RADCOM posted revenue of $71.5 million
for fiscal 2025, up 17.2% year-over-year, marking steady growth for six years in a row
In sum — what to know:
Strong financial performance: RADCOM’s revenue for full-year 2025 was up 17.2% year-over-year, with operating margin reaching a 23% increase — the highest in 8 years.
Key drivers: CEO, Benny Eppstein attributed the success to 5G network expansion and demand for AI-driven network solutions among operators.
Looking ahead: In 2026, RADCOM is looking to deepen partnerships with NVIDIA and ServiceNow, while expanding work with Tier 1 operators to unlock the next phase of growth
RADCOM, provider of AI-native assurance solutions, released its fourth quarter and full year 2025 results last week, delivering a robust performance with revenues and operating margins both hitting multi-year highs.
“2025 was a solid year, defined by strong growth, disciplined operational, and financial execution, and continued market momentum,” said CEO, Benny Eppstein, during the earnings call.
On an upward trajectory
Revenue for the year stood at $71.5 million — above midpoint of its guidance range — representing a 17.2% year-over-year growth. In step with that, Q4 revenue reached $18.9 million, setting a new record with 16% year-over-year increase.
The company also achieved its “highest annual operating margins” in 8 years. GAAP operating income for the quarter was $2.7 million, accounting for 14.2% of the revenue — a sharp climb from that in Q4 2024 which only made up 8.1% of the revenue.
RADCOM’s cash position too hit “the highest in company history” — $199 million — thanks to advance payments from multi-year deals, and zero debt.
“In terms of profitability, RADCOM reached record results across multiple KPIs, including earnings and operating margin,” Eppstein said, linking the solid performance to the company’s “technology advantage, a top-tier customer base, and an exceptional team.”
Eppstein also alluded to a key customer win and expanding works with leading mobile operators like AT&T, Rakuten and Symphony, as factors contributing to the top-line revenue.
Digging into future executions, he added, “Our focus now is to expand our customer base, specifically adding new Tier 1 customers to our roster to enable our next phase of profitable growth. Expanding our Tier 1 customer footprint remains a key priority, and we are actively engaged across a set of meaningful new prospects. We continue to see a healthy set of opportunities and demand remains strong.”
He also cited tight cost control and operational optimization as factors ramping up the fourth quarter earnings.
Asked how the positive cash reserve and zero debt will shape RADCOM’s capital allocation in 2026, Eppstein replied, “Our first priority remains to look into M&A…and this is what we are trying to accelerate.”
Analysts anticipate that this might pose some problems in the event of cultural and technological misalignment with acquired businesses.
Key drivers of growth
RADCOM benefitted from an uptick in operators’ spending on both 5G optimization and AI-based solutions capable of spotting network issues and predicting failures, amid 5G network expansion and AI-driven traffic surge.
“As telecom operators adapt to an AI-driven environment, they must operate their networks more efficiently while improving the customer experience, and our solutions enable both,” Eppstein said.
Talking about the market environment and where new opportunities lie, he noted, “telcos are approaching a key inflection point driven by AI adoption. A recent GSMA survey conducted in partnership with RADCOM found that 71% of operators plan to implement Agentic AI this year. Yet, only 41% report having an end-to-end data that integrates information across the organization.”
RADCOM is increasingly eyeing this emerging market, where delivering telcos user-focused data not only unlocks new agentic AI use cases, but also supports their broader efforts to deliver better customer experiences. The data capture technology further shields it against any investment delays as telcos evaluate AI technologies, all the while giving it a real selling point to woo new operators.
Additionally, Eppstein shared RADCOM’s plans to continue partnerships with NVIDIA and ServiceNow. The company uses NVIDIA DPUs, and recently added integration with ServiceNow’s on its RAN Analytics Solution.
Looking ahead, Eppstein expects the business momentum to continue. He raised the company revenue growth above the current service assurance market growth to an estimated 8% to 12% in 2026.
“Turning to 2026, we remain focused on driving innovation, particularly in agentic AI use cases, and delivering solutions that reduce the total cost of ownership for operators. With a robust pipeline of opportunities, we anticipate another year of double-digit revenue growth, reinforcing our leadership in 5G assurance,” he said.
