Revenue growth momentum remains consistent at 15.9% year-over-year, while operating margins have improved from a negative 2.2% in 2024Q1 to 14.2% by 2025Q4.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 71.49M | 61.01M | 51.6M | 46.05M | 40.28M | 37.56M | 33.01M | 34.05M | 37.23M | 29.51M | 18.67M | 23.64M | 20.48M | 15.79M | 21.99M | 19.17M | 11.92M | 15.24M | 13.5M | 23.54M | 22.34M | 16.05M | 11.2M | 14.59M | 18.68M | 30.58M | 24.72M | 19.12M |
| Revenue Growth % | 17.19% | 18.23% | 12.05% | 14.32% | 7.24% | 13.79% | -3.05% | -8.55% | 26.17% | 58.04% | -21% | 15.4% | 29.75% | -28.2% | 14.68% | 60.87% | -21.79% | 12.9% | -42.67% | 5.38% | 39.15% | 43.31% | -23.22% | -21.87% | -38.93% | 23.7% | 29.3% | - |
| Cost of Goods Sold | 17.19M | 15.75M | 13.77M | 12.71M | 11.42M | 10.76M | 9.92M | 8.87M | 10.49M | 8.98M | 4.33M | 8.69M | 7.89M | 6.18M | 6.68M | 6.49M | 4.06M | 6.03M | 5.39M | 7.4M | 7.4M | 5.13M | 4.89M | 5.05M | 8.81M | 7.42M | 5.04M | 4.52M |
| COGS % of Revenue | 24.05% | 25.81% | 26.69% | 27.61% | 28.36% | 28.64% | 30.04% | 26.04% | 28.17% | 30.44% | 23.17% | 36.78% | 38.52% | 39.16% | 30.38% | 33.83% | 34.06% | 39.54% | 39.96% | 31.42% | 33.12% | 31.93% | 43.68% | 34.59% | 47.18% | 24.26% | 20.38% | 23.65% |
| Gross Profit | 54.3M | 45.26M | 37.83M | 33.34M | 28.86M | 26.8M | 23.09M | 25.18M | 26.75M | 20.53M | 14.35M | 14.94M | 12.59M | 9.6M | 15.31M | 12.69M | 7.86M | 9.21M | 8.1M | 16.14M | 14.94M | 10.93M | 6.31M | 9.54M | 9.87M | 23.16M | 19.68M | 14.6M |
| Gross Margin % | 75.95% | 74.19% | 73.31% | 72.39% | 71.64% | 71.36% | 69.96% | 73.96% | 71.83% | 69.56% | 76.83% | 63.22% | 61.48% | 60.84% | 69.62% | 66.17% | 65.94% | 60.46% | 60.04% | 68.58% | 66.88% | 68.07% | 56.32% | 65.41% | 52.82% | 75.74% | 79.62% | 76.35% |
| Gross Profit Growth % | 19.97% | 19.66% | 13.47% | 15.52% | 7.67% | 16.07% | -8.3% | -5.84% | 30.29% | 43.08% | -3.99% | 18.67% | 31.11% | -37.26% | 20.65% | 61.43% | -14.7% | 13.68% | -49.8% | 8.05% | 36.73% | 73.21% | -33.9% | -3.25% | -57.41% | 17.68% | 34.84% | - |
| Operating Expenses | 46M | 42.18M | 38.49M | 37.45M | 34.35M | 31.39M | 30.93M | 28.67M | 24.15M | 19.41M | 14.72M | 13.71M | 13.72M | 15.16M | 16.83M | 11.39M | 10.07M | 14.7M | 16.95M | 16.67M | 13.65M | 12.68M | 12.63M | 14.48M | 21.35M | 25.48M | 20.02M | 15.38M |
| OpEx % of Revenue | 64.34% | 69.13% | 74.59% | 81.33% | 85.28% | 83.56% | 93.69% | 84.21% | 64.86% | 65.76% | 78.81% | 57.98% | 66.99% | 96.02% | 76.53% | 59.43% | 84.48% | 96.45% | 125.6% | 70.82% | 61.1% | 79% | 112.71% | 99.22% | 114.34% | 83.3% | 80.99% | 80.41% |
| Selling, General & Admin | 26.12M | 24.2M | 19.65M | 16.73M | 14.54M | 13.54M | 14.19M | 14.82M | 15.19M | 13.05M | 10.23M | 9.56M | 9.64M | 10.62M | 12.2M | 8.51M | 7.48M | 10.3M | 11.67M | 11.75M | 9.57M | 9.17M | 9.03M | 10.32M | 13.95M | 18.4M | 14.32M | 10.97M |
| SG&A % of Revenue | 36.54% | 39.67% | 38.08% | 36.33% | 36.1% | 36.06% | 42.98% | 43.52% | 40.79% | 44.23% | 54.77% | 40.43% | 47.08% | 67.29% | 55.47% | 44.38% | 62.75% | 67.62% | 86.46% | 49.91% | 42.84% | 57.14% | 80.61% | 70.76% | 74.69% | 60.18% | 57.92% | 57.35% |
| Research & Development | 19.88M | 18.66M | 18.84M | 20.72M | 19.81M | 17.84M | 16.74M | 13.86M | 8.96M | 6.35M | 4.49M | 4.15M | 4.08M | 4.54M | 4.63M | 2.89M | 2.59M | 4.39M | 5.28M | 4.92M | 4.08M | 3.51M | 3.6M | 4.15M | 7.4M | 7.07M | 4.02M | 3.15M |
