RADCOM Delivers 16% YoY Revenue Growth and Strong Margin Expansion in Q3 2025

Rhea-AI Summary

RADCOM (Nasdaq: RDCM) reported Q3 2025 results on November 12, 2025 showing continued AI and 5G demand. Q3 revenue was $18.4 million, a 16.2% YoY increase. The company reported its highest operating margin since 2018, with GAAP operating income of $2.4M (13.1% of revenue) and non-GAAP operating income of $3.8M (20.9% of revenue). Q3 GAAP net income was $3.5M ($0.21 diluted EPS); non-GAAP net income was $4.9M ($0.29 diluted EPS). RADCOM generated $5.1M positive cash flow in Q3 and ended the quarter with $106.7M cash and no debt. Full-year 2025 revenue guidance reaffirmed at +15%–18% YoY.

Positive

• Revenue +16.2% YoY in Q3 2025 to $18.4M
• Non-GAAP operating margin 20.9% in Q3 2025
• Positive cash flow $5.1M in Q3 2025
• $106.7M cash and no debt as of Sept 30, 2025

Negative

• None.

Insights

Financial Analyst

RADCOM reports clear revenue growth, margin expansion, strong cash and reaffirmed full‑year guidance.

RADCOM delivered $18.4 million in revenue in Q3 2025, a 16.2% year‑over‑year increase, reported its highest operating margin since 2018, posted $5.1 million of positive cash flow for the quarter, and held $106.7 million in cash and short‑term deposits with no debt.

The company highlights conversion of a robust pipeline, expansion within its installed base, and strategic partnerships as drivers of its outlook; management reaffirmed full‑year revenue growth guidance of 15%-18%, implying $71.1 million at the midpoint. These are explicit operational priorities that will determine whether current momentum sustains.

Watch for the company to meet its guidance by year‑end and for reported Q4 results tied to pipeline conversion and partnership execution; the management conference call on Nov 12, 2025 will provide near‑term clarity on cadence and revenue recognition.

AI and 5G adoption drives demand as the Company sees positive cash flow with the highest operating margin in seven years

TEL AVIV, Israel, Nov. 12, 2025 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced today its financial results for the third quarter of 2025 and for the nine-month period ended September 30, 2025.

Benny Eppstein, Chief Executive Officer, said, "RADCOM remains committed to delivering advanced, intelligent solutions that are transforming the assurance landscape. Driven by successful execution, we delivered record revenue of $18.4 million, our highest operating margin since 2018, record non-GAAP operating income, and more than $5 million in positive cash flow during the third quarter. These results underscore the resilience of our operating model and the clear value our AI-driven assurance solutions provide in lowering total cost of ownership and enabling comprehensive observability across customer networks." 

"Heading into the fourth quarter, we maintain strong operating momentum and clear visibility toward achieving our full-year guidance of 15%-18% year-over-year revenue growth," continued Mr. Eppstein. "We remain focused on executing with discipline, converting our robust pipeline into revenue, expanding within our current installed base, and advancing strategic partnerships that reinforce our market position and extend our technology leadership."

T hird  Quarter of 2025 Financial Highlights:

• Total revenues for the third quarter of 2025 were $18.4 million, compared to $15.8 million in the third quarter of 2024, or 16.2% year-over-year growth.
• GAAP operating income for the third quarter of 2025 was $2.4 million, or 13.1% of revenue, compared to GAAP operating income of $1.2 million, or 7.6% of revenue, for the third quarter of 2024.
• Non-GAAP operating income for the third quarter of 2025 was $3.8 million, or 20.9% of revenue, compared to non-GAAP operating income of $2.6 million, or 16.7% of revenue, for the third quarter of 2024.
• GAAP net income for the third quarter of 2025 was $3.5 million, or $0.21 per diluted share, compared to GAAP net income of $2.3 million, or $0.14 per diluted share, for the third quarter of 2024.
• Non-GAAP net income for the third quarter of 2025 was $4.9 million, or $0.29 per diluted share, compared to non-GAAP net income of $3.7 million, or $0.23 per diluted share, for the third quarter of 2024.
• Positive cash flow of $5.1 million in the third quarter of 2025. As of September 30, 2025, the company had cash and cash equivalents and short-term bank deposits of $106.7 million, and no debt, ending the third quarter with its highest ever cash levels.

