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RADCOM's Q3 EPS of 29 cents beat estimates and rose from 23 cents a year ago.
Revenue grew 16.2% year over year to $18.4 million, topping the consensus estimate.
New AI-based partnerships and analytics solutions boosted scalability and profitability.
Radcom ((RDCM - Free Report) ) reported third-quarter 2025 non-GAAP earnings per share (EPS) of 29 cents, surpassing the Zacks Consensus Estimate of 12 cents. The bottom line compared favorably with the prior-year quarter’s 23 cents.
Revenues in the quarter totaled $18.4 million, beating the Zacks Consensus Estimate by 2.7%. Total revenues jumped 16.2% year over year. The expansion highlights the company’s ability to capitalize on rising demand for intelligent assurance solutions that leverage AI and automation to deliver network observability and performance optimization.
During the third quarter, RADCOM strengthened its foothold with key advancements. It partnered with 1Global to deploy its AI-driven assurance platform, RADCOM ACE, across Europe, North America and Asia, covering more than 43 million connections. The company also launched its High-Capacity User Analytics solution — the industry’s first to capture data at 400Gbps on a single server. Powered by NVIDIA BlueField-3 DPUs, the solution enables real-time analytics at lower costs, showcasing RADCOM’s focus on AI, automation and next-generation network observability.
Following the announcement, RDCM’s shares rose 5% in trading and closed at $13.32 on Nov. 12, 2025.
Other Details
It continued to manage expenses efficiently while increasing strategic investments in sales and marketing, leading to record profitability and a strong gross margin of just over 77%. The improvement reflects a favorable revenue mix with fewer third-party costs, and the company expects to maintain this level in the fourth quarter.
RADCOM’s non-GAAP R&D expenses rose 11.6% year over year to $4.7 million, reflecting its focus on innovation, deeper collaborations and portfolio expansion. The company plans to continue investing in advanced intelligent solutions, emphasizing agent-to-agent and multimodal workflows, while supporting key partnerships and productization efforts.
It reported non-GAAP operating income of $3.8 million, up from $2.6 million, its highest since 2017, driven by strong scalability and disciplined execution.
Cash Flow & Liquidity
As of Sept. 30, 2025, RDCM had $106.7 million in cash, cash equivalents and short-term bank deposits and no debt.
The company exited the third quarter with a cash flow of $5.1 million.
2025 Guidance Reiterated
RADCOM reaffirmed its full-year 2025 guidance of 15%-18% year-over-year revenue growth, implying approximately $71.1 million in revenue at the midpoint.
Intrusion Inc. ((INTZ - Free Report) ) incurred a third-quarter 2025 loss of 10 cents per share compared with a loss of 35 cents a year ago. The bottom line matched the Zacks Consensus Estimate. Quarterly revenues reached $2 million, marking a 31% increase year over year. The Zacks Consensus Estimate for revenues was pegged at $1.9 million. The upside resulted from rising deal wins with the U.S. Department of Defense, which has harnessed both Shield technology and consulting services. The sequential uptick was driven by new customer wins for its Shield technology and consulting services during the quarter.
NETGEAR, Inc. ((NTGR - Free Report) ) reported third-quarter 2025 non-GAAP earnings per share of 12 cents, in contrast to the Zacks Consensus Estimate of a loss of 9 cents. The company reported non-GAAP earnings of 17 cents per share in the year-ago quarter. NETGEAR generated net revenues of $184.6 million, beating the consensus estimate by 7% and surpassing the company’s guidance of $165-$180 million. Revenues rose 0.9% year over year and 8.2% sequentially. The higher-margin enterprise segment buoyed the performance, benefiting from ASP and unit growth in ProAV-managed switch products.
Plexus Corp ((PLXS - Free Report) ) reported fourth-quarter fiscal 2025 adjusted EPS of $2.14 compared with the year-ago quarter’s earnings of $1.85. The figure beat the Zacks Consensus Estimate of $1.84 per share. Plexus expected non-GAAP EPS to be in the band of $1.82-$1.97. Plexus’ revenues of $1.058 billion were up nearly 0.7% year over year and topped the Zacks Consensus Estimate of $1.046 billion. Management expected revenues to be between $1.025 billion and $1.065 billion.
