RADCOM Q1 Earnings & Revenues Beat Estimates, '25 Top-Line View Raised

RADCOM Ltd. RDCM reported first-quarter 2025 non-GAAP earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate by 13.6%. The bottom line expanded 39% year over year.

Revenues in the quarter were a record $16.6 million, beating the Zacks Consensus Estimate by 0.6%. Total revenues jumped 17.5% year over year.

Management attributed the strong results to the company’s dedicated team, operational excellence and disciplined expense management, which led to solid revenue growth and an improvement in operating margins. Backed by expanding strategic partnerships and sustained technological momentum, management raised the full-year 2025 revenue outlook. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Radcom’s Other Details

Non-GAAP net income for the quarter was $4.1 million compared with $2.8 million a year ago.

Non-GAAP operating income was $3.1 million compared with $1.7 million reported in the same period last year. Non-GAAP operating expenses were $9.5 million, up from $8.8 million.

Cash Flow and Liquidity

As of March 31, 2025, RDCM had $99.1 million in cash, cash equivalents and short-term bank deposits. The company exited the first quarter with a cash flow of $4.4 million. This represents RDCM’s highest-ever cash balance and short-term deposit balances while remaining completely debt-free. This strong liquidity position underscores RADCOM’s financial strength and supports its ongoing growth momentum.

Revenue Guidance for 2025

Driven by healthy momentum, RDCM has provided revenue guidance for full-year 2025. It expects revenue growth to range between 15% and 18%, with a midpoint of $71 million, which implies a 13.5% increase from 2024. Earlier, the company had projected revenue growth to be between 12% and 15%, with a midpoint of $69.2 million.

Recent Developments

RADCOM recently renewed and expanded a multi-year, eight-figure contract with a tier-one North American customer, highlighting strong confidence in its leading solution. In the first quarter, the company partnered with Nvidia and ServiceNow to enhance real-time customer insights and cross-domain automation.

Notably, RADCOM became the first assurance vendor integrated into ServiceNow’s new AI Agent Fabric, enabling seamless, intelligent workflows. This collaboration supports the rise of agentic AI—multiple AI agents managing complex processes across customer care and service assurance. With Nvidia, RADCOM is developing a high-capacity, AI-driven data capture and analytics solution, entering lab testing with selected customers through a new design-partner program.

RDCM’s Zacks Rank

RDCM currently carries a Zacks Rank #3 (Hold). Shares of the company have surged 43.3% in the past year compared with the Zacks Computer – Networking industry's growth of 22.9%.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in Computer Networking Space

NETGEAR, Inc. NTGR reported first-quarter 2025 non-GAAP earnings per share of 2 cents, which beat the Zacks Consensus Estimate of a loss of 35 cents. The company reported a non-GAAP loss of 28 cents per share in the year-ago quarter. NETGEAR generated net revenues of $162.1 million, which beat the consensus estimate by 6.6%. The figure also surpassed the company's guidance of $145-$160 million. Revenues were down 1.5% on a year-over-year basis.

Shares of NTGR have surged 122.9% in the past year.

Cisco Systems CSCO reported third-quarter fiscal 2025 earnings of 96 cents per share, beating the Zacks Consensus Estimate of 91 cents per share. This compares to earnings of 88 cents per share a year ago. Cisco posted revenues of $14.15 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.65%. This compares to year-ago revenues of $12.7 billion.

Shares of CSCO have soared 26.8% in the past year.

Extreme Networks EXTR came out with quarterly earnings of 21 cents per share, beating the Zacks Consensus Estimate of 19 cents per share. This compares to loss of 19 cents per share a year ago. Extreme Networks posted revenues of $284.51 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.39%. This compares to year-ago revenues of $211.04 million.

Shares of EXTR have jumped 33.3% in the past year.

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