RADCOM Ltd (RDCM) AI Stock Analysis

RADCOM Ltd. specializes in providing advanced, cloud-native network intelligence and service assurance solutions for telecommunications operators and communication service providers (CSPs) preparing for 5G. Its flagship RADCOM ACE platform includes RADCOM Service Assurance, a virtualized tool delivering end-to-end network visibility and customer experience insights. The company also offers RADCOM Network Visibility, a cloud-native packet broker and filtering system for efficient traffic management, and RADCOM Network Insights, which applies business intelligence to operational data. Headquartered in Tel Aviv, Israel, RADCOM serves global clients via direct sales and partner channels.

Between FY2021 and FY2025, RADCOM steadily scaled revenue from $40.3M to $71.5M, achieving 17.2% growth in FY2025. Gross margin expanded from 71.6% in FY2021 to 76.0% in FY2025, while operating margin turned positive, rising from -13.6% to 11.6%. Net income improved from -$5.3M in FY2021 to $12.0M in FY2025, lifting EPS to $1.10. However, trailing twelve months figures reflect pressure, with operating margin at -31.9% on revenue of $67.6M. In the latest quarter ended June 30, 2026, revenue dropped 33.4% year-over-year, even as quarterly earnings grew 20.0%.

As of June 30, 2026, RADCOM held $109.7M in cash and short-term investments against total debt of $2.9M, leaving net cash of $106.8M. The company demonstrates high liquidity with a current ratio of 6.20 and a debt-to-equity ratio of 0.02 against shareholders' equity of $117.4M. Operating cash flow reached $14.6M in FY2025, yielding free cash flow of $14.2M after capital expenditures of $384,000. Over the past five years, the share count increased by 18.9%.

RADCOM trades at a trailing P/E of 24.0x and a forward P/E of 61.0x, above the median of its US-listed Communication Services peers of 16.2x and 14.1x, respectively. Its enterprise value to EBITDA sits at 18.6x compared to the peer median of 10.0x, while its price-to-sales multiple of 2.5x is higher than the peer median of 0.8x. Over the past year, RDCM returned -26.6%, lagging the 16.8% return of the S&P 500 (SPY), and the stock sits 18.0% below its 200-day average.

Wall Street coverage includes 1 Strong Buy and 1 Buy rating, with zero Hold, Sell, or Strong Sell recommendations. The mean price target of $14.00 represents a 38.9% premium over the last close of $10.08. For the fiscal year ending December 31, 2026, analysts estimate revenue of $58.6M and EPS of $0.35, representing a 67.4% decrease in EPS. RADCOM beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of RADCOM Ltd (RDCM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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