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Radware
(NASDAQ:RDWR)
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Rating:65Neutral
Price Target:
$31.00
▲(5.05% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial stability (strong balance sheet and profitability recovery) and a constructive earnings call with reaffirmed guidance. These positives are tempered by a rich valuation (high P/E) and mixed technicals showing limited near-term momentum.
Positive Factors
Conservative balance sheet
Radware’s very low leverage (debt-to-equity roughly 0.05) and sizable equity base create durable financial resilience. That capital structure supports investment in product development, share repurchases, and M&A optionality, and reduces refinancing and solvency risk across cycles.
Negative Factors
Inventory-driven cash flow pressure
A $40M inventory build and the resulting FCF outflow signal working-capital stress that reduces near-term cash generation. Elevated inventories tie up liquidity, can pressure operating flexibility, and require successful Q4 inventory normalization to restore expected free cash flow and maintain funding for strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Radware’s very low leverage (debt-to-equity roughly 0.05) and sizable equity base create durable financial resilience. That capital structure supports investment in product development, share repurchases, and M&A optionality, and reduces refinancing and solvency risk across cycles.
Read all positive factors
Radware Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
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The Fly
The FlyRadware (RDWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)243.84K
Price to Earnings (P/E)66.7
Beta (1Y)0.77
Revenue Growth9.98%
EPS Growth18.53%
CountryUS
Employees1,228
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.39
Shares Outstanding43,145,970
10 Day Avg. Volume284,734
30 Day Avg. Volume243,839
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.96
Price to Sales (P/S)3.42
P/FCF Ratio24.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.17
Revenue Forecast (FY)$329.17M
Radware Business Overview & Revenue Model
Company Description
Radware Ltd. and its affiliated companies are dedicated to the development, production, and distribution of advanced cybersecurity and application management tools. These sophisticated solutions cater to applications hosted across global cloud inf...
How the Company Makes Money
Radware primarily generates revenue by selling cybersecurity and application delivery solutions through two main models: (1) product revenue from on-premises/appliance-based systems and related components used for functions such as application del...
Radware Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a predominately constructive operational and commercial picture: order entry, backlog, retail growth, margin expansion in products, record service levels, lean productivity gains, and a strong balance sheet. The company acknowledged manageable near-term headwinds — notably memory cost pressure, elevated inventory that weighed on free cash flow, a one-time tariff benefit, and discrete tax cash payments — and said mitigation actions are underway while reaffirming full-year guidance. Overall, positive execution and solid financial flexibility outweigh the short-term timing and cost challenges, assuming the company converts backlog and reduces inventory as planned.Positive Updates
Order Momentum and Backlog
Order entry increased 3% year-over-year and 6% sequentially; first-half order entry was the highest in 4 years and backlog grew sequentially to $814 million, supporting confidence in the full-year outlook.
Negative Updates
Memory Cost Headwind
Higher memory costs were a headwind of approximately $10 million in the quarter (primarily affecting retail); memory pricing remains uncertain despite sourcing and pricing mitigation actions.
Read all updates
Q2-2026 Updates
Positive
Negative
Order Momentum and Backlog
Order entry increased 3% year-over-year and 6% sequentially; first-half order entry was the highest in 4 years and backlog grew sequentially to $814 million, supporting confidence in the full-year outlook.
