Education
About Us
Working with TipRanks
Follow Us
Radware Ltd (RDWR)
NASDAQ:RDWR
Top Page
Radware
(NASDAQ:RDWR)
Rating:64Neutral
Price Target:
$27.00
▲(11.39% Upside)
Positive Factors
Cloud ARR growth
The company achieved 21% Cloud ARR growth, marking its highest in five quarters.
Regional performance
2Q benefited from continued strength in EMEA and APAC as the reconstruction of North America's go-to-market continues.
Revenue growth
Total revenue was up double digits for the fourth consecutive quarter.
Negative Factors
Revenue re-acceleration
A consistent trend of revenue re-acceleration is needed to upgrade the stock rating from Hold.
Stock rating
Analyst maintains a Hold rating on the stock, pending a consistent trend of revenue re-acceleration and execution on the company's stock buyback.
Radware (RDWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend YieldN/A
Average Volume (3M)258.06K
Price to Earnings (P/E)77.3
Beta (1Y)0.91
Revenue Growth11.51%
EPS GrowthN/A
CountryUS
Employees1,137
SectorTechnology
Sector Strength94
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.28
Shares Outstanding42,686,535
10 Day Avg. Volume225,119
30 Day Avg. Volume258,063
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.79
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda52.44
Forecast
1Y Price Target
$30.67Price Target Upside26.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Radware Business Overview & Revenue Model
Company DescriptionRadware 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 MoneyRadware generates revenue through a combination of product sales, subscription services, and managed services. Key revenue streams include the sale of hardware and software solutions, annual maintenance contracts, and cloud-based security services. The company also offers professional services such as consulting and implementation. Significant partnerships with cloud service providers and technology integrators enhance its market reach and contribute to earnings. Additionally, growing demand for cybersecurity solutions in response to increasing cyber threats has positively impacted Radware's revenue growth.
Radware Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -14.44%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with notable revenue and earnings growth, driven by the cloud security segment and strategic wins. Despite some challenges, such as reduced cash flow from operations and prolonged sales cycles in North America, the overall outlook is positive due to strategic achievements and robust growth metrics.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Radware reported its fourth consecutive quarter of double-digit revenue growth, with a 10% year-over-year increase to $74 million in the second quarter of 2025.
Significant Increase in Earnings
Non-GAAP earnings per share rose 39% year-over-year to $0.28, demonstrating improved scalability and efficiency.
Robust Cash Flow
The company generated $14.5 million in cash flow from operations, highlighting operational strength.
Cloud ARR Growth Acceleration
Cloud ARR growth accelerated from 19% to 21% year-over-year, reaching $85 million.
Major Wins in Cloud Security
The company secured 7-digit deals with a major global event organization, a European government, and a leading U.S. financial technology company, driven by its AI-powered SOC and cloud security platforms.
Expanding Partner Ecosystem
Radware secured multiple 7-digit deals through its partner and channel ecosystem, including a deal with one of Latin America's largest data center providers.
Strong Regional Performance
EMEA revenue grew 22% year-over-year, and APAC revenue increased 30% year-over-year.
High Gross Margin and Operating Income
Gross margin remained strong at 82.2%, and operating income grew more than 50% year-over-year to $9.5 million.
Negative Updates
Reduced Cash Flow from Operations
Cash flow from operations decreased to $14.5 million compared to $23 million in the same quarter last year.
Long Sales Cycles in North America
The company reported long sales cycles and budget constraints in the North American large enterprise market.
