Radcom(US:RDCM)2025-11-12 14:00Financial 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 [5][17] - Non-GAAP operating income reached $3.8 million, which is 20.9% of revenue, marking the highest since 2017 [6][20] - 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 [6][21] - GAAP net income for Q3 2025 was $3.5 million, a 54% increase year-over-year, with GAAP earnings per share at $0.21 compared to $0.14 last year [20] Business Line Data and Key Metrics Changes - The company is deepening deployments with existing customers while developing new market opportunities, particularly in 5G standalone networks and AI operations [5][12] - RADCOM's high-capacity user analytics solution, powered by NVIDIA, is currently in field trials and is expected to materialize in 2026 [22] 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, as operators modernize their networks [12] Company Strategy and Development Direction - RADCOM is focusing on converting a strong pipeline into revenue, expanding its customer base, and deepening strategic partnerships to drive innovation [15] - The company is investing in AI and automation to maintain leadership and drive lower total cost of ownership for real-time network intelligence [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in 2026, supported by new opportunities in cloud-native and 5G-dependent bases [23][24] - The company anticipates initial revenue contributions from strategic partnerships in 2026, particularly with NVIDIA and ServiceNow [9][10] Other Important Information - RADCOM's agentic AI solution received the Best AI/ML Innovation Award at the Global Connectivity Award, highlighting the company's technology leadership [14] - The company is transitioning to a new CFO, Hod Kohen, who is expected to build on the strong financial foundation established by the outgoing CFO [16] Q&A Session Summary Question: Early feedback on the high-capacity user analytics solution - Management reported great performance in field trials and is excited about the solution, targeting materialization in 2026 [22] Question: Trends in expansion with existing customers - There is a solid pipeline build-up, with expectations for double-digit growth and more opportunities emerging in 2026 [22] Question: Visibility into next year and major renewals - Management remains confident in maintaining double-digit growth into 2026, with new opportunities in cloud-native and 5G driving transformation [23] Question: Earnings leverage and spending plans for next year - Increased spending is planned for sales and marketing, along with R&D investments to support growth [24] Question: 5G Core deployments in various geographies - Management confirmed good momentum in 5G Core deployments across the U.S., Europe, and parts of Asia, driving customer excitement [24]