| R&D % of Revenue | 27.8% | 30.58% | 36.51% | 45% | 49.18% | 47.5% | 50.71% | 40.69% | 24.07% | 21.53% | 24.04% | 17.55% | 19.91% | 28.73% | 21.06% | 15.05% | 21.73% | 28.83% | 39.13% | 20.91% | 18.26% | 21.86% | 32.1% | 28.46% | 39.64% | 23.12% | 16.28% | 16.48% |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 8.3M | 3.09M | -662K | -4.11M | -5.49M | -4.58M | -7.83M | -3.49M | 2.6M | 1.12M | -369K | 1.24M | -1.13M | -5.55M | -1.52M | 1.29M | -2.21M | -5.48M | -8.85M | -526K | 1.29M | -1.76M | -6.32M | -4.93M | -11.49M | -4.08M | -338.66K | -776.15K |
| Operating Margin % | 11.61% | 5.06% | -1.28% | -8.93% | -13.64% | -12.2% | -23.74% | -10.24% | 6.97% | 3.81% | -1.98% | 5.24% | -5.51% | -35.18% | -6.91% | 6.74% | -18.54% | -35.99% | -65.56% | -2.23% | 5.78% | -10.94% | -56.4% | -33.81% | -61.52% | -13.34% | -1.37% | -4.06% |
| Operating Income Growth % | 168.97% | 566.31% | 83.91% | 25.1% | -19.88% | 41.52% | -124.63% | -234.41% | 131.08% | 404.34% | -129.81% | 209.65% | 79.67% | -265.33% | -217.65% | 158.49% | 59.72% | 38.02% | -1582.13% | -140.71% | 173.58% | 72.21% | -28.08% | 57.06% | -181.69% | -1104.35% | 56.37% | - |
| EBITDA | 8.98M | 3.77M | -41K | -3.64M | -4.95M | -3.88M | -7.08M | -2.83M | 3.13M | 1.41M | -246K | 1.32M | -1.02M | -5.43M | -1.36M | 1.59M | -1.73M | -4.87M | -8.16M | 77K | 1.87M | -959K | -5.17M | -3.53M | -9.78M | -2.31M | 1.34M | 483.01K |
| EBITDA Margin % | 12.56% | 6.17% | -0.08% | -7.9% | -12.3% | -10.34% | -21.46% | -8.31% | 8.41% | 4.77% | -1.32% | 5.61% | -4.98% | -34.42% | -6.21% | 8.27% | -14.5% | -31.99% | -60.47% | 0.33% | 8.38% | -5.97% | -46.18% | -24.21% | -52.39% | -7.56% | 5.42% | 2.53% |
| EBITDA Growth % | 138.5% | 9285.37% | 98.87% | 26.57% | -27.56% | 45.18% | -150.19% | -190.39% | 122.29% | 672.76% | -118.57% | 229.77% | 81.21% | -298.1% | -186.07% | 191.78% | 64.55% | 40.28% | -10698.7% | -95.88% | 295.1% | 81.46% | -46.42% | 63.89% | -323.18% | -272.58% | 177.35% | - |
| D&A (Non-Cash Add-back) | 679K | 679K | 621K | 477K | 540K | 699K | 752K | 657K | 537K | 286K | 123K | 87K | 108K | 119K | 155K | 294K | 481K | 610K | 687K | 603K | 579K | 797K | 1.15M | 1.4M | 1.71M | 1.77M | 1.68M | 1.26M |
| EBIT | 12.59M | 7.39M | -605K | -2.08M | -5.12M | -4.58M | -7.83M | -3.49M | 2.6M | 1.12M | -369K | 3.05M | -1.3M | -5.76M | -1.83M | 771K | -2.21M | -5.48M | -8.57M | -526K | 1.29M | -1.76M | -6.32M | -4.93M | -11.49M | -2.31M | -338.66K | -776.15K |
| Net Interest Income | 4.97M | 4.5M | 4.17M | 1.76M | 651K | 1.12M | 1.76M | 1.44M | 514K | 466K | 206K | 130K | -68K | -93K | -54K | -190K | -440K | -168K | 265K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4.97M | 4.69M | 4.3M | 1.78M | 666K | 1.13M | 1.77M | 1.46M | 572K | 489K | 229K | 170K | 49K | 15K | 20K | 11K | 4K | 109K | 280K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 12.59M | 7.2M | 3.9M | -2.1M | -5.14M | -3.77M | -6.66M | -2.35M | 2.98M | 1.94M | -802K | 906K | -1.42M | -5.87M | -1.9M | 570K | -2.4M | -5.79M | -8.58M | -54K | 93K | 93K | 41K | 0 | -12.13M | -1.26M | -452.76K | 496.43K |
| Pretax Margin % | 17.6% | 11.8% | 7.55% | -4.56% | -12.76% | -10.04% | -20.18% | -6.91% | 8.01% | 6.57% | -4.29% | 3.83% | -6.93% | -37.17% | -8.66% | 2.97% | -20.15% | -38.02% | -63.59% | -0.23% | 0.42% | 0.58% | 0.37% | - | -64.94% | -4.12% | -1.83% | 2.6% |
| Income Tax | 595K | 234K | 182K | 159K | 124K | 220K | 169K | 63K | 83K | 24K | 121K | 180K | 0 | 120K | 0 | 0 | 440K | 0 | 0 | 0 | -235K | -78K | -93K | -217K | -41K | 715.32K | -755.94K | 0 |
