Q4 2025 RADCOM Ltd Earnings Call

February 11, 2026

I'm limited results conference call for the fourth quarter and full year of 2025.

All participants are present in a listen only mode. Following management's formal presentation instructions will be given for the question and answer session for opera.

Speaker #1: Please go

Speaker #1: ahead. Thank

Speaker #2: you, Operator, and good morning, everyone. Please turn to slide 7 for our financial highlights. RADCOM delivered its sixth consecutive year of growth with a record 71.5 million dollars in revenue.

To assist them during the conference Please press Star zero.

As a reminder, this conference is being recorded and will be available for replay on the company's website at www <unk> Com Dot com later today.

Speaker #2: Representing 17.2% year over year, growth above the midpoint of our most recent revenue guidance of 15 to 18%. GAAP earnings per share increased by just over 65% year over year, and we achieved the highest cash and short-term deposit balances in the company's history of 109.9 million dollars, with no debt.

On the call are many Epstein Metcom T O and hot coil Metcom CFO.

Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet you may do so through the link in the investors section of <unk> Com website at Www Dot com and Dot com slash investor Dash relation.

Speaker #2: In terms of profitability, RADCOM reached record results across multiple KPIs, including earning and operating margin. Demonstrating tight cost control, strong operational efficiency, and scalable business model.

Before we begin I would like to review the Safe Harbor provision.

This conference call will contain forward looking statements.

Forward looking statements in the conference call in both February and uncertainty.

But are not limited to the company's statements about its momentum strategic direction and goals market position and trajectory.

Speaker #2: As shown on slide 8, we delivered another strong fourth quarter with revenue up 16% year over year and 18 million dollars. Our strong results demonstrate the solid foundation we have established for RADCOM.

Future execution and delivery of value to customers and stakeholders expansion within your existing customer base and expansion of its footprint development.

Speaker #2: RADCOM continues to deliver profitability, supported by our technology advantage, a top-tier customer base, and an exceptional team. 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.

Enhancing strategic partnership and expected benefits and revenue from collaborations and the success of new technologies, including AI.

To among other things enhanced automation pipeline opportunities in customer engagements and the timing thereof demand for its products and solutions and the ability to address new customer segments and expanded market reach.

Speaker #2: 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 healthy sets of opportunities and demand remains strong.

In the markets and the expected benefits of the AI driven assurance and other solution its expectation with respect to gross margin.

Speaker #2: As is common with Tier 1 customers, timing can shift as engagement moves from technical evaluation to proof of concept to closing. Given this momentum, we expect revenue to grow by 8% to 12% in 2026, way above the service assurance market growth.

And sales and marketing expenses expectations regarding the growth five junior and AI and its full year 2026 revenue guidance future growth and profitability resilience and long term commitment.

Speaker #2: Achieving this outlook will require both new business and continued expansion within our existing customer base, and we will remain confident in our ability to execute.

But he does not undertake to update forward looking statements.

Speaker #2: Looking forward, our strong balance sheet is a strategic advantage signaling to Tier 1 customers our resilience and long-term commitment. This also allows us to continue our product innovation and R&D investments, and over time, expand our footprint all while maintaining disciplined financial management and profitability.

The safe harbor provisions, including risks that could cause actual results to differ from these forward looking statements.

Outlined in today's press release, and the company's the S. E. T findings in this conference call management will refer to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the company's financial performance by excluding noncash stock based.

Speaker #2: Our performance also validates the growing market value of our industry-leading solutions. We remain firmly committed to enabling exceptional user and subscriber experiences while addressing our customers' evolving operational and business needs.

And that has been expense in accordance with ASC topic, <unk> financial income and expenses related to acquisition and amortization of intelligible assets related to acquisitions non-GAAP results provide information helpful in assessing that Carl.

Speaker #2: Our results and improved profitability are direct results of our focused execution of strategy and the ongoing value we offer to our customers, all driven by our highly skilled team, the continued advancement of our technology leadership position us for accelerated, scalable growth.

<unk> performance in evaluating and comparing our results.

Nation consistently from period to period presentation. There will be additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with them where they expect.

Speaker #2: Heading into 2026, we expect to maintain a disciplined focus on technology advancement, including in our 5G service assurance offering and agentic AI capabilities. We will continue to support operators in optimizing their network operations, reducing cost, and driving network automation.

Symbols.

Those are encouraged to review the reconciliation of GAAP to non-GAAP financial measures included in the earnings.

Speaker #2: We see continued and growing opportunities to build on our existing customer base and support sustainable long-term growth. Turning to slide 9, where we look more broadly at the market environment, Telcos are approaching a key inflection point driven by AI adoption.

Our earnings release available on our website www dot threat come that come in.

Now I would like to turn over the call to Benny. Please go ahead.

Thank you operator, and good morning, everyone.

Please turn to slide seven for our financial highlights.

Speaker #2: A recent GSMA survey conducted in partnership with RADCOM found that 71% of operators implement agentic AI this year. Yet, only 41% report having an end-to-end data architecture that integrates information across the organization.

<unk> delivered its sixth consecutive year of growth with a record 71 $5 million in revenue, representing 17, 2% year over year growth above the midpoint of our most recent revenue guidance of 15% to 18%.

GAAP earnings per share increased by just over 65% year over year, and we achieved the highest cash and short term deposit balances in the company's history of 109 9 million with no debt.

Speaker #2: This gap between AI ambition and data readiness presents a clear opportunity for RADCOM to add value by enabling operators to access reliable, subscriber-focused data.

Speaker #2: This data supports multiple agentic AI use cases and broader efforts to deliver consistently high-quality customer experiences. AI-driven demand continues to reshape network priorities. Operators are increasingly integrating AI across network layers to optimize capacity and efficiency as they continue the transformation to 5G.

In terms of profitability reached record results across multiple kpis, including earnings and operating margin.

I think tight cost controls strong operational efficiency and scalable business model.

As shown on slide eight we delivered another strong fourth quarter with revenue up 16% year over year and $8 million.

Speaker #2: As we have seen, many have already moved from proof of concept initiatives to commercial deployment in 2025. In the area of agentic AI, operator demand is increasingly shifting toward unified end-to-end platforms.

Our strong results demonstrate the solid foundation, we have established for Rockwell.

Russell continues to deliver profitability supported by our technology advantage.

To your customer base.

Speaker #2: In our recent survey, the majority of operators indicated that they are interested in deploying integrated end-to-end systems. RADCOM is well positioned to address this need with a comprehensive solution that integrates smoothly with business and service management systems, for customer support, care, and automation of operational workflows.

An exceptional team.

Our focus now is to expand our customer base, specifically, adding new tier one customers to our roster to enable our next phase of profitable growth.

