RADCOM Delivers 19% YoY Revenue Growth and Margin Expansion in the Second Quarter of 2025
RADCOM (NASDAQ:RDCM) reported strong Q2 2025 financial results with 19.3% year-over-year revenue growth to $17.7 million. The company achieved significant profitability improvements, with GAAP operating income reaching $1.7 million (9.9% of revenue) and non-GAAP operating income of $3.4 million (19.5% of revenue).
The company generated $2.6 million in positive cash flow and ended Q2 with its highest-ever cash position of $101.6 million and no debt. For the first six months of 2025, total revenues grew 18.4% to $34.2 million. RADCOM reaffirmed its full-year 2025 revenue guidance, expecting 15-18% growth with a midpoint of $71.1 million.
RADCOM (NASDAQ:RDCM) ha pubblicato solidi risultati finanziari del secondo trimestre 2025 con una crescita dei ricavi del 19,3% su base annua a $17.7 million. L'azienda ha ottenuto notevoli miglioramenti nella redditività, con l'utile operativo GAAP che ha raggiunto $1.7 million (9,9% dei ricavi) e l'utile operativo non-GAAP di $3.4 million (19,5% dei ricavi).
L'azienda ha generato un flusso di cassa positivo di $2.6 million e ha chiuso il secondo trimestre con la sua posizione di cassa più alta di sempre, pari a $101.6 million, senza debiti. Nei primi sei mesi del 2025 i ricavi totali sono cresciuti del 18,4% a $34.2 million. RADCOM ha confermato la guidance per l'intero 2025, prevedendo una crescita dei ricavi del 15-18% con un valore centrale di $71.1 million.
RADCOM (NASDAQ:RDCM) informó sólidos resultados financieros del segundo trimestre de 2025 con un crecimiento interanual de ingresos del 19,3% hasta $17.7 million. La compañía logró mejoras significativas en la rentabilidad, con un resultado operativo GAAP de $1.7 million (9,9% de los ingresos) y un resultado operativo non-GAAP de $3.4 million (19,5% de los ingresos).
La empresa generó un flujo de caja positivo de $2.6 million y cerró el segundo trimestre con su mayor posición de efectivo hasta la fecha, de $101.6 million, sin deuda. En los primeros seis meses de 2025, los ingresos totales crecieron un 18,4% hasta $34.2 million. RADCOM reafirmó su guía para todo 2025, esperando un crecimiento del 15-18% con un punto medio de $71.1 million.
RADCOM (NASDAQ:RDCM)는 2025년 2분기에 전년 대비 매출 19.3% 증가로 $17.7 million의 견조한 실적을 발표했습니다. 회사는 수익성도 크게 개선되어 GAAP 영업이익이 $1.7 million(매출의 9.9%)을, non-GAAP 영업이익이 $3.4 million(매출의 19.5%)을 기록했습니다.
회사는 $2.6 million의 긍정적 현금흐름을 창출했으며 2분기 말 현금잔고는 사상 최고치인 $101.6 million으로 부채는 없었습니다. 2025년 상반기 총매출은 18.4% 증가한 $34.2 million이었습니다. RADCOM은 2025년 연간 매출 가이던스를 재확인하며 15–18% 성장을 예상하고 중간값을 $71.1 million으로 제시했습니다.
RADCOM (NASDAQ:RDCM) a publié de solides résultats financiers pour le T2 2025 avec une croissance des revenus de 19,3% sur un an à $17.7 million. La société a nettement amélioré sa rentabilité, le résultat opérationnel GAAP atteignant $1.7 million (9,9% des revenus) et le résultat opérationnel non-GAAP $3.4 million (19,5% des revenus).
La société a généré un flux de trésorerie positif de $2.6 million et a clôturé le T2 avec sa trésorerie la plus élevée jamais atteinte, soit $101.6 million, sans dette. Pour les six premiers mois de 2025, les revenus totaux ont augmenté de 18,4% à $34.2 million. RADCOM a réaffirmé ses prévisions pour l'ensemble de l'année 2025, s'attendant à une croissance de 15–18% avec un point médian de $71.1 million.
