RADCOM (RDCM) Q2 2026 Earnings Call: Revenue Falls 33.4%, Revised Outlook Reaffirmed
Source Tradingkey
Key Takeaways
- RADCOM Ltd. reported Q2 2026 revenue of $11.8 million, down 33.4% year over year from $17.7 million, primarily due to delays in planned expansion phases at a limited number of existing Tier 1 customers.
- Non-GAAP gross margin was 76.3%, while the company recorded a non-GAAP operating loss of $2.2 million and a net loss of $1.5 million, or $0.09 per diluted share.
- Management attributed the deployment delays mainly to sharply higher server infrastructure costs affecting private-cloud and on-premises projects. The company said the projects have been delayed rather than canceled or lost to competitors.
- RADCOM reaffirmed its revised 2026 revenue outlook of $57 million to $63 million, with a midpoint of $60 million. Management also expects full-year non-GAAP profitability.
- The company secured three contracts shortly after quarter-end: a new multiyear agreement with CETIN Networks in Slovakia, a new Tier 1 customer in Asia-Pacific and a renewal with an existing European customer.
- RADCOM plans to establish a $20 million to $25 million share repurchase program, subject to completing the required regulatory steps.
Core Financial Data
| Metric | Q2 2026 | Year-over-year comparison / context |
|---|---|---|
| Revenue | $11.8 million | Down 33.4% from $17.7 million |
| Non-GAAP gross margin | 76.3% | — |
| Non-GAAP operating loss | $2.2 million | Negative 18.5% of revenue |
| Non-GAAP net loss | $1.5 million | Versus net income of $4.2 million |
| Non-GAAP diluted EPS | -$0.09 | Versus $0.25 |
| GAAP net loss | $3.1 million | Versus net income of $2.4 million |
| GAAP diluted EPS | -$0.18 | Versus $0.15 |
| Net R&D expenses | $5.3 million | Up 15.9% |
| Sales and marketing expenses | Approximately $4.7 million | Up 8.8% |
| Cash, cash equivalents and short-term bank deposits | $109.7 million | Quarter-end balance |
| Quarterly cash flow | Positive $1.3 million | — |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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