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Radcom's Q3 Earnings & Revenues Beat on AI-Driven Growth, Stock Gains
Key Takeaways
Radcom ((RDCM - Free Report) ) reported third-quarter 2025 non-GAAP earnings per share (EPS) of 29 cents, surpassing the Zacks Consensus Estimate of 12 cents. The bottom line compared favorably with the prior-year quarter’s 23 cents.
Revenues in the quarter totaled $18.4 million, beating the Zacks Consensus Estimate by 2.7%. Total revenues jumped 16.2% year over year. The expansion highlights the company’s ability to capitalize on rising demand for intelligent assurance solutions that leverage AI and automation to deliver network observability and performance optimization.
During the third quarter, RADCOM strengthened its foothold with key advancements. It partnered with 1Global to deploy its AI-driven assurance platform, RADCOM ACE, across Europe, North America and Asia, covering more than 43 million connections. The company also launched its High-Capacity User Analytics solution — the industry’s first to capture data at 400Gbps on a single server. Powered by NVIDIA BlueField-3 DPUs, the solution enables real-time analytics at lower costs, showcasing RADCOM’s focus on AI, automation and next-generation network observability.
Radcom Ltd. Price, Consensus and EPS Surprise
Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote
Following the announcement, RDCM’s shares rose 5% in trading and closed at $13.32 on Nov. 12, 2025.
Other Details
It continued to manage expenses efficiently while increasing strategic investments in sales and marketing, leading to record profitability and a strong gross margin of just over 77%. The improvement reflects a favorable revenue mix with fewer third-party costs, and the company expects to maintain this level in the fourth quarter.
RADCOM’s non-GAAP R&D expenses rose 11.6% year over year to $4.7 million, reflecting its focus on innovation, deeper collaborations and portfolio expansion. The company plans to continue investing in advanced intelligent solutions, emphasizing agent-to-agent and multimodal workflows, while supporting key partnerships and productization efforts.
It reported non-GAAP operating income of $3.8 million, up from $2.6 million, its highest since 2017, driven by strong scalability and disciplined execution.
Cash Flow & Liquidity
As of Sept. 30, 2025, RDCM had $106.7 million in cash, cash equivalents and short-term bank deposits and no debt.
The company exited the third quarter with a cash flow of $5.1 million.
2025 Guidance Reiterated
RADCOM reaffirmed its full-year 2025 guidance of 15%-18% year-over-year revenue growth, implying approximately $71.1 million in revenue at the midpoint.
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 third-quarter 2025 loss of 10 cents per share compared with a loss of 35 cents a year ago. The bottom line matched the Zacks Consensus Estimate. Quarterly revenues reached $2 million, marking a 31% increase year over year. The Zacks Consensus Estimate for revenues was pegged at $1.9 million. The upside resulted from rising deal wins with the U.S. Department of Defense, which has harnessed both Shield technology and consulting services. The sequential uptick was driven by new customer wins for its Shield technology and consulting services during the quarter.
NETGEAR, Inc. ((NTGR - Free Report) ) reported third-quarter 2025 non-GAAP earnings per share of 12 cents, in contrast to the Zacks Consensus Estimate of a loss of 9 cents. The company reported non-GAAP earnings of 17 cents per share in the year-ago quarter. NETGEAR generated net revenues of $184.6 million, beating the consensus estimate by 7% and surpassing the company’s guidance of $165-$180 million. Revenues rose 0.9% year over year and 8.2% sequentially. The higher-margin enterprise segment buoyed the performance, benefiting from ASP and unit growth in ProAV-managed switch products.
Plexus Corp ((PLXS - Free Report) ) reported fourth-quarter fiscal 2025 adjusted EPS of $2.14 compared with the year-ago quarter’s earnings of $1.85. The figure beat the Zacks Consensus Estimate of $1.84 per share. Plexus expected non-GAAP EPS to be in the band of $1.82-$1.97. Plexus’ revenues of $1.058 billion were up nearly 0.7% year over year and topped the Zacks Consensus Estimate of $1.046 billion. Management expected revenues to be between $1.025 billion and $1.065 billion.