RADCOM Delivers 17.2% Full-Year Revenue Growth, Record Revenue and Operating Margins in 2025

Rhea-AI Summary

RADCOM (NASDAQ: RDCM) reported record 2025 revenue of $71.5 million, up 17.2% YoY, with GAAP operating income of $8.3 million (11.6% margin) and non-GAAP operating income of $14.8 million (20.6% margin). The company ended 2025 with $109.9 million in cash and no debt.

RADCOM provided 2026 revenue guidance of +8% to +12% (midpoint implying $78.6 million) and announced a board leadership change, appointing Rami Schwartz as chairman effective Feb 8, 2026.

Positive

• Revenue +17.2% YoY to $71.5M in 2025
• GAAP operating margin improved to 11.6% (GAAP operating income $8.3M)
• Non-GAAP operating margin reached 20.6% (non-GAAP operating income $14.8M)
• Cash and short-term deposits of $109.9M with no debt
• Positive operating cash flow of $15.2M in 2025

Negative

• 2026 revenue guidance of +8% to +12% implies slower growth versus 2025
• Guidance midpoint implies 2026 revenue of $78.6M, modest incremental growth

Market Reaction

-7.68% $11.85

15m delay 3 alerts

-7.68% Since News

-10.3% Trough Tracked

$11.85 Last Price

$10.99 $12.90 Day Range

-$16M Valuation Impact

$190M Market Cap

1.1x Rel. Volume

Following this news, RDCM has declined 7.68%, reflecting a notable negative market reaction. Argus tracked a trough of -10.3% from its starting point during tracking. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $11.85. This price movement has removed approximately $16M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 revenue: $18.9M FY 2025 revenue: $71.5M FY 2025 GAAP net income: $12.0M +5 more

8 metrics

Q4 2025 revenue $18.9M Fourth quarter 2025 total revenues vs $16.3M in Q4 2024

FY 2025 revenue $71.5M Full-year 2025 revenues vs $61.0M in 2024, 17.2% YoY growth

FY 2025 GAAP net income $12.0M Full-year 2025 GAAP net income vs $7.0M in 2024

FY 2025 non-GAAP net income $18.4M Full-year 2025 non-GAAP net income vs $13.5M in 2024

Year-end 2025 cash $109.9M Cash, cash equivalents and short-term deposits; no debt at Dec 31, 2025

FY 2025 operating margin (non-GAAP) 20.6% Non-GAAP operating income as % of revenue in 2025 vs 15.6% in 2024

2025 cash flow $15.2M Positive cash flow in full-year 2025

2026 revenue growth guidance 8%–12% Implied $78.6M revenue at 10% midpoint for full-year 2026

Market Reality Check

Price: $12.83 Vol: Volume 88,679 is slightly...

normal vol

$12.83 Last Close

Volume Volume 88,679 is slightly below the 20-day average of 101,101, suggesting no outsized trading reaction. normal

Technical Shares trade below the 200-day moving average at 13.22, despite strong FY 2025 results.

Peers on Argus

RDCM gained 2.31% while several peers also rose (e.g., KVHI +4.51%, FNGR +2.68%,...

RDCM gained 2.31% while several peers also rose (e.g., KVHI +4.51%, FNGR +2.68%, ATNI +0.97%, CXDO +0.79%). Scanner data flags this as stock-specific rather than a coordinated sector move.

Historical Context

5 past events · Latest: Jan 27 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Earnings call notice	Neutral	+0.7%	Announcement of timing for Q4 and full-year 2025 results and call.
Jan 06	Conference participation	Neutral	+0.0%	Management participation and 1x1 meetings at Needham Growth Conference.
Nov 18	Contract award	Positive	-0.9%	New smart network visibility contract via Rakuten Symphony for a mobile operator.
Nov 13	Conference participation	Neutral	-4.1%	Participation in Needham Tech Week 1x1 conference with investor meetings.
Nov 12	Quarterly earnings	Positive	+5.1%	Q3 2025 revenue growth, margin expansion, and reaffirmed full-year guidance.

Pattern Detected

Positive fundamental updates, such as Q3 2025 results, have previously seen supportive price reactions, while some contract and conference announcements showed mixed or negative follow-through.

Recent Company History

Recent news highlights a steady cadence of investor outreach and operational progress. On Nov 12, 2025, RADCOM reported strong Q3 2025 growth and margin expansion, which coincided with a positive price reaction. A smart network visibility contract announced on Nov 18, 2025 saw a modest negative move, indicating occasional divergence between contract wins and price. Conference participation headlines in November 2025 and January 2026 produced muted to negative trading responses. The current full-year 2025 earnings release builds on this trajectory of sustained revenue growth and expanding profitability.

