Radcom Ltd. (NASDAQ:RDCM) reported third-quarter 2026 revenue of $14.0 million, representing a 23.6% decline from $18.4 million in the corresponding period of 2025, although sales exceeded analyst expectations and increased sequentially from the previous quarter.
The telecommunications software company recorded adjusted earnings of $0.11 per share, below the analyst consensus estimate of $0.27. Revenue exceeded the market forecast of $13.54 million by approximately $460,000.
Radcom shares advanced 2.77% in after-hours trading following the announcement.
The company reaffirmed its full-year 2026 revenue guidance of $57 million to $63 million and reported a return to adjusted operating profitability during the quarter.
Radcom also announced the addition of two customers, VNPT and CETIN Networks, and confirmed plans to begin repurchasing shares under its previously announced $20 million programme.
Radcom generated revenue of $14.0 million during the third quarter, compared with $18.4 million in the same period of 2025.
The decrease of 23.6% reflected lower revenue on a year-over-year basis, although the company reported an improvement compared with the second quarter of 2026.
Sequential revenue increased 19.4%, indicating higher sales activity during the third quarter.
The reported revenue exceeded the analyst consensus estimate of $13.54 million by approximately 3.4%.
Despite exceeding revenue expectations, adjusted earnings per share of $0.11 were below the consensus forecast of $0.27.
The difference represented an earnings shortfall of $0.16 per share.
The company’s quarterly performance therefore reflected higher-than-expected revenue alongside adjusted earnings below market forecasts.
Radcom reported adjusted operating income of $0.7 million for the third quarter, equivalent to 4.9% of revenue.
The result marked a return to profitability on a non-GAAP operating basis.
The company also generated positive cash flow of $1.7 million during the quarter.
The adjusted operating profit accompanied the 19.4% sequential increase in revenue.
Radcom did not provide a detailed reconciliation of its adjusted operating income or adjusted earnings per share in the supplied announcement.
The company reported these financial measures alongside its revenue performance and updated cash position.
Radcom announced that it secured two new customers during the quarter: VNPT and CETIN Networks.
According to the company, both customers selected Radcom through competitive processes that involved replacing existing technology providers.
The customer additions represent new commercial agreements for the company’s telecommunications software operations.
Management identified the contracts as developments in its customer acquisition activities during the period.
Radcom did not disclose the financial value, contract duration or expected revenue contribution associated with either customer in the supplied results.
The company also indicated that discussions with telecommunications operators suggested some previously delayed deployments could proceed during 2027.
Chief Executive Officer Benny Eppstein highlighted the company’s return to adjusted operating profitability and the addition of new customers.
“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,” Eppstein said.
“Based on those discussions, we see positive signs that some deployments delayed in 2026 will begin to move forward in early 2027.”
The comments indicate that management expects certain customer projects postponed during 2026 may progress in the first part of the following year.
However, the company did not provide specific deployment dates or associated revenue estimates.
The timing of these projects will depend on customer decisions and implementation schedules.
Radcom maintained its full-year 2026 revenue guidance of between $57 million and $63 million.
The midpoint of the range is $60 million, compared with the analyst consensus estimate of $58.58 million.
The midpoint is approximately $1.42 million above market expectations.
The company did not announce any change to the guidance range following its third-quarter results.
The reaffirmed outlook reflects management’s current expectations for revenue during the remainder of fiscal 2026.
Radcom also indicated that some telecommunications deployments delayed during 2026 could begin progressing in early 2027.
The company did not provide a separate revenue forecast for 2027 in the supplied announcement.
Radcom ended the third quarter with $111.4 million in cash, cash equivalents and short-term bank deposits.
This compared with $109.7 million as of June 30, 2026, representing an increase of $1.7 million during the quarter.
The company reported no outstanding debt at the end of September.
Radcom also generated $1.7 million in positive cash flow during the reporting period.
The cash balance provides the company with financial resources for operating activities and its planned share repurchase programme.
The company did not announce additional financing arrangements or changes to its capital structure in the supplied results.
Radcom confirmed that it expects to begin purchasing shares under its $20 million share repurchase programme after the current earnings-related blackout period concludes.
The programme provides for the repurchase of company shares, subject to applicable trading restrictions and implementation decisions.
The company did not specify an exact commencement date or provide a timetable for completing the repurchases.
The amount ultimately spent and the number of shares acquired will depend on the programme’s execution.
Radcom’s reported cash balance of $111.4 million and absence of debt provide context for the planned capital allocation activity.
Radcom shares rose 2.77% in after-hours trading following the publication of its third-quarter results.
The company reported revenue of $14.0 million, above analyst expectations but 23.6% below the previous year’s level.
Adjusted earnings per share of $0.11 missed consensus estimates, although the company returned to adjusted operating profitability and generated positive cash flow.
Radcom also maintained its annual revenue guidance, added two telecommunications customers and reported an increase in its cash balance.
Management indicated that certain delayed customer deployments could begin progressing in early 2027.
The company’s subsequent financial results will provide further information about the timing of these deployments, revenue development and progress towards its full-year guidance.
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