Israel's Radcom Q2 revenue falls 33% on deployment delays

Radcom

12/08/2026 12:08

Overview
Israel network assurance firm's Q2 revenue fell 33% yr/yr due to deployment delays
Company posted a non-GAAP net loss for Q2, reversing a profit last year
Radcom to launch $20-25 mln share repurchase program, three contracts secured after quarter-end

Outlook
Radcom reaffirms 2026 revenue guidance of $57 mln to $63 mln
Company expects to remain profitable on a non-GAAP basis in 2026
Radcom expects double-digit percentage revenue growth in 2027

Result Drivers
DEPLOYMENT DELAYS - Co said Q2 revenue was affected by deployment delays at some customers due to higher component costs and supply constraints
TIMING-RELATED IMPACT - Co said delays were timing-related and not a change in demand; none of the delayed deployments were cancelled or lost to competition, per CEO Benny Eppstein

Company press release: ID:nPn7CcFM5a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Loss
 
$3.11 mln
 
Q2 Gross Profit
 
$8.83 mln
 
Q2 Operating Expenses
 
$12.59 mln
 
Q2 Operating Income
 
-$3.76 mln
 
Q2 Pretax Loss
 
$2.95 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Radcom Ltd is $18.00, about 79.1% above its August 11 closing price of $10.05
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 12 - Israel's Allot Q2 revenue tops estimates, raises 2026 outlook
Aug 12 - Israel's Valens Semiconductor Q2 revenue beats estimates, lifts 2026 outlook
Aug 10 - Canada's Electrovaya Q3 revenue misses estimates on program delivery delays

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.)