Radcom Ltd. · NASDAQ:RDCM

Radcom — Q2 2026 Earnings Presentation

28 slides from Radcom's earnings presentation, Aug 12, 2026

  1. Slide 1: Q2 2026 Earnings

    Q2 2026 Earnings August 12, 2026 Benny Eppstein CEO Hod Cohen CFO 1

  2. Slide 2: Safe Harbor Provision

    SAFE HARBOR PROVISION This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve known and unknown risks and uncertainties, including, but not limited to, the Company's statements about its momentum, strategic direction and goals, market p

  3. Slide 3: Non-GAAP Financial Measures

    NON-GAAP FINANCIAL MEASURES 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 non-cash stock-based compensation that has been expensed in accordanc

  4. Slide 4: Agenda

    AGENDA Business Performance and Company Strategy 1 Benny Eppstein Chief Executive Officer Financial Results and Performance 2 Hod Cohen Chief Financial Officer 3 Q&A 4

  5. Slide 5: Today's Speakers

    TODAY’S SPEAKERS Benny Eppstein Chief Executive Officer Hod Cohen Chief Financial Officer 5

  6. Slide 6: Business Performance and Company Strategy

    Benny Eppstein Chief Executive Officer Business Performance and Company Strategy 6

  7. Slide 7: Revenue Timing: Deferrals, Not Losses

    REVENUE TIMING: DEFERRALS, NOT LOSSES Following our July 30 announcement: expansion phases with a few Tier-1 customers moved out on infrastructure timing, not demand. THE DRIVER THE MECHANIC THE POSITION Server costs have risen Our software needs a ready These projects are delayed, not industry-wide

  8. Slide 8: Q2-26: Timing-Related Deployment Delays

    Q2-26: TIMING-RELATED DEPLOYMENT DELAYS Quarterly Operating Margin Cash Revenue (Non-GAAP)* (No debt) Deployment Delays Impacted by Lower Cash and cash equivalents and Deferred Purchasing Revenue short-term bank deposits $11.8M -18.5% $109.7M down 33.4% YoY vs. 19.5% in Q2-25 Positive cash flow of $

  9. Slide 9: Three New Wins After Quarter End

    THREE NEW WINS AFTER QUARTER END THE WINS WHY IT MATTERS ▪ CETIN is part of CETIN International and the wider e& 1. CETIN Networks (Slovakia), new customer: multi-year PPF Telecom Group, serving over 12 million contract for end-to-end, AI-driven assurance across customers across four countries, so t

  10. Slide 10: Our Strategy Is Unchanged

    OUR STRATEGY IS UNCHANGED Consistent priorities, executed with the operating discipline that underpins our profitability 01 Expand our presence with Tier-1 operators, winning new customers TIER-1 FOOTPRINT through competitive displacements. 02 Deepen the installed base with additional modules, use c

  11. Slide 11: The Market Is Moving Our Way

    THE MARKET IS MOVING OUR WAY Near-term spending shifted, the underlying direction did not 5G Standalone and cloud- AI deeper in networks: Relentless growth in data Proof of concept moving native deployments automation, experience, and complexity to commercial AI lower costs THE AI READINESS GAP A ga

  12. Slide 12: Installed Base Validates Our Strategy

    INSTALLED BASE VALIDATES OUR STRATEGY Proven technology in live, large-scale production networks WHY IT MATTERS 1GLOBAL Deployment progressing as RADCOM ACE is rolled out to monitor Our installed base validates the 4G and 5G services. strategy and the durability of our technology in live, large-scal

  13. Slide 13: RADCOM ADM Puts Operators in Control

    RADCOM ADM PUTS OPERATORS IN CONTROL Analytics Designer Module, a new addition to the RADCOM ACE platform BEFORE NOW WITH ADM Analytics changes meant a request to the Operator teams define, configure and deploy vendor and a wait of months. datasets, KPIs and alarms themselves, in real time. HARD TO

  14. Slide 14: Industry Recognition for RADCOM Neura

    INDUSTRY RECOGNITION FOR RADCOM NEURA Our suite of AI agents for the agentic ecosystem, released in February LEADING LIGHTS 2026 FINALIST DTW IGNITE 2026 CATALYST AWARD RADCOM Neura is a finalist in the Light Reading Part of the winning team at Digital Transformation Leading Lights Awards for Most I

  15. Slide 15: Go-to-Market Activities

    GO-TO-MARKET ACTIVITIES Digital Transformation World 1 COPENHAGEN | DTW-Ignite FutureNet World 2 LONDON | Autonomous networks Network X Americas 3 DALLAS | Americas operators WHY THESE EVENTS MATTER SOLUTION SHOWCASE EXECUTIVES ON STAGE AGENTIC AI OPPORTUNITY Presented our AI-native assurance soluti

