RADCOM Ltd. posted record third‑quarter revenue of $18.4 million, up 16.2 % from $15.8 million in Q3 2024 and 3.5 % from $17.7 million in Q2 2025. The increase was driven by a surge in demand for the company’s AI‑driven 5G assurance platform, which has attracted new telecom customers and deepened existing relationships. A recent partnership with 1Global and the launch of a high‑capacity user analytics solution further expanded the product mix and helped capture higher‑margin contracts.
GAAP operating income rose to $2.4 million, giving a 13.1 % operating margin—an improvement of 5.5 percentage points over the same period last year and 3.4 points over Q2 2025. Non‑GAAP operating income reached $3.8 million, a 20.9 % margin that represents a 4.2‑point lift from 16.7 % in Q3 2024. The margin expansion reflects a more favorable revenue mix, disciplined cost management, and the scaling of the AI platform, which delivers higher gross margins than legacy services.
The quarter generated $5.1 million in operating cash flow, the first time the company has produced positive cash flow in a full quarter. GAAP earnings per share were $0.21, beating the consensus estimate of $0.13 by $0.08 (a 24 % beat). Non‑GAAP EPS of $0.29 surpassed the $0.23 estimate by $0.06 (26 % beat). The earnings beat was driven by the combination of higher revenue, improved operating leverage, and the absence of significant one‑time charges.
Management reaffirmed its full‑year 2025 revenue guidance of 15‑18 % growth, with a midpoint of $71.1 million. The guidance, unchanged from the prior quarter, signals confidence that the demand for AI‑enabled network assurance will continue to accelerate. The company also reiterated its focus on converting a robust pipeline into revenue, expanding within its installed base, and deepening strategic partnerships.
Analysts have responded positively to the results, citing the company’s strong margin expansion and cash‑flow generation as evidence of a resilient operating model. The upbeat sentiment reflects confidence that RADCOM’s AI‑driven solutions are meeting a growing market need in the telecom sector.
CEO Benny Eppstein said, “We delivered record revenue and the highest operating margin since 2018, underscoring the value our AI‑driven assurance solutions bring to operators. Our focus on disciplined execution and strategic partnerships positions us well to sustain momentum through the rest of the year.”
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