Slide 1: Q2-25 Earnings
Q2-25 Earnings August 13, 2025 Benny Eppstein CEO Hadar Rahav CFO 1
Slide 2: Safe Harbor Provision
SAFE HARBOR PROVISION 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 an
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The In this presentation conferenceof call, thismanagement additional information will refer to is not certain meant non-GAAP to be considered financial measures, a substitute which for the arecorresponding provided to enhance financialthe measures user's overall prepared
Slide 4: Agenda
AGENDA Business performance and company strategy 1 Benny Eppstein Chief Executive Officer Financial results and performance 2 Hadar Rahav Chief Financial Officer 3 Q&A 4
Slide 5: Today's Speakers
TODAY’S SPEAKERS Benny Eppstein Chief Executive Officer Hadar Rahav Chief Financial Officer 5
Slide 6: Business performance and company strategy
Benny Eppstein Chief Executive Officer Business performance and company strategy 6
Slide 7: Q2-25: 19.3% Revenue Increase and Improved Profitability
Q2-25: 19.3% REVENUE INCREASE AND IMPROVED PROFITABILITY Quarterly Operating Margin Cash Generation Revenue (Non-GAAP)* (No debt) New Quarterly Ended Q2-25 with record-high Improved profitability Revenue Record cash and bank deposits $17.7M 19.5% Operating Margin $101.6M 19.3% YoY increase 4.1% YoY
Slide 8: Company Strategy
COMPANY STRATEGY Ongoing R&D Partnership Key Target Investment Activity Markets ▪ Continuing our ▪ Our initial partnership ▪ Remain focused on our investment in R&D announcements have key markets, North generated customer America, Japan, and ▪ Advancing our interest EMEA development in agentic AI (a
Slide 9: Key Customers
KEY CUSTOMERS ▪ Largest wireless network in North America ▪ Won industry recognition for the best network Source: Ookla State of the Mobile Union Report ▪ Ranked number one in 5G reliability and coverage across 15 major U.S. cities by OpenSignal Source: Boost Mobile PR, May 13, 2025 9
Slide 10: Key Customers (Cont'd)
KEY CUSTOMERS (CONT’D) ▪ Grown to over 9 million subscribers ▪ Recognized by industry peers in the second Cloud-Native Telco Market Perception Study Source: TelecomTV Cloud-Native Telco Market Perception Survey 10
Slide 11: Telecom Industry Trends
TELECOM INDUSTRY TRENDS 84% of telco executives agree that AI agents will reinvent how their organizations are building and operating their digital infrastructures. Accenture's 2025 Technology Vision A 6% growth in the mobile core market is projected through to 2029. And in Q1 alone, operators added
Slide 12: Go-to-Market Activities
GO-TO-MARKET ACTIVITIES 1 Network X 2 Knowledge 2025 3 DTW 4 FutureNet World 12
Slide 13: Moonshot Catalyst Wins
MOONSHOT CATALYST WINS The TM Forum is a global organization that brings together telecom operators and technology providers to address common industry challenges and establish standards. We participated in several award-winning innovation programs. Our intelligent assurance was leveraged to acceler
Slide 14: Strategy Built on Three Pillars
STRATEGY BUILT ON THREE PILLARS Deliver value and elevate customer satisfaction through 1 automation, real-time visibility, and proactive assurance Grow our customer base by leveraging our advanced AI and 2 agent-based technologies Expand our assurance offering and continue pioneering 3 innovation t
Slide 15: Q2-2025: Key Highlights
Q2-2025: KEY HIGHLIGHTS Accelerated profitability, with NVIDIA collaboration is gaining non-GAAP* operating income traction, running POCs with for Q2-2025 increasing by more multiple operators than 50% y-o-y Q2-2025 Integration with ServiceNow to Record-high cash and short-term Automate Service and
Slide 16: Financial results and performance
Hadar Rahav Chief Financial Officer Financial results and performance 16
Slide 17: Q2 2025 Financial Highlights
Q2 2025 Q2 2025 Results Q2 Revenue Financial Q2 Revenue historical trend ($M) Highlights $17.7 million 14.8 17.7 12.4 11.1 ▪ Record revenue, Q2 Non-GAAP Gross Margin representing 19.3% 76.2% growth y-o-y, on track for another Q2 Non-GAAP* Operating Profit Q2/2022 Q2/2023 Q2/2024 Q2/2025 year of doub
Slide 18: Balance Sheet & Cash Flow
Cash and Bank Deposits Balance Sheet As of ($M) & Cash Flow 82.2 94.7 101.6 77.7 ▪ Positive cash flow of $2.6M for Q2/25 2022 2023 2024 Q2/2025 Cash Flow historical trend ▪ Ending Q2 2025 with ($M) the highest cash level & bank deposits of 2.2 2.6 $101.6M 0.8 0.4 ▪ No debt Q2/2022 Q2/2023 Q2/2024 Q2
Slide 19: FY2025 Revenue Outlook
FY2025 Five-year historical trend and FY2025 outlook ($M) Revenue 71.1 Outlook 51.6 61 46.1 ▪ Reaffirming 40.3 FY 2025 revenue growth outlook of 15% - 18% YoY with midpoint of 16.5% FY2021 FY2022 FY2023 FY2024 FY2025 (Guidance midpoint) ▪ Driven by a strong Revenue growth sales funnel, robust Expect
Slide 20: Consolidated Statements of Operations (GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) (In thousands of U.S. dollars, except per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Revenues $ 17,658 $ 14,801 $ 34,249 $ 28,924 Cost of revenues $ 4,367 $ 3,794 $ 8,459 $ 7,545 Gross profit $ 13,291 $ 11,007 $
Slide 21: Consolidated Statements of Operations (Non-GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) (In thousands of U.S. dollars, except per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 NON-GAAP (1) Revenues $ 17,658 $ 14,801 $ 34,249 $ 28,924 Cost of revenues $ 4,211 $ 3,639 $ 8,148 $ 7,250 Gross profit $ 1
Slide 22: Reconciliation Between GAAP & Non-GAAP
(In thousands of U.S. dollars, except per share data) RECONCILIATION Three months ended Six months ended BETWEEN GAAP 2025 June 30, 2024 2025 June 30, 2024 & NON-GAAP (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP gross profit 13,291 11,007 25,790 21,379 CONSOLIDATED Stock-based compensation 1
Slide 23: Reconciliation Between GAAP & Non-GAAP
(In thousands of U.S. dollars, except per share data) RECONCILIATION BETWEEN GAAP Three months ended June 30, Six months ended June 30, & NON-GAAP 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) CONSOLIDATED GAAP income before taxes 2,533 1,734 5,115 2,529 STATEMENTS OF Stock-bas
Slide 24: Consolidated Balance Sheets
CONSOLIDATED (In thousands of U.S. dollars, except per share data) As of As of BALANCE Cash and cash equivalents $ June 30, 2025 21,910 $ December 31, 2024 19,243 SHEETS Short-term bank deposits Trade receivables, net $ $ 79,722 18,603 $ $ 75,429 19,038 Inventories $ 1,218 $ 1,667 Other accounts rec
Slide 25: Thank You
THANK YOU All rights reserved. This presentation contains proprietary information of RADCOM Ltd. Without the express prior written permission of RADCOM Ltd., no part of the contents hereof may be used for any other purpose, disclosed to persons or firms outside the recipient company, or reproduced b