Nokia (NYSE:NOK) 2025 Capital Markets Day November 19, 2025 08:00 AM ET Company ParticipantsPallavi Mahajan - Chief Technology and AI OfficerDavid Heard - President of Network InfrastructureDavid Mulholland - Head of Investor RelationsPatrik Hammarén - PresidentMarco Wirén - CFONone - Video NarratorJustin Hotard - CEORaghav Sahgal - President of the Cloud and Network ServicesConference Call ParticipantsTerrence Hill - AnalystGrant Lenehan - AnalystSandeep Deshpande - AnalystArtem Beletski - AnalystAndrew Ga ...

Welcome to Nokia's Capital Markets Day 2025 David Mulholland Head of Investor Relations 1 © 2025 Nokia Public Disclaimer It should be noted that Nokia and its business are exposed to various risks and uncertainties and certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia's current expectations and views of future developments and include statements preceded by "believe", "expect", "expectations", "ensure", "commit", "anticipat ...

Financial Data and Key Metrics Changes - RADCOM achieved record revenue of $18.4 million for Q3 2025, representing a 16.2% year-over-year growth with continued profitability and expanding profit margins [6][19] - Non-GAAP operating income reached $3.8 million, which is 20.9% of revenue, marking the highest since 2017 [6][21] - The company generated a positive cash flow of $5.1 million, ending the quarter with a cash balance of $106.7 million and no debt [7][22] Business Line Data and Key Metrics Changes - The company is deepening deployments with existing customers while developing new opportunities, particularly in 5G standalone networks and AI operations [5][8] - RADCOM's high-capacity user analytics solution, powered by NVIDIA, is currently in field trials and is expected to materialize in 2026 [25] Market Data and Key Metrics Changes - The telecom market is experiencing strong and durable tailwinds, with operators increasing investments in AI-native networks to enhance customer experiences and operational efficiency [7][8] - There is a clear industry shift towards cloud-native platforms leveraging AI, particularly in Europe and other regions [12][13] Company Strategy and Development Direction - RADCOM is focusing on converting a strong pipeline into revenue, deepening strategic partnerships, and investing in AI and automation to maintain leadership [16] - The company is enhancing its technology leadership through partnerships with NVIDIA and ServiceNow, which are expected to contribute initial revenue in 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for 2026, supported by new opportunities in the market and ongoing customer transformations [32] - The company anticipates sustained investment across its customer base, driven by improving capital conditions [16] Other Important Information - The company announced a leadership transition, with Hadar Rahav leaving and Hod Kohen joining as the new CFO [17] - RADCOM's agentic AI solution received recognition, winning the Best AI/ML Innovation Award at the Global Connectivity Award [15] Q&A Session Summary Question: Early feedback on the high-capacity user analytics solution - Management is excited about the performance seen in field trials and expects materialization in 2026 [25] Question: Trends in expansion with existing customers - There is a solid pipeline building up, with expectations for double-digit growth and more opportunities in 2026 [28] Question: Visibility into next year and major renewals - Management is confident in maintaining double-digit growth, with new opportunities arising from cloud-native and 5G transformations [32] Question: Earnings leverage and spending plans for next year - Plans include increased spending on sales and marketing, as well as R&D [33] Question: 5G Core deployments in various geographies - There is good momentum in 5G Core deployments across the U.S., Europe, and parts of Asia, driving customer excitement [34]

Nokia and Nvidia Strategic Partnership Call Summary Industry and Company Overview - **Company**: Nokia (NYSE:NOK) - **Industry**: Telecommunications, specifically focusing on AI-native networks and 5G to 6G transition Key Messages and Arguments 1. **Strategic Partnership Announcement**: Nokia announced a strategic partnership with Nvidia to accelerate the development of AI-native networks, with Nvidia investing $1 billion in Nokia, making it one of Nokia's largest shareholders [3][7][8] 2. **AI Supercycle Context**: The partnership is positioned within the context of an AI supercycle, with AI traffic growing exponentially, necessitating a redesign of network architecture to handle more variable and computationally demanding workloads [3][4] 3. **AI-RAN Development**: The collaboration aims to develop AI-RAN (AI Radio Access Networks), which will unify AI and radio access workloads on a software-defined infrastructure, enhancing performance, efficiency, and reducing energy consumption [4][5] 4. **Initial Focus on 5G**: AI-RAN will first be available for 5G networks, with trials expected to begin in 2026, particularly with T-Mobile US as a key collaborator [5][47] 5. **Investment Utilization**: The $1 billion investment will be used to accelerate Nokia's strategic plans for trusted connectivity and other corporate purposes, without shifting focus from organic investments [8][16] Additional Important Points 1. **Non-Exclusive Partnership**: The partnership is not exclusive, allowing Nvidia to engage with other companies like Ericsson, which is seen as beneficial for co-innovation [11] 2. **AI-Native Transition**: Nokia's AnyRAN software will become AI-native, allowing for performance improvements and new applications without necessitating hardware upgrades [19][20] 3. **Market Positioning**: The partnership is expected to position Nokia favorably in the competitive landscape, particularly against competitors in China, by fostering innovation in AI-ready networks [43][44] 4. **Long-Term Vision**: Nokia aims to lead in the transition to 6G, emphasizing the need for networks that can handle diverse applications beyond traditional mobile phone usage [27][43] 5. **Financial Outlook**: The partnership is anticipated to change perceptions of the RAN market, potentially leading to a boom in AI-RAN solutions that could offset declines in non-AI RAN segments [41] Conclusion - The call highlighted Nokia's strategic move towards AI-native networks through a significant partnership with Nvidia, aiming to reshape the telecommunications landscape and enhance its competitive edge in the evolving market. The focus on innovation, collaboration, and long-term growth strategies was emphasized throughout the discussion.