Ladies and gentlemen, thank you for standing by. Welcome to RADCOM's Limited Results Conference Call for the Second Quarter of 2025. [Operator Instructions]. As a reminder, this conference is being recorded and will be available for replay on the company's website at www.radcom.com later today. On the call are Benny Eppstein, RADCOM's CEO; and Hadar Rahav, RADCOM's CFO. Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet, you may do so through the link in the Investors section of RADCOM's website at www.radcom.com/investor-relations. Before we begin, I would like to review the 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 and trajectory, future execution and delivery of value to customers, strengthening its core customer base, development of and enhancing strategic partnerships and expected benefits from collaborations. The success of new technologies, including AI to, among other things, enhance automation, pipeline opportunities and customer engagements demand for its products and solutions, including AI capabilities, trends in the market, innovation, expanding its business, the expected benefits of its AI-driven assurance solutions its expectations with respect to gross margins, research and development and sales and marketing expenses. Its expectations regarding grants, from the Israel Innovation Authority, expectations regarding the impact of foreign exchange rates and potential tariffs, expectations regarding the growth and convergence of 5G and AI. Its ability to deliver consistent value, while driving operational excellence and long-term shareholder returns and its full year 2025 revenue guidance and future growth and profitability. The company does not undertake to update forward-looking statements. The full safe harbor provisions, including risks that could cause actual results to differ from these forward-looking statements are outlined in today's press release and the company's SEC filings. 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 noncash stock-based compensation that has been expensed in accordance with ASC Topic 718 financial income expenses related to acquisitions and amortization of its intangible assets related to acquisitions. Non-GAAP results provide information helpful in assessing RADCOM's core operating performance and evaluating and comparing the results of operations consistently from period to period. The presentation of this additional information is not meant to be considered as substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures included in the quarter's earnings release, available on our website, www.radcom.com. Now I would like to turn over the call to Benny. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for RADCOM Second Quarter 2025 Earnings Call. RADCOM delivered strong results again this quarter, extending the growth trajectory we established over the past few years. In Q2, revenue increased 19% year-over-year supported by demand for our intelligent service assurance platform and strengthening engagement across our core customer base. We also reported solid profitability and cash generation ending the quarter with more than $100 million in cash and no debt. As many of you know, I stepped into the CEO role in December 2024. From day 1, my focus has been to drive our global sales effort, expanding strategic partnerships, ultimately leading RADCOM into the next phase of growth, particularly through the development of cutting-edge solutions powered by accelerated computing and Agentic AI technologies. With background serving global Tier 1 operators, I have seen firsthand how network complexity and customer expectations are evolving. The context is shaping how we execute, and I'm encouraged by the early results. The first half of 2025 has reflected strong performance underscored by disciplined execution and expanding customer engagement. We are deepening our commitment to become a key vendor in the new era of intelligent Agentic AI-powered ecosystem. Our investment in RMB, our strategic partnership with market leaders and our alignment around long-term initiatives are collectively reinforcing our market position and setting the stage for sustained growth. Today, RADCOM is focusing on addressing key operators pain points and future market drivers such as data volume growth, visibility and network complexity. We are simplifying next-generation automated assurance for AI-driven networks, enabling us to penetrate previously untapped market with unique insight and value. Through close collaboration with our partners, we are scaling innovation to meet our customers' evolving needs and bring their future vision for customer…

Thank you, Benny, and good morning, everyone. I'll focus on our non-GAAP results unless stated otherwise. You can find the GAAP to non-GAAP reconciliation on Slide 3 and in today's press release. All comparisons are year-over-year unless noted. Please turn to Slide 17 for our financial highlights. Second quarter revenue grew by 19.3% to a new company record of $17.7 million. We continue to manage expenses carefully, while making strategic targeted investments to drive growth, foster innovation and maintain our competitive edge. This disciplined approach enabled us to deliver our highest ever non-GAAP operating income of $3.4 million, representing 19.5% of quarterly revenues. Our non-GAAP gross margin for the second quarter of 2025 was 76.2%, as a software company, we don't expect U.S. tariffs to add a material impact on our gross margin next quarter, though results may fluctuate depending on our revenue mix. As shown on Slide 21, our non-GAAP gross R&D expenses for the second quarter of 2025 were $4.5 million up 10.7% year-over- year. This increase reflects our commitment to strengthening collaborations, driving continuous innovations and expanding our portfolio. We will continue to invest strategically in R&D to deliver advanced intelligent solutions with a focus on agent-to-agent and multi-model workflows, while supporting our strategic partnerships and productization plans. This quarter, we didn't receive a grant from the Israel Innovation Authority compared to the $180,000 grant we received in the same quarter last year. For the second half of 2025, we are in the final stages of securing grant approvals, which we anticipate receiving in Q3 and Q4. Our net R&D expenses for the second quarter of 2025 were $4.5 million an increase of $620,000 compared to the second quarter of 2024. Sales and marketing expenses were $4.3 million an increase of $514,000 from Q2, 2024, reflecting our…

[Operator Instructions] The first question is from Alinda Li of William Blair.

Congrats on a great quarter here. Benny, could you touch on -- you mentioned NVIDIA partnership...

Alinda, I'm sorry, you were disconnected. Could you start your question again?

Yes. Can you hear me now?

Yes, you sound perfect.

Perfect. Yes. So I just wanted to touch on how is the partnership with service management system vendors like ServiceNow and AWS going?

This is Benny. The partnership is actually going very well. We are basically co-development and interconnecting our platforms as right now, a few of the connectors are already in place, and we start building the agent-to-agent use cases together.

Well, how should we think about the capital allocation with now you guys have $100 million roughly in cash on the balance sheet?

We're looking into potential M&A as the first priority. We are progressing with a few candidates and based on the progress we will decide when and how to proceed with the capital allocation.

The next question is from Ryan Koontz of Needham & Company.

Nice execution there by the team. Some basics, Benny, if you think about your growth over the next 18 months, what percentage of that -- of your pipeline do you see is coming from existing customer expansion versus new logo wins?

We're thinking about around 2/3 from existing and 1/3 from new, Ryan.

Got it. Helpful. And then on the revenue split, can you give us any idea what percentage of your current revenue base is coming from 5G roughly versus -- is there any legacy network revenue that we should be concerned about?

I think there's still a lot of LTE network is up and running and it will take some time until they will -- will transform to 5G. So it will take a while. And while I think 5G is growing all over the place. So definitely 5G is the focus but that still remains to stay for at least a few years.

Right. That makes sense. Great. And on your pipeline of new Tier 1 opportunities, you mentioned several. Can you give us any color as to where those are in the RFP process? And what kind of timing you expect on decisions from any Tier 1s you have in the pipeline?

We are participating in more than a few RFPs globally. We expect at least a few of them within the next half of this year and we get to know whether we -- we're going to be awarded or not.

Got it. And in terms of emerging opportunities, is there an opportunity in the direct-to-device satellite space have been doing a lot of work on that segment?

There is an active opportunity in certain customers, but it's still not clear in terms of their capital allocation. So we're looking -- we're waiting to see how they're progressing on their side, but definitely, there are some opportunities there that we are participating.

That's great to hear. And maybe last one, if I could squeeze it in. Any change in the competitive environment you point out relative to your peers?

Not too much. We still see our competitors that are trying to shift out of telcos, while we are were doubling down and investing in innovation. So supporting TCO reduction, supporting AI and Gen AI journey for our customers. So I don't see big differences on our competitive landscape.

Thank you. This concludes the question-and-answer session and the RADCOM Ltd Second Quarter 2025 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.