Slides
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1 Q3-25 Earnings November 12, 2025 Benny Eppstein CEO Hadar Rahav CFO
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2 SAFE HARBOR PROVISION This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited, to the Company's statements about its commitment to delivering solutions that are transforming the assurance landscape, continued adoption and investment in AI and 5G as well as other favorable market trends, 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, levels of investment, and advancing the Company’s strategic partnerships, expectation for initial revenue from certain partnerships and timing thereof as well as its full-year 2025 revenue guidance, expectations with respect to margins and expenses and future growth, momentum, opportunities and profitability. The Company does not undertake to update forward-looking statements. The full safe harbor provisions, including risks that could cause actual results to differ from these forward-looking statements, are outlined in today’s press release and the Company's SEC filings.
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3 NON-GAAP FINANCIAL MEASURES In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the user'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, non-GAAP results provide information helpful in assessing RADCOM's core operating performance and evaluating and comparing the results of operations consistently from period to period. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures included in the quarter's earnings release, available on our website, www.radcom.com. In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the user'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, non-GAAP results provide information helpful in assessing RADCOM's core operating performance and evaluating and comparing the results of operations consistently from period to period. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial me asures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to n on-GAAP financial measures included in the quarter's earnings release, available on our website, www.radcom.com.
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4 AGENDA Business Performance and Company Strategy Benny Eppstein Chief Executive Officer Financial Results and Performance Hadar Rahav Chief Financial Officer Q&A 1 2 3
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5 TODAY’S SPEAKERS Benny Eppstein Chief Executive Officer Hadar Rahav Chief Financial Officer
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6 Benny Eppstein Chief Executive Officer Business Performance and Company Strategy
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7 Q3-25: 16.2% REVENUE INCREASE AND IMPROVED PROFITABILITY * Non-GAAP . See reconciliation tables in slide 22. $18.4M Quarterly Revenue 16.2% YoY increase 20.9% Operating Margin 4.2% YoY increase Operating Margin (Non-GAAP)* Improved Profitability $106.7M $5.1M Positive cash flow Cash Generation (No debt) Ended Q3-25 with Record-High Cash and Bank Deposits New Quarterly Revenue Record
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8 STRONG DEMAND FOR AI-DRIVEN ASSURANCE AI is transforming the telecom industry: ▪ The AI in telecom market is valued at $3.34 billion and is expected to grow at a 43.3% CAGR through 2032* ▪ AI drives superior customer experiences while enabling operators to reduce costs and optimize operations ▪ Trusted, high-quality data is the foundation for effective AI-driven transformation ▪ RADCOM’s strategic focus: to be the leading provider of real-time user and service experience insights powering AI-native telecom networks Source: AI in Telecommunication Market, Fortune Business Insights, October 2025 AI Demand & Trusted Data
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9 PARTNERSHIP WITH SERVICENOW Advancing AI-Driven Operations with ServiceNow ▪ Completed integration of RADCOM AIM, our AIOps solution, with ServiceNow’s Service Operations Management platform ▪ Certified and listed in the ServiceNow Store as an official connector ▪ Delivers continuous, real-time network monitoring and supports advanced AI-driven use cases such as intelligent anomaly detection and complaint validation
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10 PARTNERSHIP WITH NVIDIA Next-Generation High-Capacity User Analytics ▪ Powered by NVIDIA BlueField-3 DPU, delivering real-time analytics at a fraction of the cost ▪ First vendor to capture 400 Gbps on a single server ▪ Up to 75% lower operational costs vs traditional probes ▪ Provides full network visibility and is in lab and field trials with key customers, showing strong momentum
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11 1GLOBAL: NEW MULTI-YEAR CONTRACT WIN ▪ Signed a multi-year agreement with 1GLOBAL, a global mobile communications provider with 43 million connections across Europe, North America, and Asia. ▪ RADCOM ACE selected as their AI-powered, cloud-native assurance platform to enhance customer experience and optimize network performance. ▪ Demonstrates growing demand for AI-driven assurance as operators modernize and expand to the cloud. ▪ Our solution delivers real-time analytics, significant cost efficiencies, and a future-ready foundation for agentic AI and closed-loop automation use cases.
