RDCM

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 8:00 a.m. ET Chief Executive Officer - Benny Eppstein Chief Financial Officer - Hod Cohen Operator: Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Ltd. Results Conference Call for the second quarter of 2026. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay on the company's website at www.radcom.com later today. On the call are Benny Eppstein, RADCOM's CEO; and Hod Cohen, RADCOM's CFO. Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet, you may do so through the link in the Investors section of RADCOM's website at www.radcom.com/investor-relations. Before we begin, I would like to review the safe harbor provision. This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve known and unknown risks and uncertainties, including, but not limited to the company's statements about its momentum, strategic direction and goals, market position and trajectory, future execution and delivery of value to customers and stakeholders, expansion within its existing customer base and broader footprint, development and enhancement of strategic partnerships and the expected benefits and revenues from collaborations, the success and expected benefits of new technologies, including AI, RADCOM ACE, RADCOM Neura, RADCOM ADM and RADCOM RASE, including to enhance automation, opportunities and customer engagements and the timing thereof, demand for its product and solutions and the ability to address new customer segments and expand its market reach, trends in the telecom market, including the expected growth of 5G, AI, cloud-native deployments, network automation and autonomous networks. The timing, scope and sequencing of customer deployment programs, the effects of server infrastructure costs and supply constraints, and the timing and extent to which deferred deployments may move forward or return to a normalized cadence, customer relationships, competitive position, sales pipeline, commercial discussions, conversion of opportunities and expansion within existing accounts, the anticipated scope, timing, implementation, benefits, customer transition and expansion potential of the company's contract with a European operator, expectations with respect to gross margins, research and development, sales and marketing expenses, cash flow, non-GAAP profitability, free cash flow positivity, full year 2026 revenue outlook, future growth, including double-digit percentage revenue growth in 2027, the impact of foreign exchange rates and hedging, resilience, long-term commitment and continued investments. And the establishment, size, timing, initiation and implementation of the intended share repurchase program and the company's ability to return capital to shareholders while continuing to invest in its platform and AI road map. The company does not undertake to update forward-looking statements. The full safe harbor provisions, including risks that could cause actual results to differ from these forward-looking statements are outlined in today's press release and the company's SEC filings. In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the company's financial performance. By excluding noncash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income expenses and amortization of intangible assets related to acquisitions, non-GAAP results provide information helpful in assessing RADCOM's core operating performance and evaluating and comparing the results of operations consistently from period to period. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures included in the quarter's earnings release available on our website, www.radcom.com. Now I would like to turn over the call to Benny. Please go ahead. Benny Eppstein: Thank you, operator, and thank you all for joining us today to review RADCOM's results for the second quarter of 2026. Please turn to Slide 7. On July 13, we announced our preliminary second quarter revenue expectations and revised our full year 2026 outlook. I would like to provide more specific context on what has changed within several customer deployment programs and why we remain confident in the underlying opportunities. The affected projects are primarily planned expansion phases with a limited number of existing Tier 1 customers. These customers continue to use RADCOM solution in their production networks, and the projects remain part of the longer-term deployment road map we have developed with them. The delays do not reflect any weakening of our customer relationships, unhappiness with RADCOM's solutions or pricing, project cancellations or business lost to competitors. The main issue is cost. Across the industry, the price of server infrastructure needed for private cloud and on-premise deployment has risen sharply. In some cases, comparable server configurations now cost multiples of their previous levels, and this increase has occurred over several months, not several years. A large deployment may require dozens of servers across multiple sites. So these increases can add up substantial infrastructure commitment for the customer. As a result, some customers are rethinking the timing, scope and order of their infrastructure investments. They may need to rebalance budgets, prepare additional sites or move portions of their expansion into a later budget period before approving the next deployment phase. RADCOM does not manufacturer these servers. Our strategic value and profitability are derived from our software, analytics and automated assurance capabilities. Still, our software must be deployed within an operating environment that is ready to support it. A project cannot move forward until the customer's infrastructure is prepared for installation. We have taken steps to reduce the risks within our control. For certain anticipated deployments, we have already secured hardware so that RADCOM can begin execution once the customer gives us the green light and the site is ready. Any further delay simply reflects the time customers need to prepare their infrastructure before they can install our product. These effects are primarily concentrated in private cloud and on-premises deployments. Public cloud projects are less dependent on purchase, shipment and installation of physical infrastructure and therefore, have been less affected. Based on our current customer discussions and project road maps, we believe that the first quarter of 2027 is the first period in which deployment activity could begin returning to a more normal pace. One or more projects could potentially begin moving forward sooner, including during the fourth quarter of 2026. Some customers are also working through their 2027 budgeting processes, which should provide greater clarity on the timing and order of these projects. We have already secured hardware to support part of this activity. So RADCOM will be ready to execute as soon as customers finish their infrastructure planning and give us the go ahead. The key point is that so far these projects have been delayed, not displaced. They remain associated with active customer relationships and established expansion road maps. However, customers must first fund and establish the underlying network and computing infrastructure on which our software will operate. Our customer relationships remain strong. Our competitive position remains intact and we are not seeing customers move away from our solutions. As customers finish their infrastructure preparations and authorize these expansion phases, we believe deferred deployment activity should return. Together with long-term demand for AI-driven assurance, 5G visibility and network automation, we believe we will return to stronger growth in 2027. Furthermore, our sales pipeline and our medium- to long-term customer deployment plans remain unchanged. In fact, the pipeline continues to improve in quality and a number of opportunities are now advancing to commercial discussions. We believe RADCOM will remain profitable on a non-GAAP basis in 2026. We also expect to return to double-digit growth in 2027. Please turn to Slide 8, our financial highlights. Total revenue of the second quarter of 2026 were $11.8 million. That is down 33.4% year-over-year from $17.7 million a year ago. Please turn to Slide 9. Our recent wins. A few weeks after the quarter ended, we secured 3 new contracts, 2 were new customers, and the third was a renewal at an existing customer. First, as announced yesterday, we expanded our European presence by winning multiyear contract with new customer, CETIN Networks, in Slovakia. CETIN Network selected RADCOM to deploy end-to-end AI-driven assurance across its mobile