RADCOM sales rise 12% as five directors resign ahead of proxy battle

RADCOM (NASDAQ:RDCM) reported a 12% increase in first-quarter revenue and expanding profit margins, though the strong financial results were paired with the sudden resignation of five board directors on the eve of a highly contested shareholder showdown.

The Tel Aviv-based telecom software provider generated revenue of $18.6 million for the three months ended March 31, 2026, up from $16.6 million in the first quarter of fiscal 2025.

Driven by stable operating leverage, the company's GAAP operating margin improved to 11.7% from 8.8% year-over-year, while its non-GAAP operating margin expanded to 20.1%.

Net income under GAAP rose to $3.1 million, or $0.18 per diluted share.

On a non-GAAP basis, net income arrived at $4.7 million, or $0.28 per diluted share, up from $0.25 per share in the prior-year period.

The solid financial print coincided with a sweeping governance overhaul.

RADCOM announced that five of its current board directors have stepped down immediately ahead of an Extraordinary General Meeting scheduled for May 20, 2026.

The shareholder vote was originally forced by a dissident investor group holding roughly 19.3% of ordinary shares, who had campaigned to shrink the board, oust five sitting directors, and install three alternative nominees to overhaul corporate oversight.

Operationally, the company advanced its product portfolio with the commercial rollout of RADCOM Neura, an AI-driven network assurance and analytics suite designed for 5G cloud networks.

RADCOM also secured its long-term revenue backlog by signing a multi-year software renewal contract with an unnamed Tier-1 telecommunications operator.

The company finished the quarter with a robust balance sheet, carrying $108.4 million in cash, cash equivalents, and short-term bank deposits while maintaining zero long-term corporate debt.

Looking forward, management reaffirmed its full-year fiscal 2026 revenue guidance.

The company continues to project top-line growth between 8% and 12%, implying an annual revenue target of approximately $78.6 million at the midpoint of its guidance range.