| Effective Tax Rate % | 4.73% | 3.25% | 4.67% | -7.58% | -2.41% | -5.83% | -2.54% | -2.68% | 2.78% | 1.24% | -15.09% | 19.87% | 0% | -2.05% | 0% | 0% | -18.33% | 0% | 0% | 0% | -252.69% | -83.87% | -226.83% | - | 0.34% | -56.74% | 166.96% | 0% |
| Net Income | 11.99M | 6.97M | 3.71M | -2.26M | -5.26M | -3.99M | -6.83M | -2.42M | 2.9M | 1.92M | -923K | 726K | -1.42M | -5.99M | -1.9M | 570K | -2.65M | -5.79M | -8.58M | -54K | 1.53M | -1.68M | -6.22M | -4.72M | -11.45M | -3.03M | 417.28K | 496.43K |
| Net Margin % | 16.77% | 11.42% | 7.2% | -4.9% | -13.07% | -10.63% | -20.7% | -7.09% | 7.79% | 6.49% | -4.94% | 3.07% | -6.93% | -37.93% | -8.66% | 2.97% | -22.23% | -38.02% | -63.59% | -0.23% | 6.84% | -10.45% | -55.57% | -32.32% | -61.3% | -9.9% | 1.69% | 2.6% |
| Net Income Growth % | 72.09% | 87.67% | 264.51% | 57.12% | -31.84% | 41.57% | -182.9% | -183.25% | 51.49% | 307.48% | -227.13% | 151.13% | 76.28% | -214.44% | -434.04% | 121.52% | 54.27% | 32.51% | -15794.44% | -103.54% | 191% | 73.04% | -32% | 58.8% | -278.16% | -825.49% | -15.94% | - |
| Net Income (Continuing) | 11.99M | 6.97M | 3.71M | -2.26M | -5.26M | -3.99M | -6.83M | -2.42M | 2.9M | 1.92M | -923K | 726K | -1.42M | -5.99M | -1.9M | 570K | -2.65M | -5.79M | -8.58M | -54K | 1.53M | -1.68M | -6.22M | -4.72M | -11.45M | -3.03M | 417.28K | 496.43K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.71 | 0.43 | 0.24 | -0.16 | -0.37 | -0.29 | -0.50 | -0.18 | 0.23 | 0.18 | -0.11 | 0.08 | -0.19 | -0.93 | -0.30 | 0.10 | -0.52 | -1.16 | -2.10 | -0.01 | 0.40 | -0.50 | -2.37 | -1.80 | -4.36 | -1.17 | 0.12 | 0.20 |
| EPS Growth % | 65.12% | 79.17% | 250% | 56.76% | -27.59% | 42% | -177.78% | -178.26% | 27.78% | 263.64% | -237.5% | 142.11% | 79.57% | -210% | -400% | 119.23% | 55.17% | 44.76% | -15341.18% | -103.4% | 180% | 78.9% | -31.67% | 58.72% | -272.65% | -1075% | -40% | - |
| EPS (Basic) | 0.74 | 0.43 | 0.25 | -0.16 | -0.37 | -0.29 | -0.50 | -0.18 | 0.24 | 0.18 | -0.11 | 0.09 | -0.19 | -0.93 | -0.30 | 0.11 | -0.52 | -1.16 | -2.10 | -0.01 | 0.40 | -0.50 | -2.37 | -1.80 | -4.36 | -1.17 | 0.12 | 0.20 |
| Diluted Shares Outstanding | 16.84M | 16.16M | 15.3M | 14.53M | 14.12M | 13.93M | 13.78M | 13.63M | 12.35M | 10.78M | 8.57M | 8.59M | 7.34M | 6.44M | 6.37M | 5.83M | 5.08M | 5M | 4.08M | 3.97M | 3.89M | 3.36M | 2.62M | 2.62M | 2.63M | 2.58M | 2.77M | 2.51M |
| Basic Shares Outstanding | 16.89M | 16.2M | 15.1M | 14.53M | 14.12M | 13.93M | 13.78M | 13.42M | 12.04M | 10.41M | 8.39M | 8.09M | 7.34M | 6.44M | 6.37M | 5.37M | 5.08M | 5M | 4.08M | 3.97M | 3.67M | 3.36M | 2.62M | 2.62M | 2.63M | 2.58M | 2.77M | 2.51M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Concentration Risk
According to recent financial disclosures, RADCOM has achieved consistent top-line expansion, with quarterly revenue climbing to $18.9 million in 2025Q4, representing a 15.9% year-over-year increase that suggests the company is successfully capturing demand from the ongoing global 5G Standalone network upgrade cycle.
The steady revenue progression indicates that the company's transition toward multi-year, recurring-style arrangements is gaining traction within its core Tier-1 carrier base. Investors should monitor whether this growth trajectory remains sustainable as the initial 5G deployment phase matures and the company seeks to expand its footprint beyond its primary anchor tenants.