Expanding our tier one customer footprints remains a key priority and we are actively engaged across a set of meaningful new prospects. We continue to see healthy set of opportunities and demand remains strong.

Speaker #2: This aligns well with industry shift towards more streamlined, data-driven operations. Moving on to slide 10, our product innovations. We continue to see growing customer interest in our advanced, high-capacity data capture solution, which enables telecom operators to analyze massive amounts of data to understand the real customer experience at scale while significantly reducing infrastructure costs.

As is common with tier one customers timing can shift as engagement moved from technical evaluation to proof of concept to closing.

Given this momentum we expect revenue to grow by 8% to 12% in 2026 way above the service assurance market growth.

Achieving this outlook will require both new business and continued expansion within our existing customer base and we remain confident in our ability to execute.

Speaker #2: We believe this solution can reduce the total cost of ownership by up to 75%, compared to competing solutions, enabling broader visibility into the customer experience.

Looking forward, our strong balance sheet is a strategic advantage signaling to tier one customers, our resilience and long term commitment.

Speaker #2: As highlighted in our survey, operators are exploring agentic AI across targeted use cases. Our focus is on developing telco-specific AI agents that deliver high accuracy, faster decision-making, and measurable operational improvements across specific domains.

This also allows us to continue our product innovation and R&D investments and over time expand our footprint, all while maintaining disciplined financial management and profitability.

Speaker #2: These capabilities not only enhance the value of our existing platform but also position RADCOM to address new customer segments and expand our market reach.

Our performance also validates the growing market value of our industry, leading solutions, we remain firmly committed to enabling exceptional user and subscriber experiences while addressing our customers' evolving operational and business needs.

Speaker #2: Turning to slide 11, our new contract wins. In the fourth quarter, RADCOM announced a new customer win. One Global, which selected RADCOM S to deliver next-generation AI-powered assurance across both subscribers and IoT.

Our results and improved profitability are direct result of our focused execution of strategy and the ongoing value we offer to our customers all driven by our highly skilled team.

The continued advancement of our technology leadership position us for accelerated scalable growth.

Speaker #2: Enabling 4G and 5G monitoring at scale for 43 million subscribers. We also expanded within an existing customer, a leading European operator, via Rakuten Siphon to supply our network visibility solution.

Heading into 2026, we expect to maintain a disciplined focus on technology advancements, including in our <unk> service assurance offering and adjourn take AI capabilities.

Speaker #2: The solution will deliver accurate, intelligent data collection across its network end-to-end. Regarding our installed base, slide 12. RADCOM continues to support AT&T as it sustains leading network performance across the industry.

We will continue to support operators in optimizing their network operations, reducing cost and driving network automation.

We see continued and growing opportunities to build on our existing customer base and support sustainable long term growth.

Speaker #2: In 2025, the mobility service revenues increased, reflecting ongoing customer demand and operational strength. AT&T finished the year with 120 million subscribers, one industry analyst noted that AT&T's network remains robust and is widely regarded as most reliable network option in rural areas across the US.

Turning to slide nine.

When we look more broadly at the market environment telcos are approaching a key inflection point driven by AI adoption.

Ah recently SMA survey conducted in partnership with Russell found that 71% of operators plan to implement Argentic aib's here, yet only 41% report having an end to end data architecture that integrate information across the organization.

Speaker #2: Within its fully virtualized, cloud-native network, Rakuten Mobile continues to utilize RADCOM assurance solutions to deliver high-performance, reliable network quality that supports scalable growth.

This gap between ambition Endesa readiness presents a clear opportunity for us to add value by enabling operators to access reliable subscriber focused data.

Speaker #2: The operator passed 10 million subscribers in December 2025 and ranked first in the 2025 Oregon customer satisfaction survey. Turning to slide 13, we focus on our partners.

This data supports multiple argentic AI use cases, and broader efforts to deliver consistently high quality customer experiences.

Speaker #2: We are continuing our partnership strategy with NVIDIA and ServiceNow. Our high-capacity user analytics solution is powered by NVIDIA data processing reduced operational costs by up to units.

AI driven demand continues to reshape network priorities operators are increasingly integrating AI across network layers to optimize capacity and efficiency as they continue to transformation two <unk>.

Speaker #2: In field trials, it has 75% while maintaining full real-time visibility, making it a strong enabler of scalable 5G assurance and AI ops. We believe this partnership will start contributing initial wins over the course of ServiceNow. On slide 14, we continue to deepen our partnership and will showcase multiple joint demos at Mobile World Congress in March.

As we have seen many have already moved from proof of concept initiatives to commercial deployment in 2025.

In the area of Identic AI, operator demand is increasingly shifting towards unified end to end platform in a recent survey at the majority of operators indicated that they are interested in deploying integrated end to end system.

Speaker #2: Our RADCOM AIM AI Ops solution is now fully integrated, certified, and available as a connector in the ServiceNow Store, enabling real-time network monitoring and advanced automation use cases.

<unk> is well positioned to address this need with a comprehensive solution that integrate smoothly with business and service management system for customer support care and automation of operational workflows.

Speaker #2: We expect this collaboration to begin delivering initial wins during 2026. Go to market activities, slide 15. In 2025, we strengthen our market presence by participating in key industry events, including fusing Dublin and network X in Paris during Q4.

This aligns well with industry shift towards more streamline data driven operations.

Moving on to slide 10.

Our product innovations.

We continue to see growing customer interest in our advanced high capacity data capture solution with enables telecom operators to analyze the massive amounts of data to understand it with him or her experience at scale, while significantly reducing infrastructure costs.

Speaker #2: We are preparing for upcoming high-impact engagements, including Mobile World Congress 2026 and NVIDIA GTC in March, to showcase our solutions, expand strategic relationships, and drive momentum.

We believe this solution can reduce the total cost of ownership by up to 75% compared to competing solutions, enabling broader visibility into the customer experience.

Speaker #2: RADCOM's technology leadership continues to gain global recognition. Named to the fast-mode 100 for 2025, RADCOM was recognized as one of the solution providers shaping the future of telecom and digital infrastructure.

As highlighted in our survey operators are exploring argentic AI across targeted use cases, our focus is on developing telco specific AI agents that deliver high accuracy faster decision, making and measurable operational improvements across specific domain.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Ltd. Results Conference Call for the Q4 and full year of 2025. All participants are present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded and will be available for replay on the company's website at www.radcom.com later today. On the call are Benny Eppstein, RADCOM CEO, and Hod Cohen, RADCOM CFO. Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet, you may do so through the link in the investor section of RADCOM's website at www.radcom.com/investor-relations. Before we begin, I would like to review the safe harbor provision.

