Slides
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1 Q4 and Full Year 2025 Earnings February 11, 2026 Benny Eppstein CEO Hod Cohen CFO
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2 SAFE HARBOR PROVISION This conference call will contain forward-looking statemen ts. Forward-looking statements in the conference cal l involve several risks and uncertainties, including, but not limited, to the Compa ny's statements about its momentum, strategic directi on and goals, mar ket position and trajectory, future execution and delivery of value to customers and stakeholders, expansion within its existin g customer base and expansion of its footprint, development of and enhancing strategic partnerships and expected benefits and revenues from collaborations, the success of new technologies, including AI, to, amon g other things, enhance automation, pipeline, opportunit ies and prospe cts and customer engagements and the timing thereof, demand for it s products and solutions and the ability to address new customer segments and expand its market reach, trends in the market, the ex pected benefits of its AI-driven assurance and other solut ions, its expectations with respect to gross margins, research and development and sales and marketing expenses, expectations regarding t he growth of 5G and AI, and its full-year 2026 revenue guidance, future growth and profitability, resilience and long-term commitment. 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 cer tain 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 tha t has been expensed in accordance with ASC Topic 718, financial income (ex penses) related to acquisitions, and amortization of i ntangible assets related to acquisitions, non-GAAP results provide information helpfu l in assessing RADCOM's core operating performance and evaluating and comparing the results of operations consistently from p eriod to period. The presentation of this additional information is not meant to be considered a substitute for the correspon ding financial measures prepared in accordance with generally accepted acco unting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures included in the quarter's ear nings 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 Hod Cohen Chief Financial Officer Q&A 1 2 3
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5 TODAY’S SPEAKERS Benny Eppstein Chief Executive Officer Hod Cohen Chief Financial Officer
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6 Benny Eppstein Chief Executive Officer Business Performance and Company Strategy
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7 FY 2025: 17.2% YEAR-OVER-YEAR GROWTH * Non-GAAP . See reconciliation tables in slide 21. $71.5M FY 2025 17.2% YoY increase 20.6% Operating Margin 5.0% YoY increase Operating Margin (Non-GAAP)* Highest annual operating margins to date $109.9M $15.2M Positive cash flow Cash Generation (No debt) Ended 2025 with Record-High Cash and Bank Deposits New Company Revenue Record SIXTH CONSECUTIVE YEAR OF REVENUE GROWTH
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8 Q4-25: 16.0% REVENUE INCREASE AND IMPROVED PROFITABILITY * Non-GAAP . See reconciliation tables in slide 22. $18.9M Quarterly Revenue 16.0% YoY increase 23.0% Operating Margin 5.4% YoY increase Operating Margin (Non-GAAP)* Improved Profitability $109.9M $3.2M Positive cash flow Cash Generation (No debt) Ended Q4-25 with Record-High Cash and Bank Deposits New Quarterly Revenue Record
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9 A THIRD OF OPERATORS ARE PLANNING FOR AGENTIC AI, WITH MANY LOOKING AT DEPLOYMENTS IN 2026 Source: "GSMA Intelligence Operators in Focus Service Assurance Operator Survey 2025" Timeline to implement agentic AI When do you plan to implement agentic AI? This year (2025) 2026 Beyond 2026 Current data management process How is your company’s data currently managed? End-to-end data architecture Siloed data Mix of siloed and integrated architectures 41% 38% 21% 21% 71% 14% &
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10 LAUNCHED RADCOM HIGH-CAPACITY DATA ANALYTICS ▪ Industry-first 400 Gbps assurance powered by NVIDIA BlueField-3 ▪ Real-time customer insights with up to 75% OPEX reduction ▪ AI-driven, future-ready platform for 5G and beyond
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11 NEW MULTI-YEAR CONTRACT WIN AND EXPANSION ▪ Signed a multi-year agreement with 1GLOBAL, a global mobile communications provider with 43 million connections across Europe, North America, and Asia. ▪ Demonstrates growing demand for AI-driven assurance as operators modernize and expand to the cloud. ▪ Expansion within an existing customer, a leading European operator, via Rakuten Symphony to supply our Network Visibility Solution ▪ The solution will deliver accurate, intelligent data collection across its network, end-to-end.
