Radcom (RDCM) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +21.57%. A quarter ago, it was expected that this monitoring service for the communications industry would post earnings of $0.22 per share when it actually produced earnings of $0.29, delivering a surprise of +31.82%.Over ...

RADCOM (NasdaqCM:RDCM) Q4 2025 Earnings call February 11, 2026 08:00 AM ET Company ParticipantsBenny Eppstein - CEOOperatorLadies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference call for the fourth quarter and full year of 2025. All participants are present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. For operator assistance during the conference, please press star 0. As a reminde ...

Financial Data and Key Metrics Changes - RADCOM achieved a record revenue of $71.5 million for 2025, reflecting a 17.2% year-over-year growth, exceeding the guidance of 15%-18% [6][24] - GAAP earnings per share increased by over 65% year-over-year, with net income reaching a record $18.4 million, or $1.09 per diluted share [6][24] - The company reported a gross margin of 76.8% for 2025, up from 75.2% in 2024, and an operating margin of 20.6%, compared to 15.6% in the previous year [24][26] Business Line Data and Key Metrics Changes - In Q4 2025, RADCOM's revenue was $18.9 million, up 16% year-over-year, with a gross margin of 77.6%, the highest since 2018 [22][24] - Operating income for Q4 reached $4.3 million, with an operating margin of 23%, the highest in eight years [22] - R&D expenses for Q4 were $4.9 million, reflecting a 16.2% year-over-year increase, indicating a focus on innovation and product development [23] Market Data and Key Metrics Changes - A GSMA survey indicated that 71% of operators plan to implement agentic AI in 2025, highlighting a significant market opportunity for RADCOM [10] - The demand for AI-driven solutions is reshaping network priorities, with operators increasingly integrating AI across network layers to optimize capacity and efficiency [11] Company Strategy and Development Direction - RADCOM aims to expand its customer base, particularly targeting new Tier 1 customers, to drive the next phase of profitable growth [8] - The company is committed to maintaining a disciplined focus on technology advancement, particularly in 5G service assurance and agentic AI capabilities [9][19] - Strategic partnerships with NVIDIA and ServiceNow are being deepened to enhance product offerings and market presence [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 8%-12% in 2026, driven by both new business and expansion within the existing customer base [8][19] - The strong balance sheet is viewed as a strategic advantage, allowing continued investment in product innovation and R&D while maintaining profitability [9][20] - The company recognizes the challenges and opportunities presented by AI and is focused on delivering solutions that reduce the total cost of ownership for operators [20] Other Important Information - RADCOM's cash and short-term deposits reached a record $109.9 million, with no debt, reflecting strong cash flow management [6][26] - The board appointed Rami Schwartz as chairman, effective February 2026, to support the company's growth strategy [17][18] Q&A Session Summary Question: How should RADCOM think about capital allocation in 2026, especially regarding M&A? - Management indicated that M&A remains the first priority and is being actively pursued [29] Question: Any changes in the guidance philosophy and assumptions for the 2026 guidance? - Management believes they are in the second half of the sales cycle and set guidance at 8%-12%, assuming closures in the first half of the year [30] Question: What are the key drivers for expanding business with existing customers like AT&T? - Management highlighted that agentic AI and unique datasets are driving opportunities for expansion with existing customers [35] Question: How critical is the agentic AI element for breaking into accounts? - Management stated that both analytic capabilities and agentic AI are important for driving opportunities and expanding customer relationships [37]

Financial Data and Key Metrics Changes - RADCOM achieved a record revenue of $71.5 million for 2025, representing a 17.2% year-over-year growth, exceeding the guidance of 15%-18% [5][22] - GAAP earnings per share increased by over 65% year-over-year, reaching $1.09 per diluted share [5][22] - The company reported a cash and short-term deposit balance of $109.9 million, with no debt, marking the highest in its history [5][24] - Gross margin for the fourth quarter was 77.6%, the highest since 2018, while the full year gross margin was 76.8%, up from 75.2% in 2024 [20][22] Business Line Data and Key Metrics Changes - In Q4 2025, RADCOM's revenue was $18.9 million, up 16% year-over-year, with operating income reaching $4.3 million and an operating margin of 23% [20][22] - R&D expenses for Q4 were $4.9 million, a 16.2% increase year-over-year, reflecting a focus on innovation and collaboration [21] - Sales and marketing expenses for Q4 were $4.2 million, a 1.4% year-over-year increase, indicating ongoing investment in sales capabilities [21] Market Data and Key Metrics Changes - A GSMA survey indicated that 71% of operators plan to implement Agentic AI in 2026, highlighting a significant market opportunity for RADCOM [9] - The demand for AI-driven solutions is reshaping network priorities, with operators increasingly integrating AI across network layers [10] Company Strategy and Development Direction - RADCOM aims to expand its customer base by adding new tier-one customers, which is a key priority for the next phase of profitable growth [6][8] - The company is committed to maintaining a disciplined focus on technology advancement, particularly in 5G service assurance and Agentic AI capabilities [8][18] - Strategic partnerships with NVIDIA and ServiceNow are being deepened to enhance product offerings and market presence [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 8%-12% in 2026, driven by both new business and expansion within the existing customer base [7][18] - The company highlighted the importance of its strong balance sheet as a strategic advantage, allowing for continued investment in product innovation and R&D [8][18] - Management noted that the gap between AI ambition and data readiness among operators presents a clear opportunity for RADCOM to add value [9] Other Important Information - RADCOM was recognized in the Fast Mode 100 for 2025 and received multiple awards for innovation, reinforcing its competitive differentiation [15][16] - A governance update was provided, with Rami Schwartz appointed as chairman of the board, effective February 8, 2026 [16][17] Q&A Session Summary Question: How should RADCOM think about capital allocation in 2026, especially regarding M&A? - Management indicated that M&A remains the first priority and is being actively pursued [25] Question: What are the key drivers for expanding business with existing customers like AT&T? - Management highlighted that Agentic AI and unique datasets are driving opportunities for expansion with existing customers [26][27] Question: How critical is Agentic AI to breaking into new accounts? - Management stated that both analytic capabilities and Agentic AI are critical for driving opportunities and expanding the customer base [27][28]

