RadcomRDCM +6.84%70 Gross Margin % is 75.72% as of Mar. 2026, which is 5% above its 10-year median of 72.11. GuruFocus rates RDCM with a GF Score™ of 70/100 and a GF Value™ of $13.36 (Fairly Valued). The stock has 2 warning signs investors should review. Among 344 Telecommunication Services companies, Radcom ranks better than 87.5% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Radcom's Gross Profit for the
three
months ended in Mar. 2026 was $14.07 Mil. Radcom's Revenue for the
three
months ended in Mar. 2026 was $18.59 Mil. Therefore, Radcom's Gross Margin % for the quarter that ended in Mar. 2026 was 75.72%.
The historical rank and industry rank for Radcom's Gross Margin % or its related term are showing as below:
RDCM'
s Gross Margin % Range Over the Past 10 Years
Min: 69.56 Med: 72.11 Max: 76.03
Current: 76.03
During the past 13 years, the highestGross Margin % of Radcom was 76.03%. The lowest was 69.56%. And the median was 72.11%.
RDCM's Gross Margin % is ranked better than 87.5% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs RDCM: 76.03
Radcom had a gross margin of 75.72% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Radcom was 1.20% per year.
Radcom (NAS:RDCM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Radcom had a gross margin of 75.72% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Radcom Gross Margin % Related Terms
Radcom Gross Margin % Historical Data
* Premium members only.
The historical data trend for Radcom's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RDCM vs GLTK, CABO, OPTU: Gross Margin % Comparison
For the Telecom Services subindustry, Radcom's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Radcom Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Radcom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Radcom's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Radcom (RDCM) has a Gross Margin % of 75.72% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Radcom and its competitors. This is near median its historical median of 72.11. Over the past decade, Radcom's Gross Margin % has ranged from 69.56 to 76.03. According to the industry distribution chart, Radcom ranks #43 out of 344 companies in the Telecommunication Services industry, placing it in the top 12.5%.
Is Radcom's Gross Margin % too high?
Radcom's current Gross Margin % of 75.72% is near median its 10-year median of 72.11. Over the past 10 years, this metric has ranged from a low of 69.56 to a high of 76.03. The Telecommunication Services industry median Gross Margin % is 51.42. Radcom's value of 75.72% is 47.3% above this industry median. Based on the distribution chart, Radcom ranks #43 out of 344 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Radcom has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Radcom's Gross Margin % compare to GLTK and CABO?
According to the Telecommunication Services industry distribution chart, Radcom ranks #43 out of 344 companies for Gross Margin %. This places Radcom in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.42. Radcom's value of 75.72% is 47.3% above this benchmark. Historically, Radcom's own Gross Margin % has ranged from 69.56 to 76.03 over the past decade. While the company's 10-year median is 72.11 vs. the industry median of 51.42, Radcom has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Radcom's current Gross Margin % of 75.72% is 47.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Radcom and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radcom's current Gross Margin % is 75.72%, which is near median its own 10-year median of 72.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Radcom stock overvalued right now?
Based on GuruFocus' analysis, Radcom (RDCM) is currently considered Fairly Valued. The stock's GF Value™ is $13.36, compared to a current price of $13.43 — trading 0.5% above its estimated fair value. The current Gross Margin % is 75.72%, which is near median its 10-year median of 72.11 and 47.3% above the Telecommunication Services industry median of 51.42. Radcom's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Radcom (RDCM), the current Gross Margin % is 75.72% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Radcom (RDCM) Overvalued in 2026?
Based on GuruFocus' analysis, Radcom stock appears to be overvalued.
The current stock price of $13.43 is trading 0.5% above its estimated GF Value™ of $13.36.
GuruFocus considers Radcom to be Fairly Valued.
Key valuation signals for RDCM:
Gross Margin %: 75.72% (near median its 10-year median of 72.11)
GF Value™: $13.36 vs. price of $13.43 (0.5% above fair value)
Industry Position: 47.3% above the Telecommunication Services median (#43 of 344)
No single metric tells the full story. See the RDCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Radcom Ltd Ltd is engaged in providing network intelligence, 5G ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. The company has a network intelligence solution for 5G namely Radcom ACE. Its products consist of Radcom Network Visibility, Radcom Service Assurance, and Radcom Network Insights. It has offices in Israel, the United States, Brazil, and India. Key revenue is derived from sales in North America.
70GF Score
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