial Results with 16% Revenue Growth

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 operating margin since 2018, alongside a positive cash flow exceeding $5 million. RADCOM’s strategic focus on AI-driven assurance solutions has reinforced its market position, with recent highlights including securing 1Global as a customer and launching a high-capacity user analytics solution. The company maintains strong operating momentum and reaffirms its full-year guidance of 15%-18% revenue growth.

The most recent analyst rating on (RDCM) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Radcom stock, see the RDCM Stock Forecast page.

RADCOM Appoints New CFO Amid Strategic Expansion

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 first quarter of 2026 to ensure a smooth transition. This leadership change reflects RADCOM’s focus on expanding its business and enhancing financial performance. Cohen’s expertise in financial leadership and strategic planning is expected to drive RADCOM’s growth and strengthen its market position.

The most recent analyst rating on (RDCM) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Radcom stock, see the RDCM Stock Forecast page.

Radcom Ltd. Announces 2025 Annual General Meeting

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, the re-appointment of Kost Forer Gabbay & Kasierer as independent auditors, and the presentation of the company’s financial statements for the year ending December 31, 2024. Shareholders are encouraged to participate in the meeting either in person or via proxy, with the board recommending approval of all proposed matters. This meeting is significant for stakeholders as it will address crucial governance and financial matters impacting the company’s future operations.

The most recent analyst rating on (RDCM) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Radcom stock, see the RDCM Stock Forecast page.