Radware Ltd (RDWR)
NASDAQ:RDWR
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Radware
(NASDAQ:RDWR)
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Rating:71Outperform
Price Target:
$30.00
▲(16.46% Upside)
Action:Upgraded
Date:05/09/26
RDWR scores well on improving financial performance and a strong balance sheet, reinforced by upbeat earnings-call fundamentals (record revenue/EPS and accelerating cloud/subscription indicators). Technicals are supportive with price above major moving averages. The main offset is valuation: a very high P/E leaves less margin for error, especially given recent free-cash-flow cooling and near-term OpEx/FX headwinds.
Positive Factors
Recurring cloud/subscription ARR acceleration
Sustained cloud and subscription ARR growth strengthens recurring revenue mix, improving predictability and customer stickiness. A larger ARR base supports long-term revenue visibility, higher lifetime value, and capacity to scale upsells, making growth less dependent on one-off product sales.
Negative Factors
Inconsistent top-line growth and regional volatility
Uneven geographic performance and timing-driven revenue swings make revenue forecasting and margin planning harder. Reliance on particular regions or timing of large deals can create lumpy quarters, reducing visibility into sustainable growth trends and complicating resource allocation decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cloud/subscription ARR acceleration
Sustained cloud and subscription ARR growth strengthens recurring revenue mix, improving predictability and customer stickiness. A larger ARR base supports long-term revenue visibility, higher lifetime value, and capacity to scale upsells, making growth less dependent on one-off product sales.
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
$1.27B
Dividend YieldN/A
Average Volume (3M)334.24K
Price to Earnings (P/E)66.7
Beta (1Y)0.76
Revenue Growth9.83%
EPS Growth65.00%
CountryUS
Employees1,137
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.45
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 Cap0.96
Enterprise Value/Revenue3.93
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda39.79
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.11
Revenue Forecast (FY)$329.11M
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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
88
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 309.58M | 301.85M | 274.88M | 261.29M | 293.43M | 286.50M |
| Gross Profit | 250.12M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M |
| EBITDA | 30.57M | 23.09M | 7.95M | -19.44M | 8.35M | 28.42M |
| Net Income | 19.46M | 20.26M | 6.04M | -21.59M | -166.00K | 7.81M |
Balance Sheet | ||||||
| Total Assets | 656.45M | 671.16M | 618.68M | 571.92M | 643.59M | 635.37M |
| Cash, Cash Equivalents and Short-Term Investments | 251.81M | 257.26M | 275.78M | 330.59M | 298.04M | 287.89M |
| Total Debt | 16.37M | 17.02M | 18.27M | 20.70M | 24.15M | 27.45M |
| Total Liabilities | 288.23M | 280.48M | 261.60M | 248.64M | 275.14M | 265.38M |
| Stockholders Equity | 326.82M | 349.36M | 316.27M | 284.09M | 332.16M | 369.99M |
Cash Flow | ||||||
| Free Cash Flow | 36.45M | 41.55M | 66.33M | -8.93M | 23.33M | 66.17M |
| Operating Cash Flow | 46.78M | 50.09M | 71.61M | -3.50M | 32.15M | 71.77M |
| Investing Cash Flow | -6.49M | -30.07M | -39.52M | 92.78M | -56.02M | 7.85M |
| Financing Cash Flow | -43.19M | -13.66M | -3.91M | -64.93M | -22.46M | -41.88M |
Radware Technical Analysis
Positive
25.76
Price Trends
26.88
Positive
25.78
Positive
25.31
Positive
Market Momentum
0.89
Negative
67.31
Neutral
79.12
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 25.76 is below the 20-day moving average (MA) of 28.12, below the 50-day MA of 26.88, and above the 200-day MA of 25.31, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.26B | 16.05 | 15.26% | ― | 9.03% | ― | |
76 Outperform | $2.97B | 31.25 | 5.96% | ― | 4.47% | ― | |
71 Outperform | $1.27B | 66.73 | 5.71% | ― | 9.83% | 65.00% | |
71 Outperform | $2.11B | 48.40 | 21.19% | 1.33% | 12.08% | -8.14% | |
63 Neutral | $6.15B | -17.50 | -21.49% | ― | 21.38% | 27.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $497.22M | 24.75 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
RDWR
Radware
30.34
6.51
27.32%
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ATEN
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30.14
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RPD
Rapid7
8.38
-14.88
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16.55
-0.68
-3.95%
Radware Corporate Events
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...
Radware Sets May 25, 2026 Date for Annual General Meeting and Key Governance Votes
Apr 20, 2026
Radware announced on April 20, 2026 that it will hold its 2026 Annual General Meeting of Shareholders on May 25, 2026 at its U.S. offices in Mahwah, New Jersey, with April 21, 2026 set as the record date for shareholder participation. The agenda i...
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.