RADCOM (RDCM) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $18.6 million, up 12% year-over-year, with non-GAAP operating margin expanding to 20.1% and improved profitability.

• Launched RADCOM Neura, an AI agent suite, and secured a multi-year renewal with a Tier-1 operator, expanding AI-driven network operations.

• Expanded ServiceNow ecosystem with a second connector, enhancing network intelligence and operational efficiency.

• Maintained a strong cash position of $108.4 million and no debt, supporting ongoing investment and growth.

• Board of Directors saw significant changes, with several members stepping down and new elections scheduled.

Financial highlights

• Q1 2026 revenue was $18.6 million, up 12% year-over-year, with non-GAAP gross margin at 76.5%.

• Non-GAAP operating income reached $3.7 million (20.1% margin); GAAP operating income was $2.2 million (11.7% margin).

• Non-GAAP net income was $4.7 million ($0.28 per diluted share); GAAP net income was $3.1 million ($0.18 per share).

• Ended Q1 2026 with $108.4 million in cash, cash equivalents, and short-term deposits; negative cash flow of $1.5 million for the quarter.

• Total assets were $147.7 million and shareholders’ equity was $118.6 million as of March 31, 2026.

Outlook and guidance

• Reaffirmed full-year 2026 revenue growth guidance of 8%-12% year-over-year, with a midpoint of $78.6 million.

• Expectation for new customer deals to contribute revenue in H2 2026, especially Q4.

• Focus remains on disciplined execution, deepening customer relationships, and advancing AI-native assurance capabilities.

• Plans to expand Neura agent suite with more use cases across assurance, customer care, and network operations.

• Guidance supported by a strong sales funnel and robust customer engagement.