Technology
RADCOM Reports Third Quarter 2026 Results
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1 day agoon
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Increased revenue 19.4% sequentially, returned to quarterly non-GAAP operating income, and maintained positive cash flow
TEL AVIV, Israel, Nov. 11, 2026 /PRNewswire/ — RADCOM Ltd. (Nasdaq: RDCM) announced today its financial results for the third quarter ended September 30, 2026.
Third-quarter revenues were $14.0 million, up 19.4% sequentially and down 23.6% year over year. Although RADCOM recorded a GAAP operating loss, it returned to non-GAAP operating profitability. RADCOM also generated $1.7 million in positive cash flow and ended the quarter with $111.4 million in cash, cash equivalents, and short-term bank deposits and no debt, up from $109.7 million as of June 30, 2026.
“We returned to non-GAAP operating profitability this quarter and added two new customers, VNPT and CETIN Networks, each replacing the incumbent vendor through a competitive process,” said Benny Eppstein, RADCOM’s Chief Executive Officer. “Our solutions remain integral to how customers manage their networks and end-user service quality, and our customer relationships remain strong. Operators continue to invest in their networks, and we are working closely with them on their deployment plans. Based on those discussions, we see positive signs that some deployments delayed in 2026 will begin to move forward in early 2027.”
“We are reaffirming our revised full-year outlook,” Eppstein continued. “With $111.4 million in cash and no debt, we are investing in RADCOM ACE and our agentic AI roadmap to drive growth. We expect to begin repurchasing shares after the current earnings-related blackout period ends, at management’s discretion. Looking ahead, we remain open to partnerships and targeted acquisitions that expand our solution portfolio, enhance customer value, and deliver greater returns to stakeholders. Together, these steps reflect our confidence in the business and our commitment to building long-term value for our shareholders.”
Third Quarter of 2026 Financial Highlights:
Total revenues for the third quarter of 2026 were $14.0 million, up 19.4% sequentially from $11.8 million in the second quarter of 2026, and down 23.6% year over year from $18.4 million in the third quarter of 2025.GAAP operating loss for the third quarter of 2026 was $0.9 million, or (6.4%) of revenue, compared to GAAP operating income of $2.4 million, or 13.1% of revenue, for the third quarter of 2025.Non-GAAP operating income for the third quarter of 2026 was $0.7 million, or 4.9% of revenue, compared to non-GAAP operating income of $3.8 million, or 20.9% of revenue, for the third quarter of 2025.GAAP net income for the third quarter of 2026 was $0.4 million, or $0.03 per diluted share, compared to GAAP net income of $3.5 million, or $0.21 per diluted share, for the third quarter of 2025.Non-GAAP net income for the third quarter of 2026 was $1.9 million, or $0.11 per diluted share, compared to non-GAAP net income of $4.9 million, or $0.29 per diluted share, for the third quarter of 2025.Cash flow for the third quarter of 2026 was positive at $1.7 million. As of September 30, 2026, the Company had cash, cash equivalents and short-term bank deposits of $111.4 million and no debt, compared to $109.7 million as of June 30, 2026.
First Nine Months of 2026 Financial Highlights:
Total revenues for the first nine months of 2026 were $44.4 million, compared to $52.6 million in the first nine months of 2025, a decline of 15.7% year over year.GAAP operating loss for the first nine months of 2026 was $2.5 million, or (5.6%) of revenue, compared to GAAP operating income of $5.6 million, or 10.7% of revenue, for the first nine months of 2025.Non-GAAP operating income for the first nine months of 2026 was $2.3 million, or 5.1% of revenue, compared to non-GAAP operating income of $10.4 million, or 19.8% of revenue, for the first nine months of 2025.GAAP net income for the first nine months of 2026 was $0.4 million, or $0.02 per diluted share, compared to GAAP net income of $8.3 million, or $0.50 per diluted share, for the first nine months of 2025.Non-GAAP net income for the first nine months of 2026 was $5.1 million, or $0.30 per diluted share, compared to non-GAAP net income of $13.2 million, or $0.79 per diluted share, for the first nine months of 2025.
