Radware (RDWR) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 203.10K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.07
• Revenue Growth: 10.40%
• EPS Growth: N/A
• Country: US
• Employees: 1,137
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.28
• Shares Outstanding: 43,434,360
• 10 Day Avg. Volume: 215,139
• 30 Day Avg. Volume: 203,105
• PEG Ratio: -1.22
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 3.44
• P/FCF Ratio: 14.26
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 40.34
• 1Y Price Target: $30.00
• Price Target Upside: 28.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.14
• Revenue Forecast (FY): $300.05M

• Rating: 65 Neutral
• Price Target: $27.00 ▲(15.24% Upside)

Radware's overall stock score reflects strong financial performance and positive earnings call highlights, offset by bearish technical indicators and high valuation concerns. The company's robust profitability and strategic growth in cloud security are significant strengths, while technical analysis and valuation present notable risks.

Positive Factors

Cloud Security ARR Growth

The significant growth in cloud security ARR indicates strong demand for Radware's solutions, positioning the company well in the expanding cybersecurity market.

Strong Performance in North America

The robust revenue growth in North America suggests effective market penetration and operational execution, enhancing Radware's competitive position in a key region.

Operating Income Increase

The increase in operating income underscores Radware's ability to scale efficiently, reflecting strong cost management and revenue generation capabilities.

Negative Factors

Negative Cash Flow from Operations

The negative cash flow from operations raises concerns about liquidity and cash management, which could impact Radware's ability to invest in growth initiatives.

Decline in EMEA Revenue

The decline in EMEA revenue suggests challenges in this region, potentially affecting Radware's global market presence and revenue diversification.

Cash Flow Management Weaknesses

Weaknesses in cash flow management could limit Radware's financial flexibility, impacting its ability to respond to market opportunities and challenges.

Radware Business Overview & Revenue Model

Company Description

Radware (RDWR) is a global leader in application delivery and cyber security services for virtual, cloud, and on-premise environments. The company specializes in providing solutions that enhance the performance, security, and availability of applications. Its core products include application delivery controllers (ADCs), web application firewalls (WAFs), DDoS protection services, and cloud security solutions, catering to various sectors, including finance, healthcare, and e-commerce.

How the Company Makes Money

Radware generates revenue through a combination of product sales and subscription-based services. Key revenue streams include the sale of hardware and software solutions, ongoing maintenance and support contracts, and cloud-based services that operate on a recurring subscription model. The company also benefits from strategic partnerships with major cloud service providers and technology companies, enhancing its market reach and service offerings. Additionally, Radware's focus on innovation and expanding its cybersecurity portfolio has been instrumental in driving growth and attracting new clients.

Radware Financial Statement Overview

Summary

Radware demonstrates strong financial health with robust profitability and a solid balance sheet. While revenue growth is modest, profitability metrics have improved, and the company maintains low leverage. Cash flow management shows some weaknesses, but overall, Radware is in a stable financial position with opportunities for operational improvements.

Income Statement

Radware's income statement shows a solid gross profit margin of 80.7% TTM, indicating strong cost management. The net profit margin improved to 4.9% TTM from 2.2% in 2024, reflecting enhanced profitability. Revenue growth is modest at 2% TTM, but the positive trend from previous years is a good sign. However, EBIT and EBITDA margins remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.052 TTM, indicating low leverage and financial stability. Return on equity has improved to 5% TTM, showing better utilization of equity. The equity ratio is healthy, suggesting a solid capital structure. Overall, the balance sheet reflects financial stability and prudent management.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 31.3% TTM, which is a concern. However, the operating cash flow to net income ratio is 0.35, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio is strong at 0.90, showing good cash conversion. Despite the recent decline, the cash flow position remains relatively stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	294.64M	274.88M	261.29M	293.43M	286.50M	250.03M
Gross Profit	237.78M	221.63M	209.58M	239.54M	234.05M	204.94M
EBITDA	25.00M	7.95M	-19.44M	8.35M	28.42M	16.73M
Net Income	16.67M	6.04M	-21.59M	-166.00K	7.81M	9.64M
Balance Sheet
Total Assets	661.50M	618.68M	571.92M	643.59M	635.37M	623.26M
Cash, Cash Equivalents and Short-Term Investments	241.08M	275.78M	330.59M	298.04M	287.89M	310.49M
Total Debt	17.76M	18.27M	20.70M	24.15M	27.45M	30.07M
Total Liabilities	271.79M	261.60M	248.64M	275.14M	265.38M	234.80M
Stockholders Equity	348.42M	316.27M	284.09M	332.16M	369.99M	388.46M
Cash Flow
Free Cash Flow	40.03M	66.33M	-8.93M	23.33M	66.17M	53.14M
Operating Cash Flow	47.00M	71.61M	-3.50M	32.15M	71.77M	61.81M
Investing Cash Flow	-72.35M	-39.52M	92.78M	-56.02M	7.85M	-14.37M
Financing Cash Flow	-3.32M	-3.91M	-64.93M	-22.46M	-41.88M	-33.42M

Radware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDWR, the sentiment is Negative. The current price of 23.43 is above the 20-day moving average (MA) of 23.15, below the 50-day MA of 24.27, and below the 200-day MA of 24.70, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDWR.

Radware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	79 Outperform	$1.29B	26.43	23.88%	1.33%	10.27%	3.52%
RAMP	75 Outperform	$1.90B	49.13	4.10%	―	10.13%	1280.04%
NTCT	72 Outperform	$1.99B	22.11	5.91%	―	9.60%	―
RDWR	65 Neutral	$1.02B	62.42	5.09%	―	10.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	61 Neutral	$5.03B	-11.55	-25.79%	―	24.09%	-34.25%
RPD	56 Neutral	$1.03B	45.19	37.09%	―	3.08%	-54.07%

Radware Corporate Events

Radware Schedules 2025 Annual General Meeting for December

Radware announced its 2025 Annual General Meeting of Shareholders will be held on December 22, 2025, in Mahwah, NJ. The agenda includes electing directors, renewing the compensation policy, approving compensation terms for non-employee directors, and reappointing auditors. The meeting will also discuss the company’s financial statements for 2024. The outcomes of these proposals could influence Radware’s governance and financial strategies, impacting stakeholders and future operations.

Radware Reports Strong Q3 2025 Financial Results

Radware Ltd. announced its financial results for the third quarter of 2025, reporting a revenue increase of 8% year-over-year to $75.3 million. The company’s cloud annual recurring revenue (ARR) grew by 24%, highlighting the strength of its cloud security offerings. Non-GAAP diluted earnings per share rose to $0.28, up from $0.23 in the same quarter last year. The company attributes its success to strategic investments in AI-powered innovation and a robust cloud security business, positioning it for long-term growth opportunities.

Radware to Announce Q3 2025 Earnings on October 29

On October 6, 2025, Radware announced that it will release its third quarter 2025 earnings on October 29, 2025, and will host a conference call to discuss the results and outlook for the fourth quarter. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction amidst global economic uncertainties, including geopolitical tensions and market fluctuations.