RADCOM DELIVERS RECORD QUARTER AS GROWTH TRAJECTORY CONTINUES
- Record quarterly revenue of $16.6 million, up 17.5% year-over-year
- Improved GAAP operating margin to 9% from a loss in Q1 2024
- Strong cash position of $99.1 million with no debt
- Raised full-year 2025 revenue growth guidance to 15-18%
- Renewed multi-year, eight-figure contract with tier-one North American customer
- New strategic partnerships with Nvidia and ServiceNow
- None.
Insights
RADCOM delivers exceptional Q1 with 17.5% revenue growth, margin expansion, and raised 2025 guidance, signaling sustained momentum.
RADCOM's Q1 2025 results demonstrate remarkable financial momentum with
The non-GAAP metrics reveal even stronger performance with operating income of
Bottom-line results are equally strong with GAAP EPS tripling from
Management's confidence is evident in their raised full-year guidance, now expecting
The renewal and expansion of a multi-year, eight-figure contract with a North American tier-one customer provides revenue visibility, while strategic partnerships with Nvidia and ServiceNow position RADCOM at the intersection of telecom assurance and artificial intelligence. The company's focus on agentic AI and intelligent automation aligns with emerging industry trends, potentially opening new revenue streams beyond traditional assurance markets.
Results reflect
Company strengthens strategic partnerships to support future demand for accelerated computing and artificial intelligent agents (agentic AI)
First Quarter 2025 Financial Highlights:
- Total revenues for the first quarter were
$16 $14 17.5% year-over-year growth. - GAAP operating income for the period was
$1.5 million 9% of revenue, compared to an operating loss of$0.3 million - Non-GAAP operating income for the period was
$3 19% of revenue, compared to non-GAAP operating income of$1 12% of revenue, for the first quarter of 2024. - GAAP net income for the first quarter was
$2 $0 $0 $0 - Non-GAAP net income for the period was
$4 $0 $2.8 million $0 $4.4 million $99 - Raising full-year 2025 revenue growth outlook from
12% -15% year-over-year to15% -18% year-over-year, with a midpoint of$71.1 million 16.5% increase compared to 2024.
Management Comments:
"The exceptional financial performance in the first quarter of 2025 builds on our record-breaking results from 2024. We are on track to deliver a sixth consecutive year of growth, driven by our outstanding team. This quarter we achieved record company revenue once again, and thanks to our operational excellence and disciplined expense management, we increased operating margins by more than
"Our record results and continued momentum underscore the strength of our technology and position us well to navigate the market ahead. We are also expanding strategic partnerships that open new sales opportunities. Given the successful quarter, we are confident in raising our full-year 2025 revenue growth outlook from
Recent Developments
- RADCOM announced recently the renewal and expansion of a multi-year, eight figures contract with a tier-one customer in
North America underscoring the continued confidence in its best-in-class solution. - The company also announced partnerships in the first quarter with Nvidia and ServiceNow to further advance real-time customer-level insights and enhance cross-domain automated business processes.
- Last week ServiceNow unveiled the inclusion of RADCOM among the first vendors, and the first assurance vendor, to offer its AI Agent Fabric integration for seamless wall-to-wall workflows. The solution delivers new levels of agent-to-agent and multi-model communication and collaboration.
- The emergence of artificial intelligent agents (agentic AI) is driving the next-level of intelligent automation, enabling the orchestration of multiple AI agents to autonomously manage complex, cross-domain workflows across customer care, service management and service assurance. RADCOM's collaboration with ServiceNow is focused on developing integrated customer experience driven workflows, leveraging advanced automation and AI technologies.
- Collaborating with Nvidia, RADCOM is developing an unparalleled high-capacity data capture and user analytics solution to provide AI-powered business processes with essential real-time customer and service level insights. The company has launched a design-partner program and is planning to move into lab-testing phase with selected customers.
Earnings conference call and webcast
RADCOM's management will hold an interactive conference call on May 14, 2025 at 8:00 AM Eastern Time (3:00 PM Israel Standard Time) to discuss the results and answer participants' questions.
Live webcast: A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq1-2025. The webcast will be archived for 90 days following the live presentation.
- Joining the interactive call: Please dial in approximately five minutes before the call is scheduled to begin.
- From the US (toll-free): +1-866-652-8972
- From other locations: +972-3-918-0644
A conference call replay will be available a few hours after the call on RADCOM's investor relations webpage at https://radcom.com/investor-relations.