Recent Highlights:
In the third quarter, VNPT (Vietnam Posts and Telecommunications Group), one of Vietnam’s largest telecom operators with over 30 million subscribers, selected RADCOM to provide AI-native, cloud-native service assurance for its roaming network. Following a competitive request for proposal (RFP) process, RADCOM will replace VNPT’s incumbent assurance vendor, deploying the cloud-native RADCOM ACE platform across multiple cloud environments with AI and machine learning (ML)-based anomaly detection to recognize issues before they affect the customer experience.RADCOM booked a multi-year contract with new customer CETIN Networks in Slovakia in the third quarter to deploy end-to-end, AI-driven assurance across its mobile network, from the radio access network (RAN) to the core, replacing the incumbent assurance provider. CETIN Networks is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries.In September 2026, RADCOM’s Board of Directors authorized a share repurchase program of up to $20 million of the Company’s ordinary shares, expected to remain in effect for up to 18 months. No shares were repurchased during the third quarter, and the Company expects to begin repurchases at management’s discretion, after the current earnings-related blackout period ends.
Outlook
RADCOM reaffirms its revised full-year 2026 revenue outlook of $57 to $63 million, with a midpoint of $60 million, as announced on July 30, 2026.
Conference Call and Webcast
RADCOM’s management will host an interactive conference call on Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) to discuss the results and answer questions.
Conference call details:
Date / Time: Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel Time
USA Toll-Free: 1-866-652-8972
USA Toll-Free (alternate): 1-800-994-4498
Local Access: 03-9180609
Webcast (live and replay): https://www.veidan-conferencing.com/radcom
An archived replay of the call will be available on the RADCOM website following the live event.
About RADCOM
RADCOM (Nasdaq: RDCM) is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities. Its flagship platform, RADCOM ACE, harnesses AI-driven analytics and generative AI (GenAI) to improve customer experiences. From lab testing to full-scale deployment, RADCOM utilizes cutting-edge networking technologies to capture and analyze real-time data. Its advanced 5G portfolio delivers end-to-end network observability, from the radio access network (RAN) to the core.
Designed to be open, vendor-neutral, and cloud-agnostic, RADCOM’s solutions drive next-generation network automation, optimization, and efficiency. By leveraging AI-powered intelligence, RADCOM reduces operational costs, enables predictive customer insights, and seamlessly integrates with business support systems (BSS), operations support systems (OSS), and service management platforms. Offering a complete, real-time view of mobile and fixed networks, RADCOM empowers telecom operators to ensure exceptional service quality, enhance user experiences, and build customer-centric networks.
For all investor inquiries, please contact:
Investor Relations:
Rob Fink or Joey Delahoussaye
FNK IR
rdcm@fnkir.com
646-809-4048 / 312-809-1087
Company Contact:
Hod Cohen
CFO
+972-3-645-5055
hod.cohen@radcom.com
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader’s overall understanding of the Company’s financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses) and amortization of intangible assets related to acquisitions, the Company’s non-GAAP results provide information to both management and investors that is useful in assessing the Company’s core operating performance and in evaluating and comparing the Company’s results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.
Risks Regarding Forward-Looking Statements
Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “believe,” “may,” “might,” “potential,” “anticipate,” “plan” or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2026 revenue outlook; the timing of customer deployments generally; continued investment by operators in their networks; the strength of its customer relationships building long-term value for shareholders and its investments in RADCOM ACE and its agentic AI roadmap; potential partnerships and targeted acquisitions and the initiation, timing, amount and duration of repurchases of its shares under its share repurchase program, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company’s products, delays in or cancellation of customer deployments, dependence on a limited number of customers, inability to timely develop and introduce new technologies, products, and applications, including AI-based capabilities, loss of market share and pressure on prices resulting from competition, market conditions, share price and other factors affecting whether and when the Company repurchases shares, and the effects of the conflict in Israel. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason, except as required by law.
RADCOM Ltd.
Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
September 30,
Nine months ended
September 30,
2026
2025
2026
2025
Revenues
$ 14,041
$ 18,388
$ 44,386
$ 52,637
Cost of revenues
3,817
4,364
11,260
12,823
Gross profit
10,224
14,024
33,126
39,814
Research and development, gross
5,355
5,119
16,754
14,832
Less – royalty-bearing participation
–
189
113
214
Research and development, net
5,355
4,930
16,641
14,618
Sales and marketing
4,076
5,144
14,224
14,944
General and administrative
1,686
1,535
4,734
4,635
Total operating expenses
11,117
11,609
35,599
34,197
Operating (loss) income
(893)
2,415
(2,473)
5,617
Financial income, net
1,493
1,163
3,513
3,076
Income before taxes on income
600
3,578
1,040
8,693
Taxes on income
159
107
636
344
Net income
$ 441
$ 3,471
$ 404
$ 8,349
Basic net income per ordinary share
$ 0.03
$ 0.21
$ 0.02
$ 0.52
Diluted net income per ordinary share
$ 0.03
$ 0.21
$ 0.02
$ 0.50
Weighted average number of
ordinary shares used in computing basic
net income per ordinary share
17,008,033
16,357,554
16,842,641
16,183,572
Weighted average number of
ordinary shares used in computing
diluted net income per ordinary share
17,300,951
16,923,983
17,225,321
16,766,553
(*) Less than $ 0.01
RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
Nine months ended
September 30,
September 30,
2026
2025
2026
2025
GAAP gross profit
$ 10,224
$ 14,024
$ 33,126
$ 39,814
Stock-based compensation
88
99
267
298
Amortization of intangible assets
57
57
168
168
Non-GAAP gross profit
$ 10,369
$ 14,180
$ 33,561
$ 40,280
GAAP research and development, net
$ 5,355
$ 4,930
$ 16,641
$ 14,618
Stock-based compensation
437
421
1,385
1,308
Non-GAAP research and development, net
$ 4,918
$ 4,509
$ 15,256
$ 13,310
GAAP sales and marketing
$ 4,076
$ 5,144
$ 14,224
$ 14,944
Stock-based compensation
521
504
1,634
1,709
Amortization of intangible assets
29
29
87
86
Non-GAAP sales and marketing
$ 3,526
$ 4,611
$ 12,503
$ 13,149
GAAP general and administrative
$ 1,686
$ 1,535
$ 4,734
$ 4,635
Stock-based compensation
450
323
1,183
1,244
Non-GAAP general and administrative
$ 1,236
$ 1,212
$ 3,551
$ 3,391
GAAP total operating expenses
$ 11,117
$ 11,609
$ 35,599
$ 34,197
Stock-based compensation
1,408
1,248
4,202
4,261
Amortization of intangible assets
29
29
87
86
Non-GAAP total operating expenses
$ 9,680
$ 10,332
$ 31,310
$ 29,850
GAAP operating (loss) income
$ (893)
$ 2,415
$ (2,473)
$ 5,617
Stock-based compensation
1,496
1,347
4,469
4,559
Amortization of intangible assets
86
86
255
254
Non-GAAP operating income
$ 689
$ 3,848
$ 2,251
$ 10,430
RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
September 30,
Nine months ended
September 30,
2026
2025
2026
2025
GAAP income before taxes on income
$ 600
$ 3,578
$ 1,040
$ 8,693
Stock-based compensation
1,496
1,347
4,469
4,559
Amortization of intangible assets
86
86
255
254
Financial (income) expenses, net
(90)
22
19
49
Non-GAAP income before taxes on income
$ 2,092
$ 5,033
$ 5,783
$ 13,555
GAAP net income
$ 441
$ 3,471
$ 404
$ 8,349
Stock-based compensation
1,496
1,347
4,469
4,559
Amortization of intangible assets
86
86
255
254
Financial (income) expenses, net
(90)
22
19
49
Non-GAAP net income
$ 1,933
$ 4,926
$ 5,147
$ 13,211
GAAP net income per diluted share
$ 0.03
$ 0.21
$ 0.02
$ 0.50
Stock-based compensation
0.09
0.07
0.27
0.27
Amortization of intangible assets
(*)
0.01
0.01
0.02
Financial (income) expenses, net
(0.01)
(*)
(*)
(*)
Non-GAAP net income per diluted share
$ 0.11
$ 0.29
$ 0.30
$ 0.79
Weighted average number of shares used to compute diluted
net income per share
17,300,951
16,923,983
17,225,321
16,766,553
(*) Less than $ 0.01
RADCOM Ltd.
