RADCOM DELIVERS RECORD QUARTER AS GROWTH TRAJECTORY CONTINUES

Results reflect 17.5% year-over-year revenue growth, with improved profitability KPIs Company strengthens strategic partnerships to support future demand for accelerated computing and artificial intelligent agents (agentic AI) , /PRNewswire/ -- RADCOM Ltd (NASDAQ: RDCM) announced today its financial results for the first quarter of 2025. First Quarter 2025 Financial Highlights: Total revenues for the first quarter were $16.6 million, compared to $14.1 million in the first quarter of 2024, or 17.5% year-over-year growth. GAAP operating income for the period was $1.5 million, or 9% of revenue, compared to an operating loss of $0.3 million for the first quarter of 2024. Non-GAAP operating income for the period was $3.1 million, or 19% of revenue, compared to non-GAAP operating income of $1.7 million, or 12% of revenue, for the first quarter of 2024. GAAP net income for the first quarter was $2.4 million, or $0.15 per diluted share, compared to GAAP net income of $0.8 million, or $0.05 per diluted share, for the first quarter of 2024. Non-GAAP net income for the period was $4.1 million, or $0.25 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.18 per diluted share, for the first quarter of 2024. $4.4 million of positive cash flow. As of March 31, 2025, the company had cash and cash equivalents, short-term bank deposits of $99.1 million, and no debt, ending the first quarter with its highest ever cash levels. Raising full-year 2025 revenue growth outlook from 12%-15% year-over-year to 15%-18% year-over-year, with a midpoint of $71.1 million – representing a 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 6.5% year-over-year," said Benny Eppstein, Chief Executive Officer of RADCOM. "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 12%-15% year-over-year to 15%-18% year-over-year, with a midpoint of $71.1 million – representing a 16.5% increase compared to 2024." 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 SegalMS-IR LLC[email protected] Company Contact:Hadar RahavCFO+972-77-7745062[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 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 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 March 31, 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 ordinary shares used in computing basic net income per ordinary share 16,013,218 15,427,514 Weighted average number of ordinary shares used in computing diluted net income per ordinary share 16,660,105 15,866,910 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 March 31, 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 $ 0.01 RADCOM LTD. Consolidated Balance Sheets(Unaudited) (thousands of U.S. dollars) 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 SOURCE RADCOM Ltd. 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RADCOM DELIVERS RECORD QUARTER AS GROWTH TRAJECTORY CONTINUES

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