Company Announcements

RADCOM LTD.

Consolidated Statements of Operations

Unaudited

(thousands of U.S. dollars, except share and per share data)

Three months ended
 March 31,

Revenues

$                   18,585

$                 16,591

Cost of revenues

4,512

4,092

Gross profit

14,073

12,499

Research and development, gross

5,618

4,749

Less - royalty-bearing participation

55

25

Research and development, net

5,563

4,724

Sales and marketing

4,835

4,864

General and administrative

1,498

1,449

Total operating expenses

11,896

11,037

Operating income (loss)

2,177

1,462

Financial income, net

1,215

1,120

Income before taxes on income

3,392

2,582

Taxes on income

(315)

(142)

Net income

$                  3,077

$                     2,440

Basic and diluted net income per

ordinary share

$                    0.18

$                       0.15

Weighted average number of 
 ordinary shares used in computing basic net income per ordinary share

16,679,249

16,013,218

Weighted average number of 
 ordinary shares used in computing diluted net income per ordinary share

17,072,222

16,660,105

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

 (thousands of U.S. dollars, except share and per share data)

2026

2025

GAAP gross profit                                                                                                                                           

$                 14,073

$                12,499

     Stock-based compensation

89

99

     Amortization of intangible assets

55

55

Non-GAAP gross profit

$                  14,217

$                  12,653

GAAP research and development, net

$                   5,563

$                   4,724

    Stock-based compensation

483

459

Non-GAAP research and development, net

$                  5,080

$                  4,265

GAAP sales and marketing

$                4,835

$                4,864

    Stock-based compensation

536

622

    Amortization of intangible assets

29

29

Non-GAAP sales and marketing

$                  4,270

$                 4,213

GAAP general and administrative

$                  1,498

$                  1,449

    Stock-based compensation

363

420

Non-GAAP general and administrative

$                  1,135

$                  1,029

GAAP total operating expenses

$                11,896

$               11,037

     Stock-based compensation

1,382

1,501

     Amortization of intangible assets

29

29

Non-GAAP total operating expenses

$                  10,485

$                  9,507

GAAP operating income (loss)

$                  2,177

$                  1,462

    Stock-based compensation

1,471

1,600

    Amortization of intangible assets

84

84

Non-GAAP operating income

$                  3,732

$                  3,146

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

 (thousands of U.S. dollars, except share and per share data)

GAAP income before taxes on income

$               3,392

$               2,582

Stock-based compensation

1,471

1,600

Amortization of intangible assets

84

84

Financial expenses

86

6

Non-GAAP income before taxes on income

$                5,033

$                4,272

GAAP net income

$                3,077

$                2,440

Stock-based compensation

1,471

1,600

Amortization of intangible assets

84

84

Financial expenses

86

6

Non-GAAP net income

$                4,718

$                4,130

GAAP net income per diluted share

$                   0.18

$                  0.15

Stock-based compensation

0.10

0.09

Amortization of intangible assets

(*)

0.01

Financial expenses

(*)

(*)

Non-GAAP net income per diluted share

$                   0.28

$                   0.25

Weighted average number of shares used to compute diluted net income per share

17,072,222

16,660,105

(*) Less than $ 0.01

RADCOM LTD.

Consolidated Balance Sheets

(Unaudited)
(thousands of U.S. dollars)

As of

As of

March  31,

202 6

December 31,

202 5

Current Assets

    Cash and cash equivalents

$                10,960

$                   30,486

    Short-term bank deposits

97,470

79,437

    Trade receivables, net

24,656

20,245

    Inventories

21

318

    Other accounts receivable and prepaid expenses

2,560

2,036

Total Current Assets

135,667

132,522

Non-Current Assets

    Severance pay fund

3,459

3,431

    Other long-term assets

2,504

2,866

    Property and equipment, net

1,280

988

    Operating lease right-of-use assets

2,648

2,898

    Goodwill and intangible assets, net

2,184

2,269

Total Non-Current Assets

12,075

12,452

Total Assets

$             147,742

$                144,974

Liabilities and Shareholders' Equity

Current Liabilities

       Trade payables

$                  4,530

$                    2,632

    Deferred revenues and advances from customers

808

1,100

    Employee and payroll accruals

5,784

7,325

    Operating lease liabilities

1,110

1,099

    Other liabilities and accrued expenses

9,243

10,872

Total Current Liabilities

21,475

23,028

Non-Current Liabilities

    Accrued severance pay       

4,752

4,790

    Operating lease liabilities

1,860

2,135

    Other liabilities and accrued expenses

1,027

916

Total Non-Current Liabilities

7,639

7,841

Total Liabilities

$                29,114

$                  30,869

Shareholders' Equity

     Share capital

$                    818

$                       809

     Additional paid-in capital

168,635

167,172

     Accumulated other comprehensive loss

(2,950)

(2,923)

     Accumulated deficit

(47,875)

(50,953)

Total Shareholders' Equity

118,628

114,105

Total Liabilities and Shareholders' Equity

$           147,742

$                144,974