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

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.”

ThirdQuarter of 2025 Financial Highlights:

— Total revenues for the third quarter of 2025 were$18.4million, compared to $15.8million in the third quarter of 2024, or16.2% year-over-year growth.

— GAAP operating incomefor the third quarter of 2025 was$2.4 million,or13.1% of revenue, compared to GAAP operating income of $1.2 million, or 7.6% of revenue, for the thirdquarter of 2024.

— Non-GAAPoperatingincomefor the third quarter of 2025 was$3.8million, or20.9% of revenue, compared to non-GAAPoperatingincome of $2.6million, or16.7% of revenue, for the thirdquarter of 2024.

— GAAP net incomefor the third quarter of 2025 was$3.5million, or$0.21per diluted share, compared to GAAP net income of $2.3million, or $0.14per diluted share, for the third quarter of 2024.

— Non-GAAP net incomefor the third quarter of 2025 was$4.9million, or$0.29per diluted share, compared to non-GAAP net income of $3.7 million, or $0.23per diluted share, for the third quarter of 2024.

— Positive cash flow of $5.1 million in the third quarter of 2025.As ofSeptember30, 2025, the company hadcash and cash equivalents and short-term bank deposits of $106.7million, and no debt, ending thethird quarterwith its highest ever cash levels.

First nine months of 2025 Financial Highlights:

— Total revenues for the first nine months of 2025 were$52.6million, compared to $44.8million in the first nine months of 2024, or17.6% year-over-year growth.

— GAAP operating incomefor the first nine months of 2025 was$5.6 million,or10.7% of revenue, compared to GAAP operating income of $1.8 million, or 4.0% of revenue, for the first nine months of 2024.

— Non-GAAPoperatingincomefor the first nine months of 2025 was$10.4million, or19.8% of revenue, compared to non-GAAPoperatingincome of $6.7million, or14.9% of revenue, for the first nine months of 2024.

— GAAP net incomefor the first nine months of 2025 was$8.3million, or$0.50per diluted share, compared to GAAP net income of $4.7million, or $0.29per diluted share, for the first nine months of 2024.