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12 TRUSTED BY LEADING OPERATORS WORLDWIDE ▪ AT&T sustains leading network performance across the industry ▪ RADCOM continues providing intelligent and automated assurance that drives end-to-end network visibility and improves the quality of the subscribers’ experience ▪ Now exceeding 10 million subscribers in Japan ▪ RADCOM’s assurance solution supports Rakuten’s fully virtualized, cloud-native network, ensuring scalable, reliable, high-quality performance
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13 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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14 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 ▪ Will showcase multiple partner demonstrations at Mobile World Congress 2026, highlighting real-world use cases
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15 GO-TO-MARKET ACTIVITIES Fyuz, Dublin1 2 Network X, Paris 3 Mobile World Congress, Barcelona 4 NVIDIA GTC, Las Vegas UPCOMING
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16 FOCUSED ON SCALABLE, PROFITABLE GROWTH Focused on sustained profitability, disciplined cost management, and leveraging a solid financial foundation for long-term value creation Positioned for another year of double-digit revenue growth and a seventh consecutive year of growth AI continues to be a key growth catalyst, with ongoing investments in AI and automation reinforcing our leadership in real-time network intelligence Driving revenue from a growing pipeline while deepening relationships with existing customers 1 2 3 4
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17 Q4 Revenue $18.9 Million Q4 Non-GAAP Gross Margin 77.6% Q4 Non-GAAP* Operating Profit $4.3 Million Q4 Non-GAAP Operating Margin 23.0% Q4 GAAP Diluted EPS $0.21 Q4 Non-GAAP Diluted EPS $0.31 Q4 2025 Financial Highlights ▪ Record revenue, representing 16.0% growth y-o-y, on- track for another year of double- digit growth in FY2025 ▪ Achieved the highest operating profitability and highest EPS in years Q4 2025 Results Q4 Revenue Historical trend (M) YoY growth (%) 12.3 14.0 16.3 18.9 13.8% 16.4% 16.0% Q4/2022 Q4/2023 Q4/2024 Q4/2025 Revenue YoY Growth * Non-GAAP . See reconciliation tables in slide 22.
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18 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 18,857 $ 16,264 $ 71,494 $ 61,009 $ Cost of revenues 4,224 $ 3,989 $ 16, 581 $ 15,140 $ Gross profit 14,633 $ 12,275 $ 54,913 $ 45,869 $ Gross profit % 78% 75% 77% 75% Research and development, gross 4,939 $ 4,252 $ 18,463 $ 16,612 $ Less - royalty-bearing participation 149 $ 113 $ 363 $ 684 $ Research and development, net 4,790 $ 4,139 $ 18,100 $ 15,928 $ Sales and marketing 4,154 $ 4,097 $ 1 7,303 $ 15,655 $ General and administrative 1,360 $ 1,169 $ 4,751 $ 4,762 $ Total operating expenses 10,304$ 9,405$ 40,154$ 36,345$ Operating income 4,329 $ 2,870 $ 14,7 59 $ 9,524 $ Financial income, net 1,129 $ 1,052 $ 4,255 $ 4,199 $ Income before taxes on income 5,458 $ 3,922 $ 19,013 $ 13,723 $ Taxes on income (251) $ (142) $ ( 595) $ (234) $ Net income 5,207$ 3,780$ 18,418$ 13,489$ Basic net income per ordinary share 0.32$ 0.24$ 1.13$ 0.86$ Diluted net income per ordinary share 0.31$ 0.23$ 1.09$ 0.83$ Three months ended December 31, Twelve months ended December 31, NON-GAAP (1)
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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 18,857 $ 16,264 $ 71,494 $ 61,009 $ Cost of revenues 4,370 $ 4,137 $ 17, 193 $ 15,746 $ Gross profit 14,487 $ 12,127 $ 54,301 $ 45,263 $ Gross profit % 77% 75% 76% 74% Research and development, gross 5,407 $ 4,749 $ 20,239 $ 18,659 $ Less - royalty-bearing participation 149 $ 113 $ 363 $ 684 $ Research and development, net 5,258 $ 4,636 $ 19,876 $ 17,975 $ Sales and marketing 4,739 $ 4,632 $ 1 9,683 $ 17,794 $ General and administrative 1,804 $ 1,549 $ 6,439 $ 6,407 $ Total operating expenses 11,801$ 10,817$ 45,998$ 42,176$ Operating income 2,686 $ 1,310 $ 8,30 3 $ 3,087 $ Financial income, net 1,207 $ 1,080 $ 4,283 $ 4,115 $ Income before taxes on income 3,893 $ 2,390 $ 12,586 $ 7,202 $ Taxes on income (251) $ (142) $ ( 595) $ (234) $ Net income 3,642$ 2,248$ 11,991$ 6,968$ Basic net income per ordinary share 0.22$ 0.14$ 0.74$ 0.44$ Diluted net income per ordinary share 0.21$ 0.14$ 0.71$ 0.43$ Three months ended December 31, Twelve months ended December 31,