network, from the radio access network to the core. CETIN is replacing its incumbent assurance provider with a single, subscriber-aware platform built on RADCOM ACE. We were selected following a competitive multi-vendor RFP. We believe that this selection is evidence of our technology's strength and the growing preference for our platform among European operators. CETIN is part of CETIN International and a wider e& PPF Telecom group. Together, they serve more than 12 million customers across 4 countries, which gives us a foundation to potentially expand across the broader group over time. Second, in Asia Pacific, we won a new customer through a competitive tender with a Tier 1 operator and replaced the long-time incumbent. The deal is small, but it is an important reference win. It puts us in a strong position to compete for a much larger, network-wide project with this operator. Third, we renewed the contract with an existing European customer for RADCOM Network Visibility. All of these deals closed only a few weeks after the quarter ended. This shows the pattern behind our second quarter results. With operators, deal timing can shift. Demand for our solutions and our competitive position do not. Please turn to Slide 10, our strategy. Our priorities remain unchanged, expanding our Tier 1 footprint, deepening our installed base and advancing AI-native assurance for autonomous networks. And we will do all of this while keeping the operating discipline to support our profitability. Our partner-led model works alongside NVIDIA, ServiceNow, AWS and leading system integrators. It efficiently extends our reach and meets operators whenever they are in their AI and cloud journey. A key advantage for us is the significant reduction in total cost of ownership or TCO that we offer. Our platform is fully cloud-native and highly efficient. So it delivers far lower TCO than legacy solutions. That means lower CapEx and OpEx than our competitors. Also, our software can run on incumbent hardware and deliver much more efficient performance per watt. This means it can be deployed on the very same hardware an operator already uses with the incumbent assurance vendor. Reusing the same infrastructure means an easier migration with no costly rip-and-replace. It delivers real savings and better performance. Combining this with our TCO advantage and data that telco AI depends on, and we believe we are well positioned for long-term, profitable growth. We also remain financially strong with a solid cash position and no debt, enabling continued investment in our differentiated agentic AI capabilities and in the expansion of our strategic partnership throughout this period. Please turn to Slide 11, the telecom market. Operators continue to transition to 5G standalone and cloud-native deployments. At the same time, they are embedding AI deeper into their networks to automate operations, enhance the subscriber experience and reduce operating costs. All of this is happening while data volumes and network complexity keep on growing. Yet a gap remains between AI ambition and AI readiness. Most operators still lack the reliable, subscriber level data that these AI use cases depend on. We saw a shift in operator spending this quarter as some adjusted the timing and mix of their investments, which impacted our results. But near-term spending patterns can fluctuate without changing the market's underlying direction. The direction still points to what we provide, the data operators need to automate their networks and run them more efficiently. That gap is exactly where RADCOM adds value. As operators shift from proof-of-concept to commercial AI deployments, they demand unified, end-to-end intelligence. This trend only increases the need for cloud-native, AI-enabled service assurance solution such as RADCOM ACE and RADCOM Neura. We believe our position as leading assurance provider for 5G will continue to drive positive returns. Please turn to Slide 12, our installed base. Alongside new opportunities, our installed base remain an important validation of our strategy and the durability of our technology in live, large-scale networks. Work with 1Global continues to progress as RADCOM ACE is deployed to monitor its 4G and 5G services. We continue to support key accounts, including AT&T and Rakuten Mobile, where our assurance solutions remain embedded in production networks serving millions of subscribers. Taken together, these deployments indicate that demand among our existing customers remains strong and that expansion opportunities are progressing. And that is true even as operators work through longer infrastructure lead times across the market. Please turn to Slide 13, the launch of RADCOM ADM. During the quarter, we also launched RADCOM ADM, the Analytics Designer Module, a new addition to the RADCOM ACE platform. It puts operators in control of their own analytics. What was once a months-long request to a vendor is now something their teams can do themselves in real time. As networks become more automated, that speed becomes essential and delivering it at scale requires engineering expertise that is hard to copy. ADM also strengthens our AI strategy. It feeds real-time data directly into RADCOM Neura, our agentic AI layer, making those agents more accurate and reliable. ADM will be generally available to existing and new customers later this quarter. And we see it as a clear path to expand within existing accounts through new use cases and higher value tiers. Please turn to Slide 14, some more recent industry recognition. In February, we released RADCOM Neura, our suite of AI agents designed to work within the AI agent ecosystem. I'm pleased to share that RADCOM Neura has since earned industry recognition. RADCOM is a finalist in the 2026 Light Reading's Leading Lights Awards for Most Innovative Telco AI/ML product. As operators embrace AI to manage increasingly complex networks, we are proud that RADCOM Neura has been recognized for helping transform real-time network intelligence into smarter, more proactive operations. That recognition extended to our collaborative work across the ecosystem. At Digital Transformation World, or DTW Ignite in Copenhagen, we were proud to be part of a winning team at the Catalyst Awards. Our catalyst was named Outstanding Catalyst in the AI and Automation category. It showed that multivendor AI agents can collaborate to accelerate fault resolution, improve the customer experience and advance level 4 autonomous networks. RADCOM contributed AI-driven assurance agents that rank issues by real customer impact. We also contributed RADCOM Governance, our framework for managing how agents interact and for building trust through policy-based oversight. Please turn to Slide 15, our go-to-market activity. From a go-to-market perspective, we also remain highly active throughout the quarter. We participated in DTW Ignite in Copenhagen, FutureNet World in London and Network X Americas in Dallas, where we showcased our AI-native assurance solutions and AI agent capabilities. Our executives also took the stage at these events, sharing our perspective on how operators can use AI, automation and network data to build demand-driven networks. They also spoke to the opportunity that Agentic AI now presents. Customer and partner responses to our AI agent capabilities and AI-native assurance solutions were very encouraging. We also held productive meeting with operators and ecosystem partners that we believe could translate into additional sales opportunities over time. Please turn to Slide 16, our pipeline. As I mentioned, we are actively engaged across a healthy set of opportunities, several of which advanced during the quarter from technical evaluation and proof of concept to commercial discussions. The pipeline is steady, healthy and progressing. We remain confident in our ability to convert this pipeline into both new business and continued expansion within our existing customer base. Please turn to Slide 17, my closing summary. To summarize, while our second quarter results and our revised full year guidance were disappointing, our long-term fundamentals remain solid and our strategy is unchanged. We offer a lower cost of ownership and operators can run our software on hardware they already own. In a tighter spending environment, that makes us an easier decision. Our customer relationships are strong, and our pipeline is broad and progressing. Several opportunities advanced to commercial discussions during the quarter. A few weeks after the quarter ended, we won 3 new deals. We also launched RADCOM ADM and earned industry recognition for