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RADCOM Q2 Earnings Beat on Robust Top-Line Traction, View Reiterated
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Key Takeaways
RADCOM Q2 EPS rose to $0.25, beating estimates and topping last year's $0.20.
Revenues grew 19.3% year over year to $17.7M on strong AI-driven solution adoption.
Company reaffirmed 2025 revenue growth outlook of 15%-18%, with $71.1M at midpoint.
RADCOM Ltd. ((RDCM - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate by 13.6%. The bottom line compared favorably with the prior-year quarter’s figure of 20 cents.
Total revenues reached $17.7 million, representing a 19.3% year-over-year increase, driven by strong momentum in key accounts and adoption of AI-powered network assurance solutions. Management is boosting global sales and partnerships to drive RADCOM’s next growth phase with advanced solutions powered by accelerated computing and Agentic AI. AI-driven automation keeps RADCOM ahead in a rapidly evolving telecom landscape.
Non-GAAP gross margin came in at 76.2%, up from 75% in the year-ago quarter. As a software company, RDCM does not anticipate U.S. tariffs to have a significant impact on gross margin next quarter, though outcomes may vary based on the revenue mix.
RDCM remains focused on prudent expense management while making targeted strategic investments to drive growth, foster innovation and sustain its competitive edge. This disciplined strategy resulted in record non-GAAP operating income of $3.4 million, representing 19.5% of quarterly revenues compared with $2.3 million, or 15.4% of revenues in the previous-year quarter.
Non-GAAP gross R&D expenses rose 10.7% year over year to $4.5 million, reflecting its commitment to innovation, partnerships and advanced solutions like agent-to-agent and multi-model workflows.
Sales and marketing expenses grew 13.5% year over year to $4.3 million, driven by stronger customer engagement. RDCM expects a gradual increase ahead to support pipeline growth and expand into high-value regions.
Cash Flow and Liquidity
As of June 30, 2025, RDCM had $101.6 million in cash, cash equivalents and short-term bank deposits and no debt.
The company exited the second quarter with a cash flow of $2.6 million.
2025 Guidance Maintained
Fueled by a healthy sales pipeline, strong customer relationships and the market’s continued shift toward intelligent, automated, real-time assurance, RADCOM reaffirmed its full-year revenue growth target of 15%–18%, translating to a midpoint projection of $71.1 million.
Intrusion Inc. ((INTZ - Free Report) ) incurred a second-quarter 2025 loss of 10 cents per share compared with a loss of 53 cents a year ago. However, the bottom line was wider than the Zacks Consensus Estimate of a loss of 9 cents.
Quarterly revenues reached $1.9 million, marking a 28% increase year over year and a 6% rise sequentially. The Zacks Consensus Estimate for revenues was pegged at $1.8 million. The sequential growth was driven by both new customers and expanded work with existing clients, especially the Department of Defense, which is utilizing Intrusion Shield and related consulting services.
NETGEAR, Inc. ((NTGR - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share of 6 cents, beating the Zacks Consensus Estimate of a loss of 16 cents. The company incurred a non-GAAP loss of 74 cents per share in the year-ago quarter. NETGEAR generated net revenues of $170.5 million, beating the consensus estimate by 5.3%. The figure also surpassed the company’s guidance of $155-$170 million. Revenues rose 18.5% on a year-over-year basis and 5.2% sequentially.
Cadence Design Systems ((CDNS - Free Report) ) reported second-quarter 2025 non-GAAP EPS of $1.65, which beat the Zacks Consensus Estimate by 5.1%. The bottom line increased 28.9% year over year, exceeding management’s guidance of $1.55-$1.61.
Revenues of $1.275 billion beat the Zacks Consensus Estimate by 1.3% and increased 20.3% year over year. The figure beat CDNS’ view of $1.25-$1.27 billion. The top line was driven by broad-based demand for its solutions, especially the AI-driven portfolio, amid robust design activity.
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RADCOM Q2 Earnings Beat on Robust Top-Line Traction, View Reiterated
Key Takeaways
RADCOM Ltd. ((RDCM - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate by 13.6%. The bottom line compared favorably with the prior-year quarter’s figure of 20 cents.
Total revenues reached $17.7 million, representing a 19.3% year-over-year increase, driven by strong momentum in key accounts and adoption of AI-powered network assurance solutions. Management is boosting global sales and partnerships to drive RADCOM’s next growth phase with advanced solutions powered by accelerated computing and Agentic AI. AI-driven automation keeps RADCOM ahead in a rapidly evolving telecom landscape.
Radcom Ltd. Price, Consensus and EPS Surprise
Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote
Other Details
Non-GAAP gross margin came in at 76.2%, up from 75% in the year-ago quarter. As a software company, RDCM does not anticipate U.S. tariffs to have a significant impact on gross margin next quarter, though outcomes may vary based on the revenue mix.
RDCM remains focused on prudent expense management while making targeted strategic investments to drive growth, foster innovation and sustain its competitive edge. This disciplined strategy resulted in record non-GAAP operating income of $3.4 million, representing 19.5% of quarterly revenues compared with $2.3 million, or 15.4% of revenues in the previous-year quarter.
Non-GAAP gross R&D expenses rose 10.7% year over year to $4.5 million, reflecting its commitment to innovation, partnerships and advanced solutions like agent-to-agent and multi-model workflows.
Sales and marketing expenses grew 13.5% year over year to $4.3 million, driven by stronger customer engagement. RDCM expects a gradual increase ahead to support pipeline growth and expand into high-value regions.
Cash Flow and Liquidity
As of June 30, 2025, RDCM had $101.6 million in cash, cash equivalents and short-term bank deposits and no debt.
The company exited the second quarter with a cash flow of $2.6 million.
2025 Guidance Maintained
Fueled by a healthy sales pipeline, strong customer relationships and the market’s continued shift toward intelligent, automated, real-time assurance, RADCOM reaffirmed its full-year revenue growth target of 15%–18%, translating to a midpoint projection of $71.1 million.
RDCM’s Zacks Rank
RDCM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Intrusion Inc. ((INTZ - Free Report) ) incurred a second-quarter 2025 loss of 10 cents per share compared with a loss of 53 cents a year ago. However, the bottom line was wider than the Zacks Consensus Estimate of a loss of 9 cents.
Quarterly revenues reached $1.9 million, marking a 28% increase year over year and a 6% rise sequentially. The Zacks Consensus Estimate for revenues was pegged at $1.8 million. The sequential growth was driven by both new customers and expanded work with existing clients, especially the Department of Defense, which is utilizing Intrusion Shield and related consulting services.
NETGEAR, Inc. ((NTGR - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share of 6 cents, beating the Zacks Consensus Estimate of a loss of 16 cents. The company incurred a non-GAAP loss of 74 cents per share in the year-ago quarter. NETGEAR generated net revenues of $170.5 million, beating the consensus estimate by 5.3%. The figure also surpassed the company’s guidance of $155-$170 million. Revenues rose 18.5% on a year-over-year basis and 5.2% sequentially.
Cadence Design Systems ((CDNS - Free Report) ) reported second-quarter 2025 non-GAAP EPS of $1.65, which beat the Zacks Consensus Estimate by 5.1%. The bottom line increased 28.9% year over year, exceeding management’s guidance of $1.55-$1.61.
Revenues of $1.275 billion beat the Zacks Consensus Estimate by 1.3% and increased 20.3% year over year. The figure beat CDNS’ view of $1.25-$1.27 billion. The top line was driven by broad-based demand for its solutions, especially the AI-driven portfolio, amid robust design activity.