  16. Slide 16: Pipeline Is Steady and Moving Forward

    PIPELINE IS STEADY AND MOVING FORWARD Several opportunities advanced during the quarter TECHNICAL EVALUATION PROOF OF CONCEPT COMMERCIAL DISCUSSIONS TIMING CAN SHIFT BROAD BY DESIGN As is common with Tier-1 engagements, we cannot Our pipeline is deliberately broad and multi-year, so predict precisel

  17. Slide 17: Q2-26 Results and Updated Guidance

    Q2-26 RESULTS AND UPDATED GUIDANCE Q2-26 revenues of $11.8M, Preliminary revenue expectations 1 down 33.4% year over year from $17.7M in Q2-25 2 and updated full-year 2026 revenue guidance issued July 30, 2026 Delays reflect timing, not demand: $109.7M in cash and no debt, 3 three new wins since qua

  18. Slide 18: Share Repurchase Program: $20-25 Million

    SHARE REPURCHASE PROGRAM: $20-25 MILLION Using our balance sheet proactively when we believe the market materially undervalues the company. THE RATIONALE THE PROCESS THE COMMITMENT The Board and management We are moving forward with This is an initial commitment, believe the current share price the

  19. Slide 19: Financial Results and Performance

    Hod Cohen Chief Financial Officer Financial results and performance 19

  20. Slide 20: Q2 2026 Financial Highlights

    Q2 2026 Q2 2026 Results Q2 Revenue Financial Q2 Revenue historical trend ($M) Highlights $11.8 Million 12.4 14.8 17.7 11.8 ▪ Revenue down by Q2 Non-GAAP Gross Margin 33.4% y-o-y 76.3% Q2/2023 Q2/2024 Q2/2025 Q2/2026 Q2 Non-GAAP Operating Loss ▪ H1 2026 Non-GAAP Operating Margin of $2.2 Million Non-G

  21. Slide 21: Consolidated Statements of Operations (Non-GAAP)

    CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) Three months ended (In thousands of U.S. dollars, except per share data) June 30, 2026 2025 NON-GAAP (1) Revenues $ 11,760 $ 17,658 Cost of revenues $ 2,785 $ 4,211 Gross profit $ 8,975 $ 13,447 Gross profit % 76% 76% Research and development, gross $

  22. Slide 22: Consolidated Statements of Operations (GAAP)

    CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) Three months ended (In thousands of U.S. dollars, except per share data) June 30, 2026 2025 Revenues $ 11,760 $ 17,658 Cost of revenues $ 2,931 $ 4,367 Gross profit $ 8,829 $ 13,291 Gross profit % 75% 75% Research and development, gross $ 5,781 $ 4,964 Le

  23. Slide 23: FY2026 Revenue Outlook

    FY2026 Five-year historical trend and FY2026 outlook ($M) Revenue Expects Outlook 10.0% 12% 8% guidance ▪ Reaffirming midpoint the revised FY2026 revenue outlook of $57 to $63 million, with midpoint of $60 ▪ Customer Revenue growth relationships are Y-o-Y growth (percentage) strong, and pipeline is

  24. Slide 24: Balance Sheet & Cash Flow

    BALANCE Cash and Bank Deposits As of ($M) SHEET & CASH 109.9 109.7 FLOW 82.2 94.7 ▪ Positive cash flow of $1.3M for Q2/26 2023 2024 2025 H1 2026 Cash Flow historical trend ▪ Ending Q2 2026 ($M) with the cash, cash equivalent & bank 2.5 deposits of 1.3 $109.7M 0.8 0.4 Slide 24 Q2 2023 Q2 2024 Q2 2025

  25. Slide 25: Consolidated Balance Sheets

    CONSOLIDATED BALANCE (In thousands of U.S. dollars, except per share data) As of June 30, As of December SHEETS 2026 31, 2025 Cash and cash equivalents $ 12,609 $ 30,486 Short-term bank deposits $ 97,093 $ 79,437 Trade receivables, net $ 21,558 $ 20,245 Inventories $ 674 $ 318 Other accounts receiva

  26. Slide 26: Reconciliation Between GAAP & Non-GAAP

    RECONCILIATION (In thousands of U.S. dollars, except per share data) BETWEEN GAAP Three months ended June 30, & NON-GAAP 2026 (Unaudited) 2025 (Unaudited) CONSOLIDATED GAAP gross profit Stock-based compensation 8,829 90 13,291 100 STATEMENTS OF Amortization of intangible assets Non-GAAP gross profit

  27. Slide 27: Reconciliation Between GAAP & Non-GAAP

    RECONCILIATION (In thousands of U.S. dollars, except per share data) BETWEEN GAAP Three months ended & NON-GAAP June 30, 2026 2025 CONSOLIDATED (Unaudited) (Unaudited) STATEMENTS OF GAAP (loss) income before taxes Stock-based compensation (2,952) 1,502 2,533 1,612 OPERATIONS Amortization of intangib

  28. Slide 28: 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

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