Radware Ltd (RDWR)
NASDAQ:RDWR
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Radware
(NASDAQ:RDWR)
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Rating:69Neutral
Price Target:
$27.00
▲(12.50% Upside)
Action:ReiteratedDate: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
Conservative balance sheet
Low leverage and a sizable equity base give Radware durable financial flexibility. Combined with a large cash/investment stockpile, this balance-sheet conservatism supports sustained R&D, tuck‑in M&A, and buybacks while insulating operations from macro swings over the next several quarters.
Negative Factors
Cash flow volatility
Meaningful year‑to‑year swings in operating cash flow highlight execution and timing risk. Reduced annual cash generation constrains optionality for investments or acquisitions, raises dependence on cash reserves, and may pressure funding of higher near‑term OpEx initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a sizable equity base give Radware durable financial flexibility. Combined with a large cash/investment stockpile, this balance-sheet conservatism supports sustained R&D, tuck‑in M&A, and buybacks while insulating operations from macro swings over the next several quarters.
Read all positive factors
Radware (RDWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)334.24K
Price to Earnings (P/E)51.0
Beta (1Y)0.78
Revenue Growth10.40%
EPS GrowthN/A
CountryUS
Employees1,137
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.32
Shares Outstanding43,145,970
10 Day Avg. Volume458,471
30 Day Avg. Volume334,236
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 Cap0.91
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit3.92
Enterprise Value/Ebitda34.22
Forecast
1Y Price Target
$35.00Price Target Upside45.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.16
Revenue Forecast (FY)$328.66M
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 ...
How the Company Makes Money
Radware primarily makes money by selling cybersecurity and application delivery solutions through two main revenue streams: (1) subscription-based and usage-related services and (2) product and related support revenues. A significant portion of it...
Radware Key Performance Indicators (KPIs)
Radware Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive performance with multiple record metrics (revenue, EPS, ARR, RPO) and strong cloud and subscription momentum driven by new product launches (API security, Agentic AI), strategic tuck-in M&A (Pynt), and margin expansion. Key challenges include regional timing issues (Americas and APAC Q4 softness), a meaningful year-over-year decline in full-year operating cash flow, increased near-term OpEx and FX headwinds, and reporting changes tied to the Hawks business that reduce EBITDA transparency. Overall, the positive operating and financial momentum, strong cash position, and product innovation outweigh the near-term operational and reporting headwinds.Positive Updates
Record Revenue and EPS
Q4 revenue grew 10% YoY to $80.0M and full-year 2025 revenue grew 10% YoY to $302M. Q4 non-GAAP diluted EPS increased 19% YoY to $0.32 and full-year diluted EPS rose 32% YoY to $1.15 — both record highs.
Negative Updates
Americas Q4 Revenue Decline
Americas revenue declined 4% YoY in Q4 to $32M despite strong bookings in the region; timing of bookings vs. revenue recognition created near-term softness in reported Q4 revenues.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and EPS
Q4 revenue grew 10% YoY to $80.0M and full-year 2025 revenue grew 10% YoY to $302M. Q4 non-GAAP diluted EPS increased 19% YoY to $0.32 and full-year diluted EPS rose 32% YoY to $1.15 — both record highs.
Read all positive updates
Company Guidance
Guidance for Q1 2026: management expects total revenue of $78.0–$79.0 million, non‑GAAP operating expenses of $54.0–$55.0 million (including an approximately $1.5 million FX headwind from a weaker USD), and non‑GAAP diluted net EPS of $0.28–$0.29; they expect the effective tax rate to remain roughly at 15% (in line with 2025 levels), foresee lower financial income in 2026, and noted RPOs are expected to grow roughly in line with revenue growth next year — additionally, SkyHawk will be classified as a discontinued operation and excluded from non‑GAAP reporting as of Q1 2026, EdgeHawk is expected to begin generating revenues in 2026, and the company will stop providing an EBITDA breakdown given the projected marginal negative EBITDA contribution.Radware Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
67
Positive
| 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
Negative
24.00
Price Trends
25.29
Negative
24.55
Negative
25.40
Negative
Market Momentum
-0.05
Positive
41.35
Neutral
12.36
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 24 is below the 20-day moving average (MA) of 25.98, below the 50-day MA of 25.29, and below the 200-day MA of 25.40, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.68B | 11.84 | 7.23% | ― | 10.13% | 1280.04% | |
71 Outperform | $2.36B | 8.80 | 6.07% | ― | 9.60% | ― | |
70 Outperform | $1.79B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
69 Neutral | $1.05B | 50.99 | 5.95% | ― | 10.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $4.35B | -10.24 | -29.84% | ― | 24.09% | -34.25% | |
49 Neutral | $345.28M | 79.72 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
RDWR
Radware
24.00
2.93
13.93%
RAMP
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26.20
1.32
5.31%
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32.45
12.40
61.85%
ATEN
A10 Networks
25.05
9.58
61.89%
RPD
Rapid7
5.35
-17.48
-76.57%
S
SentinelOne
12.75
-4.35
-25.44%
Radware Corporate Events
Radware Sets May 7 Release and Call for Q1 2026 Earnings
Apr 6, 2026
Radware announced on April 6, 2026, that it will release its first quarter 2026 financial results on May 7, 2026. The company’s management will host a conference call that same day at 8:30 a.m. EST to review the results and discuss its outlo...
Radware Posts Record 2025 Revenue and Earnings on Expanding Cloud Security Business
Feb 11, 2026
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, u...
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.