RADCOM Delivers 16% YoY Revenue Growth and Strong Margin Expansion in Q3 2025

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:

First nine months of 2025 Financial Highlights:

Recent Highlights:

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.

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

September 30,

Nine months ended

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

344

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,

2025

2024

2025

2024

GAAP gross profit

$ 14,024

$ 11,757

$ 39,814

$ 33,136

Stock-based compensation

107

298

290

Amortization of intangible assets

168

169

Non-GAAP gross profit

$ 14,180

$ 11,921

$ 40,280

$ 33,595

$ 4,930

$ 4,514

$ 14,618

$ 13,339

GAAP research and development, net

Stock-based compensation

421

488

1,308

1,550

Non-GAAP research and development, net

$ 4,509

$ 4,026

$ 13,310

$ 11,789

$ 5,144

$ 4,552

$ 14,944

$ 13,162

GAAP sales and marketing

Stock-based compensation

504

528

1,709

1,517

Amortization of intangible assets

Non-GAAP sales and marketing

$ 4,611

$ 3,995

$ 13,149

$ 11,558

$ 1,535

$ 1,484

$ 4,635

$ 4,858

GAAP general and administrative

Stock-based compensation

323

224

1,244

1,265

Non-GAAP general and administrative

$ 1,212

$ 1,260

$ 3,391

$ 3,593

$ 11,609

$ 10,550

$ 34,197

$ 31,359

GAAP total operating expenses

Stock-based compensation

1,248

1,240

4,261

4,332

Amortization of intangible assets

Non-GAAP total operating expenses

$ 10,332

$ 9,281

$ 29,850

$ 26,940

$ 2,415

$ 1,207

$ 5,617

$ 1,777

GAAP operating income

Stock-based compensation

1,347

4,559

4,622

Amortization of intangible assets

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

September 30,

Nine months ended

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

4,559

4,622

Amortization of intangible assets

254

256

Financial expenses

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

4,559

4,622

Amortization of intangible assets

254

256

Financial expenses

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

0.02

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

September 30,

2025

December 31,

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

SOURCE RADCOM Ltd.