As reported in quarterly filings, RADCOM maintains a robust gross margin profile of approximately 76.8% as of 2025Q4, which highlights the inherent scalability of its cloud-native software architecture compared to legacy hardware-centric competitors like NetScout Systems that face higher deployment friction.
This high margin level appears to be a direct result of the company's software-only delivery model, which minimizes marginal costs per deployment. However, the sustainability of these margins may depend on the company's ability to limit the proportion of lower-margin professional services required to support complex, customized carrier integrations.
Based on the provided income statement data, RADCOM has demonstrated improving operating leverage, with operating margins expanding from a negative 2.2% in 2024Q1 to 14.2% by 2025Q4, signaling that revenue growth is now outpacing the company's fixed R&D and SG&A expenditure requirements.
The ability to scale operating income while maintaining significant R&D investment suggests that the company is successfully leveraging its existing software platform across a broader revenue base. This trend warrants further investigation to determine if the current operating efficiency is a permanent structural shift or merely a byproduct of recent milestone-driven revenue recognition.
Financial statements indicate that RADCOM's net income quality has improved significantly, with quarterly net income reaching $3.6 million in 2025Q4, a notable recovery from the $1.6 million in stock-based compensation expenses recorded during the middle quarters of 2025 that previously pressured reported earnings.
The absence of stock-based compensation in the most recent quarter suggests a more normalized earnings profile, which may provide a clearer view of the company's underlying profitability. Analysts should remain cautious, however, as the lumpy nature of milestone-based revenue recognition can create volatility in quarterly net income that may not reflect true operational performance.
While the company shows positive momentum, the reliance on a single North American Tier-1 carrier for a substantial portion of revenue, as noted in industry intelligence, creates a binary risk profile that could lead to significant earnings contraction if contract renewal terms become unfavorable.
The market's valuation of the stock appears to reflect a discount for this 'key man' risk, which may be justified given the lack of customer diversification. Investors should consider whether the company's current technological moat is sufficient to prevent margin compression should its primary customer demand more aggressive pricing in future contract cycles.
Quick answers to the most common questions about buying RDCM stock.
For fiscal year 2025, RADCOM Ltd. (RDCM) reported total revenue of $71.5M. This represents a 273.9% increase compared to $19.1M in 1998.
RADCOM Ltd. (RDCM) is profitable, generating $12.0M in net income for the fiscal year ending 2025 with a net profit margin of 16.8%.
RADCOM Ltd. (RDCM) reported an operating income of $8.3M, resulting in an operating profit margin of 11.6%. This margin reflects the operational efficiency of the business before interest and taxes.
RADCOM Ltd. (RDCM) generated $54.3M in gross profit for the year, representing a gross profit margin of 76.0%. This demonstrates the company's core pricing power and production efficiency.