AI and 5G adoption drives demand as the Company sees positive cash flow with the highest operating margin in seven years
TEL AVIV, Israel, Nov. 12, 2025 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced today its financial results for the third quarter of 2025 and for the nine-month period ended September 30, 2025.
Benny Eppstein, Chief Executive Officer, said, "RADCOM remains committed to delivering advanced, intelligent solutions that are transforming the assurance landscape. Driven by successful execution, we delivered record revenue of $18.4 million, our highest operating margin since 2018, record non-GAAP operating income, and more than $5 million in positive cash flow during the third quarter. These results underscore the resilience of our operating model and the clear value our AI-driven assurance solutions provide in lowering total cost of ownership and enabling comprehensive observability across customer networks."
"Heading into the fourth quarter, we maintain strong operating momentum and clear visibility toward achieving our full-year guidance of 15%-18% year-over-year revenue growth," continued Mr. Eppstein. "We remain focused on executing with discipline, converting our robust pipeline into revenue, expanding within our current installed base, and advancing strategic partnerships that reinforce our market position and extend our technology leadership."
T hird Quarter of 2025 Financial Highlights:
-- Total revenues for the third quarter of 2025 were $18.4 million, compared
to $15.8 million in the third quarter of 2024, or 16.2% year-over-year
growth.
-- GAAP operating income for the third quarter of 2025 was $2.4 million,
or 13.1% of revenue, compared to GAAP operating income of $1.2 million,
or 7.6% of revenue, for the third quarter of 2024.
-- Non-GAAP operating income for the third quarter of 2025 was $3.8 million,
or 20.9% of revenue, compared to non-GAAP operating income of
$2.6 million, or 16.7% of revenue, for the third quarter of 2024.
-- GAAP net income for the third quarter of 2025 was $3.5 million,
or $0.21 per diluted share, compared to GAAP net income of $2.3 million,
or $0.14 per diluted share, for the third quarter of 2024.
-- Non-GAAP net income for the third quarter of 2025 was $4.9 million,
or $0.29 per diluted share, compared to non-GAAP net income of $3.7
million, or $0.23 per diluted share, for the third quarter of 2024.
-- Positive cash flow of $5.1 million in the third quarter of 2025. As
of September 30, 2025, the company had cash and cash equivalents and
short-term bank deposits of $106.7 million, and no debt, ending the third
quarter with its highest ever cash levels.
First nine months of 2025 Financial Highlights:
-- Total revenues for the first nine months of 2025 were $52.6 million,
compared to $44.8 million in the first nine months of 2024, or 17.6%
year-over-year growth.
-- GAAP operating income for the first nine months of 2025 was $5.6 million,
or 10.7% of revenue, compared to GAAP operating income of $1.8 million,
or 4.0% of revenue, for the first nine months of 2024.
-- Non-GAAP operating income for the first nine months of 2025
was $10.4 million, or 19.8% of revenue, compared to
non-GAAP operating income of $6.7 million, or 14.9% of revenue, for the
first nine months of 2024.
-- GAAP net income for the first nine months of 2025 was $8.3 million,
or $0.50 per diluted share, compared to GAAP net income of $4.7 million,
or $0.29 per diluted share, for the first nine months of 2024.
-- Non-GAAP net income for the first nine months of 2025 was $13.2 million,
or $0.79 per diluted share, compared to non-GAAP net income of $9.7
million, or $0.61 per diluted share, for the first nine months of 2024.
Recent Highlights:
-- RADCOM recently secured 1Global as a new customer, deploying RADCOM ACE
as its AI-driven assurance solution to enhance customer experiences
across Europe, North America, and Asia, supporting more than 43 million
connections.
-- RADCOM launched its High-Capacity User Analytics solution, the first
assurance vendor to capture network data at speeds of up to 400Gbps on a
single server, delivering real-time analytics at a fraction of the cost.
This solution leverages NVIDIA BlueField-3 data processing units.
Outlook
RADCOM reaffirms its full-year 2025 guidance of 15%-18% year-over-year revenue growth, implying $71.1 million in revenue at the midpoint.
Conference Call and Webinar
RADCOM's management will host an interactive conference call today, November 12, 2025, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time) to discuss the results and answer participants' questions.
-- By phone: Dial in at least 5 minutes before the call begins. A replay
will be available later the same day at
https://radcom.com/financial-information/.
-- From the US (toll-free): +1-866-652-8972
-- From other locations: +972-3-918-0609
-- By webinar: Join the audio webinar at
https://www.veidan-conferencing.com/radcom. Please log in at least 10
minutes before the start time to complete registration and install any
required software. A replay will be available at the same link for 90
days after the event.