Speaker #2: We were also finalists in the first Network Award for Best Network Test and Measurement, and received the Best AI/ML Innovation Award at the 2025 Global Connectivity Awards in London.

Speaker #2: This accolades validate our industry-leading solutions reinforce our competitive differentiation and highlight the value we deliver to customers and stakeholders worldwide. Before I wrap up, I want to briefly address the governance appointed board member Rami update.

This capability not only enhance the value of our existing platform, but also position <unk> com to address new customer segments and expand our market reach.

Turning to slide 11, our new contract wins.

Speaker #2: The board of directors has Schwartz as chairman, effective February 8, 2026, succeeding Sami Tota. Rami has served on RADCOM's board since 2019 and brings deep experience in strategy, leadership, governance, and scaling technology businesses.

Okay.

In the fourth quarter, Russell announced a new customer win one global which selected <unk> to deliver next generation AI powered assurance across both subscribers and Iot, enabling <unk> monitoring scale for 43 million subscribers.

Speaker #2: I've spent meaningful time with Rami over the last year at RADCOM and previous roles, and I'm confident in his ability to support the team as we remain focused on our growth strategy.

We also expanded within existing customer a leading European operator direct within CFO need to supply our network visibility solutions.

The solution will deliver accurate intelligent data collection across its network end to end.

Speaker #2: I would also like to thank Sami for his support during my first year as CEO. Importantly, Sami will continue to serve on the board.

Operator: This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited to, the company's statements about its momentum, strategic direction and goals, market position and trajectory, future execution and delivery of value to customers and stakeholders, expansion within its existing customer base, and expansion of its footprint, development of and enhancing strategic partnerships and expected benefits and revenue from collaborations, the success of new technologies, including AI, to, among other things, enhance automation, pipelines, opportunities, and customer engagements and the timing thereof, demand for its products and solutions, and the ability to address new customer segments and expand its market reach. Trends in the market, the expected benefits of its AI-driven assurance and other solutions, its expectation with respect to growth margins, future development.

Our installed base slide 12.

Braskem continues to support AT&T is it sustains leading network performance across the industry in 2025, the mobility service revenues increased reflecting ongoing customer demand and operational strength.

Speaker #2: From my perspective, the board provides the oversight and support our team needs. We are aligned on our strategy, priorities, and execution plan as we enter 2026, and we remain focused on expanding our Tier 1 customer footprint, advancing our technology roadmap, and delivering profitable growth.

AT&T finished the year with 120 million subscribers.

Industry analysts noted that At&t's network remains robust and is widely regarded as the most reliable network option in rural area across the U S.

Speaker #2: In summary, turning to slide 16. 2025 was a solid year defined by strong growth, disciplined operational and financial execution, and continued market momentum. We strengthened strategic partnerships with NVIDIA and ServiceNow while initiating discussion with additional collaborations.

Within its fully Virtualized cloud Native network rock within mobile continues to utilize <unk> solutions to deliver high performance reliable network quality that support scalable growth.

The operative passed 10 million subscribers in December 2025, and ranked first in the 2025 Oracle customer satisfaction survey.

Speaker #2: We secured a new customer, extended our service offering with advanced agentic AI solutions, and launched our high-capacity data capture solution. 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.

Turning to slide 13, we focus on our partners.

Operator: Trends in the market, the expected benefits of its AI-driven assurance and other solutions, its expectation with respect to growth margins, future development and sales and marketing expenses, expectations regarding the growth of 5G and AI, and its full year 2026 revenue guidance, future growth and profitability, resilience, and long-term commitment. The company does not undertake to update forward-looking statements. The full safe harbor provisions, including risks that could cause actual results to differ from these forward-looking statements, are outlined in today's press release and the company's SEC filings.

We are continuing our partnership strategy with Nvidia and service now are high capacity user analytics solution is brought by Nvidia data processing units in field trials. It has reduced operational costs by up to 75%, while maintaining full real time visibility, making its strong enabler of scalable.

Operator: and sales and marketing expenses, expectations regarding the growth of 5G and AI, and its full year 2026 revenue guidance, future growth and profitability, resilience, and long-term commitment. The company does not undertake to update forward-looking statements. The full safe harbor provisions, including risks that could cause actual results to differ from these forward-looking statements, are outlined in today's press release and the company's SEC filings. In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the users' overall understanding of the company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income expenses related to acquisitions, and amortization of intangible assets related to acquisitions, non-GAAP results provide information helpful in assessing RADCOM's core operational performance and evaluating and comparing the results of operations consistently from period to period.

Speaker #2: With robust pipeline of opportunities, we anticipate another year of double-digit revenue growth, reinforcing our leadership in 5G assurance. The company is committed to sustaining profitability, maintaining expense discipline, and leveraging its solid financial foundation to support long-term value operation.

<unk> assurance and AI ops.

We believe this partnership will start contributing initial wins over the course of 2026.

Turning to service now on Slide 14, we continue to deepen our partnership and will showcase multiple joined demos at mobile World Congress in March.

Speaker #2: Our near-term focus is to continue to deliver strong operational and financial execution, converting a growing pipeline of opportunities into revenue while further expanding our presence within our existing customer base.

Russell aim AI ops solutions is now fully integrated certified and available as the connector in the service now store.

Operator: In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the users' overall understanding of the company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income expenses related to acquisitions, and amortization of intangible assets related to acquisitions, non-GAAP results provide information helpful in assessing RADCOM's core operational performance and evaluating and comparing the results of operations consistently from period to period.

Speaker #2: We have established key strategic partnerships and expect to deepen these relationships to scale our business and expand our addressable market. AI remains a strong catalyst for our business.

Enabling real time network monitoring advanced automation use cases.

We expect this collaboration to begin delivering initial wins during 2026.

Speaker #2: And we are investing in AI and automation to maintain our leadership in real-time network intelligence. Our customers recognize both the opportunities and challenges of AI, and RADCOM has proven its ability to deliver a total cost of ownership advantage over our peers' solutions.

Go to market activities slide 15.

In 2025, we strengthened our market presence by participating in key industry events, including fueled in Dublin and network X in Paris during Q4.

We are preparing for our upcoming high impact delegated, including all support Congress.

Speaker #2: Operationally, we remain committed to delivering consistent profitability and cash flow while maintaining flexibility as we continue to scale, organically. In conclusion, we enter 2026 with momentum and a clear set of goals.

And Nvidia GTC in March to showcase our solutions expand strategic relationships and drive momentum.

Operator: Presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with the generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures, including in the quarter's earnings release, available on our website, www.radcom.com. Now, I would like to turn over the call to Benny. Please go ahead.

Okay.

<unk> technology leadership continued to gain global recognition name.