RADCOM Neura. Financially, we remain debt-free, and we expect to remain profitable on a non-GAAP basis in 2026. We also continue to invest in the AI capabilities operators need to run their network efficiently. Please turn to Slide 18. Before I hand over to Hod, a word on capital allocation. We remain confident in the company's long-term prospects and live that repurchasing our shares represent a compelling use of capital at the current valuation levels. So the Board and management have decided to move forward. We will take the required steps to establish a share repurchase program of $20 million to $25 million. We have already started this process and plan to finish it as fast as the applicable rules allow. Once the required steps are done, we will start the buyback. With that, I'll now hand the call over to our CFO, Hod Cohen to review the financial results in detail. Hod Cohen: Thank you, Benny, and good morning, everyone. As a reminder, unless otherwise noted, I will refer to non-GAAP results. Reconciliations between GAAP and non-GAAP measures are provided in our press release and presentation. All comparisons are year-over-year. Please turn to Slide 20, our quarterly financial highlights. Revenues for the second quarter were $11.8 million, down 33.4% year-over-year from $17.7 million. Gross margin in the second quarter was 76.3%. We recorded an operating loss of $2.2 million or negative 18.5% of revenue. Net loss was $1.5 million or $0.09 per diluted share. That compares with net income of $4.2 million or $0.25 per diluted share in the same quarter last year. The decline was driven primarily by lower revenue in the second quarter of 2026. In the first half of 2026, operating income was $1.6 million or 5.1% of revenue, and we expect to remain profitable on a non-GAAP basis for the full year. Please turn to Slide 21. Our net R&D expenses for the second quarter totaled $5.3 million, up 15.9% year-over-year. This growth reflects 2 things. First, our continued investment in R&D to drive innovation and expand our product portfolio. Second, currency headwinds from the shekel-dollar exchange rate. To reduce currency exposure, RADCOM initiated a short-term hedging program of shekel expenses through the end of 2026. We plan to continue our strategic R&D investments to deliver advanced intelligent solutions. The focus is on agent-to-agent and multi-model workflows while supporting our strategic partnerships and bringing new features to market. Sales and marketing expenses for the second quarter totaled around $4.7 million, an 8.8% year-over-year increase, mainly due to FX headwinds. We continue to invest in our sales capabilities to support pipeline growth and expansion in high-value regions. On a GAAP basis, as shown on Slide 22, our net loss for the second quarter of 2026 was $3.1 million compared with net income of $2.4 million in the same quarter last year. GAAP loss per diluted share was $0.18 compared with earnings of $0.15 per diluted share a year ago. The year-over-year move from GAAP net income to a GAAP net loss is driven by the lower revenue in the quarter. It also reflects our continued investment in R&D and in sales and marketing. We ended the second quarter of 2026 with 331 employees. Please turn to Slide 25, our balance sheet. We closed the quarter with total $109.7 million in cash, cash equivalents and short-term bank deposits, reflecting positive cash flow of $1.3 million for the quarter. For the second half of 2026 as a whole, we aim to remain free cash flow positive. As Benny mentioned, we are confident in RADCOM's long-term outlook. So we view a buyback at current levels as an attractive use of capital through a share repurchase program of $20 million to $25 million. That process is already underway, and we expect to complete it as quickly as the applicable rules permit. Once the required steps are done, we will start the buyback. We are reaffirming our revised full year 2026 revenue outlook of $57 million to $63 million with a midpoint of $60 million as announced on July 30, 2026. That concludes our prepared remarks. Thank you. We'll now hand the call back to the operator for your questions. Operator: [Operator Instructions]. Unknown Analyst: Can you hear me? Hod Cohen: I can't hear anything if you can hear me. I can hear something now. Unknown Analyst: Okay. That's great. Well, thank you for the new style of coal being able to say something by Zoom. I've got 2 of them. Well, first would be the bad results of second quarter, they came quite surprising, and we had no clue after the Q1 call. So probably it came quite surprising for you as well. I'd just like to know, is there more visibility for third and fourth quarter? Or might that happen again. Unknown Executive: I can't hear you again. Unknown Analyst: Well, if you can hear me. I just tried to say -- to tell my other question. So you get them on record. So I'd like to know more about the share buyback process. Will you buy them at a stock exchange or what stock exchange might that be? And -- Or will you make like a direct offer because it's going to be quite hard to buy that many shares, won't it be? So how do you think about that process? That would be my second question. I still can't hear you. I've been told that other people experienced the same issue. So it would be great if you find a solution. Maybe people can hear us by phone, I don't know, but not via Zoom. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The Q2 revenue decline was primarily driven by delayed expansion phases with a limited number of Tier 1 customers rather than lost business or competitive displacement. Management attributes these delays to a sharp rise in server infrastructure costs, which has forced customers to rebalance budgets and rethink the timing of private cloud and on-premise deployments. Strategic value is increasingly derived from software-based automation and AI-driven assurance, though execution remains dependent on the customer's physical infrastructure readiness. The company maintains a competitive advantage through a lower total cost of ownership (TCO), as its cloud-native software can run on an operator's existing hardware without requiring a 'rip-and-replace' strategy. Recent contract wins in Europe and Asia Pacific, secured shortly after the quarter ended, serve as evidence that demand for 5G visibility and network automation remains intact. The sales pipeline is reportedly improving in quality, with several opportunities advancing from technical proof-of-concepts to active commercial discussions. Management expects deployment activity to begin returning to a normalized cadence in the first quarter of 2027 as customers finalize their infrastructure planning. The company is reaffirming its revised 2026 revenue guidance of $57 million to $63 million while projecting a return to double-digit growth in 2027. Guidance assumes that RADCOM will remain profitable on a non-GAAP basis and free cash flow positive through the second half of 2026. Future growth is expected to be driven by the transition to 5G standalone networks and the commercialization of AI-native assurance solutions like RADCOM Neura. The company has already secured hardware for certain anticipated deployments to ensure immediate execution once customers provide the 'green light'. The Board has authorized a share repurchase program of $20 million to $25 million, citing current valuation levels as a compelling use of capital. R&D and Sales expenses were impacted by currency headwinds from the shekel-dollar exchange rate, prompting the initiation of a short-term hedging program through the end of 2026. The launch of the Analytics Designer Module (ADM) is intended to drive expansion within the existing customer base by allowing operators to create real-time analytics independently. Management flagged that while public cloud projects are less affected by hardware constraints, private cloud deployments remain sensitive to server supply and cost fluctuations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged the Q2 results were unexpected but emphasized that the underlying projects are delayed rather than canceled. The company indicated that clarity should improve as customers conclude their 2027 budgeting processes and infrastructure preparations. The company is currently taking the required legal steps to establish the $20 million to $25 million buyback program. Management intends to execute the program as quickly as applicable rules allow, though specific details on the purchase method (open market vs. direct offer) were not fully detailed due to ongoing technical issues during the call.