Market Pulse Summary

The stock is down -7.7% following this news. A negative reaction despite strong results would contra...

Analysis

The stock is down -7.7% following this news. A negative reaction despite strong results would contrast with prior supportive responses to solid earnings like Q3 2025. The release highlights record 2025 revenue of $71.5M, expanding non-GAAP margins to 20.6%, and cash of $109.9M with no debt. Weakness could reflect concerns about the more moderate 8%–12% 2026 growth outlook, profit-taking after earlier gains, or skepticism about repeating recent performance levels.

Key Terms

gaap, non-gaap

2 terms

gaap financial

"GAAP operating income for the fourth quarter of 2025 was $2.7 million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"Non-GAAP operating income for the fourth quarter of 2025 was $4.3 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

Sixth consecutive year of revenue growth, reflecting ongoing business momentum

TEL AVIV, Israel, Feb. 11, 2026 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM), a leader in next-generation AI-powered assurance solutions, announced today its financial results for the fourth quarter and full year ended December 31, 2025.

"RADCOM delivered record revenue of $71.5 million and achieved its highest annual operating margins to date in 2025, marking six consecutive years of revenue growth," said Benny Eppstein, Chief Executive Officer of RADCOM. "We are scaling profitability, generating strong cash flow, and strengthening our balance sheet, reflecting a business model with clear operating leverage while delivering measurable value to our customers. As telecom operators adapt to an AI-driven environment, they must operate their networks more efficiently while improving the customer experience, and our solutions enable both. We have built a strong foundation for sustainable, profitable growth as we work to continue to expand our customer base."

"With record cash levels of $109.9 million and no debt as of year-end, we enter 2026 from a position of financial strength," added Eppstein. "Our focus remains on expanding our Tier-1 customer footprint, deepening partnerships across our ecosystem, and continuing to lead in intelligent assurance and AI-driven analytics."

Fourth Quarter 2025 Financial Highlights:

• Total revenues for the fourth quarter of 2025 were $18.9 million, compared to $16.3 million in the fourth quarter of 2024, or 15.9% growth year-over-year.
• GAAP operating income for the fourth quarter of 2025 was $2.7 million, or 14.2% of revenue, compared to GAAP operating income of $1.3 million, or 8.1% of revenue, for the fourth quarter of 2024.
• Non-GAAP operating income for the fourth quarter of 2025 was $4.3 million, or 23.0% of revenue, compared to non-GAAP operating income of $2.9 million, or 17.6% of revenue, for the fourth quarter of 2024.
• GAAP net income for the fourth quarter of 2025 was $3.6 million, or $0.21 per diluted share, compared to GAAP net income of $2.2 million, or $0.14 per diluted share, for the fourth quarter of 2024.
• Non-GAAP net income for the fourth quarter of 2025 was $5.2 million, or $0.31 per diluted share, compared to non-GAAP net income of $3.8 million, or $0.23 per diluted share, for the fourth quarter of 2024.
• Positive cash flow was $3.2 million in the fourth quarter of 2025.

Full Year 2025 Financial Highlights:

• Total revenues for the full year 2025 were $71.5 million, a new company record, compared to $61.0 million in 2024, representing 17.2% year-over-year growth, above the midpoint of our guidance of 15% to 18% growth, and marking six consecutive years of top-line growth.
• GAAP operating income for the full year 2025 was $8.3 million, or 11.6% of revenue, compared to GAAP operating income of $3.1 million, or 5.1% of revenue, for the full year 2024.
• Non-GAAP operating income for the full year 2025 was $14.8 million, or 20.6% of revenue, compared to non-GAAP operating income of $9.5 million, or 15.6% of revenue, for the full year 2024.
• GAAP net income for the full year 2025 was $12.0 million, or $0.71 per diluted share, compared to GAAP net income of $7.0 million, or $0.43 per diluted share, for the full year 2024.
• Non-GAAP net income for the full year 2025 amounted to $18.4 million, or $1.09 per diluted share, compared to non-GAAP net income of $13.5 million, or $0.83 per diluted share, for the full year 2024.
• Positive cash flow was $15.2 million in 2025. As of December 31, 2025, the company had cash and cash equivalents and short-term bank deposits of $109.9 million and no debt, ending the year with its highest-ever cash levels.

