RADCOM (RDCM) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $16.6 million, up 17.5% year-over-year, with improved profitability and positive cash flow.

• Operating margins increased by over 6.5 percentage points year-over-year; non-GAAP operating margin reached 19%.

• Ended Q1 2025 with $99.1 million in cash and no debt, the highest cash level to date.

• Strengthened strategic partnerships, including expanded multi-year contract with a tier-one North American customer and collaborations with Nvidia and ServiceNow.

• Raised full-year 2025 revenue growth outlook to 15%-18% year-over-year, midpoint $71.1 million.

Financial highlights

• Q1 2025 non-GAAP operating income reached $3.1 million (19% margin), up from $1.7 million (12%) year-over-year.

• Non-GAAP gross margin was 76.3% for Q1 2025.

• Non-GAAP net income was $4.1 million ($0.25 per diluted share), up from $2.8 million ($0.18) in Q1 2024.

• GAAP net income was $2.4 million ($0.15 per diluted share), up from $0.8 million ($0.05) in Q1 2024.

• Generated $4.4 million positive cash flow in Q1 2025.

Outlook and guidance

• Raised full-year 2025 revenue growth outlook to 15%-18% year-over-year, midpoint $71.1 million, a 16.5% increase over 2024.

• On track for another year of double-digit growth in FY2025, supported by a strong pipeline and customer engagement.

• Anticipate gradual increase in sales and marketing expenses to support pipeline expansion.