— Non-GAAP net incomefor the first nine months of 2025 was$13.2million, or$0.79per diluted share, compared to non-GAAP net income of $9.7 million, or $0.61per 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 OperationsUnaudited(thousands of U.S. dollars, except share and per share data) Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024Revenues $ 18,388 $ 15,821 $ 52,637 $ 44,745Cost of revenues 4,364 4,064 12,823 11,609Gross profit 14,024 11,757 39,814 33,136Research and development, gross 5,119 4,696 14,832 13,910Less – royalty-bearing participation 189 182 214 571Research and development, net 4,930 4,514 14,618 13,339Sales and marketing 5,144 4,552 14,944 13,162General and administrative 1,535 1,484 4,635 4,858Total operating expenses 11,609 10,550 34,197 31,359Operating income 2,415 1,207 5,617 1,777Financial income, net 1,163 1,076 3,076 3,035Income before taxes on income 3,578 2,283 8,693 4,812Taxes on income 107 32 344 92Net income $ 3,471 $ 2,251 $ 8,349 $ 4,720Basic net income per ordinary share $ 0.21 $ 0.14 $ 0.52 $ 0.30Diluted net income per ordinary share $ 0.21 $ 0.14 $ 0.50 $ 0.29Weighted average number of 16,357,554 15,748,498 16,183,572 15,595,365ordinary shares used in computingbasic net income per ordinary shareWeighted average number of 16,923,983 16,159,110 16,766,553 16,002,167ordinary shares used in computingdiluted net income per ordinary shareRADCOM LTD.Consolidated Statements of OperationsUnaudited(thousands of U.S. dollars, except share and per share data) Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024GAAP gross profit $ 14,024 $ 11,757 $ 39,814 $ 33,136Stock-based compensation 99 107 298 290Amortization of intangible assets 57 57 168 169Non-GAAP gross profit $ 14,180 $ 11,921 $ 40,280 $ 33,595 $ 4,930 $ 4,514 $ 14,618 $ 13,339GAAP research and development, netStock-based compensation 421 488 1,308 1,550Non-GAAP research and development, net $ 4,509 $ 4,026 $ 13,310 $ 11,789 $ 5,144 $ 4,552 $ 14,944 $ 13,162GAAP sales and marketingStock-based compensation 504 528 1,709 1,517Amortization of intangible assets 29 29 86 87Non-GAAP sales and marketing $ 4,611 $ 3,995 $ 13,149 $ 11,558 $ 1,535 $ 1,484 $ 4,635 $ 4,858GAAP general and administrativeStock-based compensation 323 224 1,244 1,265Non-GAAP general and administrative $ 1,212 $ 1,260 $ 3,391 $ 3,593 $ 11,609 $ 10,550 $ 34,197 $ 31,359GAAP total operating expensesStock-based compensation 1,248 1,240 4,261 4,332Amortization of intangible assets 29 29 86 87Non-GAAP total operating expenses $ 10,332 $ 9,281 $ 29,850 $ 26,940 $ 2,415 $ 1,207 $ 5,617 $ 1,777GAAP operating incomeStock-based compensation 1,347 1,347 4,559 4,622Amortization of intangible assets 86 86 254 256Non-GAAP operating income $ 3,848 $ 2,640 $ 10,430 $ 6,655RADCOM LTD.Reconciliation of GAAP to Non-GAAP Financial InformationUnaudited(thousands of U.S. dollars, except share and per share data) Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024GAAP income before taxes on income $ 3,578 $ 2,283 $ 8,693 $ 4,812Stock-based compensation 1,347 1,347 4,559 4,622Amortization of intangible assets 86 86 254 256Financial expenses 22 40 49 111Non-GAAP income before taxes on income $ 5,033 $ 3,756 $ 13,555 $ 9,801 $ 3,471 $ 2,251 $ 8,349 $ 4,720GAAP net incomeStock-based compensation 1,347 1,347 4,559 4,622Amortization of intangible assets 86 86 254 256Financial expenses 22 40 49 111Non-GAAP net income $ 4,926 $ 3,724 $ 13,211 $ 9,709GAAP net income per diluted share $ 0.21 $ 0.14 $ 0.50 $ 0.29Stock-based compensation 0.07 0.08 0.27 0.30Amortization of intangible assets 0.01 0.01 0.02 0.02Financial expenses (*) (*) (*) (*)Non-GAAP net income per diluted share $ 0.29 $ 0.23 $ 0.79 $ 0.61Weighted average number of shares used to compute diluted net 16,923,983 16,159,110 16,766,553 16,002,167income per share(*) Less than $ 0.01RADCOM LTD.Consolidated Balance Sheets(Unaudited)(thousands of U.S. dollars) As of As of September 30, December 31, 2025 2024Current AssetsCash and cash equivalents $ 15,941 $ 19,243Short-term bank deposits 90,744 75,429Trade receivables, net 17,302 19,038Inventories 294 1,667Other accounts receivable and prepaid expenses 2,570 1,819Total Current Assets 126,851 117,196Non-Current AssetsSeverance pay fund 3,314 2,985Other long-term receivables 2,597 3,484Property and equipment, net 904 879Operating lease right-of-use assets 3,128 3,421Goodwill and intangible assets, net 2,355 2,609Total Non-Current Assets 12,298 13,378Total Assets $ 139,149 $ 130,574Liabilities and Shareholders' EquityCurrent LiabilitiesTrade payables $ 2,691 $ 2,457Deferred revenues and advances from customers 3,061 6,848Employee and payroll accruals 5,490 7,175Operating lease liabilities 1,061 966Other liabilities and accrued expenses 10,482 10,463Total Current Liabilities 22,785 27,909Non-Current LiabilitiesAccrued severance pay 4,445 3,868Operating lease liabilities 2,331 2,438Other liabilities and accrued expenses 645 683Total Non-Current Liabilities 7,421 6,989Total Liabilities $ 30,206 $ 34,898Shareholders' EquityShare capital $ 797 $ 769Additional paid-in capital 165,627 160,761Accumulated other comprehensive loss (2,886) (2,910)Accumulated deficit (54,595) (62,944)Total Shareholders' Equity 108,943 95,676Total Liabilities and Shareholders' Equity $ 139,149 $ 130,574

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SOURCE RADCOM Ltd.

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