Radcom beats Q3 revenue estimates on AI and 5G adoption

Radcom

12/11/2025 12:08

Overview

Radcom Q3 revenue grows 16% yr/yr, beating analyst expectations

Company achieves highest operating margin in seven years, driven by AI and 5G adoption

Radcom reaffirms full-year 2025 guidance of 15%-18% revenue growth

Outlook

Radcom reaffirms full-year 2025 revenue growth guidance of 15%-18%

Company maintains strong operating momentum heading into Q4

Radcom focuses on converting robust pipeline into revenue

Result Drivers

AI AND 5G ADOPTION - Demand for AI and 5G solutions drove revenue growth and margin expansion

AI-DRIVEN SOLUTIONS - AI-driven assurance solutions cited for lowering total cost of ownership and enhancing network observability

PIPELINE CONVERSION - Focus on converting robust pipeline into revenue and expanding within installed base

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$18.39 mln
$18.05 mln (2 Analysts)
Q3 Net Income
$3.47 mln
Q3 Gross Profit
$14.02 mln
Q3 Operating Expenses
$11.61 mln
Q3 Operating Income
$2.42 mln
Q3 Pretax Profit
$3.58 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 29.6% above its November 11 closing price of $12.67

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn9Y5cl4a

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(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.)