While the company reports net income of $3.6 million, the lack of disclosed operating cash flow data and historical stock-based compensation expenses of $1.6 million per quarter warrant further investigation into true cash generation.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 0 | 11.39M | 4.71M | 6.02M | 2M | -50K | 6.84M | -1.95M | -10.6M | 9.45M | 1.88M | 3.39M | -2.13M | -2.46M | -3.35M | -2.5M | 890K | -4.96M | -6.02M | -2.59M | 1.39M | -2.18M | -4.41M | -1.67M | -3.92M | 9.8K | -483.16K | -2.6M |
| Operating CF Margin % | - | 18.67% | 9.12% | 13.07% | 4.97% | -0.13% | 20.72% | -5.72% | -28.48% | 32.03% | 10.09% | 14.33% | -10.4% | -15.59% | -15.24% | -13.03% | 7.47% | -32.52% | -44.59% | -11.01% | 6.22% | -13.57% | -39.36% | -11.47% | -20.97% | 0.03% | -1.95% | -13.61% |
| Operating CF Growth % | -100% | 141.99% | -21.81% | 200.65% | 4104% | -100.73% | 450.95% | 81.62% | -212.19% | 401.65% | -44.36% | 258.97% | 13.45% | 26.54% | -34.11% | -380.67% | 117.96% | 17.65% | -132.27% | -286.54% | 163.74% | 50.58% | -163.54% | 57.29% | -40049.01% | 102.03% | 81.43% | - |
| Net Income | 11.99M | 6.97M | 3.71M | -2.26M | -5.26M | -3.99M | -6.83M | -2.42M | 2.9M | 1.92M | -923K | 726K | -1.42M | -5.99M | -1.9M | 570K | -2.65M | -5.79M | -8.58M | -54K | 1.53M | -1.68M | -6.22M | -4.72M | -11.45M | -3.03M | 417.28K | 496.43K |
| Depreciation & Amortization | 0 | 679K | 621K | 477K | 540K | 699K | 752K | 657K | 537K | 286K | 123K | 87K | 108K | 119K | 155K | 294K | 481K | 610K | 687K | 603K | 579K | 797K | 1.15M | 1.4M | 1.71M | 1.77M | 1.68M | 1.26M |
| Stock-Based Compensation | 0 | 6.1M | 6.12M | 5.17M | 3.36M | 2.17M | 2.23M | 2.12M | 2.22M | 2.47M | 1.41M | 579K | 499K | 672K | 823K | 564K | 272K | 530K | 558K | 12K | 12K | 0 | 123K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 3.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.9M | 141K | 0 | 182K | -558K | -5K | -12K | 0 | -123K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -11.99M | 0 | 0 | 0 | 0 | 0 | -3.68M | 2.04M | 21.39M | 781K | 1.83M | -4K | 8K | 12K | -1.9M | -609K | 40K | 460K | 637K | 485K | -27K | 9K | 217K | 76K | 974K | 168.11K | -85.26K | 85.07K |
| Working Capital Changes | 0 | -2.36M | -5.75M | 2.63M | 3.37M | 1.07M | 10.69M | -2.31M | -16.26M | 4.78M | 1.27M | 2M | -1.32M | 2.72M | -2.42M | -3.46M | 2.75M | -945K | 1.24M | -3.63M | -690K | -1.31M | 454K | 1.57M | 4.85M | 1.1M | -2.49M | -4.44M |
| Change in Receivables | 0 | -7.83M | -951K | -2.18M | 2.7M | -1.54M | 9.3M | 13K | -15.87M | -329K | 1.05M | 61K | -2.72M | 2.06M | 1.37M | -2.63M | 3.51M | -1.7M | -2.6M | -2.52M | -2.52M | 0 | -786K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | -1.42M | 552K | 157K | -410K | 811K | -1.14M | 901K | -560K | 794K | 311K | 1.38M | 2.13M | -222K | -2.6M | -1.06M | -167K | 584K | -1.14M | -1.18M | 143K | -892K | 279K | 356K | 2.22M | -1.12M | -606.73K | -1.22M |
| Change in Payables | 0 | -175K | -17K | 16K | 1.02M | -773K | 998K | -182K | -1.15M | 1.27M | -278K | -705K | 348K | -775K | 2K | 1.63M | -1M | 865K | 4.94M | -72K | 2.52M | 0 | 786K | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 0 | -2.74M | -3.59M | -8.43M | -3.5M | 7.6M | -62.62M | 39.34M | -40.79M | -1.33M | -97K | 1.41M | -126K | -1.5M | -103K | -56K | -27K | -120K | 7.55M | -8.31M | 1.66M | -2.25M | 2.81M | 5.02M | -4.89M | 4.12M | -1.62M | 4.8M |