Speaker #2: We have proven our business model and established a sound foundation for profitable growth. With that, I'll now turn the call over to our CFO, Hot Cohen, to review the financial result in detail.

So the first <unk> hundred for 2025 <unk> was recognized as one of the solution provides us I think the future of <unk> and digital infrastructure.

We're all finalists in the first network award for Best Network Test and measurement and received the best AI Ml Innovation Award at the 2025 Global connectivity awards in tandem.

Speaker #2: Thank you, Benny, and good morning, everyone. As a reminder, unless otherwise noted, I will refer to non-GAAP results. Reconciliations between GAAP and non-GAAP measures are provided in our press release and presentation.

This accolade validates our industry leading solution.

Benny Eppstein: Thank you, operator, and good morning, everyone. Please turn to slide 7 for our financial highlights. RADCOM delivered its sixth consecutive year of growth with a record $71.5 million in revenue, representing 17.2% year-over-year growth above the midpoint of our most recent revenue guidance of 15% to 18%. GAAP earnings per share increased by just over 65% year-over-year, and we achieved the highest cash and short-term deposit balances in the company's history of $109.9 million, with no debt. In terms of profitability, RADCOM reached record results across multiple KPIs, including earning and operating margin, demonstrating tight cost control, strong operational efficiency, and scalable business model. As shown on slide 8, we delivered another strong fourth quarter, with revenue up 16% year-over-year and $18 million.

So our competitive differentiation and highlight the value, we deliver to customers and stakeholders worldwide.

Speaker #2: Additionally, all comparisons are year-over-year unless otherwise noted. Please turn to slide 17 for our quarterly financial highlights. We are pleased with how our team closed the year, delivering growth in both revenue and profitability.

Before I wrap up I want to briefly address the governance update.

The board of Directors has appointed Board member Rami Schwartz as chairman effective February eight 2026 exceeding semi tota Rami has served on <unk> board since 2019 and brings deep experience in strategy leadership governance and scaling technology businesses.

Speaker #2: RADCOM delivered another quarterly revenue record with total revenue of $18.9 million, up 16% year-over-year. At the same time, we continue to manage expenses effectively while increasing strategic investments in research and development.

Spend meaningful time with Rami over the last year at rack com and previous roles and I am confident in his ability to support this team as we remain focused on our growth strategy.

Speaker #2: As a result, we delivered significant improvements in margins and record profitability. Gross margin in the fourth quarter was 77.6%, the highest since 2018. Please note that our gross margin may vary depending on the revenue mix.

I would like also to thank Sammy for his support during my first year as CEO Importantly summer will continue to serve on the board.

From my perspective, the board provides the oversight and support our team needs. We are aligned on our strategy priorities and execution plan as we enter 2026, and we remain focused on expanding our tier one customer footprint advancing our technology roadmap and delivering profitable growth.

Speaker #2: Operating income reached $4.3 million, surpassing the third-quarter record with an operating margin of 23%, the highest in eight years. Net income was $5.2 million, or $31.00 per diluted share.

Benny Eppstein: Our strong results demonstrate the solid foundation we have established for RADCOM. RADCOM continues to deliver profitability supported by our technology advantage, a top-tier customer base, and an exceptional team. Our focus now is to expand our customer base, specifically adding new Tier One customers to our roster, to enable our next phase of profitable growth. Expanding our Tier One customer footprint remains a key priority, and we are actively engaged across a set of meaningful new prospects. We continue to see healthy set of opportunities, and demand remains strong. As is common with Tier One customers, timing can shift as engagement move from technical evaluation to proof of concept to closing. Given this momentum, we expect revenue to grow by 8 to 12% in 2026, way above the service assurance market growth.

In summary, turning to slide 16, 2025 solid years defined by strong growth disciplined operational and financial execution and continued market momentum.

Speaker #2: Compared to $3.8 million, or $23.00 per diluted share last year. As shown in slide 18, our gross R&D expenses for the fourth quarter were $4.9 million, an increase of 16.2% year-over-year.

We strengthen strategic partnerships with Nvidia and service now while initiating discussions with us.

<unk>, we secured a new customer extending our service offering advantage antique AI solutions and launched our.

Speaker #2: This growth reflects our focus on

Speaker #1: On strength collaboration , fostering innovation and expanding our portfolio . We plan to continue strategic investment in R&D to deliver advanced , intelligent solutions with a focus on agent to agent and multimodal workflows .

Our high capacity data capture solution.

Okay.

Turning to 2026, we remain focused on driving innovation, particularly in our <unk>, our use cases and delivering solutions that reduce the total cost of ownership for operators.

Speaker #1: Strategic investment in R&D to deliver advanced intelligence solutions with a focus agent to agent and multi-modal workflows . While supporting our strategic partnership and productization efforts .

With a robust pipeline of opportunities, we anticipate another year of double digit revenue growth reinforcing our leadership in 500 years shrunk. The company is committed to sustaining profitability maintaining expense discipline and leveraging its solid financial foundation to support long term value creation.

Benny Eppstein: Achieving this outlook will require both new business and continued expansion within our existing customer base, and we remain confident in our ability to execute. Looking forward, our strong balance sheet is a strategic advantage, signaling to Tier One customers our resilience and long-term commitment. This also allows us to continue our product innovation and R&D investments, and over time, expand our footprint, all while maintaining disciplined financial management and profitability. Our performance also validates the growing market value of our industry-leading solutions. We remain firmly committed to enabling exceptional user and subscriber experiences while addressing our customers' evolving operational and business needs. Our results and improved profitability are a direct result of our focused execution of strategy and the ongoing value we offer to our customers, all driven by our highly skilled team. The continued advancement of our technology leadership position us for accelerated, scalable growth.

Speaker #1: for the expenses Sales and were 4.2 million , fourth quarter marketing a 1.4% year over year increase . We continue to invest sales in our capability and that sales and marketing expenses will gradually rise in the coming quarters to support pipeline growth and expansion in high value regions .

Our near term focus is to continue to deliver strong operational and financial execution converting a growing pipeline of opportunities into revenue, while further expanding our presence within our existing customer base.

We have established key strategic partnership and expect to deepen these relationships to scale, our business and expand our addressable market.

Speaker #1: On a GAAP basis , as shown on slide 19 , our net income for the fourth quarter of 2025 was 3.6 million , a 62% year over year increase .

AI remains a strong catalyst for our business and we are investing in AI and automation to maintain our leadership in real time network intelligence.

Speaker #1: earnings per GAAP share were $0.21 per diluted share , compared to $0.14 per share last year . We ended the fourth quarter of 2025 with 325 employees .

Our customers recognize both the opportunities and challenges of AI and <unk> has proven its ability to deliver a total cost of ownership advantage over our peers solution.