Interested in Radcom Ltd.? Here are five stocks we like better. Second-quarter revenue fell 33.4% year over year to $11.8 million as Tier 1 customers delayed private-cloud and on-premises expansion projects amid higher server costs. Radcom said the projects remain on customers’ roadmaps rather than being canceled or lost to competitors. Radcom reported a non-GAAP net loss of $1.5 million versus income of $4.2 million a year earlier, but maintained its $57 million–$63 million 2026 revenue outlook and expects to remain profitable for the full year. Management sees deployment activity potentially normalizing in early 2027 and expects double-digit revenue growth that year. The company ended the quarter with $109.7 million in cash and short-term deposits and plans a $20 million–$25 million share-repurchase program. It also announced new contracts with CETIN Networks and an Asia-Pacific Tier 1 operator, along with a European renewal. Radcom (NASDAQ:RDCM) reported second-quarter revenue of $11.8 million, down 33.4% from $17.7 million a year earlier, as certain planned expansion deployments at a limited number of existing Tier 1 customers were delayed by rising server infrastructure costs. Chief Executive Officer Benny Eppstein said the delayed projects remain part of customers’ longer-term deployment roadmaps and do not reflect contract cancellations, competitive losses, pricing issues or dissatisfaction with Radcom’s products. However, customers using private-cloud and on-premises environments have been reassessing the timing and scope of infrastructure investments after server prices rose sharply. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “The key point is that so far these projects have been delayed, not displaced,” Eppstein said. “They remain associated with active customer relationships and established expansion roadmaps.” Eppstein said some customers need to rebalance budgets, prepare additional sites or shift portions of planned expansions into later budget periods before approving the next phase of a deployment. Large projects can require dozens of servers across multiple locations, making the increased cost of hardware a substantial commitment for operators. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Radcom does not manufacture the servers, Eppstein noted, but its software must be installed in an operating environment that is ready to support it. The company said it has secured hardware for some anticipated deployments so it can begin execution once customers complete their planning and sites are prepared. The effect has been concentrated in private-cloud and on-premises deployments. Public-cloud projects, which are less dependent on purchasing, shipping and installing physical infrastructure, have been less affected, according to the company. → First Solar’s Profit Engine Faces a New Policy Test in Washington Based on current customer discussions, Eppstein said the first quarter of 2027 is the earliest period when deployment activity could begin returning to a more normal pace, although one or more projects could move ahead during the fourth quarter of 2026. The company expects some additional clarity as customers work through their 2027 budgeting processes. Radcom said it expects to remain profitable on a non-GAAP basis in 2026 and to return to double-digit revenue growth in 2027. Chief Financial Officer Hod Cohen said the company’s non-GAAP gross margin was 76.3% in the second quarter. Radcom recorded a non-GAAP operating loss of $2.2 million, or 18.5% of revenue, and a non-GAAP net loss of $1.5 million, or $0.09 per diluted share. In the same quarter of 2025, it posted non-GAAP net income of $4.2 million, or $0.25 per diluted share. For the first half of 2026, non-GAAP operating income was $1.6 million, representing 5.1% of revenue. Cohen said the company expects to remain profitable on a non-GAAP basis for the full year. On a GAAP basis, Radcom posted a net loss of $3.1 million, or $0.18 per diluted share, compared with net income of $2.4 million, or $0.15 per diluted share, in the prior-year period. The company attributed the shift largely to lower quarterly revenue as well as continuing investments in research and development and sales and marketing. Research and development expense totaled $5.3 million, up 15.9% year over year, while sales and marketing expense was $4.7 million, up 8.8%. Cohen said both expense categories were affected by foreign-exchange headwinds, particularly the shekel-dollar exchange rate. The company has initiated a short-term hedging program for shekel-denominated expenses through the end of 2026. Radcom ended the quarter with 331 employees and $109.7 million in cash equivalents and short-term bank deposits. It generated $1.3 million of positive cash flow during the quarter and said it aims to remain free-cash-flow positive during the second half of 2026. The company reaffirmed its revised 2026 revenue outlook of $57 million to $63 million, with a midpoint of $60 million. A few weeks after the quarter ended, Radcom secured three contracts, including two new-customer wins and one renewal. The company announced a multiyear agreement with CETIN Networks in Slovakia to provide end-to-end, AI-driven assurance across the operator’s mobile network. CETIN selected Radcom after a competitive multivendor request-for-proposal process and is replacing its incumbent assurance provider, Eppstein said. Radcom also won a competitive tender with an unnamed Tier 1 Asia-Pacific operator, replacing a long-term incumbent in a deal Eppstein described as small but strategically important. The company said the win could position it to pursue a larger network-wide project. Separately, Radcom renewed a network-visibility contract with an existing European customer. During the quarter, the company launched RADCOM ADM, or Analytics Designer Module, an addition to the RADCOM ACE platform. Eppstein said the product is designed to allow operators to create analytics in real time rather than submitting requests that could take months to complete. ADM is expected to become generally available to existing and new customers later in the quarter. The company also highlighted its continued work with customers including 1GLOBAL, AT&T and Rakuten Mobile, where its assurance products remain deployed in production networks. Radcom said its board and management intend to establish a share-repurchase program of $20 million to $25 million. Eppstein said the company has begun the required process and plans to complete it as quickly as applicable rules allow before beginning purchases. Management said it believes its debt-free balance sheet and cash position allow it to return capital to shareholders while continuing investments in its AI capabilities, partnerships and product roadmap. Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users. Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Radcom Q2 Earnings Call Highlights" was originally published by MarketBeat. 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2026 revenue guidance unchanged from the July 30 preliminary announcement Three contracts secured after quarter-end, two new customers, including a competitive displacement, and one renewal Board and management move to establish a $20 to $25 million share repurchase program TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today announced financial results for the second quarter ended June 30, 2026. Total revenues for the quarter were $11.8 million, down 33.4% from $17.7 million in the second quarter of 2025. As previously announced on July 30, 2026, second-quarter revenue was affected by deployment delays at some customers, as higher component costs and supply constraints slowed the buildout of the infrastructure required to deploy RADCOM's solution and delayed customer purchasing decisions. RADCOM views these delays as timing-related rather than a change in demand. The Company remained profitable on a non-GAAP basis for the first six months of 2026 and ended the second quarter with $109.7 million in cash, cash equivalents and short-term bank deposits, and no debt. In the weeks following the close of the quarter, RADCOM secured three contracts, two with new customers and one renewal with an existing customer. As announced yesterday, RADCOM won a multi-year contract with new customer CETIN