F e b r u a r y 1 1 , 2 0 2 6 Be n ny Eppst ein CEO Hod C ohen CFO Q4 a n d F u l l Y e a r 2 0 2 5 E a r n i n g s 1 SAFE HARBOR PROVISION This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited, to the Company's statements about its momentum, strategic direction and goals, mar ket position and trajectory, future execution and delivery of value to customers and stakeholders, expansion ...

RADCOM Delivers 17.2% Full-Year Revenue Growth, Record Revenue and Operating Margins in 2025 [Accessibility Statement] Skip NavigationSixth consecutive year of revenue growth, reflecting ongoing business momentumTEL AVIV, Israel, Feb. 11, 2026 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM), a leader in next-generation AI-powered assurance solutions, announced today its financial results for the fourth quarter and full year ended December 31, 2025."RADCOM delivered record revenue of $71.5 million and achieved it ...

Company Overview - RADCOM Ltd. is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities [5] - The flagship platform, RADCOM ACE, utilizes AI-driven analytics and generative AI (GenAI) to enhance customer experiences [5] - RADCOM's advanced 5G portfolio offers end-to-end network observability, covering the radio access network (RAN) to the core [5] Financial Reporting - RADCOM will report its financial results for the fourth quarter and full year ending December 31, 2025, on February 11, 2026, before the market opens [1] - A conference call and webinar will be held on the same day at 8:00 AM Eastern Time to review the financial results and address participant questions [2] Conference Call and Webinar Access - Participants can join the conference call by dialing +1-866-652-8972 (US toll-free) or +972-3-918-0609 for other locations [3] - The audio webinar can be accessed at https://www.veidan-conferencing.com/radcom, with a replay available for 90 days following the event [4] Product and Technology - RADCOM's solutions are designed to be open, vendor-neutral, and cloud-agnostic, promoting next-generation network automation, optimization, and efficiency [6] - By leveraging AI-powered intelligence, RADCOM aims to reduce operational costs and enable predictive customer insights while integrating seamlessly with business support systems (BSS) and operations support systems (OSS) [6]

Core Insights - RADCOM Ltd. has secured a contract for its Smart Network Visibility Solution through Rakuten Symphony for a leading mobile operator, enhancing network observability and reducing monitoring costs [1][2] - The solution provides real-time subscriber analytics, enabling quick identification and resolution of customer-impacting issues, thus ensuring superior service quality and operational efficiency [2][3] - RADCOM's solution is designed for high-performance data analysis in demanding network environments, offering advanced visibility functions such as traffic aggregation, filtering, and session tracking [3] Company Overview - RADCOM is a leading provider of advanced assurance solutions with integrated AI Operations (AIOps) capabilities, utilizing AI-driven analytics to improve customer experiences [4] - The company's flagship platform, RADCOM ACE, supports end-to-end network observability from the radio access network to the core, designed to be open, vendor-neutral, and cloud-agnostic [4] - RADCOM's solutions aim to drive next-generation network automation and optimization, reducing operational costs and enhancing user experiences through powerful data-driven analytics [4]

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Core Insights - RADCOM reported third-quarter 2025 non-GAAP earnings per share (EPS) of 29 cents, exceeding the Zacks Consensus Estimate of 12 cents and up from 23 cents in the prior-year quarter [1][9] - Revenues for the quarter reached $18.4 million, surpassing the Zacks Consensus Estimate by 2.7% and reflecting a year-over-year increase of 16.2%, driven by demand for AI and automation solutions [2][9] Financial Performance - The company achieved a strong gross margin of just over 77%, attributed to an improved revenue mix with fewer third-party costs, and expects to maintain this level in the fourth quarter [5] - Non-GAAP R&D expenses increased by 11.6% year over year to $4.7 million, indicating a commitment to innovation and portfolio expansion [6] - Non-GAAP operating income rose to $3.8 million from $2.6 million, marking the highest level since 2017, supported by strong scalability and disciplined execution [6] Strategic Developments - RADCOM partnered with 1Global to deploy its AI-driven assurance platform, RADCOM ACE, across Europe, North America, and Asia, covering over 43 million connections [3] - The company launched its High-Capacity User Analytics solution, the first in the industry to capture data at 400Gbps on a single server, showcasing its focus on next-generation network observability [3] Cash Flow & Liquidity - As of September 30, 2025, RADCOM had $106.7 million in cash and equivalents with no debt, exiting the third quarter with a cash flow of $5.1 million [7] Future Guidance - RADCOM reaffirmed its full-year 2025 guidance of 15%-18% year-over-year revenue growth, implying approximately $71.1 million in revenue at the midpoint [8]