RADCOM

RDCM

Telecommunications Services · Communication Services

Price

$10.32

+0.13 (+1.28%)

Market Cap

$172.7M

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Strong

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Share count rising — dilution

+19.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 14.1M (2021) → 16.8M (2025)

Winston Score History

The full picture

RADCOM is an Israeli technology company that makes software tools for telecom companies to monitor their networks. Its main product helps carriers — especially those running 5G networks — watch over huge amounts of data traffic in real time to spot problems and make sure customers get good service. The company focuses on cloud-native network intelligence, meaning its software is built to work in modern, cloud-based telecom environments.

RADCOM earns money by selling software licenses and recurring service contracts to large telecom operators around the world, including major carriers in North America and Europe. It is a small company with a market cap around $200 million, but its high gross margin of 76% reflects the profitability of software-based products. Its moat comes from deep integration into complex carrier networks, which makes switching costly for customers. The key growth driver is continued global 5G rollout, though its small size and dependence on a limited number of large customers remain meaningful risks.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-33.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-220.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$20M/ year

↑ Rising (+7% vs prior year)

27.8% of revenue

2.3x the sector average (12%)

Investing heavily in future products and technology

Insider Activity

22.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$110M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

RADCOM is putting 28% of revenue into R&D and that number is rising. That's 2.3x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

75.1%

Premium pricing power — 75.1% gross margin

Profit after running costs

Operating Margin

-31.9%

Losing money on operations — -31.9%

Return on the money invested

ROCE

3.0%

Weak — 3.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+1.9%

Nearly flat sales (+1.9% YoY)

Profit growth

EPS YoY

-25.9%

Earnings shrinking (-25.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 0% of profit becomes cash

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

24.0x

Growth-priced — P/E 24.0

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+15.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (24.0 → 8.6)

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Dividends

Not applicable for this business.

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