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RDCM

RADCOM Ltd.

RDCM

RADCOM Ltd. • NASDAQ
$13.10 ▲ 1.79% (+0.23)
Market Cap $210.99 M
52w High $15.98
52w Low $9.88
Dividend Yield 0%
P/E 20.47
Volume 27.67K
Outstanding Shares 16.11M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $18.388M ▲ $11.609M ▲ $3.471M ▲ 18.876% ▲ $0.21 ▲ $3.748M ▲
Q2-2025 $17.658M ▲ $11.551M ▲ $2.438M ▼ 13.807% ▼ $0.15 $1.74M ▲
Q1-2025 $16.591M ▲ $11.037M ▲ $2.44M ▲ 14.707% ▲ $0.15 ▲ $1.546M ▲
Q4-2024 $16.264M ▲ $10.817M ▲ $2.248M ▼ 13.822% ▼ $0.14 $1.465M ▲
Q3-2024 $15.821M $10.55M $2.251M 14.228% $0.14 $1.362M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $106.685M ▲ $139.149M ▲ $30.206M ▼ $108.943M ▲
Q2-2025 $101.632M ▲ $136.385M ▲ $32.305M ▼ $104.08M ▲
Q1-2025 $99.078M ▲ $135.027M ▲ $35.327M ▲ $99.7M ▲
Q4-2024 $94.672M ▲ $130.574M ▲ $34.898M ▲ $95.676M ▲
Q3-2024 $90.249M $124.191M $31.988M $92.203M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $3.471M ▲ $0 $0 $0 $0 $0
Q2-2025 $2.438M ▼ $0 $0 $0 $0 $0
Q1-2025 $2.44M ▲ $0 $0 $0 $0 $0
Q4-2024 $2.248M ▼ $0 $0 $0 $0 $0
Q3-2024 $2.251M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement RADCOM’s revenue has been growing gradually over the past few years, not at a explosive pace but in a steady, consistent way. Profitability has improved meaningfully: the company has moved from small losses to modest profits, with gross margins that look strong for a software‑style business. Operating income has hovered around break‑even, reflecting ongoing spending on R&D and sales, but the recent tilt into positive net income suggests the business is starting to scale more efficiently. Earnings per share have been volatile but the direction in the last couple of years has been clearly improving, pointing to better cost control and growing customer traction, albeit from a relatively small revenue base.

Balance Sheet

Balance Sheet The balance sheet looks conservative and relatively clean. Assets and shareholders’ equity have been building steadily, while the company carries no financial debt, which lowers financial risk and gives management flexibility. Cash levels have been creeping up, but the cash cushion is not huge, so disciplined expense management still matters. Overall, RADCOM appears to be funding growth mainly through its own equity and operations rather than borrowing, which supports stability but may also limit how aggressively it can expand without continuing to deliver profitable growth.

Cash Flow

Cash Flow RADCOM’s cash generation is modest but generally positive. Operating cash flow has been positive in most recent years, with some lumpiness that likely reflects the timing of large contracts and customer payments. Free cash flow closely tracks operating cash flow because capital spending needs are low, indicating an asset‑light model typical of software and services businesses. This means most cash can be directed to R&D, sales, and strengthening the balance sheet rather than heavy investments in physical infrastructure. The main watch‑point is sustaining and growing this positive cash flow as the company scales.

Competitive Edge

Competitive Edge RADCOM operates in a specialized niche: network intelligence and service assurance for telecom operators, especially in the 5G and cloud era. Its strength lies in being an early mover in cloud‑native, AI‑driven assurance, with solutions that can monitor entire networks end‑to‑end and work across multiple vendors. Deep integration with large telecom customers and multi‑year contracts create high switching costs, which can translate into sticky relationships and recurring revenue. On the other hand, it competes in a space where large equipment makers and big software vendors are active, sales cycles are long, and customer concentration can be high. Its moat is real but depends on maintaining technical leadership and tight customer integration.

Innovation and R&D

Innovation and R&D Innovation is clearly at the core of RADCOM’s strategy. The company has invested heavily in a cloud‑native platform and advanced analytics, including AI, AIOps, and Generative AI tools that simplify network management for engineers. Its solutions aim to automate monitoring, predict failures, and cut operating costs for telecom operators. Partnerships with technology leaders like NVIDIA and ServiceNow, and early work on future areas such as agentic AI, 6G, and non‑terrestrial networks, show a forward‑looking R&D agenda. The upside is a strong technological edge and relevance to future telecom needs; the risk is that sustained high R&D spending must keep translating into commercially successful, scalable products, especially beyond top‑tier customers.

Summary

RADCOM is a small but focused telecom software player that appears to be transitioning from a long investment phase into a more consistently profitable and cash‑generative business. Financials show steady top‑line growth, high gross margins, a debt‑free balance sheet, and improving earnings and free cash flow, all built on an asset‑light model. Strategically, the company is well aligned with major industry trends: 5G rollout, cloud‑native networks, automation, and AI‑driven operations. Its competitive edge comes from deep technical capabilities, strong integration with large operators, and meaningful switching costs. Key things to monitor include the pace of revenue growth, the durability of its technology lead, customer concentration, and its ability to broaden its customer base while keeping profitability and cash flow moving in the right direction.

NEWS

November 18, 2025 · 7:00 AM UTC

RADCOM Secures Contract for Smart Network Visibility Solution through Rakuten Symphony

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November 14, 2025 · 10:00 AM UTC

Quarterly Earnings News - How AI is Shaping Record Growth across Multiple Sectors

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November 13, 2025 · 7:00 AM UTC

RADCOM to Participate in 6th Annual Needham Tech Week: 1x1 Conference on November 20, 2025

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November 12, 2025 · 7:00 AM UTC

RADCOM Delivers 16% YoY Revenue Growth and Strong Margin Expansion in Q3 2025

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November 4, 2025 · 7:00 AM UTC

1GLOBAL Partners with RADCOM for AI-Driven Assurance To Elevate Global Customer Experiences

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