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 [20] - Operating income for Q4 reached $4.3 million, with an operating margin of 23%, the highest in eight years [20] - R&D expenses for Q4 were $4.9 million, reflecting a 16.2% year-over-year increase, indicating a focus on innovation [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 [8] - The demand for AI-driven solutions is reshaping network priorities, with operators increasingly integrating AI across network layers [9] Company Strategy and Development Direction - RADCOM aims to expand its tier-one customer base and is actively engaged with new prospects, expecting revenue growth of 8%-12% in 2026 [6][17] - The company is committed to product innovation and R&D investments, particularly in 5G service assurance and Agentic AI capabilities [7][17] - Strategic partnerships with NVIDIA and ServiceNow are being deepened to enhance product offerings and market presence [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, supported by a strong balance sheet and operational efficiency [7][18] - The company anticipates another year of double-digit revenue growth in 2026, driven by a robust pipeline of opportunities [17][18] Other Important Information - RADCOM was recognized in the Fast Mode 100 for 2025 and received multiple awards for innovation, reinforcing its competitive differentiation [15] - A governance update was provided, with Rami Schwartz appointed as chairman of the board effective February 2026 [15][16] Q&A Session Summary Question: How should RADCOM think about capital allocation in 2026, especially regarding M&A? - Management indicated that M&A remains a top priority and is being accelerated [25] Question: Any changes in the guidance philosophy and assumptions for the 2026 guidance? - Management noted that they are in the second half of their sales cycle, leaving guidance at 8%-12% with expectations to close in the first half of the year [26] Question: What are the key drivers for expanding business with existing customers like AT&T? - Management highlighted that Agentic AI is driving many opportunities, with unique datasets helping customers improve operational efficiencies [27] Question: How critical is Agentic AI for breaking into new accounts? - Management stated that both analytics capabilities and Agentic AI are critical for driving opportunities and expanding within existing customers [28] Question: What architecture is being used for data collection? - Management confirmed the use of both NVIDIA-based standard servers and cloud-native solutions, asserting their product's efficiency compared to competitors [28] Question: Are there any further questions? - No further questions were raised, concluding the call [29]