Overview

* Radcom ( RDCM ) Q3 revenue grows 16% yr/yr, beating analyst expectations

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

* Radcom ( RDCM ) reaffirms full-year 2025 guidance of 15%-18% revenue growth

Outlook

* Radcom ( RDCM ) reaffirms full-year 2025 revenue growth guidance of 15%-18%

* Company maintains strong operating momentum heading into Q4

* Radcom ( RDCM ) 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/Mis Actual Consensu

s s

Estimate

Q3 Beat $18.39 $18.05

Revenue mln mln (2

Analysts

)

Q3 Net $3.47

Income mln

Q3 Gross $14.02

Profit mln

Q3 $11.61

Operatin mln

g

Expenses

Q3 $2.42

Operatin mln

g Income

Q3 $3.58

Pretax mln

Profit

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 ( RDCM ) 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:

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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.)