Read all positive updates
Company Guidance
The company reaffirmed 2026 guidance with full‑year revenue of $3.86–$3.94 billion, adjusted EBITDA of $510–$535 million, free cash flow of $255–$270 million (excluding an expected ~$50 million of higher-than-anticipated cash tax payments related to 2024–2025), and adjusted EPS of $5.25–$5.75 assuming an effective tax rate of 35–40% (with higher tax expected in Q3 vs Q4). Product gross margins are expected to be comparable with prior year while service gross margins should improve up to ~50 basis points; total operating expenses are now expected to decline about 2% for the year. Quarterly cadence: Q3 revenue is expected to be roughly 25% of full year at the midpoint, Q3 gross margin ~25% (ex‑tariff refund), and Q3 adjusted EBITDA ~24% of full year at the midpoint, with Q3 free cash flow broadly similar to Q2 due to elevated inventory and one‑time items. Management expects inventories to remain elevated through Q3 and normalize in Q4, driving a Q4 FCF improvement from approximately $100–$120 million of inventory reductions plus other working capital improvements and annual customer prepayments; ending liquidity was ~>$590 million (cash $282M + $310M revolver) and net leverage ~1.4x, and the company has repurchased ~$60 million of shares (~752k shares) with about $57 million remaining on the $200 million authorization.Radware Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 317.65M | 301.85M | 274.88M | 261.29M | 293.43M | 286.50M |
| Gross Profit | 256.68M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M |
| EBITDA | 38.33M | 40.99M | 24.74M | -5.31M | 16.61M | 33.03M |
| Net Income | 16.95M | 20.26M | 6.04M | -21.59M | -166.00K | 7.81M |
Balance Sheet | ||||||
| Total Assets | 654.39M | 671.16M | 618.68M | 571.92M | 643.59M | 635.37M |
| Cash, Cash Equivalents and Short-Term Investments | 248.44M | 257.26M | 275.78M | 330.59M | 298.04M | 287.89M |
| Total Debt | 16.09M | 17.02M | 18.27M | 20.70M | 24.15M | 27.45M |
| Total Liabilities | 295.25M | 280.48M | 261.60M | 248.64M | 275.14M | 265.38M |
| Stockholders Equity | 317.65M | 349.36M | 316.27M | 284.09M | 332.16M | 369.99M |
Cash Flow | ||||||
| Free Cash Flow | 33.57M | 41.55M | 66.33M | -8.93M | 23.33M | 66.17M |
| Operating Cash Flow | 43.25M | 50.09M | 71.61M | -3.50M | 32.15M | 71.77M |
| Investing Cash Flow | 1.18M | -30.07M | -39.52M | 92.78M | -56.02M | 7.85M |
| Financing Cash Flow | -62.18M | -13.66M | -3.91M | -64.93M | -22.46M | -41.88M |
Radware Technical Analysis
Positive
29.51
Price Trends
29.11
Negative
27.87
Positive
26.07
Positive
Market Momentum
-0.56
Positive
47.29
Neutral
75.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDWR, the sentiment is Positive. The current price of 29.51 is above the 20-day moving average (MA) of 28.85, above the 50-day MA of 29.11, and above the 200-day MA of 26.07, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 75.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDWR.
Radware Risk Analysis
Radware disclosed 43 risk factors in its most recent earnings report. Radware reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Radware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.30B | 16.47 | 15.26% | ― | 9.03% | ― | |
73 Outperform | $2.96B | 30.84 | 5.96% | ― | 4.47% | ― | |
67 Neutral | $2.13B | 46.94 | 19.61% | 0.70% | 12.08% | -8.14% | |
66 Neutral | $6.53B | -19.85 | -21.49% | ― | 21.38% | 27.92% | |
65 Neutral | $1.13B | 66.68 | 5.05% | ― | 9.98% | 18.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $644.92M | 27.99 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
RDWR
Radware
27.91
3.06
12.31%
RAMP
LiveRamp Holdings
37.82
10.02
36.04%
NTCT
Netscout Systems
40.13
18.85
88.58%
ATEN
A10 Networks
27.60
9.97
56.58%
RPD
Rapid7
10.38
-9.44
-47.63%
S
SentinelOne
20.76
4.09
24.54%
Radware Corporate Events
Radware Posts Record Q2 2026 Revenue as Cloud ARR Surges
Jul 29, 2026
On July 29, 2026, Radware reported consolidated financial results for the quarter ended June 30, 2026, highlighting its position as a leading multi-cloud application security vendor. The company continues to build out its cloud-focused security pl...
Radware Sets July 29 Date for Q2 2026 Earnings Release and Investor Call
Jul 6, 2026
Radware announced on July 6, 2026, that it will release its second quarter 2026 financial results on Wednesday, July 29, 2026. The disclosure underscores the company’s ongoing emphasis on transparency with investors as it navigates competiti...
Radware Shareholders Approve All Proposals at 2026 Annual Meeting
May 27, 2026
Radware reported the results of its 2026 Annual General Meeting of Shareholders, held on May 25, 2026, in Tel Aviv. The company said that all three proposals presented to shareholders at the meeting were approved by the requisite shareholder vote,...
Radware Posts Double‑Digit Q1 2026 Revenue Growth on Cloud Security Momentum
May 7, 2026
On May 7, 2026, Radware reported first‑quarter 2026 revenue of $79.8 million, up 11% year over year, driven mainly by its cloud security business and strong adoption of new API protection offerings. Cloud annual recurring revenue reached $98...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.