Radcom: Guidance Was Cut, But I'm Still Bullish

RADCOM Ltd. faces a significant revenue guidance cut for 2026, now expecting $57–$63 million, down from the prior $78.6 million midpoint. Despite the setback, RDCM's valuation at $10 per share and $60 million EV appears oversold, offering a favorable risk-reward profile. RDCM's moat remains strong due to its specialized, sticky telecom network assurance software, with no customer cancellations or competitive losses reported. I assign RDCM a Buy rating, with a conservative fair value range of $13–$14 per share, but highlight customer concentration as a key risk.

RADCOM Ltd. (RDCM) is largely a software company that provides network assurance software to mostly telecom companies. Essentially, RDCM sits on top of a complicated collection of mobile networks that collects a