RADCOM (NASDAQ:RDCM) meldete starke Finanzergebnisse für Q2 2025 mit einem Umsatzwachstum von 19,3% gegenüber dem Vorjahr auf $17.7 million. Das Unternehmen verbesserte die Profitabilität deutlich: Das GAAP-Betriebsergebnis erreichte $1.7 million (9,9% des Umsatzes) und das Non-GAAP-Betriebsergebnis $3.4 million (19,5% des Umsatzes).
Das Unternehmen erwirtschaftete einen positiven Cashflow von $2.6 million und schloss das zweite Quartal mit seinem höchsten Kassenbestand überhaupt von $101.6 million ab, bei keiner Verschuldung. Für die ersten sechs Monate 2025 stiegen die Gesamterlöse um 18,4% auf $34.2 million. RADCOM bekräftigte die Umsatzprognose für das Gesamtjahr 2025 und erwartet ein Wachstum von 15–18% mit einem Mittelpunkt von $71.1 million.
- Revenue grew 19.3% year-over-year to $17.7 million in Q2 2025
- Non-GAAP operating margin expanded to 19.5% from 15.4% year-over-year
- Generated $2.6 million positive cash flow, reaching record cash levels of $101.6 million
- Strong balance sheet with zero debt
- Reaffirmed full-year guidance of 15-18% revenue growth
- None.
Insights
RADCOM shows impressive 19% revenue growth with expanding margins and record cash position, reinforcing their positive growth trajectory.
RADCOM's Q2 2025 results demonstrate robust financial health with
Profitability metrics show meaningful improvement across the board. GAAP operating margin expanded to
Particularly impressive is RADCOM's cash position, which now exceeds
Diluted EPS showed healthy growth, with GAAP EPS increasing to
The company's reaffirmation of
Continued Growth and Improved Profitability Reinforce Full-Year Outlook
Benny Eppstein, Chief Executive Officer, said, "RADCOM continues to deliver strong results with
We remain confident in our full-year guidance of
Second Quarter 2025 Financial Highlights:
- Total revenues for the second quarter of 2025 were
$17 $14 19.3% year-over-year growth. - GAAP operating income for the second quarter of 2025 was
$1.7 million 9.9% of revenue, compared to an operating income of$0.9 million 5.9% of revenue for the second quarter of 2024. - Non-GAAP operating income for the second quarter of 2025 was
$3 19.5% of revenue, compared to non-GAAP operating income of$2 15.4% of revenue, for the second quarter of 2024. - GAAP net income for the second quarter of 2025 was
$2 $0 $1 $0 - Non-GAAP net income for the second quarter of 2025 was
$4 $0 $3.1 million $0.20 $2.6 million $101.6 million
First Six Months 2025 Financial Highlights:
- Total revenues for the first six months of 2025 were
$34 $28 18.4% year-over-year growth. - GAAP operating income for the first six months of 2025 was
$3.2 million 9.4% of revenue, compared to operating income of$0.6 million 2.0% of revenue, for the first six months of 2024. - Non-GAAP operating income for the first six months of 2025 was
$6 19.2% of revenue, compared to non-GAAP operating income of$4.0 million 13.9% of revenue, for the first six months of 2024. - GAAP net income for the first six months of 2025 was
$4 $0 $2 $0 - Non-GAAP net income for the first six months of 2025 was
$8 $0 $6.0 million $0
Outlook
RADCOM reaffirms its full-year 2025 revenue guidance, anticipating year-over-year growth of
Conference Call and Webinar
