RADCOM (RDCM): The Quiet 5G Software Pure-Play Where an Activist, a Founder's Family and AI Just Met

RDCM: 5G assurance software pure-play at 14-15x trailing GAAP EPS; strip out $109.9M net cash (42% of mkt cap) & operating biz trades ~9.5x earnings. 6 consecutive yrs growth, FY25 rev $71.5M (+17.2% YoY), record 20.6% non-GAAP op margin, GAAP EPS +65% to $0.71 on operating leverage. Activist group (founder's children Zisapel + Value Base, 19.27% stake) + Lynrock Lake (19%, strategic alternatives push) = ~38-39% combined votes. EGM May 20 for board overhaul & capital allocation. Just launched Neura agentic AI suite at MWC, embedded in Rakuten Symphony rollouts. Risks: 3 customers = 86% rev, lumpy sales cycles, governance issues. Fair PE 22x on 2028 EPS $1.50 = $33 PT (~27% IRR). Catalysts: EGM outcome, capital return, M&A exit, new Tier 1 wins, Neura adoption.

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