Networks in Slovakia to deploy end-to-end, AI-driven assurance across its mobile network, from the radio access network (RAN) to the core. CETIN Networks in Slovakia is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries. The contract provides RADCOM with a potential foundation to expand across the broader group over time. In Asia-Pacific, RADCOM won a new Tier-1 customer through a competitive request for proposal (RFP), displacing the long-standing incumbent. Modest in size, the win serves as a reference that positions the Company to compete for a larger, network-wide opportunity at the same operator. RADCOM also renewed a contract with an existing European customer for RADCOM Network Visibility. These contracts closed just weeks after the quarter ended, underscoring the dynamic behind the second-quarter results: in operator deals, timing shifts, but demand and RADCOM's competitive position do not. "Demand for our solutions remains robust, and our customer relationships are strong; none of the delayed deployments were cancelled or lost to competition," said Benny Eppstein, RADCOM's Chief Executive Officer. "We expect to return to double-digit percentage revenue growth in 2027. With a strong balance sheet and no debt, we can continue investing in our RADCOM ACE platform and agentic AI roadmap through this period, positioning us to grow the business and build shareholder value." Second Quarter of 2026 Financial Highlights: Total revenues for the second quarter of 2026 were $11.8 million, down 33.4% year over year from $17.7 million in the second quarter of 2025. GAAP operating loss for the second quarter of 2026 was $3.8 million, or (31.9)% of revenue, compared to GAAP operating income of $1.7 million, or 9.9% of revenue, for the second quarter of 2025. Non-GAAP operating loss for the second quarter of 2026 was $2.2 million, or (18.5)% of revenue, compared to non-GAAP operating income of $3.4 million, or 19.5% of revenue, for the second quarter of 2025. GAAP net loss for the second quarter of 2026 was $3.1 million, or ($0.18) per diluted share, compared to GAAP net income of $2.4 million, or $0.15 per diluted share, for the second quarter of 2025. Non-GAAP net loss for the second quarter of 2026 was $1.5 million, or ($0.09) per diluted share, compared to non-GAAP net income of $4.2 million, or $0.25 per diluted share, for the second quarter of 2025. Cash flow in the second quarter of 2026 was $1.3 million. As of June 30, 2026, the Company had cash, cash equivalents and short-term bank deposits of $109.7 million and no debt. First Six Months of 2026 Financial Highlights: Total revenues for the first six months of 2026 were $30.3 million, compared to $34.2 million in the first six months of 2025, a decline of 11.4% year over year. GAAP operating loss for the first six months of 2026 was $1.6 million, or (5.2)% of revenue, compared to GAAP operating income of $3.2 million, or 9.3% of revenue, for the first six months of 2025. Non-GAAP operating income for the first six months of 2026 was $1.6 million, or 5.1% of revenue, compared to non-GAAP operating income of $6.6 million, or 19.2% of revenue, for the first six months of 2025. GAAP net loss for the first six months of 2026 was $0.04 million, or $0.00 per diluted share, compared to GAAP net income of $4.9 million, or $0.29 per diluted share, for the first six months of 2025. Non-GAAP net income for the first six months of 2026 was $3.2 million, or $0.19 per diluted share, compared to non-GAAP net income of $8.3 million, or $0.50 per diluted share, for the first six months of 2025. Recent Highlights: Three contracts secured after the close of the second quarter: RADCOM won a multi-year contract with new customer CETIN Networks in Slovakia to deploy end-to-end, AI-driven assurance across its mobile network, from the RAN to the core. RADCOM will replace the incumbent assurance provider and support CETIN's transition to 5G Standalone and a cloud-native core. CETIN Networks in Slovakia is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries, providing RADCOM with a potential foundation to expand across the broader group over time. Won a competitive RFP with a new Tier-1 customer in Asia-Pacific, displacing the long-standing incumbent; and a renewal with an existing European customer for RADCOM Network Visibility. Launched RADCOM ADM (Analytics Designer Module), a new module of the RADCOM ACE platform powered by the RADCOM RASE real-time adaptive streaming engine. The module allows operators to define, configure, and deploy datasets, key performance indicators (KPIs), and alarms in real time without vendor engagement or service interruption, cutting analytics change cycles from months to same-day deployment. Outlook RADCOM reaffirms its full-year 2026 revenue outlook of $57 to $63 million, with a midpoint of $60 million, as announced on July 30, 2026. The Company expects to remain profitable on a non-GAAP basis in 2026 and to return to double-digit percentage revenue growth in 2027. Share Repurchase Program RADCOM also announced that its Board of Directors and management have decided to move forward with the required steps to establish a share repurchase program of $20 to $25 million. The Company has already initiated this process and intends to complete it as quickly as permitted under applicable regulations. After and subject to the completion of the required steps and the necessary approvals, RADCOM will proceed with the buyback. "We remain confident in RADCOM's long-term prospects, and we believe repurchasing our shares is a compelling use of capital at current valuation levels," said Benny Eppstein, RADCOM's Chief Executive Officer. "With $109.7 million in cash, cash equivalents and short-term bank deposits, and no debt, we can return capital to shareholders while continuing to invest in our platform and our AI roadmap." Conference Call and Webcast RADCOM's management will host an interactive conference call on Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) to discuss the results and answer participants' questions. Conference call details:Date / Time: Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel TimeUSA Toll-Free: 1-866-652-8972USA Toll-Free (alternate): 1-800-994-4498Local Access: 03-9180609Webcast (live and replay): https://www.veidan-conferencing.com/radcomAn archived replay of the call will be available on the RADCOM website following the live event. For all investor inquiries, please contact: Investor Relations:Rob Fink or Joey DelahoussayeFNK [email protected]/312-809-1087 Company Contact:Hod [email protected] 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. 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," "will," "should," "would," "forecast," "guidance," "outlook," "target" 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 guidance or outlook, its expectation that it will remain profitable on a non-GAAP basis in 2026 and return to double-digit percentage revenue growth in 2027, its view that second-quarter deployment delays are timing-related rather than a change in demand, demand for its solutions, competitive position and the strength of customer relationships, its ability to continue investing in RADCOM ACE and its agentic AI and AI roadmap, its positioning to grow the business and build shareholder value, the expected scope, timing, implementation, benefits, customer transition and expansion potential of the contracts secured after quarter-end, the expected capabilities and benefits of RADCOM ADM, RADCOM RASE and AI-based offerings, the establishment, size, timing, initiation and implementation of its intended share repurchase program and its ability to return capital to shareholders while continuing to invest in its platform and AI roadmap, 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, including a decline in demand for the Company's products; delays in customer network deployments and deferrals of customer purchasing decisions; increases in component costs and supply chain constraints affecting the Company's customers, the Company's dependence on a limited number of large customers, the risk that actual results differ from the Company's revenue outlook, growth expectations, non-GAAP profitability expectations or capital-allocation plans; the risk that delayed deployments are not completed on the expected timeline or at all; the risk that the Company does not realize the anticipated scope, timing, implementation, revenue, benefits, customer-transition objectives or expansion opportunities of the contracts secured after quarter-end; the risk that the Company does not establish or complete the intended share repurchase program on the contemplated terms, size or timetable, or at all; risks relating to the timing, amount and price of any repurchases; inability to timely develop and introduce new technologies, products and applications, including AI-based offerings; loss of market share and pressure on prices resulting from competition; 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. View original content:https://www.prnewswire.com/news-releases/radcom-reports-second-quarter-2026-results-302849602.html

