StockNews.AI
RDCM
StockNews.AI
6 days

RADCOM Delivers 19% YoY Revenue Growth and Margin Expansion in the Second Quarter of 2025

1. RADCOM reports 19.3% revenue growth, demonstrating strong market demand. 2. Company ended Q2 2025 with over $100 million cash and no debt. 3. Reaffirms full-year revenue growth guidance of 15%-18% for 2025. 4. Operating income increased significantly, indicating improved profitability. 5. Strong traction with key accounts powered by AI capabilities and partnerships.

Earnings
-4.25%Current Return
VS
+0.28%S&P 500
$13.6508/13 07:08 AM EDTEvent Start
$13.0708/14 01:59 PM EDTLatest Updated
24m saved
Insight
Article

FAQ

Why Very Bullish?

RDCM's significant revenue growth and profitability, along with positive cash flow and no debt, position the company strongly in a competitive market, similar to past successes when companies showed solid cash reserves and growth rates, impacting their stock positively.

How important is it?

The strong financial results, growth projections, and cash position are crucial indicators for investors, enhancing RDCM’s attractiveness in the market, likely to trigger positive sentiments among stakeholders and analysts.

Why Long Term?

With sustained growth and positive market trends in the telecom sector, RDCM is likely to maintain its momentum beyond the immediate future, akin to other tech firms benefiting in the long-term from strategic investments in new technologies like AI.

Related Companies

NOKVZTCSCO
Continued Growth and Improved Profitability Reinforce Full-Year Outlook , /PRNewswire/ -- RADCOM Ltd (Nasdaq: RDCM) announced today its financial results for the second quarter of 2025 and for the six-month period ended June 30, 2025. Benny Eppstein, Chief Executive Officer, said, "RADCOM continues to deliver strong results with 19.3% year-over-year revenue growth in the second quarter. We also reported solid profitability and cash generation, ending the quarter with more than $100 million in cash and no debt. This momentum reflects the market's growing demand for intelligent, automated network assurance solutions and our ability to consistently execute our long-term strategy.  We're gaining strong traction across key accounts, driven by our differentiated technology, including new agentic AI capabilities and our evolving strategic partnerships. We remain confident in our full-year guidance of 15%-18% revenue growth. This outlook is supported by healthy customer engagement, and ongoing market shifts toward intelligent, automated, real-time assurance." Second Quarter 2025 Financial Highlights: Total revenues for the second quarter of 2025 were $17.7 million, compared to $14.8 million in the second quarter of 2024, or 19.3% year-over-year growth. GAAP operating income for the second quarter of 2025 was $1.7 million, or 9.9% of revenue, compared to an operating income of $0.9 million or 5.9% of revenue for the second quarter of 2024. Non-GAAP operating income for the second quarter of 2025 was $3.4 million, or 19.5% of revenue, compared to non-GAAP operating income of $2.3 million, or 15.4% of revenue, for the second quarter of 2024. GAAP net income for the second quarter of 2025 was $2.4 million, or $0.15 per diluted share, compared to GAAP net income of $1.7 million, or $0.11 per diluted share, for the second quarter of 2024. Non-GAAP net income for the second quarter of 2025 was $4.2 million, or $0.25 per diluted share, compared to non-GAAP net income of $3.1 million, or $0.20 per diluted share, for the second quarter of 2024. $2.6 million of positive cash flow in the second quarter of 2025. As of June 30, 2025, the company had cash and cash equivalents and short-term bank deposits of $101.6 million, and no debt, ending the second quarter with its highest ever cash levels. First Six Months 2025 Financial Highlights: Total revenues for the first six months of 2025 were $34.2 million, compared to $28.9 million in the first six months of 2024, or 18.4% year-over-year growth. GAAP operating income for the first six months of 2025 was $3.2 million, or 9.4% of revenue, compared to operating income of $0.6 million, or 2.0% of revenue, for the first six months of 2024. Non-GAAP operating income for the first six months of 2025 was $6.6 million, or 19.2% of revenue, compared to non-GAAP operating income of $4.0 million, or 13.9% of revenue, for the first six months of 2024. GAAP net income for the first six months of 2025 was $4.9 million, or $0.29 per diluted share, compared to GAAP net income of $2.5 million, or $0.16 per diluted share, for the first six months of 2024. Non-GAAP net income for the first six months of 2025 was $8.3 million, or $0.50 per diluted share, compared to non-GAAP net income of $6.0 million, or $0.38 per diluted share, for the first six months of 2024. Outlook RADCOM reaffirms its full-year 2025 revenue guidance, anticipating year-over-year growth of 15% to 18%, with a midpoint of $71.1 million. 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 SegalMS-IR LLC[email protected] 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, 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 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 June 30, Six months ended June 30, 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   ordinary shares used in computing  basic net income per ordinary share 16,176,162 15,608,402 16,095,140 15,517,958 Weighted average number of   ordinary shares used in computing  diluted net income per ordinary share 16,711,789 15,978,799 16,686,397 15,922,855 RADCOM Ltd.Consolidated Statements of OperationsUnaudited (thousands of U.S. dollars, except share and per share data) 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 U.S. dollars, except share and per share data) 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 to compute diluted net income per share 16,711,789 15,978,799 16,686,397 15,922,855 (*) Less than $ 0.01 RADCOM Ltd. Consolidated Balance Sheets (Unaudited) (thousands of U.S. dollars) 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 Total Current Assets 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 Total Non-Current Assets 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 Total Current Liabilities 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 Total Non-Current Liabilities 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 Total Liabilities and Shareholders' Equity $             136,385 $               130,574 SOURCE RADCOM Ltd. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News