For all investor inquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
msegal@ms-ir.com
Company Contact:
Hadar Rahav
CFO
+972-77-7745062
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 and growth, its momentum and the path ahead, development of strategic partnerships and expected benefits from collaboration as well as the success of new technologies to, among other things, enhance automation, 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. | |||
Three months ended | |||
2025 | 2024 | ||
Revenues | $ 16,591 | $ 14,123 | |
Cost of revenues | 4,092 | 3,751 | |
Gross profit | 12,499 | 10,372 | |
Research and development, gross | 4,749 | 4,593 | |
Less - royalty-bearing participation | 25 | 209 | |
Research and development, net | 4,724 | 4,384 | |
Sales and marketing | 4,864 | 4,285 | |
General and administrative | 1,449 | 2,013 | |
Total operating expenses | 11,037 | 10,682 | |
Operating income (loss) | 1,462 | (310) | |
Financial income, net | 1,120 | 1,105 | |
Income before taxes on income | 2,582 | 795 | |
Taxes on income | (142) | (33) | |
Net income | $ 2,440 | $ 762 | |
Basic and diluted net income per ordinary share | $ 0.15 | $ 0.05 | |
Weighted average number of | 16,013,218 | 15,427,514 | |
Weighted average number of | 16,660,105 | 15,866,910 | |
RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of
| |||
Three months ended | |||
2025 | 2024 | ||
GAAP gross profit | $ 12,499 | $ 10,372 | |
Stock-based compensation | 99 | 84 | |
Amortization of intangible assets | 55 | 56 | |
Non-GAAP gross profit | $ 12,653 | $ 10,512 | |
GAAP research and development, net |
$ 4,724 |
$ 4,384 | |
Stock-based compensation | 459 | 537 | |
Non-GAAP research and development, net | $ 4,265 | $ 3,847 | |
GAAP sales and marketing | $ 4,864 |
$ 4,285 | |
Stock-based compensation | 622 | 504 | |
Amortization of intangible assets | 29 | 29 | |
Non-GAAP sales and marketing | $ 4,213 | $ 3,752 | |
GAAP general and administrative |
$ 1,449 |
$ 2,013 | |
Stock-based compensation | 420 | 839 | |
Non-GAAP general and administrative | $ 1,029 | $ 1,174 | |
GAAP total operating expenses |
$ 11,037 |
$ 10,682 | |
Stock-based compensation | 1,501 | 1,880 | |
Amortization of intangible assets | 29 | 29 | |
Non-GAAP total operating expenses | $ 9,507 | $ 8,773 | |
GAAP operating income (loss) |
$ 1,462 |
$ (310) | |
Stock-based compensation | 1,600 | 1,964 | |
Amortization of intangible assets | 84 | 85 | |
Non-GAAP operating income | $ 3,146 | $ 1,739 | |
GAAP income before taxes on income | $ 2,582 | $ 795 | |
Stock-based compensation | 1,600 | 1,964 | |
Amortization of intangible assets | 84 | 85 | |
Financial expenses | 6 | 37 | |
Non-GAAP income before taxes on income | $ 4,272 | $ 2,881 | |
GAAP net income |
$ 2,440 |
$ 762 | |
Stock-based compensation | 1,600 | 1,964 | |
Amortization of intangible assets | 84 | 85 | |
Financial expenses | 6 | 37 | |
Non-GAAP net income | $ 4,130 | $ 2,848 | |
GAAP net income per diluted share |
$ 0.15 |
$ 0.05 | |
Stock-based compensation | 0.09 | 0.12 | |
Amortization of intangible assets | 0.01 | 0.01 | |
Financial expenses | (*) | (*) | |
Non-GAAP net income per diluted share | $ 0.25 | $ 0.18 | |
Weighted average number of shares used to compute diluted net income per share | 16,660,105 | 15,866,910 | |
(*) Less than | |||
RADCOM LTD. Consolidated Balance Sheets (thousands of | |||
As of | As of | ||
March 31, 2025 | December 31, 2024 | ||
Current Assets | |||
Cash and cash equivalents | $ 8,032 | $ 19,243 | |
Short-term bank deposits | 91,046 | 75,429 | |
Trade receivables, net | 17,962 | 19,038 | |
Inventories | 2,726 | 1,667 | |
Other accounts receivable and prepaid expenses | 2,160 | 1,819 | |
Total Current Assets |
121,926 | 117,196 | |
Non-Current Assets | |||
Severance pay fund | 2,943 | 2,985 | |
Other long-term assets | 3,232 | 3,484 | |
Property and equipment, net | 855 | 879 | |
Operating lease right-of-use assets | 3,546 | 3,421 | |
Goodwill and intangible assets, net | 2,525 | 2,609 | |
Total Non-Current Assets |
13,101 | 13,378 | |
Total Assets | $ 135,027 | $ 130,574 | |
Liabilities and Shareholders' Equity | |||
Current Liabilities | |||
Trade payables | $ 3,367 | $ 2,457 | |
Deferred revenues and advances from customers | 8,403 | 6,848 | |
Employee and payroll accruals | 5,335 | 7,175 | |
Operating lease liabilities | 1,028 | 966 | |
Other liabilities and accrued expenses | 10,240 | 10,463 | |
Total Current Liabilities |
28,373 | 27,909 | |
Non-Current Liabilities | |||
Accrued severance pay | 3,821 | 3,868 | |
Operating lease liabilities | 2,468 | 2,438 | |
Other liabilities and accrued expenses | 665 | 683 | |
Total Non-Current Liabilities |
6,954 | 6,989 | |
Total Liabilities | $ 35,327 | $ 34,898 | |
Shareholders' Equity | |||
Share capital | $ 778 | $ 769 | |
Additional paid-in capital | 162,353 | 160,761 | |
Accumulated other comprehensive loss | (2,927) | (2,910) | |
Accumulated deficit | (60,504) | (62,944) | |
Total Shareholders' Equity | 99,700 | 95,676 | |
Total Liabilities and Shareholders' Equity | $ 135,027 | $ 130,574 | |
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SOURCE RADCOM Ltd.
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