Accelerated investments in enterprise digitalization, AI-led network upgrades, higher demand for cloud computing, big data, network security and next-generation connectivity solutions are reshaping the outlook for participants in the  Zacks Computer - Networking industry. The proliferation of AI workloads and hyperscale data centers is accelerating investments in high-speed interconnects, optical networking and Ethernet switches. With the explosive growth in data traffic, demand for advanced routing, switching and network optimization solutions is expected to remain strong. Further, growing deployments of fiber networks, Wi-Fi 7 and secure networking solutions are expanding the addressable market. AI workloads require a major upgrade to observability infrastructure. There is a greater need for continuous monitoring of hybrid environments and tighter security amid rising attacks. This is likely to favor prospects for prominent industry players. Nonetheless, cautious IT spending amid heightened uncertainty over global macroeconomic conditions and volatile supply-chain dynamics due to tariff troubles continues to be concerning for the participants. The Computer Networking industry is housed within the broader Zacks Computer and Technology sector. For the second quarter of 2026, the tech sector’s earnings are expected to be up 93.6% as per the latest Earnings Preview report A few major networking companies are scheduled to report their quarterly results in the coming days. Let's see how things might have shaped up for these players, including Cisco Systems CSCO, RADCOM Ltd RDCM and Intrusion Inc INTZ, before their announcements. Cisco Systems is slated to report fourth-quarter fiscal 2026 results on Aug. 12, after the closing bell. In the last reported quarter, the company beat the Zacks Consensus Estimate by 2 cents. The Zacks Consensus Estimate for fiscal fourth-quarter revenues sits at $16.85 billion, up 14.9%. It generated revenues of $14.67 billion in the prior-year quarter. The consensus mark for earnings is currently pinned at $1.17 per share, indicating an increase of 18.2% from the year-ago quarter. The company is benefiting from the demand for AI Infrastructure solutions, with hyperscaler demand acting as a key catalyst. In the third quarter of fiscal 2026, AI infrastructure orders from hyperscalers came in at $1.9 billion, taking year-to-date total to $5.3 billion. The company raised expected hyperscaler AI orders to $9 billion and expected AI infrastructure revenues from hyperscalers to about $4 billion for fiscal 2026. Cisco’s networking portfolio, led by Silicon One, AI native security solutions and operating systems, is likely to have cushioned the fiscal fourth-quarter performance. Within its core Networking segment, Cisco has been witnessing robust traction across the enterprise data center switching business, as customers prepare their infrastructure for agentic applications and AI inferencing. Acacia business has also been witnessing strong growth as hyperscalers deploy both 400G and 800G coherent optics, with 800G pluggables gaining significant traction. Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. Quote However, our proven model does not conclusively predict an earnings beat for Cisco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. CSCO has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Intrusion is scheduled to report second-quarter 2026 results on Aug. 11, after the market close. In the last reported quarter, the company reported a loss of 18 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The Zacks Consensus Estimate for second-quarter revenues sits at $1.5 million, down 19.8%. It generated revenues of $1.87 million in the prior-year quarter. The consensus mark for the bottom line is currently pinned at a loss of 10 cents, the same as the year-ago quarter. The key development in the quarter was the closing of the acquisition of VigilAigent on June 29. VigilAigent is a cybersecurity managed security service provider from Tego Cyber. The transaction adds nearly $3.5 million in annual recurring revenues, more than 80 reseller partners and an installed base of 1,000 clients. Investors would be looking for updates on the recent acquisition as well as management’s outlook for consolidated revenues, costs and cash generation during the second half of 2026. On the last earnings call, management had highlighted increasing sales momentum supported by expanding Shield installed base and growing adoption of the P.O.S.S.E. program (via partnership with PortNexus). Intrusion has an Earnings ESP of 0.00% and a Zacks Rank #3. Intrusion Inc. price-eps-surprise | Intrusion Inc. Quote RADCOM is scheduled to report second-quarter 2026 results on Aug. 12, before the market opening. In the last reported quarter, the company beat the Zacks Consensus Estimate by a cent per share. The Zacks Consensus Estimate for second-quarter revenues sits at $12 million, down 32.1%. It generated revenues of $17.7 million in the prior-year quarter. The consensus mark for earnings is currently pinned at 20 cents per share, indicating a decline of 20% from the year-ago quarter. The company recently reported preliminary results for the second quarter and expects revenues to be roughly $12 million. Its quarterly revenue estimates are affected by delays in customer deployment that deferred purchasing decisions. Component cost inflation and supply issues are affecting buyers’ purchasing decisions. However, RDCM added that it did not face cancellations or competitive losses and considers these dynamics as timing considerations rather than demand changes. The company expects the delays to affect the timing of revenues for the remainder of 2026 and reduced its 2026 revenue outlook to $57-$63 million. Notably, RADCOM expects to remain profitable (on a non-GAAP basis), including these revenue headwinds, in 2026. RDCM has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Radcom Ltd. price-eps-surprise | Radcom Ltd. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Radcom Ltd. (RDCM) : Free Stock Analysis Report Intrusion Inc. (INTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Radcom (RDCM) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 12. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This monitoring service for the communications industry is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $12 million, down 32.