| Capital Expenditures | 0 | -2.74M | -3.59M | -8.43M | -3.5M | 7.6M | -62.62M | 39.34M | -40.79M | -1.33M | -97K | 1.41M | -88K | -1.5M | -103K | -56K | -27K | -120K | 7.55M | -8.31M | 1.66M | -2.25M | 2.81M | 5.02M | -4.89M | 4.12M | -1.72M | 4.8M |
| CapEx % of Revenue | - | 4.49% | 6.97% | 18.31% | 8.69% | 20.23% | 189.69% | 115.53% | 109.55% | 4.51% | 0.52% | 5.97% | 0.43% | 9.52% | 0.47% | 0.29% | 0.23% | 0.79% | 55.94% | 35.28% | 7.45% | 14.03% | 25.1% | 34.4% | 26.18% | 13.48% | 6.97% | 25.12% |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 8.03M | 0 | 40M | -40M | 0 | 0 | 1.48M | -38K | -1.44M | 0 | 0 | 0 | 0 | -7.98M | 8K | 0 | 40K | 34K | 46K | 312K | 6.2M | 112.53K | -17.53K |
| Cash from Financing | 0 | 0 | 0 | 0 | 0 | 0 | 16K | 2.13M | 31.1M | 25.69M | 813K | 1.09M | 1.93M | 2.6M | 767K | 5.02M | -1.1M | 4.83M | 224K | 2.38M | 909K | 5.38M | 4K | 0 | -92K | 841.32K | -2.43M | 3.51M |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 30.21M | 21.28M | 0 | 0 | 0 | 0 | 0 | 5.36M | 0 | 2.4M | 224K | 2.38M | 909K | 5.38M | 4K | 0 | -130K | 1.36M | 434.21K | 7.23K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -284K | -63 | -137 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 16K | 2.13M | 891K | 4.41M | 813K | 1.09M | 1.93M | 45K | 767K | 996K | 65K | -2.14M | 0 | 0 | 0 | 0 | 0 | 0 | 59K | 0 | 0 | 0 |
| Net Change in Cash | -19.24M | 8.35M | 1.36M | -2.42M | -1.6M | 7.35M | -55.79M | 39.38M | -20.31M | 34.16M | 1.88M | 5.66M | -289K | -1.43M | -2.84M | 2.47M | -239K | -250K | 1.76M | -8.51M | 3.96M | 944K | -1.59M | 3.35M | -8.9M | 4.97M | -4.54M | 5.71M |
| Free Cash Flow | 0 | 8.65M | 1.11M | -2.41M | -1.5M | 7.55M | -55.78M | 37.39M | -51.39M | 8.12M | 1.79M | 4.8M | -2.22M | -3.96M | -3.45M | -2.55M | 863K | -5.08M | 1.53M | -10.9M | 3.05M | -4.43M | -1.6M | 3.35M | -8.81M | 4.13M | -2.21M | 2.2M |
| FCF Margin % | - | 14.18% | 2.15% | -5.24% | -3.72% | 20.1% | -168.97% | 109.81% | -138.03% | 27.52% | 9.57% | 20.3% | -10.83% | -25.11% | -15.7% | -13.32% | 7.24% | -33.31% | 11.35% | -46.29% | 13.67% | -27.6% | -14.26% | 22.94% | -47.15% | 13.51% | -8.92% | 11.51% |
| FCF Growth % | -100% | 677.88% | 146.1% | -60.91% | -119.86% | 113.53% | -249.18% | 172.75% | -732.92% | 354.39% | -62.76% | 316.32% | 44.05% | -14.8% | -35.2% | -395.94% | 117% | -431.33% | 114.06% | -456.93% | 168.9% | -177.46% | -147.71% | 138.01% | -313.08% | 287.32% | -200.27% | - |
| FCF per Share | - | 0.54 | 0.07 | -0.17 | -0.11 | 0.54 | -4.05 | 2.74 | -4.16 | 0.75 | 0.21 | 0.56 | -0.30 | -0.62 | -0.54 | -0.44 | 0.17 | -1.02 | 0.38 | -2.74 | 0.78 | -1.32 | -0.61 | 1.28 | -3.35 | 1.60 | -0.80 | 0.88 |
| FCF Conversion (FCF/Net Income) | - | 1.63x | 1.27x | -2.67x | -0.38x | 0.01x | -1.00x | 0.81x | -3.65x | 4.94x | -2.04x | 4.66x | 1.50x | 0.41x | 1.76x | -4.38x | -0.34x | 0.86x | 0.70x | 47.98x | 0.91x | 1.30x | 0.71x | 0.35x | 0.34x | -0.00x | -1.16x | -5.24x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13K | 0 | 6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 278K | 190K | 104K | 82K | 128K | 118K | 25K | 83K | 24K | 121K | 180K | 0 | 120K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High Customer Concentration Risk