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20 FY2026 Revenue Outlook Five-year historical trend and FY2026 outlook ($M) Revenue growth Y-o-Y growth (percentage) Expects 10.0% guidance midpoint 12% 8% ▪ Reaffirming FY 2026 revenue growth outlook of 8% - 12% YoY with midpoint of 10% ▪ Driven by a strong sales funnel, robust customer engagement, and ongoing market shifts toward intelligent, automated, real-time assurance
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21 Balance Sheet & Cash Flow ▪ FY 2025 Positive cash flow of $15.2M ▪ Q4/25 Positive cash flow of $3.2M ▪ Ending 2025 with the Highest cash & bank deposits of $109.9M ▪ No Debt Cash and Bank Deposits As of ($M) Cash Flow historical trend As of ($M) 77.7 82.2 94.7 109.9 FY2022 FY2023 FY2024 FY2025
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22 CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) (In thousands of U.S. dollars, except per share data) 2025 2024 2025 2024 Revenues 18,857 $ 16,264 $ 71,494 $ 61,009 $ Cost of revenues 4,370 $ 4,137 $ 17, 193 $ 15,746 $ Gross profit 14,487 $ 12,127 $ 54,301 $ 45,263 $ Gross profit % 77% 75% 76% 74% Research and development, gross 5,407 $ 4,749 $ 20,239 $ 18,659 $ Less - royalty-bearing participation 149 $ 113 $ 363 $ 684 $ Research and development, net 5,258 $ 4,636 $ 19,876 $ 17,975 $ Sales and marketing 4,739 $ 4,632 $ 1 9,683 $ 17,794 $ General and administrative 1,804 $ 1,549 $ 6,439 $ 6,407 $ Total operating expenses 11,801$ 10,817$ 45,998$ 42,176$ Operating income 2,686 $ 1,310 $ 8,30 3 $ 3,087 $ Financial income, net 1,207 $ 1,080 $ 4,283 $ 4,115 $ Income before taxes on income 3,893 $ 2,390 $ 12,586 $ 7,202 $ Taxes on income (251) $ (142) $ ( 595) $ (234) $ Net income 3,642$ 2,248$ 11,991$ 6,968$ Basic net income per ordinary share 0.22$ 0.14$ 0.74$ 0.44$ Diluted net income per ordinary share 0.21$ 0.14$ 0.71$ 0.43$ Three months ended December 31, Twelve months ended December 31,
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THANK YOU All rights reserved. This presentation contains proprietary information of RADCOM Ltd. Without the express prior written permission of RADCOM Ltd., no part of the contents hereof may be used for any other purpose, disclosed to persons or firms outside the recipient company, or reproduced by any means. RADCOM Ltd reserves the right, at its sole discretion, to make changes at any time in its technical information, specifications, and services.
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28 CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except per share data) As of December 31, 2025 As of December 31, 2024 Cash and cash equivalents 30,486 $ 19,243 $ Short-term bank deposits 79,437 $ 75,429 $ Trade receivables, net 20,245 $ 19,038 $ Inventories 318 $ 1,667 $ Other accounts receivable and prepaid expenses 2,036 $ 1,819 $ Total Current Assets 132,522$ 117,196$ Severance pay fund 3,431 $ 2,985 $ Other long-term receivables 2,866 $ 3,484 $ Property and equipment, net 988 $ 879 $ Goodwill and intangible assets, net 2,269 $ 2 ,609 $ Operating lease right-of-use assets 2,898 $ 3,421 $ Total Non-Current Assets 12,452$ 13,378$ Total Assets 144,974$ 130,574$ Trade payables 2,632 $ 2,457 $ Deferred revenues and advances from customer 1,100 $ 6,848 $ Employee and payroll accruals 7,325 $ 7,175 $ Operating lease liabilities 1,099 $ 966 $ Other liabilities and accrued expenses 10,872 $ 10,463 $ Total Current Liabilities 23,028$ 27,909$ Accrued severance pay 4,790 $ 3,868 $ Operating lease liabilities 2,135 $ 2,438 $ Other liabilities and accrued expenses 916 $ 683 $ Total Non-Current Liabilities 7,841$ 6,989$ Total Liabilities 30,869$ 34,898$ Shareholders' Equity 114,105 $ 95,676 $ Total Liabilities and Shareholders' Equity 144,974$ 130,574$