Operationally, we remain committed to delivering consistent profitability and cash flow, while maintaining flexibility as we continue to scale organically.

Speaker #1: Now let's review slide 20 , which presents the full year results in line with our full year guidance . We finished 2025 with a record revenue of 71.5 million , an increase of 17.2% from 2020 .

Benny Eppstein: Heading into 2026, we expect to maintain a disciplined focus on technology advancement, including in our 5G service assurance offering and Agentic AI capabilities. We will continue to support operators in optimizing their network operations, reducing costs, and driving network automation. We see continued and growing opportunities to build on our existing customer base and support sustainable long-term growth. Turning to slide 9, where we look more broadly at the market environment. 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 architecture that integrates information across the organization. This gap between AI ambition and data readiness presents a clear opportunity for RADCOM to add value by enabling operators to access reliable, subscriber-focused data.

In conclusion, we entered 2026 with momentum and a clear set of goals, we have proven our business model and established a sound foundation for profitable growth.

Speaker #1: For above the midpoint of our projected 15 to 18% growth range , our gross margin was 76.8% in 2025 , up from 2020 .

With that I'll now turn the call over to our CFO hardcore him to review the financial results in detail.

Thank you Bonnie and good morning to everyone.

Speaker #1: For 75.2% in operating income increased by 55% in 2025 , reaching an all time high of 14.8 million , or 20.6% of revenue , compared to 9.5 million , or 15.6% , in 2020 .

As a reminder, unless otherwise noted I will refer to non-GAAP results reconciliation between GAAP and non-GAAP measures.

<unk> in our press release and presentation.

Additionally, all comparisons are year over year, unless otherwise noted.

Speaker #1: For net income for 2025 reached a record 18.4 million , accounting for 25.8% of revenue , or $1.09 per diluted share . This compares to a net income of 13.5 million , or 22.1 , of revenue , equating to $0.83 per share diluted in 2020 .

Please turn to slide 17 for our quarterly financial highlights.

We are pleased without our team closed the year delivering growth in both revenue and profitability right.

<unk> Com delivered another quarterly revenue record with total revenue of $18 9 million up 16%.

Yeah.

Benny Eppstein: This data supports multiple Agentic AI use cases and broader efforts to deliver consistently high-quality customer experiences. AI-driven demand continues to reshape network priorities. Operators are increasingly integrating AI across network layers to optimize capacity and efficiency as they continue to transformation to 5G. As we have seen, many have already moved from proof of concept initiatives to commercial deployment in 2025. In the area of Agentic AI, operator demand is increasingly shifting towards unified end-to-end platforms. In our recent survey, the majority of operators indicated that they are interested in deploying integrated end-to-end systems. RADCOM is well-positioned to address this need with a comprehensive solution that integrates smoothly with business and service management systems for customer support, care, and automation of operational workflows. This align well with industry shift towards more streamlined, data-driven operations. Moving on to slide 10, our product innovations.

At the same time, we continue to manage expenses effectively while increasing strategic investment in research and development as a result, we delivered significant improvement in margins and record profitability.

Speaker #1: For . As shown on slide 18 , our gross R&D expenses in 2025 were 18.5 million , an increase of 1.9 million from 2020 .

Gross margin in the fourth quarter was 77, 6% the ISG in 2013.

Speaker #1: For reflecting 11.1% year over year growth . Looking ahead to 2026 , we plan to increase our R&D investment to further develop automation and AI capabilities and support our strategic partnership and productization goals .

Please note that our gross margin may vary depending on the revenue mix.

Operating income reached $4 3 million.

I think the third quarter record with an operating margin of 23% the highest in eight years.

Speaker #1: We received a total of 0.4 million in grants from the Israel Innovation Authority during the year to support our growth , sales and marketing expenses in 2025 were 17.3 million , up 10.5% from 15.7 million in 2020 .

Net income was $5 2 million or 31%.

Fair diluted share compared to $3 8 million or 23%.

They are they look at share last year.

As shown in slide 18, our gross R&D expenses for the fourth quarter were four 9 million an increase of 62% year over year. This growth reflects our focus on strengthening collaborations fostering innovation and expanding our portfolio.

Speaker #1: For G&A expenses for 2025 were 4.8 million , a decrease of $11,000 year over year . On a GAAP basis , as shown on slide 19 , our net income for 2025 reached a new high of 12 million , or 16.8% of revenue , or $0.71 per diluted share , compared to a 7 million , or 11.4% of revenue or $0.43 per diluted share , in 2020 .

We plan to continue strategic investments in R&D to deliver advanced intelligence solution with a focus on agent to agent and multimodal workflows, while supporting our strategic partnership and productivity efforts.

Benny Eppstein: We continue to see growing customer interest in our advanced, high-capacity data capture solution, which enables telecom operators to analyze massive amounts of data to understand their real customer experience at scale, while significantly reducing infrastructure costs. We believe this solution can reduce the total cost of ownership by up to 75% compared to competing solutions, enabling broader visibility into the customer experience. As highlighted in our survey, operators are exploring agentic AI across targeted use cases. Our focus is on developing telco-specific AI agents that deliver high accuracy, faster decision-making, and measurable operational improvements across specific domains. This capability not only enhance the value of our existing platform, but also position RADCOM to address new customer segments and expand our market reach. Turning to slide 11, our new contract wins.

Sales and marketing expenses for the fourth quarter were $4 2 million a one for Chris.

Speaker #1: For . Turning to the balance sheet on slide 21 , we four with a 109.9 million in cash . Cash equivalents and short term bank deposits , reflecting positive cash flow of 3.2 million in the quarter and 15.2 million for the year , driven by our strong results that concludes our prepared remarks .

Year over year increase.

We continue to invest in our sales capability and anticipate that sales and marketing expenses will gradually rise in the coming quarters to support pipeline growth and expansion in high value regions.

On a GAAP basis as shown on slide 19, our net income for the fourth quarter of 2025 was $3 6 million.

Speaker #1: Thank you , and we will now pass the call back to the operator for your questions .

62% year over increase.

Speaker #2: Thank you . Ladies and gentlemen , at this time , we will begin the question and answer session . If you have a question , please press star one .

GAAP earnings per share were 21 cents per diluted share compared to 14%.

Sure last year we.

Speaker #2: If you wish to cancel your request, please press star two. Please stand by while we pull for your questions. The first question is from Linda Lee of William Blair.

The fourth quarter of 2025 with 325 employees.