First nine months of 2025 Financial Highlights:

• Total revenues for the first nine months of 2025 were $52.6 million, compared to $44.8 million in the first nine months of 2024, or 17.6% year-over-year growth.
• GAAP operating income for the first nine months of 2025 was $5.6 million, or 10.7% of revenue, compared to GAAP operating income of $1.8 million, or 4.0% of revenue, for the first nine months of 2024.
• Non-GAAP operating income for the first nine months of 2025 was $10.4 million, or 19.8% of revenue, compared to non-GAAP operating income of $6.7 million, or 14.9% of revenue, for the first nine months of 2024.
• GAAP net income for the first nine months of 2025 was $8.3 million, or $0.50 per diluted share, compared to GAAP net income of $4.7 million, or $0.29 per diluted share, for the first nine months of 2024.
• Non-GAAP net income for the first nine months of 2025 was $13.2 million, or $0.79 per diluted share, compared to non-GAAP net income of $9.7 million, or $0.61 per diluted share, for the first nine months of 2024.

Recent Highlights:

• RADCOM recently secured 1Global as a new customer, deploying RADCOM ACE as its AI-driven assurance solution to enhance customer experiences across Europe, North America, and Asia, supporting more than 43 million connections.
• RADCOM launched its High-Capacity User Analytics solution, the first assurance vendor to capture network data at speeds of up to 400Gbps on a single server, delivering real-time analytics at a fraction of the cost. This solution leverages NVIDIA BlueField-3 data processing units.

Outlook

RADCOM reaffirms its full-year 2025 guidance of 15%-18% year-over-year revenue growth, implying $71.1 million in revenue at the midpoint.

Conference Call and Webinar

RADCOM's management will host an interactive conference call today, November 12, 2025, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time) to discuss the results and answer participants' questions.

• By phone: Dial in at least 5 minutes before the call begins. A replay will be available later the same day at https://radcom.com/financial-information/.
  • From the US (toll-free): +1-866-652-8972
  • From other locations: +972-3-918-0609
• By webinar: Join the audio webinar at https://www.veidan-conferencing.com/radcom. Please log in at least 10 minutes before the start time to complete registration and install any required software. A replay will be available at the same link for 90 days after the event.

For all investor inquiries, please contact:
Investor Relations: Rob Fink or Joey Delahoussaye
FNK IR
rdcm@fnkir.com 
+1-646-809-4048 / +1-312-809-1087

Company Contact: Hadar Rahav
CFO
Hadar.Rahav@radcom.com 

About RADCOM

RADCOM (Nasdaq: RDCM) is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities. Its flagship platform, RADCOM ACE, harnesses AI-driven analytics and generative AI (GenAI) to improve customer experiences. From lab testing to full-scale deployment, RADCOM utilizes cutting-edge networking technologies to capture and analyze real-time data. Its advanced 5G portfolio delivers end-to-end network observability—from the radio access network (RAN) to the core.

Designed to be open, vendor-neutral, and cloud-agnostic, RADCOM's solutions drive next-generation network automation, optimization, and efficiency. By leveraging AI-powered intelligence, RADCOM reduces operational costs, enables predictive customer insights, and seamlessly integrates with business support systems (BSS), operations support systems (OSS), and service management platforms. Offering a complete, real-time view of mobile and fixed networks. Through powerful, data-driven analytics, RADCOM empowers telecom operators to ensure exceptional service quality, enhance user experiences, and build customer-centric networks.

Non-GAAP Information

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses) related to acquisitions, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.

