Radware (RDWR) AI Stock Analysis

• Market Cap: $970.54M
• Dividend Yield: N/A
• Average Volume (3M): 253.96K
• Price to Earnings (P/E): 49.4
• Beta (1Y): 0.93
• Revenue Growth: 10.40%
• EPS Growth: N/A
• Country: US
• Employees: 1,137
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.32
• Shares Outstanding: 43,434,360
• 10 Day Avg. Volume: 367,536
• 30 Day Avg. Volume: 253,957
• PEG Ratio: 0.22
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 3.42
• P/FCF Ratio: 24.86
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 31.64
• 1Y Price Target: $30.00
• Price Target Upside: 34.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.16
• Revenue Forecast (FY): $328.66M

• Rating: 69 Neutral
• Price Target: $27.00 ▲(20.86% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by improving operating fundamentals and a conservative balance sheet, reinforced by a generally positive earnings call with record metrics and solid forward indicators (ARR/RPO). The main offsets are a stretched valuation (high P/E) and technically overbought conditions that raise near-term volatility risk, alongside uneven cash flow consistency.

Positive Factors

Recurring revenue / ARR growth

Meaningful ARR and subscription acceleration increases revenue visibility and reduces reliance on one‑time hardware sales. A larger recurring base smooths revenue volatility, improves lifetime customer economics, and supports predictable cash flows and valuation of long‑lived customer relationships.

High gross margins and improving profitability

Sustained ~80%+ gross margins reflect software/cloud mix and strong product pricing power, enabling margin expansion as subscription mix grows. Durable margin structure supports reinvestment in R&D and go‑to‑market while making profitability less sensitive to revenue swings over the medium term.

Strong cash position and conservative balance sheet

A large cash reserve combined with historically very low leverage provides flexibility for bolt‑on M&A, R&D investment, buybacks, or to weather cyclical weakness. Conservative financing lowers bankruptcy risk and supports patient capital allocation over multiple quarters.

Negative Factors

Operating cash flow volatility

Material year‑to‑year swings in operating cash flow signal execution and timing risk in converting bookings to cash. Uneven cash conversion limits reliable reinvestment capacity and raises reliance on the cash stockpile; persistent volatility could constrain growth or capital returns.

Regional revenue inconsistency

Significant geographic dispersion in growth undermines overall top‑line stability and indicates uneven product-market fit or sales execution. Slower traction in the Americas and pockets in APAC may require sustained GTM investment, pressuring margins and pacing companywide revenue expansion.

Reporting changes reduce margin transparency

Reclassifying businesses and removing EBITDA breakdowns reduces investors' ability to track core operating profitability and isolate loss-making units. This obscures margin trends, complicates performance benchmarking, and could mask structural margin pressure from specific product lines over multiple quarters.

Radware Business Overview & Revenue Model

Company Description

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for applications in cloud, physical, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack mitigation device; AppWall, a Web application firewall; Radware Kubernetes WAF, a Web application firewall solution for CI/CD environments orchestrated by Kubernetes; and DefenseFlow, a cyber-command and control application. It also provides Alteon, an application delivery controller/load balancer for web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications. In addition, the company offers Security Updates Subscription, which provides protection from network elements, hosts and applications against the latest security vulnerabilities and threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks and web attacks; Alteon Global Elastic License that enables a high level of flexibility for ADC services across datacenters, private and public clouds; APSolute Vision, a network monitoring tool for cyber security and application delivery solutions; and MSSP Portal, a DDoS detection and mitigation service portal. Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

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

Fundamentals show a clear recovery with re-accelerating revenue and a strong rebound in profitability while sustaining ~80% gross margins. The balance sheet is a major strength with very low leverage, but earnings and cash flow have been volatile (including a weak 2023 and softer operating cash flow in 2025 vs. 2024).

Income Statement

Revenue has re-accelerated, moving from a decline in 2023 to modest growth in 2024 and strong growth in 2025. Profitability also improved sharply: 2023 posted losses at the operating and net levels, while 2025 returned to solid profitability with healthy gross margin holding steady around ~80% across the period. The main weakness is earnings volatility—margins swung meaningfully from 2021 profitability to 2023 losses before rebounding—suggesting sensitivity to spending levels and operating leverage.

Balance Sheet

The balance sheet looks conservative with very low leverage (debt-to-equity consistently ~5%–8%) and a sizable equity base. Returns on equity recovered from negative in 2023 to positive in 2024 and improved further in 2025, consistent with the earnings rebound. The key watchout is that equity and assets have not grown consistently year-to-year, reflecting a period of business softness and limiting the pace of compounding despite low balance-sheet risk.