Benny Eppstein: In the fourth quarter, RADCOM announced a new customer win, 1Global, which selected RADCOM as to deliver next generation AI-powered assurance across both subscribers and IoT, enabling 4G and 5G monitoring at scale for 43 million subscribers. We also expanded within existing customer, a leading European operator, via Rakuten Symphony, to supply our network visibility solution. The solution will deliver accurate, intelligent data collection across its network end-to-end. Regarding our installed base, slide 12. RADCOM continues to support AT&T as it sustains leading network performance across the industry. In 2025, the mobility service revenues increased, reflecting ongoing customer demand and operational strength. AT&T finished the year with 120 million subscribers. One industry analyst noted that AT&T's network remains robust and is widely regarded as most reliable network option in rural area across the US.

Yeah.

Now, let's review slide where we present the full year results in line with our full year guidance. We finished $1 25 with a record revenue of 71 5 million an increase of 17, 2% from 2024 above the midpoint of our per.

Speaker #2: Please go ahead .

Speaker #3: Awesome. Thank you, Benny. It was $199 million in the end balance sheet and no debt. How should we think about capital allocation in 2026?

Speaker #3: Especially relates to M&A .

Speaker #1: Thanks for the question . And our first priority remains to to look into M&A . And this first priority . And this is what we are trying to accelerate .

Projected 15% to 18% growth range.

Our gross margin was 76, 8% in 2020 funds up from 75, 2% in 2024.

Speaker #1: And this prioritizing. So we answer your question.

Speaker #3: Are there any changes in the guidance philosophy, and what are some of the assumptions in the '26 guide?

Operating income increased by 55% in 2025, reaching an all time high of $14 8 million or 26% of revenue compared to.

Speaker #1: We believe we are . We're basically in the second half of our sales cycle . It's pinpoint hard to exactly where we're going to close , and this is why we we left the guidance 8 to 12% , and we're assuming that we will close it in the in the first half of the year .

5 million or 15, 6% in 2024.

Net income for 2025 reached a record $18 4 million accounting for 25, 8% of revenue or $1.90 per diluted share this compared to a net income of $30 5 million or 22.

Benny Eppstein: Within its fully virtualized cloud-native network, Rakuten Mobile continues to utilize RADCOM assurance solutions to deliver high performance, reliable network quality that supports scalable growth. The operator passed 10 million subscribers in December 2025 and ranked first in the 2025 Oricon Customer Satisfaction survey. Turning to slide 13, we focus on our partners. We are continuing our partnership strategy with NVIDIA and ServiceNow. Our high-capacity user analytic solution is powered by NVIDIA data processing units. In field trials, it has reduced operational costs by up to 75% while maintaining full real-time visibility, making it strong enabler of scalable 5G assurance and AIOps. We believe this partnership will start contributing initial wins over the course of 2026. Turning to ServiceNow on slide 14. We continue to deepen our partnership and will showcase multiple joint demos at Mobile World Congress in March.

Speaker #3: Awesome . Thank you .

Speaker #1: Some of the strategic opportunities.

Speaker #3: Thanks .

Speaker #2: there Is any additional questions ? Please press star one . If you wish to cancel your request , please press star two . The question is next from Ryan Kunz of Needham and Company .

One of revenue equating to 83.

Bill diluted share in 2024.

As shown on slide 18, our gross R&D expenses in 2025 were $18 5 million, an increase of $1 9 million from 2024, reflecting 11, 1% year over year growth.

Speaker #2: Please go ahead .

Speaker #4: Great . Thanks , guys . I wanted to ask about you've got a great run rate there with with your large customer , AT&T , and looking at your land and expand strategy .

Speaker #4: What are some of the key drivers for expanding your business with existing customers ? There ? Is it their deployments of the 5G standalone core ?

Looking ahead to 2026, we plan to increase our R&D investments to further develop automation and AI capabilities and support our strategic partnership and productive Dacian gold.

Speaker #4: Is it know you , adoption of of Agentic AI or what are some of the key drivers we should think about for you to be able to grow the size of of new accounts ?

We received a total of <unk> 4 million in grants from the Israel Innovation authority during the year too.

Speaker #4: Thank you .

Speaker #1: Thanks , Ryan . We still believe we have lots of opportunities within our existing customer , including AT&T . Our genetic is driving also for opportunities .

To support our growth sales and marketing expenses in 2025 were $17 3 million up 10, 5% from $15 7 million in 2024.

Speaker #1: Our unique data set that we bring to the table is helping AT&T and other customers to to promote their own genetic platform and promote their own efficiencies within operations .

Benny Eppstein: Our RADCOM AIM AIOps solution is now fully integrated, certified, and available as a connector in the ServiceNow Store, enabling real-time network monitoring, advanced automation use cases. We expect this collaboration to begin delivering initial wins during 2026. Go-to-market activities, slide 15. In 2025, we strengthened our market presence by participating in key industry events, including Fyuz in Dublin and Network X in Paris during Q4. We are preparing for upcoming high-impact engagement, including Mobile World Congress 2026 and NVIDIA GTC in March, to showcase our solutions, expand strategic relationships, and drive momentum. RADCOM's technology leadership continued to gain global recognition. Named to The Fast Mode 100 for 2025, RADCOM was recognized as one of the solution providers shaping the future of telecom and digital infrastructure.

G&A expenses for 2025 were $4 8 million a decrease of $11000 year over year.

Speaker #1: So this is still the main target to support our biggest customers .

On a GAAP basis as shown on slide 19, our net income for 2025 reached a new high of $12 million of fixed.

Speaker #4: Got it . And you know , I could certainly see how the analytics angle , you know , is a is an easy entry point for AI for for RADCOM LTD , the agentic element here , how critical is that to , you know , your to to your breaking into an account today or is that really kind of a latter sale kind of upsell basic for your capabilities ?

16.

Defense revenue.

71 <unk>.

Bill diluted share compared to a <unk> 7 million or 11, 4% of revenue.

43 cents per diluted share in 2024.

Turning to the balance sheet on slide 21, we closed quarter four with a record 109 9 million in cash cash equivalents and short term bank deposits.

Speaker #1: I think it's combination of both . Right . So it is the our analytics capabilities is driving a lot of opportunities , including in North and America in , by the way , why why promoting our own core business , pushing our product within existing new customers and and , prospects .

Collecting positive cash flow of $3 2 million in the quarter and $15 2 million driven.

Driven by our strong results.

That concludes our prepared.

Benny Eppstein: We were also finalist in the First Network Award for Best Network Test and Measurement, and received the Best AI/ML Innovation award at the 2025 Global Connectivity Awards in London. These accolades validate our industry-leading solutions, reinforce our competitive differentiation, and highlight the value we deliver to customers and stakeholders worldwide. Before I wrap up, I want to briefly address the governance update. The board of directors has appointed board member, Rami Schwartz, as chairman, effective February 8, 2026, succeeding Sammy Totah. Rami has served on RADCOM's board since 2019 and brings deep experience in strategy, leadership, governance, and scaling technology businesses. I've spent meaningful time with Rami over the last year at RADCOM and previous roles, and I'm confident in his ability to support the team as we remain focused on our growth strategy.

