Israel's Radcom Q3 revenue declines on deployment delays

By Reuters News


Overview

  • Israel network assurance firm's Q3 revenue rose 19.4% sequentially, down 23.6% yr/yr

  • Company returned to non-GAAP operating profitability and generated positive cash flow

  • Radcom reaffirmed full-year revenue outlook and plans share buyback after blackout period


Outlook

  • RADCOM reaffirms full-year 2026 revenue outlook of $57 mln to $63 mln

  • Company sees delayed deployments in 2026 beginning to move forward in early 2027

  • RADCOM expects to begin share repurchases after the current earnings blackout period ends


Result Drivers

  • NEW CUSTOMER WINS - Co added VNPT and CETIN Networks in Q3, each replacing an incumbent vendor after competitive processes

  • DEPLOYMENT DELAYS - Co said some customer deployments were delayed in 2026 but expects activity to pick up in early 2027

  • AI-DRIVEN SOLUTIONS - Co highlighted demand for its AI-native, cloud-native assurance platforms as integral to customer network management


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$14.04 mln

$13.51 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.11

$0.06 (2 Analysts)

Q3 Net Income

$441,000

Q3 Gross Profit

$10.22 mln

Q3 Operating Expenses

$11.12 mln

Q3 Operating Income

-$893,000

Q3 Pretax Profit

$600,000


Reuters Recommended Reads

  • Nov 10 - Israel's Gilat Satellite misses Q3 revenue estimates; says launch delays, contract timing hit forecast

  • Nov 10 - Israel's Wix slightly beats Q3 revenue estimates, maintains 2026 forecast

  • Nov 11 - Israel's Valens Semiconductor Q3 revenue rises on automotive segment growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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