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.)