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]