RADCOM Returns to Non-GAAP Profitability as Q3 Revenue Rises 19.4%
RADCOM reported $14.0 million in third-quarter 2026 revenue, a 19.4% increase from the previous quarter, as it returned to non-GAAP operating profitability and generated positive cash flow. The telecom software company also reaffirmed its revised full-year revenue outlook of $57 to $63 million.
- Third-quarter revenue reached $14.0 million, up 19.4% sequentially.
- RADCOM returned to non-GAAP operating income of $0.7 million.
- The company generated $1.7 million in positive quarterly cash flow.
- VNPT and CETIN Networks selected RADCOM as new customers.
- RADCOM reaffirmed its $57 to $63 million 2026 revenue outlook.
Revenue improved from the second quarter
RADCOM's revenue for the quarter ended September 30, 2026, rose from $11.8 million in the second quarter to $14.0 million. However, revenue was down 23.6% from $18.4 million in the third quarter of 2025.
The company recorded a GAAP operating loss of $0.9 million, or (6.4%) of revenue, compared with GAAP operating income of $2.4 million in the year ago quarter. On a non-GAAP basis, RADCOM reported operating income of $0.7 million, or 4.9% of revenue, compared with $3.8 million, or 20.9% of revenue, a year earlier.
GAAP net income was $0.4 million, or $0.03 per diluted share, while non-GAAP net income was $1.9 million, or $0.11 per diluted share. The corresponding figures in the third quarter of 2025 were $3.5 million and $0.21 per diluted share on a GAAP basis, and $4.9 million and $0.29 per diluted share on a non-GAAP basis.
New customers and network deployments
RADCOM said it added VNPT and CETIN Networks as new customers during the quarter, with both replacing incumbent vendors through competitive processes.
VNPT, one of Vietnam's largest telecom operators with over 30 million subscribers, selected RADCOM to provide AI-native, cloud-native service assurance for its roaming network. The company will deploy the RADCOM ACE platform across multiple cloud environments, using AI and machine learning based anomaly detection to identify issues before they affect customer experience.
RADCOM also booked a multi-year contract with CETIN Networks in Slovakia. The agreement covers end-to-end, AI-driven assurance across the company's mobile network, from the radio access network to the core. CETIN Networks is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries.
Cash position supports investment and planned buybacks
RADCOM generated $1.7 million in positive cash flow during the quarter. It ended September with $111.4 million in cash, cash equivalents and short-term bank deposits, compared with $109.7 million at the end of June, and reported no debt.
In September, RADCOM's board authorized a share repurchase program of up to $20 million of ordinary shares, expected to remain in effect for up to 18 months. No shares were repurchased during the third quarter. According to Chief Executive Officer Benny Eppstein, the company expects to begin repurchases at management's discretion after the current earnings-related blackout period ends.
RADCOM said it is investing in RADCOM ACE and its agentic AI roadmap. It also said some deployments delayed in 2026 may begin moving forward in early 2027. The company reaffirmed its revised full-year 2026 revenue outlook, with a midpoint of $60 million.
PR Newswire: RADCOM Reports Third Quarter 2026 Results
