Radcom Ltd (RDCM)
NASDAQ:RDCM
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Radcom
(NASDAQ:RDCM)
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Rating:76Outperform
Price Target:
$15.00
▲(19.90% Upside)
Action:ReiteratedDate: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
$208.80M
Dividend YieldN/A
Average Volume (3M)48.63K
Price to Earnings (P/E)18.4
Beta (1Y)0.66
Revenue Growth17.27%
EPS Growth39.41%
CountryUS
Employees307
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding16,690,456
10 Day Avg. Volume57,886
30 Day Avg. Volume48,629
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 Cap0.84
Enterprise Value/Revenue2.44
Enterprise Value/Gross Profit3.22
Enterprise Value/Ebitda17.67
Forecast
1Y Price Target
$18.00Price Target Upside43.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.03
Revenue Forecast (FY)$79.20M
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:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record annual and quarterly revenue, robust margins, improved profitability, a healthy cash position, meaningful customer wins, and clear market demand for AI solutions. The company also flagged near-term execution risks—primarily timing of Tier 1 deals, a customer data-readiness gap for AI, and planned increases in R&D and sales investments. Overall, the positives (record metrics, cash, partnerships, product traction) substantially outweigh the execution and timing risks discussed.Positive Updates
Record Annual Revenue and Growth
Full-year 2025 revenue of $71.5M, up 17.2% year-over-year and above the midpoint of the guidance range (15%–18%).
Negative Updates
Guidance and Timing Uncertainty for 2026
2026 revenue guidance of 8%–12% growth depends on closing Tier 1 deals and expansion in the first half of the year; management notes timing of Tier 1 engagements can shift, creating execution risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Growth
Full-year 2025 revenue of $71.5M, up 17.2% year-over-year and above the midpoint of the guidance range (15%–18%).
Read all positive updates
Company Guidance
RADCOM guided 2026 revenue growth of 8%–12% (management also described the outlook as double‑digit), expecting that expansion within existing customers and new Tier‑1 wins—some assumed to close in H1 2026—will drive the result; that guidance is anchored to FY‑2025 results of $71.5M revenue (+17.2% YoY) and Q4 revenue of $18.9M (+16% YoY), record cash and short‑term deposits of $109.9M with no debt, strong profitability (FY‑2025 operating income $14.8M, 20.6% margin; FY‑2025 gross margin 76.8%; Q4 gross margin 77.6%), ongoing investments (R&D $18.5M in 2025; Q4 R&D $4.9M; sales & marketing $17.3M in 2025), and expected initial commercial contributions from NVIDIA and ServiceNow partnerships while maintaining expense discipline to sustain profitability.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
Positive
12.51
Price Trends
11.73
Positive
12.38
Positive
13.00
Negative
Market Momentum
0.27
Negative
61.85
Neutral
75.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDCM, the sentiment is Positive. The current price of 12.51 is above the 20-day moving average (MA) of 11.52, above the 50-day MA of 11.73, and below the 200-day MA of 13.00, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $208.80M | 18.42 | 11.24% | ― | 17.27% | 39.41% | |
74 Outperform | $199.07M | 37.87 | 8.50% | ― | 12.91% | 222.63% | |
72 Outperform | $402.60M | 50.13 | 7.20% | ― | 4.22% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $394.33M | -23.34 | -3.26% | 4.63% | -3.10% | 66.00% | |
52 Neutral | $802.98M | -16.17 | -4.06% | 0.97% | 11.59% | -106.83% | |
51 Neutral | $395.11M | 12.80 | 10.15% | ― | 7.38% | 20.81% |
* Communication Services Sector Average
RDCM
Radcom
12.51
1.56
14.25%
ATNI
ATN International
25.66
8.81
52.32%
CXDO
Crexendo
6.39
1.56
32.30%
SHEN
Shenandoah Telecommunications Co
14.52
2.02
16.20%
RBBN
Ribbon Communications
2.25
-1.42
-38.69%
OOMA
Ooma
14.64
2.53
20.89%
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.