As reported in recent financial filings, RADCOM's net income has trended upward to $3.6 million by 2025Q4, yet the absence of disclosed operating cash flow data prevents a definitive assessment of whether these accounting profits are being successfully converted into tangible liquidity for the business.
The disconnect between rising net income and the lack of reported cash flow metrics warrants significant investor caution regarding the quality of earnings. Without visibility into working capital movements or non-cash adjustments, it remains unclear if the company's profitability is supported by actual cash collections or merely accrual-based revenue recognition.
Based on the provided financial data, RADCOM recorded stock-based compensation expenses totaling $1.6 million in both 2025Q1 and 2025Q2, which suggests that a meaningful portion of the company's reported net income is effectively being offset by non-cash equity dilution rather than operational cash generation.
Investors should monitor the impact of these compensation charges, as they represent a real economic cost to shareholders despite being excluded from cash flow calculations. The reliance on equity-based incentives may indicate management's attempt to preserve cash, yet it simultaneously masks the true underlying profitability of the core software business.
According to historical financial statements, RADCOM has maintained a disciplined capital allocation strategy by avoiding dividends and share repurchases, opting instead to preserve its cash position, which appears to be a defensive response to the binary risks associated with its concentrated Tier-1 customer base.
The company's decision to hoard cash rather than pursue aggressive M&A or return capital to shareholders suggests a survivalist posture typical of firms with high customer concentration. This approach provides a buffer against potential contract volatility, though it may also signal limited confidence in deploying capital toward high-return internal growth initiatives.
As indicated by the lack of reported capital expenditures in recent periods, RADCOM operates an extremely asset-light model, which aligns with its transition toward a cloud-native software architecture that requires minimal physical infrastructure investment compared to legacy hardware-centric competitors like NetScout Systems.
The absence of significant CAPEX suggests that the company's primary investment is directed toward R&D and human capital rather than tangible assets. While this supports high gross margins, it also implies that the company's competitive moat is entirely dependent on its ability to continuously innovate its software stack to remain relevant.
Quick answers to the most common questions about buying RDCM stock.
RADCOM Ltd. (RDCM) generated $0.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RADCOM Ltd. (RDCM) reported negative free cash flow of $0.0M in 2025, indicating capital requirements exceeded cash from operations.
RADCOM Ltd. (RDCM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.