Speaker #1: But definitely the AI and the is critical . Ingredient our from value proposition .

And we will now pass the call back to the operator for your questions.

Thank you ladies and gentlemen at this time, we will begin the question and answer session.

Speaker #4: Got it . Thanks . And you know , with regards to your your data collection , I assume these are on hardware , hardware , NICs for the network equipment .

Have a question please press star one.

If you wish to cancel the only quest to these trends.

Please standby when we totally your question.

Speaker #4: The Nvidia Bluefield . Where is that in terms of introduction and what of architecture to use if you're not using an Nvidia based , FPGA product based ?

My first question is from Amit <unk> of William Blair.

Please go ahead.

Awesome, NPL and Danny with 199 million in the balance sheet I know, Doug how should we think about capital allocation in 2000, and 2020 and especially as it relates to M&A.

Speaker #1: We actually actually we using both Nvidia based standard server and cloud native solution in all front . And we still believe that our product , our software is the most efficient one out there .

Thanks for the question.

Our first priority remains to look into M&A on the surface permits indices.

Speaker #1: Comparing to our tier competition .

What we are trying to accelerate.

Speaker #4: Great . Thanks . That's all I've got . Thanks , Benny .

Speaker #1: Thank you . Ryan

Benny Eppstein: I would like also to thank Sammy for his support during my first year as CEO. Importantly, Sammy will continue to serve on the board. From my perspective, the board provides the oversight and support our team needs. We are aligned on our strategy, priorities, and execution plan as we enter 2026, and we remain focused on expanding our Tier One customer footprint, advancing our technology roadmap, and delivering profitable growth. In summary, turning to slide 16. 2025 was a solid year, defined by strong growth, disciplined operational and financial execution, and continued market momentum. We strengthened strategic partnerships with NVIDIA and ServiceNow, while initiating discussion with additional collaborations. We secured a new customer, extended our service offering, advanced Agentic AI solutions, and launched our high-capacity data capture solution.

I think so.

Great question.

Speaker #2: There are . no further questions at this time . This concludes the fourth quarter 2025 results . Conference call you for . Thank your participation .

Okay, and any changes in the guidance philosophy.

Some of the assumptions and the 126 guidance.

Sure. We believe we are in.

We anticipate that the second half of our sales cycle.

But exactly when were going to close and this is why we.

We left the guidance Asia, 12%.

And then we're assuming that we will close at the end.

Yes.

Okay.

Thank you.

Some of the strategic opportunities.

Got it.

Is there any additional questions. Please press star one if you wish to cancel the request. Please press star two.

The next question is from Ryan <unk> of Needham and company. Please go ahead.

Great. Thanks, guys.

And to ask about you got it great.

Run rate there with your large customer AT&T and look at your land and expand strategy.

Benny Eppstein: 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 robust pipeline of opportunities, we anticipate another year of double-digit revenue growth, reinforcing our leadership in 5G assurance. The company is committed to sustaining profitability, maintaining expense discipline, and leveraging its solid financial foundation to support long-term value creation. Our near-term focus is to continue to deliver strong operational and financial execution, converting a growing pipeline of opportunities into revenue, while further expanding our presence within our existing customer base. We have established key strategic partnership and expect to deepen these relationships to scale our business and expand our addressable market. AI remains a strong catalyst for our business, and we are investing in AI and automation to maintain our leadership in real-time network intelligence.

Key drivers for expanding your business with existing customers or is it their deployments of the <unk> standalone core or is it.

Adoption of <unk>.

Jim take AI or what are some of the key drivers. We should think about for you to be able to grow the size of new accounts.

Alright, Thanks, Brian.

Similarly, with multiple opportunities within our existing customer, including AT&T agenda is driving and also for opportunities.

Unique businesses that would bring to the table is helping agents.

<unk> seen other customers.

Promote their own logistics platform and promoting.

Efficiencies within operations. So this.

And the main targets to support our biggest.

Biggest customers.

Got it and I could certainly see how the analytics angle.

This is an easy entry point for AI for it.

Brad Com.

The <unk> element here.

Critical is that to.

Benny Eppstein: Our customers recognize both the opportunities and challenges of AI, and RADCOM has proven its ability to deliver a total cost of ownership advantage over our peers' solutions. Operationally, we remain committed to delivering consistent profitability and cash flow, while maintaining flexibility as we continue to scale organically. In conclusion, we enter 2026 with momentum and a clear set of goals. We have proven our business model and established a sound foundation for profitable growth. With that, I'll now turn the call over to our CFO, Hod Cohen, to review the financial results in detail.

Two.

Youre breaking you're breaking into an account today or is that really kind of latter sale kind of upsell for your basic capabilities.

I think it's combination of both and Ryan so decreased.

Is it capabilities is driving lots of opportunities, including in North America and in demand by the way.

And.

Promoting our own core business pushing.

Pushing our product.

We've seen it.

New customers.

And prospects.

The AI and the uniqueness of substance.

Is critical.

Ingredients from our brand.

Hod Cohen: Thank you, Benny, and good morning, everyone. As a reminder, unless otherwise noted, I will refer to non-GAAP results. Reconciliation between GAAP and non-GAAP measures are provided in our press release and presentation. Additionally, all comparisons are year-over-year, unless otherwise noted. Please turn to slide 17 for our quarterly financial highlights. We are pleased with how our team closed the year, delivering growth in both revenue and profitability. RADCOM delivered another quarterly revenue record with total revenue of $18.9 million, up 16% year-over-year. At the same time, we continued to manage expenses effectively while increasing strategic investments in research and development. As a result, we delivered significant improvement in margins and record profitability. Gross margin in the fourth quarter was 77.6%, the highest since 2018. Please note that our gross margin may vary depending on the revenue mix.

Any proposition.

Got it thanks.

With regards to your data collection.

Assuming these are on.

Hardware hardware mix for the network equipment.

The video Bluefield, where is that in terms of introduction and what sort of architecture to use if youre not using video based product.

FPGA based.

When we actually execute.

Books and video base.

The server and cloud native solution on front, and we still believe that the product how software is the most efficient.

One alastair comparing.

Yes.

Petition.

Great. Thanks, that's all I've got thanks Penni.

Thank you Ron.

There are no further questions at this time.

This concludes the Red column Ltd's fourth quarter 2025 results conference call.

Thank you for your participation you May go ahead and disconnect.

Mhm.