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 36.36% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Radcom, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Radcom will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Radcom would post earnings of $0.27 per share when it actually produced earnings of $0.28, delivering a surprise of +3.70%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Radcom doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Radcom Ltd. (RDCM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Customer Deployment Delays Driven by Higher Component Costs and Supply Constraints Impact Second Quarter Revenue and Full-Year Outlook Second Quarter Earnings Release Call to be held on August 12 TEL AVIV, Israel, July 30, 2026 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) (the "Company") today announced preliminary second quarter revenue expectations and updated its full-year 2026 outlook ahead of its August 12, 2026 earnings release. Based on preliminary analysis, management currently expects second quarter revenue to be approximately $12 million. This reflects customer deployment delays that have delayed customer purchasing decisions. The Company did not experience cancellations or competitive losses and believes these dynamics reflect timing considerations rather than changes in demand. "These delays are impacting the purchasing decisions of several of our customers, affecting our second quarter revenue and full year guidance," commented RADCOM's Chief Executive Officer, Benny Eppstein. "These delays became evident during the last few weeks of the quarter, and, based on what we know today, they could continue to affect the timing of revenue through the balance of 2026." As a result, management is reducing its full-year 2026 revenue outlook to a range of $57 - $63 million, with a midpoint of $60 million. Management expects RADCOM to remain profitable on a non-GAAP basis for full-year 2026, inclusive of these revenue headwinds. "Demand for our solutions and our relationships with existing customers remain strong," Mr. Eppstein added. "Our focus is on executing against the opportunities in front of us, supporting our existing customers and positioning the Company to return to sustainable growth as customer deployment activity normalizes. We expect to return to double-digit growth in 2027." Second quarter financial results conference call: As previously disclosed, RADCOM will release its financial results for the second quarter ended June 30, 2026, on Wednesday, August 12, 2026, before the opening of the U.S. financial markets. RADCOM will host a conference call and live webcast to discuss the second quarter 2026 financial results on the same day, Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time). Following formal remarks by RADCOM management, there will be a question-and-answer session. Conference call details: Date / Time: Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel TimeUSA Toll-Free: 1-866-652-8972USA Toll-Free (alternate): 1-800-994-4498Local Access: 03-9180609Webcast (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. For all investor inquiries, please contact: Investor Relations:Rob Fink or Joey DelahoussayeFNK [email protected]/312-809-1087 Company Contact:Hod [email protected] 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. 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 preliminary second quarter 2026 revenue expectations, its updated full-year 2026 revenue outlook and guidance, its expectation of continued Non GAAP profitability for full-year 2026, the expected timing, duration and impact of the customer deployment delays on the timing of revenue through the balance of 2026, its belief that these dynamics reflect timing considerations rather than changes in demand, its expectation of returning to sustainable growth as customer deployment activity normalizes, and its expectation of returning to double-digit growth in 2027, 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, a decline in demand for the Company's products, delays in customer deployments and purchasing decisions, the risk that the Company's preliminary results differ from its final reported results for the second quarter of 2026, the Company's ability to achieve its full-year 2026 revenue guidance and to return to growth, the inability to timely develop and introduce new technologies, products, and applications, the timing of customer collections and resulting fluctuations in operating cash flow, reliance on a concentrated customer base, loss of market share and pressure on prices resulting from competition, 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. View original content:https://www.prnewswire.com/news-releases/radcom-announces-preliminary-second-quarter-revenue-and-updated-full-year-guidance-302839033.html

Conference Call Scheduled for 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) TEL AVIV, Israel, July 21, 2026 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) announced today that it will release its financial results for the second quarter ended June 30, 2026, on Wednesday, August 12, 2026, before the opening of the U.S. financial markets. RADCOM will host a conference call and live webcast to discuss the second quarter 2026 financial results on the same day, Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time). Following formal remarks by RADCOM management, there will be a question-and-answer session. Conference call details: Date / Time: Wednesday, August 12, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel TimeUSA Toll-Free: 1-866-652-8972USA Toll-Free (alternate): 1-800-994-4498Local Access: 03-9180609Webcast (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. For all investor inquiries, please contact: Investor Relations:Rob Fink or Joey DelahoussayeFNK [email protected]/312-809-1087 Company Contact:Hod [email protected] 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. View original content:https://www.prnewswire.com/news-releases/radcom-to-report-second-quarter-2026-results-on-wednesday-august-12-2026-302830458.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 12% year-over-year revenue growth driven by sustained operational momentum and the expansion of RADCOM ACE into automated, data-driven network use cases. Strengthened Tier 1 relationships through a multiyear renewal that expands service assurance workflows into complex 5G environments to lower operating costs. Launched RADCOM Neura, an AI agent suite designed to transform raw network data into autonomous intelligence for assurance, operations, and customer care. Positioned the company as a critical 'data refinery' for the telecom AI ecosystem, providing the high-quality subscriber-level insights necessary for effective automation. Validated cost-efficiency leadership with independent research showing up to 70% lower total cost of ownership compared to competitors due to a patented cloud-distributed architecture. Capitalized on an 83% increase in 5G core spending as operators accelerate standalone deployments and prioritize cloud-native architectures over legacy systems. Reaffirmed full-year 2026 revenue growth guidance of 8% to 12%, supported by current visibility and a broad multiyear sales pipeline. Expects new customer engagements to begin translating into revenue in the second half of 2026, with a notable impact anticipated in the fourth quarter. Plans to expand the Neura agent suite with additional use cases across customer care and network operations to meet evolving autonomous network demands. Anticipates high-density events like the FIFA World Cup in June will drive demand for real-time assurance as traffic levels spike up to 5x normal capacity. Intends to maintain strategic R&D investments focused on agent-to-agent and multi-modal workflows to support productization and partnership efforts. Operating margin expanded to 20.1%, reflecting a disciplined conversion of top-line growth into profitability while scaling innovation. Strategic partnerships with NVIDIA, ServiceNow, AWS, and Infosys are being used to amplify market reach and lower barriers to adoption through trusted integrators. Reported a $1.5 million negative cash flow for the quarter, primarily attributed to the timing of annual bonus payments. The partner-leverage model is designed to scale the pipeline efficiently without requiring proportional increases in direct sales and marketing spend. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects current engagements with new customers to start contributing to revenue in the second half of 2026. Q4 2026 is specifically identified as the period likely to reflect the impact of these new customer acquisitions. Monetization will be based on the number of specific AI agents or use cases acquired by the customer. The suite will also be offered as part of larger bundles or through partnership plays with system integrators like Infosys. The shift toward 5G standalone and cloud-native architecture is creating a tailwind as legacy competitors struggle to adapt. RADCOM's ability to work across all major cloud providers and private cloud solutions is a key differentiator in these transitions. Partnerships with ServiceNow and AWS are expanding the company's geographical reach and leveraging their platforms to add value to end customers. Management aims to have these collaborative efforts reach production stages by the end of 2026 or early 2027.

