Revenue misses expectations as shares move lower
RADCOM Ltd. (NASDAQ:RDCM) reported mixed first-quarter results on Tuesday, with adjusted earnings coming in ahead of analyst forecasts while revenue slightly missed expectations.
Shares of the intelligent network assurance solutions provider fell 4.29% in premarket trading following the release.
The company posted adjusted earnings of $0.28 per share for the quarter, exceeding analyst consensus estimates of $0.25 per share by $0.03.
Revenue totaled $18.6 million, narrowly below analyst expectations of $18.76 million, although the figure represented year-on-year growth of 12% compared with $16.6 million in the first quarter of last year.
Company maintains full-year growth outlook
RADCOM reaffirmed its guidance for fiscal 2026, continuing to expect annual revenue growth in a range of 8% to 12% year-on-year. The midpoint of the forecast implies revenue of approximately $78.6 million.
“We delivered another quarter of sustained, profitable growth, with first-quarter revenue of $18.6 million, up 12% year-over-year,” said Benny Eppstein, RADCOM’s Chief Executive Officer. “Our focused execution continues to translate top-line growth into expanding margins, reinforced by a multi-year renewal with a Tier-1 operator that expands its RADCOM ACE footprint to power more AI-driven, automated network operations.”
Adjusted operating income reached $3.7 million during the quarter, equivalent to 20.1% of revenue, compared with $3.1 million, or 19% of revenue, in the same period a year earlier.
GAAP net income rose to $3.1 million, or $0.18 per diluted share, versus $2.4 million, or $0.15 per diluted share, in the prior-year quarter.
AI initiatives and contract renewal support long-term strategy
The company highlighted the launch of RADCOM Neura, an AI agent suite designed to integrate with agentic AI ecosystems.
RADCOM also announced a multi-year contract renewal with a Tier-1 telecom operator that will expand deployment of its RADCOM ACE platform.
As of March 31, 2026, the company held cash, cash equivalents and short-term bank deposits totaling $108.4 million and reported no outstanding debt.