RADCOM Q2 Earnings Beat on Robust Top-Line Traction, View Reiterated

Core Insights - RADCOM Ltd. reported second-quarter 2025 non-GAAP earnings per share (EPS) of 25 cents, exceeding the Zacks Consensus Estimate by 13.6% and improving from 20 cents in the prior-year quarter [1][10] - Total revenues reached $17.7 million, reflecting a 19.3% year-over-year increase, driven by strong momentum in key accounts and the adoption of AI-powered network assurance solutions [2][10] - The company reaffirmed its full-year revenue growth target of 15%–18%, translating to a midpoint projection of $71.1 million [7][10] Financial Performance - Non-GAAP gross margin was reported at 76.2%, an increase from 75% in the year-ago quarter [3] - Non-GAAP operating income reached a record $3.4 million, representing 19.5% of quarterly revenues, compared to $2.3 million or 15.4% of revenues in the previous-year quarter [4] - Non-GAAP gross R&D expenses rose 10.7% year over year to $4.5 million, while sales and marketing expenses increased 13.5% year over year to $4.3 million [5] Cash Flow and Liquidity - As of June 30, 2025, the company had $101.6 million in cash, cash equivalents, and short-term bank deposits, with no debt [6] - The company exited the second quarter with a cash flow of $2.6 million [6] Strategic Focus - RADCOM is focused on prudent expense management while making targeted strategic investments to drive growth and sustain its competitive edge [4] - The company is enhancing global sales and partnerships to support its next growth phase with advanced solutions powered by accelerated computing and Agentic AI [2]