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

1. RADCOM reports record revenue of $18.4 million in Q3 2025. 2. The company has achieved the highest operating margin in seven years. 3. Positive cash flow of over $5 million during Q3 2025. 4. RADCOM maintains strong guidance for 15%-18% revenue growth in 2025. 5. New customer 1Global deployed RADCOM ACE, enhancing services across major regions.

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Why Very Bullish?

The substantial revenue growth and positive cash flow indicate strong operational health, historically correlating with stock price increases. Previous similar growth patterns have led to significant upward price movements in RADCOM's stock.

How important is it?

The article highlights key financial achievements and strategic expansions, which are likely to drive investor interest and positively influence RDCM's market performance.

Why Long Term?

Sustained revenue and customer expansions suggest potential for ongoing growth and stock appreciation, similar to past trends where consistent growth resulted in shareholder value overtime.

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AI and 5G adoption drives demand as the Company sees positive cash flow with the highest operating margin in seven years , /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 DelahoussayeFNK IR[email protected] +1-646-809-4048 / +1-312-809-1087 Company Contact: Hadar RahavCFO[email protected]  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 OperationsUnaudited (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 OperationsUnaudited (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 endedSeptember 30, Nine months endedSeptember 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 SOURCE RADCOM Ltd.

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