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1. Company Snapshot

1.a. Company Description

RADCOM Ltd.provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers (CSPs).It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance.


The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution, voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service.It sells its products directly, as well as through a network of distributors and resellers in North America, Asia, Latin America, Europe, the Middle East, and Africa.The company was formerly known as Big Blue Catalogue Ltd.


and changed its name to RADCOM Ltd.in 1989.RADCOM Ltd.


was incorporated in 1985 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on RDCM

RADCOM Ltd.'s recent performance was driven by strong Q1 2025 earnings and revenue beat, with 17.5% year-over-year revenue growth. The company's technology momentum and partnerships led to a solid 2025 revenue growth outlook. RADCOM's Cloud and GenAI-based assurance solution experienced increasing deal win momentum, contributing to the company's record quarter. Strategic partnerships with ServiceNow, Infosys, and Nvidia expanded RADCOM's sales funnel and technology edge. A multi-year, eight-figure contract renewal with a leading North American telecom operator further solidified the company's position in the market.

1.c. Company Highlights

2. RADCOM's Q3 2025 Earnings: A Strong Performance

RADCOM reported a record revenue of $18.4 million, representing a 16.2% year-over-year growth, with a non-GAAP operating income of $3.8 million, or 20.9% of revenue. The company's gross margin stood at 77%, and non-GAAP net income was $4.9 million. Earnings per share (EPS) came in at $0.29, beating analyst estimates of $0.22. The strong financial performance was accompanied by a positive cash flow of $5.1 million, resulting in a cash balance of $106.7 million and no debt.

Publication Date: Nov -16

📋 Highlights
  • Record Revenue & Growth:: $18.4M revenue, 16.2% YoY growth with 20.9% non-GAAP operating margin ($3.8M).
  • Strong Cash Position:: $5.1M positive cash flow and $106.7M cash balance, debt-free.
  • High-Capacity Solution Efficiency:: 75% reduction in operational costs via NVIDIA BlueField-3 DPUs in field trials.
  • Profitability & Margins:: 77% gross margin, $4.9M non-GAAP net income.
  • Strategic Expansion:: Double-digit growth target for 2026, with 5G footprints expanding at AT&T and Rakuten Mobile.

Operational Highlights

RADCOM is capitalizing on the trend of telecom spending driven by AI-native networks. The company's Agentic AI solution provides end-to-end intelligent cloud-native solutions, and its strategic partnerships with NVIDIA, ServiceNow, and system integrators are strengthening its technology leadership. The launch of its next-generation high-capacity user analytics solution powered by NVIDIA BlueField-3 DPUs has shown promising results, with a reduction of up to 75% in operational costs in field trials.

Growth Prospects

RADCOM is well-positioned for growth, with a growing installed base, including AT&T and Rakuten Mobile, and a solid pipeline for expansion within existing customers. The company is targeting double-digit growth for next year, and analysts estimate revenue growth at 11.4%. The integration with NVIDIA is driving full user population visibility, generating significant excitement among customers.

Valuation

With a P/E Ratio of 22.51 and an EV/EBITDA of 31.81, RADCOM's valuation suggests that the market is pricing in a certain level of growth. The company's ROE stands at 9.58%, and ROIC at 4.87%. The current valuation metrics indicate that RADCOM is trading at a premium, but the strong growth prospects and improving profitability may justify this premium.

3. NewsRoom

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RADCOM Secures Contract for Smart Network Visibility Solution through Rakuten Symphony

Nov -18

Source: prnewswire.com

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Quarterly Earnings News - How AI is Shaping Record Growth across Multiple Sectors

Nov -14

Source: feeds.newsfilecorp.com

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Radcom Ltd. $RDCM Shares Purchased by Acadian Asset Management LLC

Nov -14

Source: defenseworld.net

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Radcom's Q3 Earnings & Revenues Beat on AI-Driven Growth, Stock Gains

Nov -13

Source: zacks.com

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RADCOM to Participate in 6th Annual Needham Tech Week: 1x1 Conference on November 20, 2025

Nov -13

Source: prnewswire.com

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RADCOM Ltd. (RDCM) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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Radcom (RDCM) Beats Q3 Earnings and Revenue Estimates

Nov -12

Source: zacks.com

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RADCOM Delivers 16% YoY Revenue Growth and Strong Margin Expansion in Q3 2025

Nov -12

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.88%)

6. Segments

Services

Expected Growth: 12.0%

RADCOM Ltd.'s 12.0% growth is driven by increasing demand for 5G network infrastructure, growing adoption of cloud-based services, and rising need for network automation and analytics. Additionally, the company's innovative solutions for telecom operators and expanding partnerships with major industry players contribute to its rapid growth.

Network Intelligence Solutions

Expected Growth: 14.0%

RADCOM's Network Intelligence Solutions growth is driven by increasing demand for 5G network infrastructure, rising need for network automation and optimization, and growing adoption of cloud-based services. Additionally, the company's strong partnerships with leading telecom operators and its innovative product offerings contribute to its 14.0% growth.

7. Detailed Products

RADCOM ACE

RADCOM ACE is a network functions virtualization (NFV) and software-defined networking (SDN) solution that enables service providers to manage and orchestrate their network services.

RADCOM MaveriQ

RADCOM MaveriQ is a cloud-based, automated service assurance solution that provides real-time monitoring and analytics for 5G, 4G, and 3G networks.

RADCOM Network Insights

RADCOM Network Insights is a data analytics platform that provides real-time insights into network performance, customer behavior, and service quality.

RADCOM Service Assurance

RADCOM Service Assurance is a comprehensive solution that provides real-time monitoring, troubleshooting, and analytics for network services.

8. RADCOM Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RADCOM Ltd. faces moderate threat from substitutes, as customers have limited alternatives for network monitoring and service assurance solutions.

Bargaining Power Of Customers

RADCOM Ltd. has a diverse customer base, which reduces the bargaining power of individual customers, and the company's solutions are often customized, making it difficult for customers to switch.

Bargaining Power Of Suppliers

RADCOM Ltd. has a diversified supplier base, and the company's technology is not heavily dependent on a single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The network monitoring and service assurance market has high barriers to entry, including significant R&D investments and established customer relationships, making it difficult for new entrants to compete with RADCOM Ltd.

Intensity Of Rivalry

The network monitoring and service assurance market is highly competitive, with several established players, and RADCOM Ltd. faces intense competition from companies like NetScout Systems and EXFO.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.93%
Debt Cost 3.95%
Equity Weight 98.07%
Equity Cost 7.74%
WACC 7.67%
Leverage 1.97%

11. Quality Control: RADCOM Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Orange Belgium

A-Score: 5.3/10

Value: 5.8

Growth: 4.3

Quality: 2.7

Yield: 0.6

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Helios Towers

A-Score: 5.2/10

Value: 3.0

Growth: 8.4

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
RADCOM

A-Score: 4.7/10

Value: 4.0

Growth: 6.9

Quality: 7.5

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
LINK Mobility

A-Score: 4.6/10

Value: 5.8

Growth: 8.7

Quality: 3.1

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
VEON

A-Score: 4.3/10

Value: 7.8

Growth: 2.0

Quality: 5.6

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Sinch

A-Score: 3.9/10

Value: 7.5

Growth: 6.3

Quality: 3.6

Yield: 0.0

Momentum: 5.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.98$

Current Price

12.98$

Potential

-0.00%

Expected Cash-Flows