Second-quarter revenue fell 33.4% year over year to $11.8 million as Tier 1 customers delayed private-cloud and on-premises expansion projects amid higher server costs. Radcom said the projects remain on customers' roadmaps rather than being canceled or lost to competitors. Radcom reported a non-GAAP net loss of $1.5 million versus income of $4.2 million a year earlier, but maintained its $57 million–$63 million 2026 revenue outlook and expects to remain profitable for the full year.
Management sees deployment activity potentially normalizing in early 2027 and expects double-digit revenue growth that year. The company ended the quarter with $109.7 million in cash and short-term deposits and plans a $20 million–$25 million share-repurchase program. It also announced new contracts with CETIN Networks and an Asia-Pacific Tier 1 operator, along with a European renewal.
Radcom (NASDAQ:RDCM) reported second-quarter revenue of $11.8 million, down 33.4% from $17.7 million a year earlier, as certain planned expansion deployments at a limited number of existing Tier 1 customers were delayed by rising server infrastructure costs. Chief Executive Officer Benny Eppstein said the delayed projects remain part of customers' longer-term deployment roadmaps and do not reflect contract cancellations, competitive losses, pricing issues or dissatisfaction with Radcom's products. However, customers using private-cloud and on-premises environments have been reassessing the timing and scope of infrastructure investments after server prices rose sharply. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat "The key point is that so far these projects have been delayed, not displaced," Eppstein said.
"They remain associated with active customer relationships and established expansion roadmaps." Eppstein said some customers need to rebalance budgets, prepare additional sites or shift portions of planned expansions into later budget periods before approving the next phase of a deployment. Large projects can require dozens of servers across multiple locations, making the increased cost of hardware a substantial commitment for operators. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Radcom does not manufacture the servers, Eppstein noted, but its software must be installed in an operating environment that is ready to support it. The company said it has secured hardware for some anticipated deployments so it can begin execution once customers complete their planning and sites are prepared.
The effect has been concentrated in private-cloud and on-premises deployments. Public-cloud projects, which are less dependent on purchasing, shipping and installing physical infrastructure, have been less affected, according to the company. → First Solar's Profit Engine Faces a New Policy Test in Washington Based on current customer discussions, Eppstein said the first quarter of 2027 is the earliest period when deployment activity could begin returning to a more normal pace, although one or more projects could move ahead during the fourth quarter of 2026. The company expects some additional clarity as customers work through their 2027 budgeting processes.
Radcom said it expects to remain profitable on a non-GAAP basis in 2026 and to return to double-digit revenue growth in 2027. Chief Financial Officer Hod Cohen said the company's non-GAAP gross margin was 76.3% in the second quarter. Radcom recorded a non-GAAP operating loss of $2.2 million, or 18.5% of revenue, and a non-GAAP net loss of $1.5 million, or $0.09 per diluted share.
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