Outlook

RADCOM is providing full-year 2026 revenue growth guidance of 8% to 12%, implying revenue of $78.6 million at the guidance midpoint (10%).

Chairman of the Board Transition

The Company also announced that its Board of Directors has appointed an existing Board member, Mr. Rami Schwartz, as Chairman of the Board, effective February 8, 2026, succeeding Mr. Sami Totah. Mr. Rami Schwartz has served on RADCOM's Board of Directors since July 2019 and brings deep experience in strategy, leadership, governance, and scaling technology businesses. Mr. Sami Totah will continue to serve as a member of the Company's Board of Directors.

Conference Call and Webinar

RADCOM's management will host an interactive conference call today, February 11, 2026, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time) to discuss the financial results and answer participants' questions.

Conference Call Access 

To join the conference call, please dial +1-866-652-8972 (US toll-free) or +972-3-918-0609 for other locations. Please dial in 5 minutes before the scheduled start time. A recording will be available later the same day at https://radcom.com/financial-information/. 

Audio Webinar Access 

To access the audio webinar, log in 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 following 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:
Hod Cohen
CFO
hod.cohen@radcom.com
+972-3-645-5055

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, 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 2026 revenue guidance, momentum, scalability of the Company's business model, and ongoing demand from telecom operators, sustainable, profitable growth and financial strength, increasing adoption of AI-driven assurance solutions, expanding its customer base, deepening its partnerships and continuing to lead in intelligent assurance and AI-driven analytics, 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 December 31,				Twelve months ended  December 31,
	2025		2024		2025		2024
Revenues	$              18,857		$               16,264		$              71,494		$               61,009
Cost of revenues	4,370		4,137		17,193		15,746
Gross profit	14,487		12,127		54,301		45,263
Research and development, gross	5,407		4,749		20,239		18,659
Less - royalty-bearing participation	149		113		363		684
Research and development, net	5,258		4,636		19,876		17,975
Sales and marketing	4,739		4,632		19,683		17,794
General and administrative	1,804		1,549		6,439		6,407
Total operating expenses	11,801		10,817		45,998		42,176
Operating income	2,686		1,310		8,303		3,087
Financial income, net	1,207		1,080		4,283		4,115
Income before taxes on income	3,893		2,390		12,586		7,202
Taxes on income	251		142		595		234
Net income	$                3,642		$               2,248		$             11,991		$                 6,968
Basic net income per ordinary share	$                  0.22		$                 0.14		$                 0.74		$                   0.44
Diluted net income per ordinary share	$                  0.21		$                 0.14		$                 0.71		$                   0.43
Weighted average number of  ordinary shares used in computing  basic net income per ordinary share	16,512,452		15,878,186		16,266,468		15,666,457
Weighted average number of ordinary shares used in computing  diluted net income per ordinary share	17,039,753		16,612,554		16,835,529		16,155,150

 

RADCOM LTD. Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
	Three months ended  December 31,						Twelve month ended December 31,
	2025			2024			2025			2024
GAAP gross profit	$            14,487			$       12,127			$       54,301			$      45,263
Stock-based compensation	89			91			387			381
Amortization of intangible assets	57			57			225			225
Non-GAAP gross profit	$            14,633			$       12,275			$       54,913			$      45,869
GAAP research and development, net	$              5,258			$         4,636			$       19,876			$       17,975
Stock-based compensation	468			497			1,776			2,047
Non-GAAP research and development, net	$              4,790			$         4,139			$       18,100			$      15,928
GAAP sales and marketing	$              4,739			$         4,632			$       19,683			$      17,794
Stock-based compensation	556			506			2,265			2,023
Amortization of intangible assets	29			29			115			116
Non-GAAP sales and marketing	$              4,154			$         4,097			$       17,303			$      15,655
GAAP general and administrative	$              1,804			$         1,549			$         6,439			$        6,407
Stock-based compensation	444			380			1,688			1,645
Non-GAAP general and administrative	$             1,360			$         1,169			$         4,751			$        4,762
GAAP total operating expenses	$            11,801			$       10,817			$      45,998			$     42,176
Stock-based compensation	1,468			1,383			5,729			5,715
Amortization of intangible assets	29			29			115			116
Non-GAAP total operating expenses	$            10,304			$         9,405			$       40,154			$      36,345
GAAP operating income	$             2,686			$         1,310			$       8,303			$        3,087
Stock-based compensation	1,557			1,474			6,116			6,096
Amortization of intangible assets	86			86			340			341
Non-GAAP operating income	$             4,329			$        2,870			$    14,759			$        9,524

 