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12 TRUSTED BY LEADING OPERATORS WORLDWIDE ▪ AT&T continues to grow its subscriber base, reflecting strong market performance ▪ RADCOM supports AT&T’s growth by delivering real-time assurance for service quality and user experience ▪ Expanded 5G footprint, now exceeding 9 million subscribers in Japan ▪ Demonstrates strong growth momentum in a highly competitive, mature market ▪ RADCOM’s assurance solution supports Rakuten’s fully virtualized, cloud-native network, ensuring scalable, reliable, high-quality performance
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13 GO-TO-MARKET ACTIVITIES Telekom Campus Fair 20251 2 Innovate Americas Network X, Paris, France 3 RADCOM PREDICTIVE COMPLAINT RESOLUTION “This submission is exceptional, driven by impressive financial metrics and strategic partnerships. It successfully frames the industry problem of customer dissatisfaction and engineer overload before presenting its innovative solution."
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14 FOCUSED ON SCALABLE, PROFITABLE GROWTH Driving consistent profitability and cash generation as we scale globally. Converting a strong pipeline into revenue while expanding our global customer base Investing in AI and automation to strengthen our technology leadership and deliver a lower TCO for real-time network intelligence. Deepening strategic partnerships to accelerate innovation and broaden our market reach 1 2 3 4
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15 Hadar Rahav Chief Financial Officer Financial results and performance
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16 Q3 Revenue $18.4 Million Q3 Non-GAAP Gross Margin 77.1% Q3 Non-GAAP* Operating Profit $3.8 Million Q3 Non-GAAP Operating Margin 20.9% Q3 GAAP Diluted EPS $0.21 Q3 Non-GAAP Diluted EPS $0.29 Q3 2025 Financial Highlights ▪ Record revenue, representing 16.2% growth y-o-y, on- track for another year of double- digit growth in FY2025 ▪ Achieved the highest operating profitability and EPS in years Q3 2025 Results Q3 Revenue historical trend ($M) Non-GAAP Operating Margin historical trend (%) 12.0 13.2 15.8 18.4 Q3/2022 Q3/2023 Q3/2024 Q3/2025 2.30% 11.1% 15.6% 19.8% FY2022 FY2023 FY2024 9M/2025 * Non-GAAP . See reconciliation tables in slide 22.
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17 Balance Sheet & Cash Flow ▪ Positive cash flow of $5.1M for Q3/25 ▪ Ending Q3 2025 with the Highest cash & bank deposits of $106.7M ▪ No Debt Cash and Bank Deposits As of ($M) Cash Flow historical trend ($M) Slide 29 77.7 82.2 94.7 106.7 2022 2023 2024 Q3/2025 -2.2 0.3 4.1 5.1 Q3/2022 Q3/2023 Q3/2024 Q3/2025
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18 7.2% 14.4% 11.9% 18.2% 18% FY2021 FY2022 FY2023 FY2024 FY2025 FY2025 Revenue Outlook Five-year historical trend and FY2025 outlook ($M) Revenue growth Y-o-Y growth (percentage) Expects 16.5% guidance midpoint 18% 15% 40.3 46.1 51.6 61 71.1 FY2021 FY2022 FY2023 FY2024 FY2025 (Guidance midpoint) ▪ Reaffirming FY 2025 revenue growth outlook of 15% - 18% YoY with midpoint of 16.5% ▪ Driven by a strong sales funnel, robust customer engagement, and ongoing market shifts toward intelligent, automated, real-time assurance
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19 CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) (In thousands of U.S. dollars, except per share data) 2025 2024 2025 2024 Revenues 18,388 $ 15,821 $ 52,637 $ 4 4,745 $ Cost of revenues 4,364 $ 4,064 $ 12,823 $ 11,609 $ Gross profit 14,024 $ 11,757 $ 39,814 $ 33,136 $ Gross profit % 76% 74% 76% 74% Research and development, gross 5,119 $ 4,696 $ 14,832 $ 13,910 $ Less - royalty-bearing participation 189 $ 1 82 $ 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 $ 5,61 7 $ 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$ Three months ended September 30, Nine months ended September 30,
