RADCOM (RDCM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $11.8 million, down 33.4% year-over-year due to deployment delays from higher server and component costs, not demand loss.

• Three new contracts were secured post-quarter, including CETIN Networks in Slovakia, a Tier-1 Asia-Pacific operator, and a renewal with an existing European customer.

• Customer relationships remain strong, with no project cancellations or competitive losses; delays are attributed to infrastructure readiness and budgeting cycles.

• Management initiated a $20–$25 million share repurchase program, with execution expected post-authorization.

• The company maintains a robust sales pipeline and expects deferred deployments to resume as customers complete infrastructure preparations.

Financial highlights

• Q2 2026 revenue: $11.8 million, down from $17.7 million year-over-year.

• Q2 2026 gross margin: 76.3% (non-GAAP), 75.1% (GAAP).

• Q2 2026 non-GAAP operating loss: $2.2 million (-18.5% margin); GAAP net loss: $3.1 million (-$0.18/share); non-GAAP net loss: $1.5 million (-$0.09/share).

• Cash and equivalents at quarter-end: $109.7 million, with positive cash flow of $1.3 million and no debt.

• Shareholders’ equity at June 30, 2026: $117.4 million.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $57–$63 million (midpoint $60 million).

• Expects to remain profitable on a non-GAAP basis for 2026 and anticipates double-digit revenue growth in 2027 as deferred deployments resume.

• Pipeline remains broad and progressing, with confidence in conversion to new and expanded business.