RADCOM's management will host an interactive conference call today, Wednesday, August 13, 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:
Miri Segal
MS-IR LLC
msegal@ms-ir.com
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, the momentum in the Company's business, demand for the Company's products and services and its ability to consistently execute its strategy, traction of the Company's technology and in particular AI capabilities, the Company's relationships with strategic partnerships and continued market shifts, 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 war in
RADCOM Ltd. | |||||||
Consolidated Statements of Operations | |||||||
Unaudited | |||||||
(thousands of | |||||||
Three months ended | Six months ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | $ 17,658 | $ 14,801 | $ 34,249 | $ 28,924 | |||
Cost of revenues | 4,367 | 3,794 | 8,459 | 7,545 | |||
Gross profit | 13,291 | 11,007 | 25,790 | 21,379 | |||
Research and development, gross | 4,964 | 4,621 | 9,713 | 9,214 | |||
Less - royalty-bearing participation | - | 180 | 25 | 389 | |||
Research and development, net | 4,964 | 4,441 | 9,688 | 8,825 | |||
Sales and marketing | 4,936 | 4,325 | 9,800 | 8,610 | |||
General and administrative | 1,651 | 1,361 | 3,100 | 3,374 | |||
Total operating expenses | 11,551 | 10,127 | 22,588 | 20,809 | |||
Operating income | 1,740 | 880 | 3,202 | 570 | |||
Financial income, net | 793 | 854 | 1,913 | 1,959 | |||
Income before taxes on income | 2,533 | 1,734 | 5,115 | 2,529 | |||
Taxes on income | 95 | 27 | 237 | 60 | |||
Net income | $ 2,438 | $ 1,707 | $ 4,878 | $ 2,469 | |||
Basic net income per ordinary share | $ 0.15 | $ 0.11 | $ 0.30 | $ 0.16 | |||
Diluted net income per ordinary share | $ 0.15 | $ 0.11 | $ 0.29 | $ 0.16 | |||
Weighted average number of | 16,176,162 | 15,608,402 | 16,095,140 | 15,517,958 | |||
Weighted average number of | 16,711,789 | 15,978,799 | 16,686,397 | 15,922,855 | |||
RADCOM Ltd. | |||||||
(thousands of | |||||||
Three months ended | Six months ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
GAAP gross profit | $ 13,291 | $ 11,007 | $ 25,790 | $ 21,379 | |||
Stock-based compensation | 100 | 99 | 199 | 183 | |||
Amortization of intangible assets | 56 | 56 | 111 | 112 | |||
Non-GAAP gross profit | $ 13,447 | $ 11,162 | $ 26,100 | $ 21,674 | |||
GAAP research and development, net | $ 4,964 | $ 4,441 | $ 9,688 | $ 8,825 | |||
Stock-based compensation | 428 | 525 | 887 | 1,062 | |||
Non-GAAP research and development, net | $ 4,536 | $ 3,916 | $ 8,801 | $ 7,763 | |||
GAAP sales and marketing | $ 4,936 | $ 4,325 | $ 9,800 | $ 8,610 | |||
Stock-based compensation | 583 | 485 | 1,205 | 989 | |||
Amortization of intangible assets | 28 | 29 | 57 | 58 | |||
Non-GAAP sales and marketing | $ 4,325 | $ 3,811 | $ 8,538 | $ 7,563 | |||
GAAP general and administrative | $ 1,651 | $ 1,361 | $ 3,100 | $ 3,374 | |||
Stock-based compensation | 501 | 202 | 921 | 1,041 | |||
Non-GAAP general and administrative | $ 1,150 | $ 1,159 | $ 2,179 | $ 2,333 | |||
GAAP total operating expenses | $ 11,551 | $ 10,127 | $ 22,588 | $ 20,809 | |||
Stock-based compensation | 1,512 | 1,212 | 3,013 | 3,092 | |||
Amortization of intangible assets | 28 | 29 | 57 | 58 | |||
Non-GAAP total operating expenses | $ 10,011 | $ 8,886 | $ 19,518 | $ 17,659 | |||
