Radware (RDWR) AI Stock Analysis

• Market Cap: $989.47M
• Dividend Yield: N/A
• Average Volume (3M): 116.38K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 1.05
• 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: 42,686,535
• 10 Day Avg. Volume: 157,796
• 30 Day Avg. Volume: 116,375
• 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: 1.02
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 40.34
• 1Y Price Target: $35.00
• Price Target Upside: 51.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.14
• Revenue Forecast (FY): $300.05M

• Rating: 65 Neutral
• Price Target: $27.00 ▲(16.98% Upside)

Radware's overall stock score reflects strong financial health and positive earnings call highlights, including revenue and cloud security ARR growth. However, technical analysis and valuation concerns, such as high P/E ratio and lack of dividend yield, weigh down the score. The company's stable financial position and strategic achievements provide a balanced outlook.

Positive Factors

Cloud Security ARR Growth

The significant growth in cloud security ARR indicates strong demand for Radware's offerings, enhancing recurring revenue streams and supporting long-term financial stability.

Operating Income Increase

The increase in operating income demonstrates the scalability of Radware's business model, suggesting improved operational efficiency and profitability potential.

Recognition in Application Security

Being recognized as a leader in application security enhances Radware's competitive position, potentially driving customer trust and market share growth.

Negative Factors

Negative Cash Flow from Operations

Negative cash flow from operations may strain Radware's liquidity, impacting its ability to invest in growth opportunities and manage financial obligations.

Decline in EMEA Revenue

The decline in EMEA revenue suggests regional challenges that could affect Radware's overall revenue growth and market penetration in key international markets.

Cash Flow Management Weakness

Weaknesses in cash flow management could hinder Radware's ability to efficiently allocate resources and sustain long-term operational improvements.

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, 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 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: 23.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 23.08 is below the 20-day moving average (MA) of 25.20, below the 50-day MA of 25.86, and below the 200-day MA of 24.67, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 29.95 is Positive, neither overbought nor oversold. The STOCH value of 7.91 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
ATEN	77 Outperform	$1.24B	25.25	23.88%	1.37%	10.27%	3.52%
RAMP	75 Outperform	$1.90B	49.35	4.10%	―	10.13%	1280.04%
NTCT	75 Outperform	$2.07B	23.36	5.91%	―	9.60%	―
RDWR	65 Neutral	$989.47M	61.56	5.09%	―	10.40%	―
S	62 Neutral	$5.64B	―	-27.34%	―	25.39%	-42.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPD	48 Neutral	$929.83M	40.57	37.09%	―	3.08%	-54.07%

Radware Corporate Events

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.