Risks Regarding Forward-Looking Statements

Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe," "may," "might," " potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2025 revenue guidance, operating momentum, the Company's commitment to delivering solutions that are transforming the assurance landscape, continued adoption of AI and 5G, the resilience of the Company's operating model and the value its AI-driven assurance solutions provide in lowering total cost of ownership and enabling comprehensive observability across customer networks, converting the Company's robust pipeline into revenue, expanding the Company's current installed base, extending the Company's technology leadership and advancing the Company's strategic partnerships, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the conflict in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.

 

 

RADCOM LTD.
Consolidated Statements of Operations Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended September 30,				Nine months ended  September 30,
	2025		2024		2025		2024
Revenues	$          18,388		$          15,821		$           52,637		$            44,745
Cost of revenues	4,364		4,064		12,823		11,609
Gross profit	14,024		11,757		39,814		33,136
Research and development, gross	5,119		4,696		14,832		13,910
Less - royalty-bearing participation	189		182		214		571
Research and development, net	4,930		4,514		14,618		13,339
Sales and marketing	5,144		4,552		14,944		13,162
General and administrative	1,535		1,484		4,635		4,858
Total operating expenses	11,609		10,550		34,197		31,359
Operating income	2,415		1,207		5,617		1,777
Financial income, net	1,163		1,076		3,076		3,035
Income before taxes on income	3,578		2,283		8,693		4,812
Taxes on income	107		32		344		92
Net income	$                3,471		$           2,251		$           8,349		$             4,720
Basic net income per ordinary share	$                  0.21		$              0.14		$              0.52		$               0.30
Diluted net income per ordinary share	$                  0.21		$              0.14		$              0.50		$               0.29
Weighted average number of ordinary shares used in computing basic net income per ordinary share	16,357,554		15,748,498		16,183,572		15,595,365
Weighted average number of ordinary shares used in computing diluted net income per ordinary share	16,923,983		16,159,110		16,766,553		16,002,167

 

 

RADCOM LTD.
Consolidated Statements of Operations Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
GAAP gross profit	$            14,024		$            11,757		$            39,814		$             33,136
Stock-based compensation	99		107		298		290
Amortization of intangible assets	57		57		168		169
Non-GAAP gross profit	$            14,180		$             11,921		$            40,280		$             33,595
	$              4,930		$               4,514		$             14,618		$              13,339
GAAP research and development, net
Stock-based compensation	421		488		1,308		1,550
Non-GAAP research and development, net	$              4,509		$  4,026		$             13,310		$              11,789
	$              5,144		$ 4,552		$            14,944		$              13,162
GAAP sales and marketing
Stock-based compensation	504		528		1,709		1,517
Amortization of intangible assets	29		29		86		87
Non-GAAP sales and marketing	$              4,611		$               3,995		$            13,149		$              11,558
	$               1,535		$               1,484		$              4,635		$                4,858
GAAP general and administrative
Stock-based compensation	323		224		1,244		1,265
Non-GAAP general and administrative	$               1,212		$               1,260		$              3,391		$                3,593
	$             11,609		$             10,550		$            34,197		$             31,359
GAAP total operating expenses
Stock-based compensation	1,248		1,240		4,261		4,332
Amortization of intangible assets	29		29		86		87
Non-GAAP total operating expenses	$             10,332		$               9,281		$           29,850		$             26,940
	$               2,415		$               1,207		$             5,617		$               1,777
GAAP operating income
Stock-based compensation	1,347		1,347		4,559		4,622
Amortization of intangible assets	86		86		254		256
Non-GAAP operating income	$               3,848		$               2,640		$           10,430		$               6,655

 

 

RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
GAAP income before taxes on income	$               3,578		$               2,283		$               8,693		$               4,812
Stock-based compensation	1,347		1,347		4,559		4,622
Amortization of intangible assets	86		86		254		256
Financial expenses	22		40		49		111
Non-GAAP income before taxes on income	$              5,033		$               3,756		$               13,555		$               9,801
	$              3,471		$               2,251		$               8,349		$               4,720
GAAP net income
Stock-based compensation	1,347		1,347		4,559		4,622
Amortization of intangible assets	86		86		254		256
Financial expenses	22		40		49		111
Non-GAAP net income	$              4,926		$               3,724		$               13,211		$               9,709
GAAP net income per diluted share	$                0.21		$                 0.14		$                   0.50		$                 0.29
Stock-based compensation	0.07		0.08		0.27		0.30
Amortization of intangible assets	0.01		0.01		0.02		0.02
Financial expenses	(*)		(*)		(*)		(*)
Non-GAAP net income per diluted share	$                0.29		$                0.23		$                  0.79		$                 0.61
Weighted average number of shares used to compute diluted net income per share	16,923,983		16,159,110		16,766,553		16,002,167
(*) Less than $ 0.01

 

 

RADCOM LTD. Consolidated Balance Sheets (Unaudited) (thousands of U.S. dollars)
	As of		As of
	September 30, 2025		December 31, 2024
Current Assets
Cash and cash equivalents	$                  15,941		$                 19,243
Short-term bank deposits	90,744		75,429
Trade receivables, net	17,302		19,038
Inventories	294		1,667
Other accounts receivable and prepaid expenses	2,570		1,819
Total Current Assets	126,851		117,196
Non-Current Assets
Severance pay fund	3,314		2,985
Other long-term receivables	2,597		3,484
Property and equipment, net	904		879
Operating lease right-of-use assets	3,128		3,421
Goodwill and intangible assets, net	2,355		2,609
Total Non-Current Assets	12,298		13,378
Total Assets	$             139,149		$               130,574
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables	$                    2,691		$                   2,457
Deferred revenues and advances from customers	3,061		6,848
Employee and payroll accruals	5,490		7,175
Operating lease liabilities	1,061		966
Other liabilities and accrued expenses	10,482		10,463
Total Current Liabilities	22,785		27,909
Non-Current Liabilities
Accrued severance pay	4,445		3,868
Operating lease liabilities	2,331		2,438
Other liabilities and accrued expenses	645		683
Total Non-Current Liabilities	7,421		6,989
Total Liabilities	$                 30,206		$                 34,898
Shareholders' Equity
Share capital	$                       797		$                      769
Additional paid-in capital	165,627		160,761
Accumulated other comprehensive loss	(2,886)		(2,910)
Accumulated deficit	(54,595)		(62,944)
Total Shareholders' Equity	108,943		95,676
Total Liabilities and Shareholders' Equity	$               139,149		$               130,574

 

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SOURCE RADCOM Ltd.

FAQ

What were RADCOM (RDCM) Q3 2025 total revenues and YoY growth?

RADCOM reported $18.4 million in Q3 2025 revenue, a 16.2% YoY increase versus Q3 2024.

How profitable was RADCOM (RDCM) in Q3 2025 on a non-GAAP basis?

RADCOM reported non-GAAP operating income of $3.8M, equal to a 20.9% non-GAAP operating margin in Q3 2025.

What cash position did RADCOM (RDCM) report at September 30, 2025?

RADCOM reported $106.7 million in cash, cash equivalents and short-term deposits and stated it had no debt.

Did RADCOM (RDCM) generate positive cash flow in Q3 2025?

Yes. RADCOM reported $5.1 million of positive cash flow in Q3 2025.

What full-year 2025 revenue guidance did RADCOM (RDCM) reaffirm on November 12, 2025?

RADCOM reaffirmed full-year 2025 revenue guidance of 15%–18% year-over-year growth, implying $71.1M at the midpoint.

What recent commercial or product highlights did RADCOM (RDCM) disclose in November 2025?

RADCOM announced a new customer, 1Global, deployment and launched a High-Capacity User Analytics solution supporting up to 400Gbps on a single server.