RADCOM posted yearly income of $71.5 million
for fiscal 2025, up 17.2% year-over-year, marking regular progress for six years in a row
In sum — what to know:
Robust monetary efficiency: RADCOM’s income for full-year 2025 was up 17.2% year-over-year, with working margin reaching a 23% improve — the best in 8 years.
Key drivers: CEO, Benny Eppstein attributed the success to 5G community enlargement and demand for AI-driven community options amongst operators
Trying forward: RADCOM is trying to deepen partnerships with NVIDIA and ServiceNow, whereas increasing work with Tier 1 operators to unlock the subsequent part of progress
RADCOM, supplier of AI-native assurance options, launched its fourth quarter and full yr 2025 outcomes final week, delivering a sturdy efficiency with revenues and working margins each hitting multi-year highs.
“2025 was a stable yr, outlined by sturdy progress, disciplined operational, and monetary execution, and continued market momentum,” stated CEO, Benny Eppstein, in the course of the earnings name.
On an upward trajectory
Income for the yr stood at $71.5 million — above midpoint of its steerage vary — representing a 17.2% year-over-year progress. In keeping with that, This fall income reached $18.9 million, setting a brand new file with 16% year-over-year improve.
The corporate additionally achieved its “highest annual working margins” in 8 years. GAAP working earnings for the quarter was $2.7 million, accounting for 14.2% of the income — a pointy climb from that in This fall 2024 which solely made up 8.1% of the income.
RADCOM’s money place too hit “the best in firm historical past” — $199 million — due to advance funds from multi-year offers, and nil debt.
“When it comes to profitability, RADCOM reached file outcomes throughout a number of KPIs, together with earnings and working margin,” Eppstein stated, linking the stable efficiency to the corporate’s “know-how benefit, a top-tier buyer base, and an distinctive workforce.”
Eppstein additionally alluded to a key buyer win and increasing works with main cellular operators like AT&T, Rakuten and Symphony, as components contributing to the top-line income.
Digging into future executions, he added, “Our focus now could be to develop our buyer base, particularly including new Tier 1 prospects to our roster to allow our subsequent part of worthwhile progress. Increasing our Tier 1 buyer footprint stays a key precedence, and we’re actively engaged throughout a set of significant new prospects. We proceed to see a wholesome set of alternatives and demand stays sturdy.”
He additionally cited tight price management and operational optimization as components ramping up the fourth quarter earnings.
Requested how the constructive money reserve and nil debt will form RADCOM’s capital allocation in 2026, Eppstein replied, “Our first precedence stays to look into M&A…and that is what we are attempting to speed up.”
Analysts anticipate that this may pose some issues within the occasion of cultural and technological misalignment with acquired companies.
Key drivers of progress
RADCOM benefitted from an uptick in operators’ spending on each 5G optimization and AI-based options able to recognizing community points and predicting failures, amid 5G community enlargement and AI-driven visitors surge.
“As telecom operators adapt to an AI-driven surroundings, they have to function their networks extra effectively whereas enhancing the shopper expertise, and our options allow each,” Eppstein stated.
Speaking concerning the market surroundings and the place new alternatives lie, he famous, “telcos are approaching a key inflection level pushed by AI adoption. A latest GSMA survey carried out in partnership with RADCOM discovered that 71% of operators plan to implement Agentic AI this yr. But, solely 41% report having an end-to-end knowledge that integrates data throughout the group.”
RADCOM is more and more eyeing this rising market, the place delivering telcos user-focused knowledge not solely unlocks new agentic AI use instances, but in addition helps their broader efforts to ship higher buyer experiences. The information seize know-how additional shields it towards any funding delays as telcos consider AI applied sciences, all of the whereas giving it an actual promoting level to woo new operators.
Moreover, Eppstein shared RADCOM’s plans to proceed partnerships with NVIDIA and ServiceNow. The corporate makes use of NVIDIA DPUs, and just lately added integration with ServiceNow’s on its RAN Analytics Resolution.
Trying forward, Eppstein expects the enterprise momentum to proceed. He raised the corporate income progress above the present service assurance market progress to an estimated 8% to 12% in 2026.
“Turning to 2026, we stay centered on driving innovation, significantly in agentic AI use instances, and delivering options that cut back the overall price of possession for operators. With a sturdy pipeline of alternatives, we anticipate one other yr of double-digit income progress, reinforcing our management in 5G assurance,” he stated.