Company Guidance
During Radware's Second Quarter 2025 earnings call, the company reported a 10% year-over-year revenue increase to $74 million, marking the fourth consecutive quarter of double-digit revenue growth. Non-GAAP earnings per share rose by 39% year-over-year to $0.28, and cash flow from operations reached $14.5 million. Cloud Annual Recurring Revenue (ARR) grew 21% year-over-year, reaching $85 million, with total ARR increasing by 8% to $235 million. The company's gross margin remained strong at 82.2%, and operating income grew over 50% to $9.5 million. Radware's primary growth drivers include cloud security, AI-driven innovation, and an expanded go-to-market strategy. For Q3 2025, Radware projects revenue between $74.5 million and $75.5 million, with non-GAAP diluted net earnings per share expected to be between $0.26 and $0.27.Radware Financial Statement Overview
Summary
Radware's stable financial performance is supported by strong gross margins and effective cash flow management. The low debt-to-equity ratio indicates financial stability, while fluctuating net profit margins suggest areas for profitability improvement.Income Statement
Radware's revenue growth has been modest in recent years, with a TTM (Trailing-Twelve-Months) increase of 2.54%. The gross profit margin remains strong at 80.68%, reflecting efficient cost management. However, net profit margins have been inconsistent, with a current TTM net profit margin of 4.12%. There's a noticeable improvement in EBIT and EBITDA margins, indicating enhanced operational efficiency.68
Positive
Balance Sheet
The debt-to-equity ratio is low at 0.05, indicating minimal leverage and financial stability. The equity ratio stands at 50.34%, showing a solid capital structure with significant equity financing. Return on equity has improved, now at 3.57%, suggesting better utilization of equity investments.75
Positive
Cash Flow
Radware exhibits robust cash flow management with a consistent free cash flow generation. The operating cash flow to net income ratio is high at 6.25, indicating strong cash generation relative to earnings. Free cash flow has grown modestly, reflecting efficient capital expenditure management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 288.81M | 274.88M | 261.29M | 293.43M | 286.50M | 250.03M |
| Gross Profit | 233.12M | 221.63M | 209.58M | 239.54M | 234.05M | 204.94M |
| EBITDA | 20.89M | 7.95M | -19.44M | 8.35M | 28.42M | 16.73M |
| Net Income | 14.16M | 6.04M | -21.59M | -166.00K | 7.81M | 9.64M |
Balance Sheet | ||||||
| Total Assets | 658.54M | 618.68M | 571.92M | 647.40M | 634.87M | 623.44M |
| Cash, Cash Equivalents and Short-Term Investments | 273.51M | 275.78M | 330.59M | 298.04M | 287.89M | 310.49M |
| Total Debt | 17.72M | 18.27M | 20.70M | 24.15M | 27.45M | 30.07M |
| Total Liabilities | 278.80M | 261.60M | 248.64M | 278.96M | 264.87M | 234.98M |
| Stockholders Equity | 338.57M | 316.27M | 284.09M | 332.16M | 369.99M | 388.46M |
Cash Flow | ||||||
| Free Cash Flow | 58.31M | 66.33M | -8.93M | 23.33M | 66.17M | 53.14M |
| Operating Cash Flow | 64.57M | 71.61M | -3.50M | 32.15M | 71.77M | 61.81M |
| Investing Cash Flow | -44.32M | -39.52M | 92.78M | -56.02M | 7.85M | -14.37M |
| Financing Cash Flow | -3.21M | -3.91M | -64.93M | -22.46M | -41.88M | -33.42M |
Radware Technical Analysis
Neutral
24.24
Price Trends
27.25
Negative
24.84
Positive
23.72
Positive
Market Momentum
-0.93
Positive
35.53
Neutral
20.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDWR, the sentiment is Neutral. The current price of 24.24 is below the 20-day moving average (MA) of 26.78, below the 50-day MA of 27.25, and above the 200-day MA of 23.72, indicating a neutral trend. The MACD of -0.93 indicates Positive momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 20.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.29B | 26.04 | 24.39% | 1.38% | 11.04% | 18.70% | |
71 Outperform | $10.32B | 25.52 | 9.21% | ― | 3.98% | -31.18% | |
71 Outperform | $1.63B | 23.16 | 4.88% | ― | 5.29% | ― | |
69 Neutral | $1.17B | 26.41 | 5.32% | ― | -2.09% | 76.96% | |
64 Neutral | $1.06B | 77.32 | 4.46% | ― | 11.51% | ― | |
53 Neutral | $618.10M | ― | -4.06% | ― | ― | ― | |
50 Neutral | AU$1.63B | 3.35 | -0.63% | 3.31% | 16.47% | -4.12% |
* Technology Sector Average
Performance Comparison
RDWR
Radware
24.24
2.22
10.08%
AKAM
Akamai
74.27
-26.59
-26.36%
NTCT
Netscout Systems
22.39
2.79
14.23%
VRNT
Verint Systems
19.78
-13.31
-40.22%
ATEN
A10 Networks
17.36
4.65
36.59%
CGNT
Cognyte Software
8.73
1.38
18.78%
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.