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  December 31,				Twelve months  ended December 31,
	2025		2024		2025		2024
GAAP income before taxes on income	$               3,893		$               2,390		$             12,586		$               7,202
Stock-based compensation	1,557		1,474		6,116		6,096
Amortization of intangible assets	86		86		340		341
Financial expenses (income)	(78)		(28)		(29)		84
Non-GAAP income before taxes on income	$               5,458		$               3,922		$             19,013		$             13,723
GAAP net income	$               3,642		$               2,248		$             11,991		$               6,968
Stock-based compensation	1,557		1,474		6,116		6,096
Amortization of intangible assets	86		86		340		341
Financial expenses (income)	(78)		(28)		(29)		84
Non-GAAP net income	$              5,207		$              3,780		$            18,418		$             13,489
GAAP net income per diluted share	$                0.21		$                0.14		$                0.71		$                 0.43
Stock-based compensation	0.10		0.09		0.36		0.38
Amortization of intangible assets	(*)		(*)		0.02		0.02
Financial expenses (income)	(*)		(*)		(*)		(*)
Non-GAAP net income per diluted share	$                0.31		$                0.23		$                1.09		$                 0.83
Weighted average number of shares used to compute diluted net  income per share	17,039,753		16,612,554		16,835,529		16,155,150
(*) Less than $ 0.01

 

RADCOM LTD. Consolidated Balance Sheets (Unaudited) (thousands of U.S. dollars)
	As of		As of
	December 31, 2025		December 31, 2024
Current Assets
Cash and cash equivalents	$                   30,486		$                  19,243
Short-term bank deposits	79,437		75,429
Trade receivables, net	20,245		19,038
Inventories	318		1,667
Other accounts receivable and prepaid expenses	2,036		1,819
Total Current Assets	132,522		117,196
Non-Current Assets
Severance pay fund	3,431		2,985
Other long-term receivables	2,866		3,484
Property and equipment, net	988		879
Operating lease right-of-use assets	2,898		3,421
Goodwill and intangible assets, net	2,269		2,609
Total Non-Current Assets	12,452		13,378
Total Assets	$                144,974		$                130,574
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables	$                    2,632		$                    2,457
Deferred revenues and advances from customers	1,100		6,848
Employee and payroll accruals	7,325		7,175
Operating lease liabilities	1,099		966
Other liabilities and accrued expenses	10,872		10,463
Total Current Liabilities	23,028		27,909
Non-Current Liabilities
Accrued severance pay	4,790		3,868
Operating lease liabilities	2,135		2,438
Other liabilities and accrued expenses	916		683
Total Non-Current Liabilities	7,841		6,989
Total Liabilities	$                  30,869		$                  34,898
Shareholders' Equity
Share capital	$                       809		$                       769
Additional paid-in capital	167,172		160,761
Accumulated other comprehensive loss	(2,923)		(2,910)
Accumulated deficit	(50,953)		(62,944)
Total Shareholders' Equity	114,105		95,676
Total Liabilities and Shareholders' Equity	$                144,974		$                130,574

 

View original content:https://www.prnewswire.com/news-releases/radcom-delivers-17-2-full-year-revenue-growth-record-revenue-and-operating-margins-in-2025--302685052.html

SOURCE RADCOM Ltd.

FAQ

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

RADCOM reported $71.5 million in total revenue for 2025, a 17.2% year-over-year increase. According to RADCOM, this was a company record and marks the sixth consecutive year of top-line growth.

How did RADCOM's operating margins perform in 2025 (RDCM)?

RADCOM achieved GAAP operating income of $8.3 million (11.6% margin) and non-GAAP operating income of $14.8 million (20.6% margin). According to RADCOM, margins improved notably year-over-year, reflecting operating leverage.

What is RADCOM's cash position and debt level at year-end 2025 (RDCM)?

RADCOM ended 2025 with $109.9 million in cash and short-term deposits and reported no debt. According to RADCOM, this represents its highest-ever cash levels and a strong balance sheet entering 2026.

What revenue guidance did RADCOM (RDCM) give for full-year 2026?

RADCOM provided full-year 2026 revenue guidance of +8% to +12%, with a midpoint implying $78.6 million. According to RADCOM, this guidance reflects expected growth while prioritizing profitability and cash generation.

Who is the new chairman of RADCOM's board and when did the change take effect (RDCM)?

RADCOM appointed existing board member Rami Schwartz as chairman effective February 8, 2026. According to RADCOM, Schwartz has served on the board since July 2019 and will succeed Sami Totah, who remains a director.