Cash Flow

Cash generation is generally supportive, with strong positive operating and free cash flow in most years and particularly robust free cash flow in 2024–2025. However, cash flow quality is uneven: 2023 saw negative operating and free cash flow, and operating cash flow in 2025 fell versus 2024 even as earnings rose. Free cash flow remains solid relative to net income in recent years, but the year-to-year swings introduce execution and durability risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	301.85M	274.88M	261.29M	293.43M	286.50M
Gross Profit	243.51M	221.63M	209.58M	239.54M	234.05M
EBITDA	23.09M	7.95M	-19.44M	8.35M	28.42M
Net Income	20.26M	6.04M	-21.59M	-166.00K	7.81M
Balance Sheet
Total Assets	671.16M	618.68M	571.92M	643.59M	635.37M
Cash, Cash Equivalents and Short-Term Investments	257.26M	275.78M	330.59M	298.04M	287.89M
Total Debt	17.02M	18.27M	20.70M	24.15M	27.45M
Total Liabilities	280.48M	261.60M	248.64M	275.14M	265.38M
Stockholders Equity	349.36M	316.27M	284.09M	332.16M	369.99M
Cash Flow
Free Cash Flow	41.55M	66.33M	-8.93M	23.33M	66.17M
Operating Cash Flow	50.09M	71.61M	-3.50M	32.15M	71.77M
Investing Cash Flow	-30.07M	-39.52M	92.78M	-56.02M	7.85M
Financing Cash Flow	-13.66M	-3.91M	-64.93M	-22.46M	-41.88M

Radware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 22.34 is below the 20-day moving average (MA) of 25.25, below the 50-day MA of 24.57, and below the 200-day MA of 25.31, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 7.32 is Positive, 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
RAMP	73 Outperform	$1.63B	24.42	7.16%	―	10.13%	1280.04%
NTCT	71 Outperform	$2.07B	21.96	6.07%	―	9.60%	―
ATEN	70 Outperform	$1.36B	33.23	19.01%	1.33%	10.27%	3.52%
RDWR	69 Neutral	$970.54M	49.36	6.09%	―	10.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	57 Neutral	$4.34B	-10.18	-25.79%	―	24.09%	-34.25%
RPD	49 Neutral	$403.27M	17.02	27.12%	―	3.08%	-54.07%

Radware Corporate Events

Radware Posts Record 2025 Revenue and Earnings on Expanding Cloud Security Business

On February 11, 2026, Radware reported record financial results for the fourth quarter and full year 2025, underscoring the strength of its cloud security strategy and recurring revenue model. For Q4 2025, revenue reached a record $80.2 million, up 10% year over year, with cloud annual recurring revenue climbing 23% to $95.2 million and total ARR rising 11% to $251.0 million.

Regional performance was mixed, as EMEA revenue surged 38% in the quarter while the Americas and APAC posted modest declines, though both regions still grew for the full year. Full-year 2025 revenue hit a record $301.9 million, up 10%, and profitability improved sharply, with GAAP diluted EPS more than tripling to $0.45 and non-GAAP diluted EPS rising to $1.15, supported by $50.1 million in operating cash flow and a $460.6 million cash and investments balance.

Management highlighted strong demand for cloud-based security and advances in its cloud application platform, including new API security and agentic-AI protection capabilities, as key drivers of performance. Entering 2026 with a “healthy pipeline” and growing cloud adoption, Radware signaled confidence in sustaining growth, potentially reinforcing its competitive position in the multi‑cloud security market and providing greater earnings visibility to investors through expanding ARR.

The most recent analyst rating on (RDWR) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Radware stock, see the RDWR Stock Forecast page.

Radware Sets February 11 Release Date for Q4 and Full-Year 2025 Results

On January 7, 2026, Radware announced it will release its fourth-quarter and full-year 2025 financial results on February 11, 2026, underscoring the company’s regular engagement with capital markets as it updates investors on recent performance. Management will hold a conference call that same day at 8:30 a.m. EST to discuss the results and provide an outlook for the first quarter of 2026, with a replay to be posted on the company’s investor relations website, giving shareholders and analysts structured insight into Radware’s financial trajectory and strategic positioning in the cybersecurity and application delivery market.

The most recent analyst rating on (RDWR) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Radware stock, see the RDWR Stock Forecast page.

Radware Shareholders Reject Board Pay Proposal at 2025 Annual Meeting

On December 23, 2025, Radware reported the results of its Annual General Meeting of Shareholders, held on December 22, 2025. Of the four proposals presented, shareholders rejected a motion to approve compensation terms, including equity-based awards, for non-employee directors along with related changes to the company’s compensation policy, while the remaining three proposals were approved by the requisite majority. The vote outcome underscores some investor pushback on board compensation even as broader governance and operational matters placed before shareholders received support, offering a nuanced signal about shareholder sentiment toward Radware’s leadership and pay practices.

The most recent analyst rating on (RDWR) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Radware stock, see the RDWR Stock Forecast page.