For all investor inquiries, please contact:
Investor Relations: Rob Fink or Joey Delahoussaye
FNK IR
rdcm@fnkir.com
+1-646-809-4048 / +1-312-809-1087
Company Contact: Hadar Rahav
CFO
Hadar.Rahav@radcom.com
About RADCOM
RADCOM (Nasdaq: RDCM) is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities. Its flagship platform, RADCOM ACE, harnesses AI-driven analytics and generative AI (GenAI) to improve customer experiences. From lab testing to full-scale deployment, RADCOM utilizes cutting-edge networking technologies to capture and analyze real-time data. Its advanced 5G portfolio delivers end-to-end network observability--from the radio access network $(RAN)$ to the core.
Designed to be open, vendor-neutral, and cloud-agnostic, RADCOM's solutions drive next-generation network automation, optimization, and efficiency. By leveraging AI-powered intelligence, RADCOM reduces operational costs, enables predictive customer insights, and seamlessly integrates with business support systems (BSS), operations support systems $(OSS)$, and service management platforms. Offering a complete, real-time view of mobile and fixed networks. Through powerful, data-driven analytics, RADCOM empowers telecom operators to ensure exceptional service quality, enhance user experiences, and build customer-centric networks.
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses) related to acquisitions, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.
Risks Regarding Forward-Looking Statements
Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe," "may," "might," " potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2025 revenue guidance, operating momentum, the Company's commitment to delivering solutions that are transforming the assurance landscape, continued adoption of AI and 5G, the resilience of the Company's operating model and the value its AI-driven assurance solutions provide in lowering total cost of ownership and enabling comprehensive observability across customer networks, converting the Company's robust pipeline into revenue, expanding the Company's current installed base, extending the Company's technology leadership and advancing the Company's strategic partnerships, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the conflict in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.
RADCOM LTD.
Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
------------------------------------------ ---------------------------------------
2025 2024 2025 2024
---------------------- ------------------ ------------------ -------------------
Revenues $ 18,388 $ 15,821 $ 52,637 $ 44,745
Cost of revenues 4,364 4,064 12,823 11,609
---------------------- ------------------ ------------------ -------------------
Gross profit 14,024 11,757 39,814 33,136
Research and
development,
gross 5,119 4,696 14,832 13,910
Less -
royalty-bearing
participation 189 182 214 571
---------------------- ------------------ ------------------ -------------------
Research and
development,
net 4,930 4,514 14,618 13,339
Sales and
marketing 5,144 4,552 14,944 13,162
General and
administrative 1,535 1,484 4,635 4,858
---------------------- ------------------ ------------------ -------------------
Total operating
expenses 11,609 10,550 34,197 31,359
---------------------- ------------------ ------------------ -------------------
Operating income 2,415 1,207 5,617 1,777
Financial
income, net 1,163 1,076 3,076 3,035
---------------------- ------------------ ------------------ -------------------
Income before
taxes on
income 3,578 2,283 8,693 4,812
Taxes on income 107 32 344 92
---------------------- ------------------ ------------------ -------------------
Net income $ 3,471 $ 2,251 $ 8,349 $ 4,720
====================== ================== ================== ===================
Basic net income
per ordinary
share $ 0.21 $ 0.14 $ 0.52 $ 0.30
====================== ================== ================== ===================
Diluted net
income per
ordinary share $ 0.21 $ 0.14 $ 0.50 $ 0.29
====================== ================== ================== ===================
Weighted average
number of
ordinary shares
used in
computing basic
net income per
ordinary share 16,357,554 15,748,498 16,183,572 15,595,365
====================== ================== ================== ===================
Weighted average
number of
ordinary shares
used in
computing
diluted net
income per
ordinary share 16,923,983 16,159,110 16,766,553 16,002,167
====================== ================== ================== ===================
RADCOM LTD.
Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
------------------------------------------ ------------------------------------------
2025 2024 2025 2024
GAAP gross
profit $ 14,024 $ 11,757 $ 39,814 $ 33,136
Stock-based
compensation 99 107 298 290
Amortization of
intangible
assets 57 57 168 169
Non-GAAP gross
profit $ 14,180 $ 11,921 $ 40,280 $ 33,595
-------------------- -------------------- ------------------- ---------------------
GAAP research
and
development,
net $ 4,930 $ 4,514 $ 14,618 $ 13,339
Stock-based
compensation 421 488 1,308 1,550
-------------------- -------------------- ------------------- ---------------------
Non-GAAP
research and
development,
net $ 4,509 $ 4,026 $ 13,310 $ 11,789
-------------------- -------------------- ------------------- ---------------------
GAAP sales and
marketing $ 5,144 $ 4,552 $ 14,944 $ 13,162
Stock-based
compensation 504 528 1,709 1,517
Amortization of
intangible
assets 29 29 86 87
Non-GAAP sales
and marketing $ 4,611 $ 3,995 $ 13,149 $ 11,558
-------------------- -------------------- ------------------- ---------------------
GAAP general
and
administrative $ 1,535 $ 1,484 $ 4,635 $ 4,858
Stock-based
compensation 323 224 1,244 1,265
Non-GAAP
general and
administrative $ 1,212 $ 1,260 $ 3,391 $ 3,593
-------------------- -------------------- ------------------- ---------------------
GAAP total
operating
expenses $ 11,609 $ 10,550 $ 34,197 $ 31,359
Stock-based
compensation 1,248 1,240 4,261 4,332
Amortization of
intangible
assets 29 29 86 87
Non-GAAP total
operating
expenses $ 10,332 $ 9,281 $ 29,850 $ 26,940
-------------------- -------------------- ------------------- ---------------------
GAAP operating
income $ 2,415 $ 1,207 $ 5,617 $ 1,777
Stock-based
compensation 1,347 1,347 4,559 4,622
Amortization of
intangible
assets 86 86 254 256
Non-GAAP
operating
income $ 3,848 $ 2,640 $ 10,430 $ 6,655
-------------------- -------------------- ------------------- ---------------------
RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
--------------------------------------------
2025 2024 2025 2024
GAAP income
before taxes
on income $ 3,578 $ 2,283 $ 8,693 $ 4,812
Stock-based
compensation 1,347 1,347 4,559 4,622
Amortization
of
intangible
assets 86 86 254 256
Financial
expenses 22 40 49 111
Non-GAAP
income
before taxes
on income $ 5,033 $ 3,756 $ 13,555 $ 9,801
-------------------- --------------------- --------------------- ---------------------
$ 3,471 $ 2,251 $ 8,349 $ 4,720
GAAP net
income
Stock-based
compensation 1,347 1,347 4,559 4,622
Amortization
of
intangible
assets 86 86 254 256
Financial
expenses 22 40 49 111
Non-GAAP net
income $ 4,926 $ 3,724 $ 13,211 $ 9,709
-------------------- --------------------- --------------------- ---------------------
GAAP net
income per
diluted
share $ 0.21 $ 0.14 $ 0.50 $ 0.29
Stock-based
compensation 0.07 0.08 0.27 0.30
Amortization
of
intangible
assets 0.01 0.01 0.02 0.02
Financial
expenses (*) (*) (*) (*)
Non-GAAP net
income per
diluted
share $ 0.29 $ 0.23 $ 0.79 $ 0.61
-------------------- --------------------- --------------------- ---------------------
Weighted
average
number of
shares used
to compute
diluted net
income per
share 16,923,983 16,159,110 16,766,553 16,002,167
(*) Less than
$ 0.01
RADCOM LTD.
Consolidated Balance Sheets
(Unaudited)
(thousands of U.S. dollars)
As of As of
September 30, December 31,
2025 2024
-------------------------- -------------------------
Current Assets
Cash and cash
equivalents $ 15,941 $ 19,243
Short-term bank
deposits 90,744 75,429
Trade receivables,
net 17,302 19,038
Inventories 294 1,667
Other accounts
receivable and
prepaid expenses 2,570 1,819
-------------------------- -------------------------
Total Current Assets
126,851 117,196
-------------------------- -------------------------
Non-Current Assets
Severance pay fund 3,314 2,985
Other long-term
receivables 2,597 3,484
Property and
equipment, net 904 879
Operating lease
right-of-use
assets 3,128 3,421
Goodwill and
intangible
assets, net 2,355 2,609
Total Non-Current
Assets 12,298 13,378
Total Assets $ 139,149 $ 130,574
========================== =========================
Liabilities and
Shareholders'
Equity
Current Liabilities
Trade payables $ 2,691 $ 2,457
Deferred revenues
and advances from
customers 3,061 6,848
Employee and
payroll
accruals 5,490 7,175
Operating lease
liabilities 1,061 966
Other liabilities
and accrued
expenses 10,482 10,463
-------------------------- -------------------------
Total Current
Liabilities 22,785 27,909
-------------------------- -------------------------
Non-Current
Liabilities
Accrued severance
pay 4,445 3,868
Operating lease
liabilities 2,331 2,438
Other liabilities
and accrued
expenses 645 683
Total Non-Current
Liabilities 7,421 6,989
-------------------------- -------------------------
Total Liabilities $ 30,206 $ 34,898
-------------------------- -------------------------
Shareholders' Equity
Share capital $ 797 $ 769
Additional
paid-in capital 165,627 160,761
Accumulated
other
comprehensive
loss (2,886) (2,910)
Accumulated
deficit (54,595) (62,944)
-------------------------- -------------------------
Total Shareholders'
Equity 108,943 95,676
-------------------------- -------------------------
Total Liabilities
and Shareholders'
Equity $ 139,149 $ 130,574
========================== =========================
View original content:https://www.prnewswire.com/news-releases/radcom-delivers-16-yoy-revenue-growth-and-strong-margin-expansion-in-q3-2025-302612910.html
SOURCE RADCOM Ltd.
(END) Dow Jones Newswires
November 12, 2025 07:00 ET (12:00 GMT)
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