Hod Cohen: Operating income reached $4.3 million, surpassing the third quarter record with an operating margin of 23%, the highest in 8 years. Net income was $5.2 million, or $0.31 per diluted share, compared to $3.8 million or $0.23 per diluted share last year. As shown in slide 18, our gross R&D expenses for the fourth quarter were $4.9 million, an increase of 16.2% year-over-year. This growth reflects our focus on strengthening collaboration, fostering innovation, and expanding our portfolio. We plan to continue strategic investment in R&D to deliver advanced intelligent solution with a focus on agent-to-agent and multi-model workflows, while supporting our strategic partnership and productization efforts. Sales and marketing expenses for the fourth quarter were $4.2 million, a 1.4% year-over-year increase.

Hod Cohen: We continue to invest in our sales capability. The sales and marketing expenses will gradually rise in the coming quarters to support pipeline growth and expansion in high value regions. On a GAAP basis, as shown on slide 19, our net income for Q4 2025 was $3.6 million, a 62% year-over-year increase. GAAP earnings per share were $0.21 per diluted share, compared to $0.14 per share last year. We ended Q4 2025 with 325 employees. Now, let's review slide 20, which presents the full year results. In line with our full year guidance, we finished 2025 with a record revenue of $71.5 million, an increase of 17.2% from 2024, above the midpoint of our projected 15% to 18% growth range.

Hod Cohen: Our gross margin was 76.8% in 2025, up from 75.2% in 2024. Operating income increased by 55% in 2025, reaching an all-time high of $14.8 million or 20.6% of revenue, compared to $9.5 million or 15.6% in 2024. Net income for 2025 reached a record $18.4 million, accounting for 25.8% of revenue or $1.09 per diluted share. This compares to a net income of $13.5 million or 22.1% of revenue, equating to $0.83 per diluted share in 2024. As shown on slide 18, our gross R&D expenses in 2025 were $18.5 million, an increase of $1.9 million from 2024, reflecting 11.1% year-over-year growth.

Hod Cohen: Looking ahead to 2026, we plan to increase our R&D investment to further develop automation and AI capabilities, and support our strategic partnership and productization goals. We received a total of $0.4 million in grants from the Israel Innovation Authority during the year. To support our growth, sales and marketing expenses in 2025 were $17.3 million, up 10.5% from $15.7 million in 2024. G&A expenses for 2025 were $4.8 million, a decrease of $11,000 year-over-year. On a GAAP basis, as shown on slide 19, our net income for 2025 reached a new high of $12 million, or 16.8% of revenue or $0.71 per diluted share, compared to $7 million or 11.4% of revenue or $0.43 per diluted share in 2024.

Hod Cohen: Turning to the balance sheet on slide 21, we closed Q4 with a record $109.9 million in cash, cash equivalents, and short-term bank deposits, reflecting positive cash flow of $3.2 million in the quarter and $15.2 million for the year, driven by our strong results. That concludes our prepared remarks. Thank you, and we will now pass the call back to the operator for your questions.

Operator: Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two. Please stand by while we pull for your questions. The first question is from Linda Lee of William Blair. Please go ahead.

Linda Lee: Awesome. Thank you. Benny, with $199 million in the balance sheet and no debt, how should we think about capital allocation in 2026, especially relates to M&A?

Alinda Li: Awesome. Thank you. Benny, with $199 million in the balance sheet and no debt, how should we think about capital allocation in 2026, especially relates to M&A?

Benny Eppstein: Sure. Hi, Linda, thanks for the question. Our first priority remains to look into M&A, and this is our first priority, and this is what we are trying to accelerate, and this is what prioritizing. So, to answer your question.

Linda Lee: Okay, cool. Any changes in the guidance philosophy, and what are some of the assumptions in the 2026 guide?

Alinda Li: Okay, cool. Any changes in the guidance philosophy, and what are some of the assumptions in the 2026 guide?

Benny Eppstein: Sure. We believe we are, consider we are basically at the second half of our sales cycle. It's hard to pinpoint exactly when we're going to close, and this is why we left the guidance 8% to 12%, and we're assuming that we will close it in the first half of the year.

Linda Lee: Awesome. Thank you.

Alinda Li: Awesome. Thank you.

Benny Eppstein: Some of the strategic opportunities.

Linda Lee: Got it. Thanks.

Alinda Li: Got it. Thanks.

Operator: If there are any additional questions, please press star one. If you wish to cancel your request, please press star two. The next question is from Ryan Koontz of Needham & Company. Please go ahead.

Hod Cohen: Great. Thanks, guys. Wanted to ask about, you've got a great run right there with your large customer, AT&T, and look at your land expand strategy. You know, what are some of the key drivers for-

Ryan Koontz: Great. Thanks, guys. Wanted to ask about, you've got a great run right there with your large customer, AT&T, and look at your land expand strategy. You know, what are some of the key drivers for expanding your business with existing customers there? Is it their deployments of the 5G standalone core? Is it, you know, adoption of agentic AI? Or what are some of the key drivers we should think about for you to be able to grow the size of new accounts? Thank you.

Ryan Koontz: ... expanding your business with existing customers there? Is it their deployments of the 5G standalone core? Is it, you know, adoption of agentic AI? Or what are some of the key drivers we should think about for you to be able to grow the size of new accounts? Thank you.

Benny Eppstein: Thanks, Ryan. We still believe we have lots of opportunities within our existing customer, including AT&T. Agentic is driving a lot of opportunities. Our unique data set that we bring to the table is helping AT&T and other customers to promote their own agentic platform and promote their own efficiency within operations. So this is still the main target to support our biggest customers.

Ryan Koontz: Got it. And, you know, I could certainly see how the analytics angle, you know, is an easy entry point for AI, for RADCOM. The agentic element here, how critical is that to, you know, you breaking into an account today? Or is that really kind of a latter sale, kind of upsell for your basic capabilities?

Benny Eppstein: I think it's a combination of both, Ryan. So, it is that our analytic capabilities is driving a lot of opportunities, including in North America and in EMEA, by the way, and while promoting our own core business, pushing our product, within existing new customers and prospects. But definitely the AI and the unique data set is critical ingredient from our value proposition.

Ryan Koontz: Got it, thanks. And, you know, with regards to your data collection, I assume these are on hardware NICs for the network equipment. The NVIDIA BlueField, where is that in terms of introduction, and what sort of architecture do you use if you're not using an NVIDIA-based product? FPGA-based?

Benny Eppstein: We actually, we're actually using both NVIDIA-based standard server and cloud native solution in all front. We still believe that our product, our software, is the most efficient one out there comparing to our peer competition.

Ryan Koontz: Great. Thanks. That's all I've got. Thanks, Benny.

Benny Eppstein: Thank you, Ryan.

Operator: There are no further questions at this time. This concludes the RADCOM Ltd. Q4 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.

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