GAAP operating income | $ 1,740 | $ 880 | $ 3,202 | $ 570 | |||
Stock-based compensation | 1,612 | 1,311 | 3,212 | 3,275 | |||
Amortization of intangible assets | 84 | 85 | 168 | 170 | |||
Non-GAAP operating income | $ 3,436 | $ 2,276 | $ 6,582 | $ 4,015 | |||
RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited | |||||||
(thousands of | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
GAAP income before taxes on income | $ 2,533 | $ 1,734 | $ 5,115 | $ 2,529 | |||
Stock-based compensation | 1,612 | 1,311 | 3,212 | 3,275 | |||
Amortization of intangible assets | 84 | 85 | 168 | 170 | |||
Financial expenses | 21 | 34 | 27 | 71 | |||
Non-GAAP income before taxes on income | $ 4,250 | $ 3,164 | $ 8,522 | $ 6,045 | |||
GAAP net income | $ 2,438 | $ 1,707 | $ 4,878 | $ 2,469 | |||
Stock-based compensation | 1,612 | 1,311 | 3,212 | 3,275 | |||
Amortization of intangible assets | 84 | 85 | 168 | 170 | |||
Financial expenses | 21 | 34 | 27 | 71 | |||
Non-GAAP net income | $ 4,155 | $ 3,137 | $ 8,285 | $ 5,985 | |||
GAAP net income per diluted share | $ 0.15 | $ 0.11 | $ 0.29 | $ 0.16 | |||
Stock-based compensation | 0.10 | 0.08 | 0.20 | 0.21 | |||
Amortization of intangible assets | (*) | 0.01 | 0.01 | 0.01 | |||
Financial expenses | (*) | (*) | (*) | (*) | |||
Non-GAAP net income per diluted share | $ 0.25 | $ 0.20 | $ 0.50 | $ 0.38 | |||
Weighted average number of shares used | 16,711,789 | 15,978,799 | 16,686,397 | 15,922,855 | |||
(*) Less than | |||||||
RADCOM Ltd. Consolidated Balance Sheets (Unaudited) | |||
(thousands of | |||
As of | As of | ||
June 30, 2025 | December 31, 2024 | ||
Current Assets | |||
Cash and cash equivalents | $ 21,910 | $ 19,243 | |
Short-term bank deposits | 79,722 | 75,429 | |
Trade receivables, net | 18,603 | 19,038 | |
Inventories | 1,218 | 1,667 | |
Other accounts receivable and prepaid expenses | 1,993 | 1,819 | |
| 123,446 | 117,196 | |
Non-Current Assets | |||
Severance pay fund | 3,243 | 2,985 | |
Other long-term receivables | 3,053 | 3,484 | |
Property and equipment, net | 889 | 879 | |
Operating lease right-of-use assets | 3,314 | 3,421 | |
Goodwill and intangible assets, net | 2,440 | 2,609 | |
| 12,939 | 13,378 | |
Total Assets | $ 136,385 | $ 130,574 | |
Liabilities and Shareholders' Equity | |||
Current Liabilities | |||
Trade payables | $ 3,689 | $ 2,457 | |
Deferred revenues and advances from customers | 4,807 | 6,848 | |
Employee and payroll accruals | 6,106 | 7,175 | |
Operating lease liabilities | 1,026 | 966 | |
Other liabilities and accrued expenses | 9,171 | 10,463 | |
| 24,799 | 27,909 | |
Non-Current Liabilities | |||
Accrued severance pay | 4,330 | 3,868 | |
Operating lease liabilities | 2,520 | 2,438 | |
Other liabilities and accrued expenses | 656 | 683 | |
| 7,506 | 6,989 | |
Total Liabilities | $ 32,305 | $ 34,898 | |
Shareholders' Equity | |||
Share capital | $ 789 | $ 769 | |
Additional paid-in capital | 164,221 | 160,761 | |
Accumulated other comprehensive loss | (2,864) | (2,910) | |
Accumulated deficit | (58,066) | (62,944) | |
Total Shareholders' Equity | 104,080 | 95,676 | |
| $ 136,385 | $ 130,574 | |
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SOURCE RADCOM Ltd.
FAQ
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