William Blair Initiates Buy Rating on Radcom Shares

Thursday, Aug 14, 2025 3:40 am ET1min read

Radcom (RDCM) has received a Buy rating from William Blair analyst Arjun Bhatia. The company's shares opened at $14.29, and the analyst consensus is a Moderate Buy with an average price target of $18.00. Radcom's latest earnings report showed a quarterly revenue of $16.59 million and a net profit of $2.44 million, compared to $14.12 million and $762 thousand last year.

Radcom Ltd. (Nasdaq: RDCM), a leading provider of advanced, intelligent assurance solutions, has reported robust financial results for the second quarter of 2025. The company announced a year-over-year (YoY) revenue growth of 19.3%, reaching $17.7 million [1]. This growth significantly outpaces the company's full-year guidance of 15%-18%.

The company's strong performance was driven by expanding margins and robust cash flow. The company's GAAP operating margin increased to 9.9% from 5.9% in the year-ago quarter, while the non-GAAP operating margin reached 19.5%, up from 15.4% [1]. Additionally, RADCOM generated $2.6 million in positive cash flow and ended Q2 with its highest-ever cash position of $101.6 million, with no debt [1].

The company's agentic AI capabilities and strategic partnerships have been key drivers of growth. RADCOM's Chief Executive Officer, Benny Eppstein, noted that the company's differentiated technology and evolving partnerships have gained strong traction across key accounts, driving demand for its intelligent, automated network assurance solutions [3].

RADCOM's solid financial performance is reflected in its earnings per share (EPS) metrics. GAAP EPS increased to $0.15 from $0.11, while non-GAAP EPS rose to $0.25 from $0.20 year-over-year [3]. The company's first six months of 2025 also showed substantial improvements in profitability metrics compared to H1 2024 [3].

The company's reaffirmation of its full-year 2025 revenue guidance of 15%-18% with a midpoint of $71.1 million demonstrates confidence in its business pipeline and market position [1].

References:

[1] https://finance.yahoo.com/news/radcom-delivers-19-yoy-revenue-110000969.html
[2] https://www.ainvest.com/news/radcom-reports-19-3-yoy-revenue-growth-q2-2508/

William Blair Initiates Buy Rating on Radcom Shares

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