Consolidated Balance Sheets
Unaudited
(thousands of U.S. dollars)
As of
As of
September 30, 2026
December 31, 2025
Current Assets
Cash and cash equivalents
$ 13,991
$ 30,486
Short-term bank deposits
97,449
79,437
Trade receivables, net
19,745
20,245
Inventories
549
318
Other accounts receivable and prepaid expenses
2,587
2,036
Total Current Assets
134,321
132,522
Non-Current Assets
Severance pay fund
3,297
3,431
Other long-term receivables
3,417
2,866
Property and equipment, net
1,242
988
Operating lease right-of-use assets
2,135
2,898
Goodwill and intangible assets, net
2,013
2,269
Total Non-Current Assets
12,104
12,452
Total Assets
$ 146,425
$ 144,974
Liabilities and Shareholders’ Equity
Current Liabilities
Trade payables
$ 2,676
$ 2,632
Deferred revenues and advances from customers
1,062
1,100
Employee and payroll accruals
4,405
7,325
Operating lease liabilities
1,141
1,099
Other liabilities and accrued expenses
10,587
10,872
Total Current Liabilities
19,871
23,028
Non-Current Liabilities
Accrued severance pay
4,581
4,790
Operating lease liabilities
1,329
2,135
Other liabilities and accrued expenses
1,164
916
Total Non-Current Liabilities
7,074
7,841
Total Liabilities
$ 26,945
$ 30,869
Shareholders’ Equity
Share capital
$ 839
$ 809
Additional paid-in capital
172,151
167,172
Accumulated other comprehensive loss
(2,961)
(2,923)
Accumulated deficit
(50,549)
(50,953)
Total Shareholders’ Equity
119,480
114,105
Total Liabilities and Shareholders’ Equity
$ 146,425
$ 144,974
View original content:https://www.prnewswire.com/news-releases/radcom-reports-third-quarter-2026-results-302936352.html
SOURCE RADCOM Ltd.
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Turning to AI for relationship support has become normal. Relationship advice was the fastest-growing AI use in Harvard Business Review’s 2026 study, climbing from 38th to 7th place in a year, and tens of millions now turn to AI when relationships get hard. Many see it as a neutral third party.
That candor is an opportunity, but where does AI strengthen the work of a skilled Expert, and where does it risk standing in for human connection, or even doing harm by simply agreeing with whoever is typing? The speakers will unpack what couples share with AI and where the line between support and substitution sits. They will also explore how employers can expand access to relationship support during difficult life transitions.
Pruwer will discuss OurRitual’s blended care model, which pairs Expert sessions with Ora, the AI in its app, to make relationship support more accessible and continuous. Early data suggests AI adds to human support rather than replacing it: members who used Ora in their first month attended about 30% more Expert sessions over the next 90 days than those who didn’t. AI may have earned a seat in the room, but it takes a human to hold a relationship together.
“After decades of sitting with couples, I know a breakthrough in the clinic can fade by the following week. The habits of the mind and the defenses we develop over the years can be stubborn,” said Dr. Guralnik. “I believe it is possible for certain AI techniques to be designed to help couples hold on to what matters, extending what they discovered in session into their week, helping them overcome the force of repression. That’s what piqued my interest in the way OurRitual approaches using AI.”
“We can now offer support at a scale unimaginable a few years ago, and we need to be just as ambitious about understanding its impact,” said Pruwer. “That means looking at what happens between two people after the session ends or the app closes. Access and outcomes have to advance together.”
Session details
Sunday, November 15, 2026, 2:00–2:30 p.m. PT, Velocity Stage
About OurRitual
OurRitual matches couples and individuals with a relationship Expert for 40-minute video sessions, with guided exercises and Ora, the AI guide in its app, between sessions. It partners with employers and healthcare organizations. Learn more at ourritual.com.
Media contact
Inna Yuchvits, VP Growth • +972-50-859-0210 • 426851@email4pr.com
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