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20 CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) (In thousands of U.S. dollars, except per share data) (1) Amounts exclude non-cash stock-based compensation expenses, financial income (expenses), acquisition-related expenses and amortization of intangible assets related to acquisitions. (1) Amounts exclude non-cash stock-based compensation expenses, financial income (expenses), acquisition-related expenses and amortization of intangible assets related to acquisitions. 2025 2024 2025 2024 Revenues 18,388 $ 15,821 $ 52,637 $ 4 4,745 $ Cost of revenues 4,209 $ 3,900 $ 12,357 $ 11,150 $ Gross profit 14,180 $ 11,921 $ 40,280 $ 33,595 $ Gross profit % 77% 75% 77% 75% Research and development, gross 4,698 $ 4,208 $ 13,524 $ 12,360 $ Less - royalty-bearing participation 189 $ 1 82 $ 214 $ 571 $ Research and development, net 4,509 $ 4,026 $ 13,310 $ 11,789 $ Sales and marketing 4,611 $ 3,995 $ 13, 149 $ 11,558 $ General and administrative 1,212 $ 1,260 $ 3,391 $ 3,593 $ Total operating expenses 10,332$ 9,281$ 29,850$ 26,940$ Operating income 3,848 $ 2,640 $ 10,4 29 $ 6,655 $ Financial income, net 1,185 $ 1,116 $ 3,125 $ 3,146 $ Income before taxes on income 5,033 $ 3,756 $ 13,554 $ 9,801 $ Taxes on income (107) $ (32) $ (344 ) $ (92) $ Net income 4,926$ 3,724$ 13,210$ 9,709$ Basic net income per ordinary share 0.30$ 0.24$ 0.82$ 0.62$ Diluted net income per ordinary share 0.29$ 0.23$ 0.79$ 0.61$ Three months ended September 30, Nine months ended September 30, NON-GAAP (1)
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21 RECONCILIATION BETWEEN GAAP & NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except per share data) 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) 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 GAAP Research and development, net 4,930 4,514 14,61 8 13,339 Stock-based compensation 421 488 1 ,308 1,550 Non-GAAP Research and development, net 4,509 4,026 13 ,310 11 ,789 GAAP Sales and marketing 5,144 4,552 14,94 4 13,162 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 GAAP general and administrative 1,535 1,484 4,6 35 4,858 Stock-based compensation 323 224 1 ,244 1,265 Non-GAAP general and administrative 1,212 1,260 3,391 3,593 GAAP total operating expenses 11,609 10,550 34,197 31,359 Stock-based compensation 1,248 1,240 4,2 61 4,332 Amortization of intangible assets 29 29 86 87 Non-GAAP total operating expenses 10 ,332 9,281 29 ,850 26 ,940 GAAP operating lncome 2,415 1,207 5,6 17 1,777 Stock-based compensation 1,347 1,347 4,5 59 4,622 Amortization expenses 86 86 254 256 Non-GAAP operating income 3,848 2,640 10 ,430 6,655 September 30, Three months ended Nine months ended September 30,
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22 RECONCILIATION BETWEEN GAAP & NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except per share data) 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP income before taxes 3,578 2,283 8,6 93 4,812 Stock-based compensation 1,347 1,347 4,5 59 4,622 Amortization of intangible assets 86 86 254 256 Financial expenses 22 40 49 111 Non-GAAP income before taxes 5,033 3,756 13 ,555 9,801 GAAP net income 3,471 2,251 8,3 49 4,720 Stock-based compensation 1,347 1,347 4,5 59 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 loss per share 16,923,983 16,159,110 16,766,553 16,002,167 Three months ended Nine months ended September 30, September 30,
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23 CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except per share data) As of September 30, 2025 As of December 31, 2024 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$ Severance pay fund 3,314 $ 2, 985 $ Other long-term receivables 2,597 $ 3,484 $ Property and equipment, net 904 $ 879 $ Goodwill and intangible assets, net 2,355 $ 2,609 $ Operating lease right-of-use assets 3,128 $ 3,421 $ Total Non-Current Assets 12,298$ 13,378$ Total Assets 139,149$ 130,574$ 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$ 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 108,943 $ 95,676 $ Total Liabilities and Shareholders' Equity 139,149$ 130,574$
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THANK YOU All rights reserved. This presentation contains proprietar y information of RADCOM Ltd. Without the express prior written permission of RADCOM Ltd., no part of the conte nts hereof may be used for any other purpose, disclosed to persons or f irms outside the recipient company, or reproduced by any means. RADCOM L td reserves the right, at its sole disc retion, to make changes at any time in its technical information, specifications, and s ervices.