Interested in Radcom Ltd.? Here are five stocks we like better. Radcom posted a stronger Q1 2026, with revenue up 12% year over year to $18.6 million and non-GAAP operating margin expanding to 20.1%. The company also reaffirmed full-year revenue growth guidance of 8% to 12%. AI remains central to Radcom’s strategy, highlighted by the launch of RADCOM Neura and expanded deployment of RADCOM ACE in AI-driven network operations. Management said these tools aim to improve automation, issue resolution and real-time telecom service assurance. Radcom emphasized partnership-driven growth with companies like NVIDIA, ServiceNow, AWS and Infosys, alongside ongoing deployments with large operators such as 1GLOBAL and European telecom customers. Management expects some pipeline opportunities to convert into revenue in the second half of 2026. Radcom (NASDAQ:RDCM) reported a stronger first quarter of 2026, with management highlighting revenue growth, expanded profitability and continued investment in AI-driven telecom service assurance. Chief Executive Officer Benny Eppstein said the company delivered revenue of $18.6 million in the quarter, up 12% year over year, extending what he described as a positive trajectory built over recent quarters. Non-GAAP operating income rose to $3.7 million, while non-GAAP operating margin expanded to 20.1% from 19% in the first quarter of 2025. → Why Applied Optoelectronics Stock May Be Near a Turning Point “This performance reflects our operating discipline and our ability to efficiently convert top-line growth into higher profitability while investing in innovation and long-term initiatives,” Eppstein said. Radcom reaffirmed its full-year 2026 revenue guidance for 8% to 12% year-over-year growth, citing current visibility. → The Pentagon's AI Pivot Supercharges Defense Stocks Eppstein focused much of the call on Radcom’s positioning in what he called the “AI-native telecom ecosystem.” During the quarter, the company signed a multi-year renewal with a tier 1 customer and expanded the deployment of RADCOM ACE into additional AI-driven use cases for automated, data-driven network operations. According to Eppstein, the expanded scope includes enhanced automation capabilities intended to improve service assurance workflows, accelerate issue identification and resolution, and provide deeper real-time network insight across complex 5G environments. He said the renewal demonstrates the strategic nature of the relationship and reflects customer confidence in Radcom’s ability to deliver lower operating costs, faster issue resolution and stronger service quality in 5G networks. → Is Everspin Technologies the Next AI Edge Breakout? The company also launched RADCOM Neura, an AI agent suite designed for agentic telecom environments. Eppstein said Neura converts real-time network and subscriber data into autonomous intelligence that can identify issues, analyze user behavior and automate workflows across assurance, network operations and customer care. Neura integrates with existing service management systems, including ServiceNow, allowing operators to embed telecom intelligence into broader IT and support environments, management said. In the question-and-answer session, William Blair analyst Arjun Bhatia asked whether Neura represents a new monetization model. Eppstein said monetization may vary by customer and could be based on the number of AI agent use cases purchased, included in a broader bundle, or structured through partnership arrangements such as those involving Infosys or others. “It very depends on the requirement and very specific to customer pain points,” Eppstein said. Radcom highlighted partnerships with NVIDIA, ServiceNow, AWS and global systems integrators, including Infosys. Eppstein said these relationships are increasingly important as telecom operators seek AI solutions built specifically for telecom environments rather than generalized AI platforms without telecom domain expertise. He said the partnerships help put Radcom’s technology in front of operators the company may not have reached directly and can reduce barriers to adoption. The company’s partner strategy is also intended to scale the sales pipeline without requiring proportional growth in direct sales and marketing spending. During the quarter, Radcom launched its second certified connector on the ServiceNow Store, called RADCOM Network Case Validation and Verification. The solution is designed to bring network intelligence into service management workflows, enabling operators to detect, validate, prioritize and resolve network issues inside the ServiceNow platform. Responding to Needham & Company analyst Ryan Koontz, Eppstein said Radcom is working with existing customers and new prospects through ecosystem partnerships, expanding geographic reach. He noted that telecom sales cycles remain long but said the company is seeing positive responses from customers. “I do hope to get something in production by end of the year or early 2027,” Eppstein said of the joint partner-driven opportunities. Radcom said it continued deployment work with 1GLOBAL following that company’s selection of RADCOM ACE to monitor 4G and 5G services supporting approximately 43 million subscribers. The company also expanded its relationship with a leading European operator through Rakuten Symphony for its network visibility solution, aimed at enhancing real-time insights across virtualized and cloud-native network environments. Eppstein said both deployments are progressing well and demonstrate how Radcom’s products perform in large-scale production networks. He also noted that Radcom continues to support AT&T and Rakuten Mobile, where its assurance solutions remain embedded in production networks supporting millions of subscribers. Asked by Bhatia about the timing of new tier 1 operator opportunities, Eppstein said he believes at least part of the pipeline will translate into revenue in the second half of 2026, with the fourth quarter expected to reflect some of the new customers currently engaged with the company. Management said several sales opportunities are advancing through technical evaluation and proof-of-concept stages, but Eppstein cautioned that adoption of next-generation assurance depends on each operator’s pace, including cloud maturity and AI readiness. Management said broader industry trends are aligning with Radcom’s strengths. Eppstein cited an Omdia report showing that 5G core spending increased 83% in the fourth quarter of 2025 as operators accelerated 5G standalone deployments, expanded cloud-native architectures and prioritized AI-driven efficiency. He said operators are increasingly focused on automation, subscriber experience and operating cost reduction as network complexity and data consumption grow. Radcom believes these priorities support demand for cloud-native, AI-enabled service assurance and network intelligence offerings such as RADCOM ACE and RADCOM Neura. Eppstein also referenced an independent review by ACG Research, which found that Radcom can lower an operator’s total cost of ownership by up to 70%, even when running on the same hardware as competing solutions. He said the savings come from Radcom’s patented cloud-distributed architecture, which requires fewer servers, less data center space and less power while handling large-scale network data sets more efficiently. In response to Koontz’s question about 5G standalone cores, Eppstein said Radcom sees strong demand for cloud-native architecture and believes some competitors are struggling to provide those capabilities. He said Radcom can work with cloud providers and support private cloud environments, which he said helps promote the company’s business globally. Chief Financial Officer Hod Cohen said first-quarter non-GAAP gross margin was 76.5%. Non-GAAP net income was $4.7 million, or $0.28 per diluted share, compared with $4.1 million, or $0.25 per diluted share, in the year-earlier period. Gross research and development expenses were $5.1 million, up 19.7% year over year, reflecting investments in collaboration, innovation and product portfolio expansion. Cohen said Radcom plans to continue strategic R&D investment, particularly in agent-to-agent and multi-modal workflows, while supporting strategic partnerships and productization efforts. Sales and marketing expenses were $4.3 million, up 1.4% from the prior-year quarter, as the company continued investing in sales capabilities to support pipeline growth and expansion in high-value regions. On a GAAP basis, first-quarter net income was $3.1 million, up 26.1% year over year. GAAP diluted earnings per share were $0.18, compared with $0.15 in the prior-year period. Radcom ended the quarter with 328 employees and $108.4 million in cash equivalents and short-term bank deposits, reflecting negative cash flow of $1.5 million, mainly due to annual bonus payments. Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users. Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Radcom Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.