Radcom (NASDAQ:RDCM) outlined record full-year and fourth-quarter results for 2025 and issued revenue growth guidance for 2026, as management emphasized continued profitability, expanded investment in R&D, and a renewed push to add new Tier 1 telecom customers.
Record 2025 results and fourth-quarter margin expansion
CEO Benny Eppstein said Radcom delivered its “sixth consecutive year of growth” with record 2025 revenue of $71.5 million, representing 17.2% year-over-year growth and finishing above the midpoint of the company’s prior 15% to 18% growth outlook. Eppstein also highlighted that GAAP earnings per share increased by “just over 65%” year over year, and that Radcom ended the year with $109.9 million in cash and short-term deposits and no debt.
On a GAAP basis, Cohen reported fourth-quarter net income of $3.6 million and GAAP EPS of $0.21, up from $0.14 in the prior-year quarter. The company ended 2025 with 325 employees.
Full-year profitability and cash flow
For the full year, Cohen said gross margin was 76.8% in 2025, up from 75.2% in 2024. Operating income rose 55% to a record $14.8 million, representing 20.6% of revenue, compared with $9.5 million, or 15.6%, in 2024. Full-year non-GAAP net income was a record $18.4 million, equal to 25.8% of revenue, or $1.09 per diluted share, compared with $13.5 million (or $0.83 per diluted share) in 2024.
On a GAAP basis, Cohen said 2025 net income reached $12.0 million (or $0.71 per diluted share), compared with $7.0 million (or $0.43) in 2024.
Radcom also reported positive cash generation. Cohen said the company closed the fourth quarter with $109.9 million in cash, cash equivalents, and short-term bank deposits, reflecting positive cash flow of $3.2 million in the quarter and $15.2 million for the year.
2026 outlook: 8% to 12% revenue growth and timing considerations
Eppstein said Radcom expects 2026 revenue to grow 8% to 12%, which he described as “way above” service assurance market growth. He added that achieving the outlook will depend on both new business wins and continued expansion within existing customers.
During the Q&A, Eppstein said the company believes it is “basically at the second half of our sales cycle” with strategic opportunities, but that the close timing is difficult to pinpoint. He said the guidance assumes the company will close in the first half of the year, while noting that Tier 1 deal cycles can shift as engagements move from technical evaluation to proof of concept to closing.
Product focus: high-capacity data capture and agentic AI
Management framed AI adoption in telecom as a key market driver. Eppstein cited a GSMA survey conducted in partnership with Radcom, stating that 71% of operators plan to implement agentic AI this year, while 41% report having an end-to-end data architecture integrating information across the organization. He positioned that gap as an opportunity for Radcom to help operators access “reliable, subscriber-focused data” to support agentic AI use cases and customer experience initiatives.
Eppstein said customer interest is growing in Radcom’s “advanced, high-capacity data capture solution,” which he said can reduce total cost of ownership by up to 75% versus competing solutions. He also said the company is developing “telco-specific AI agents” aimed at delivering higher accuracy, faster decision-making, and measurable operational improvements, which could also help Radcom address new customer segments.
In response to questions about expansion with existing customers, Eppstein said Radcom continues to see “lots of opportunities” within its installed base, including AT&T, and that agentic AI is driving many opportunities. He emphasized Radcom’s “unique dataset” as a key element in helping customers build their own agentic platforms and improve operational efficiency, adding that analytics capabilities are generating opportunities in North America and EMEA while supporting the company’s core business and its ACE product.
Customer wins, partnerships, and governance update
Radcom highlighted customer activity in the fourth quarter, including a new customer win and an expansion with an existing customer. The company said 1GLOBAL selected Radcom ACE to deliver AI-powered assurance across subscribers and IoT, supporting 4G and 5G monitoring at scale for 43 million subscribers. Radcom also said it expanded with a leading European operator via Rakuten Symphony to provide its network visibility solution for end-to-end intelligent data collection.
The company also discussed strategic partnerships with NVIDIA and ServiceNow:
- NVIDIA: Eppstein said Radcom’s high-capacity user analytics solution is powered by NVIDIA Data Processing Units, and that field trials showed operational cost reductions of up to 75% while maintaining real-time visibility. He said the company believes the partnership will begin contributing initial wins over the course of 2026.
- ServiceNow: Eppstein said Radcom’s AIOps solution is fully integrated, certified, and available as a connector in the ServiceNow Store, and that the companies plan to showcase joint demos at Mobile World Congress in March. He said Radcom expects initial wins from the collaboration during 2026.
Finally, Eppstein noted a governance change: the board appointed director Rami Schwartz as chairman effective February 8, 2026, succeeding Sami Totah, who will remain on the board.
On capital allocation, Eppstein told analysts that the company’s “first priority remains to look into M&A,” adding that Radcom is prioritizing efforts to accelerate that work.
About Radcom (NASDAQ:RDCM)
Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.
Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.
