RADCOM (RDCM) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $71.5M in 2025, a 17.2% year-over-year increase, marking the sixth consecutive year of growth and surpassing guidance midpoint.

• Set new quarterly revenue record in Q4 2025 with $18.9M, up 16% year-over-year.

• Operating margins reached all-time highs, with non-GAAP operating margin at 20.6% for FY2025 and 23% for Q4 2025.

• Ended 2025 with record-high cash and bank deposits of $109.9M and no debt, supporting ongoing R&D and product innovation.

• Focused on expanding Tier 1 customer base and leveraging technology leadership for scalable, profitable growth.

Financial highlights

• FY2025 non-GAAP operating income reached $14.8M (20.6% margin), up from $9.5M (15.6%) in FY2024.

• FY2025 non-GAAP net income was $18.4M ($1.09 per diluted share), up from $13.5M ($0.83) in 2024; Q4 2025 non-GAAP net income was $5.2M ($0.31 per share).

• FY2025 GAAP net income was $12M ($0.71 per share), up from $7M ($0.43) in 2024.

• FY2025 non-GAAP gross margin was 77%, up from 75% in FY2024; Q4 2025 non-GAAP gross margin was 77.6%.

• Positive cash flow of $15.2M in 2025; Q4 cash flow was $3.2M.

Outlook and guidance

• 2026 revenue growth guidance set at 8% to 12%, with midpoint revenue target of $78.6M.

• Growth expected to be driven by strong sales funnel, robust customer engagement, and market shifts toward intelligent, automated, real-time assurance.

• Committed to maintaining profitability, disciplined expense management, and increased R&D investment in AI and automation.