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Strength Seen in Radcom (RDCM): Can Its 11.4% Jump Turn into More Strength?
ZACKSยท 2025-07-21 12:26
Company Overview - Radcom (RDCM) shares increased by 11.4% to $14.5 in the last trading session, with a higher-than-average trading volume, compared to a 2.1% gain over the past four weeks [1] - The rise in share price is linked to strong demand for its 5G assurance solutions, particularly the RADCOM ACE platform, which is gaining traction in North America and Europe [2] Business Developments - Radcom has secured a multi-year contract with Norlys, the owner of Telia Denmark, which replaces the previous assurance vendor and strengthens its position in the European telecom market [3] - The company is investing in R&D to enhance its AI and Generative AI capabilities, aimed at improving network management and customer satisfaction for telecom operators transitioning to standalone 5G networks [3] Financial Performance - In the last reported quarter, Radcom achieved record revenues of $16.6 million, reflecting a 17.5% year-over-year increase [4] - For full-year 2025, the company anticipates revenue growth between 15% and 18%, with a midpoint of $71 million, indicating a 13.5% increase from 2024 [4] - The upcoming quarterly earnings are projected at $0.22 per share, representing a 10% year-over-year increase, with expected revenues of $17 million, up 14.9% from the previous year [5] Market Position - The consensus EPS estimate for Radcom has remained stable over the last 30 days, indicating that stock price movements may not continue without changes in earnings estimate revisions [6] - Radcom holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [6]