RDWR

This article first appeared on GuruFocus. Revenue: $82.3 million, up 11% year over year. Cloud ARR: Exceeded $100 million, increasing 22% year over year. Gross Margin: 81.8%, compared to 82.4% in the second quarter of 2025. Operating Income: $10.9 million, compared to $11.4 million in the same period last year. Net Income: $13 million, down 9% year over year. Diluted EPS: $0.30, compared to $0.32 in Q2 2025. Cash Flow from Operations: $13 million, compared to $15.6 million in the same quarter last year. Cash and Equivalents: $422.9 million at the end of the quarter. Americas Revenue: $37.2 million, up 24% year over year. EMEA Revenue: $27.3 million, down 2% year over year. APAC Revenue: $17.8 million, up 9% year over year. Warning! GuruFocus has detected 5 Warning Signs with BOM:532497. Is RDWR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Radware Ltd (NASDAQ:RDWR) achieved record revenue of $82 million, marking a 11% year-over-year growth and the seventh consecutive quarter of double-digit growth. Cloud Annual Recurring Revenue (ARR) exceeded $100 million, driven by strong demand for cloud security services and new API security solutions. The company secured significant customer wins, including two leading financial service providers in Asia-Pacific, highlighting the strength of their API security capabilities. Radware Ltd (NASDAQ:RDWR) introduced the Xploit Shield, a first-to-market solution designed to address AI-driven vulnerability discovery and exploitation, which has received positive market feedback. Revenue in the Americas grew 24% year over year, representing 45% of total revenue, indicating strong execution in the region. Gross margin decreased slightly to 81.8% from 82.4% in the same quarter last year, impacted by foreign exchange headwinds and supply chain cost pressures. Operating income declined to $10.9 million from $11.4 million in the same period last year, primarily due to the strengthening of the Israeli shekel against the US dollar. Net income from continued operations decreased by 9% year over year, with diluted earnings per share dropping from $0.32 to $0.30. EMEA revenue declined by 2% year over year, representing a challenge in maintaining growth in this region. Cash flow from continued operations decreased to $13 million from $15.6 million in the same quarter last year, reflecting a reduction in cash balances following share repurchases. Q: Are you seeing any changes in customer buying behaviors due to supply chain issues or memory prices? A: Roy Zisapel, CEO: We observe some delays due to global supply chain issues, such as server and switch delays, but these are not critical. Our on-prem business, particularly DDoS mitigation, is less affected as it involves fewer devices that can be added to existing infrastructure. Q: How is AI contributing to your revenue, and what is the timing of its benefits? A: Roy Zisapel, CEO: AI is impacting us in multiple ways. While AI infrastructure protection is still early, there's a strong demand for security services due to AI-driven vulnerability discoveries. Our Xploit Shield product addresses these needs, providing tailored protection and creating demand. Q: With the acceleration of revenue growth and AI tailwinds, should we expect continued growth acceleration? A: Roy Zisapel, CEO: Yes, we aim for continued growth. Our total ARR numbers are a good indicator of future growth. We are targeting to increase cloud growth to 25% and beyond, and the opportunity is there for us to execute. Q: Are you seeing any impact from the Mythos model release, and do you plan to experiment with frontier models? A: Roy Zisapel, CEO: There's increased interest and urgency among customers to protect against vulnerabilities. Our Xploit Shield product addresses this by providing a tailored shield for applications, allowing enterprises time to fix vulnerabilities while remaining protected. Q: How are you monetizing the Xploit Shield product? A: Roy Zisapel, CEO: Xploit Shield is part of our cloud security platform, and all revenues are subscription-based. We charge per application annually, providing a shield against vulnerabilities discovered by AI scanning. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter 2026 Financial Results and Highlights Record revenue of $82.3 million, an increase of 11% year-over-year Cloud ARR of $103 million, an increase of 22% year-over-year Non-GAAP diluted EPS from continuing operations of $0.30; GAAP diluted EPS from continuing operations of $0.09 Cash flow provided by continuing operations activities of $13.0 million dollars TEL AVIV, Israel, July 29, 2026 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the second quarter ended June 30, 2026. “We delivered another strong quarter, highlighted by double-digit revenue growth, Cloud ARR exceeding $100 million, and continued momentum across our cloud security platform,” said Roy Zisapel, President and Chief Executive Officer of Radware. “We continued to expand our security platform through innovation across cloud, application security, API Security, and DDoS protection, further strengthening our ability to address evolving customer requirements. We believe our expanding platform, innovation, and market position create significant opportunities for continued growth and long-term shareholder value.” Financial Highlights for the Second Quarter 2026Revenue for the second quarter of 2026 totaled $82.3 million: Revenue in the Americas region was $37.2 million for the second quarter of 2026, an increase of 24% from $30.1 million in the second quarter of 2025. Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $27.3 million for the second quarter of 2026, a decrease of 2% from $27.8 million in the second quarter of 2025. Revenue in the Asia-Pacific (“APAC”) region was $17.8 million for the second quarter of 2026, an increase of 9% from $16.3 million in the second quarter of 2025. GAAP net income from continuing operations for the second quarter of 2026 was $3.9 million, or $0.09 per diluted share, compared to GAAP net income from continuing operations of $6.4 million, or $0.14 per diluted share, for the second quarter of 2025. Non-GAAP net income from continuing operations for the second quarter of 2026 was $13.0 million, or $0.30 per diluted share, compared to non-GAAP net income from continuing operations of $14.3 million, or $0.32 per diluted share, for the second quarter of 2025. As of June 30, 2026, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $422.9 million. Operating cash flow provided by continuing operations was $13 million in the second quarter of 2026. Conference CallRadware management will host a call today, July 29, 2026, at 8:30 a.m. ET to discuss its second quarter 2026 results and third quarter 2026 outlook. To participate in the call, please use the following link: Q2 2026 earnings call registration link. A replay of the call will be available within approximately 24 hours of the live event on the Investors section of Radware’s website at: https://www.radware.com/ir/financial-reports/. Use of Non-GAAP Financial Information and Key Performance Indicators Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company’s non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release. In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware’s management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware’s ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors. Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “forecast,” “target,” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.”Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global market and economic conditions; our dependence on independent distributors; disruptions in our supply chain, including shortages of components or manufacturing capacity; our reliance on a limited number of vendors; our ability to attract, train and retain qualified personnel; intense competition in the cybersecurity and application delivery markets; our ability to develop new solutions and enhance existing solutions; risks related to defects, vulnerabilities or failures in our products or services, including cybersecurity incidents affecting our systems or those of our customers; risks associated with the use of artificial intelligence technologies, including evolving regulatory frameworks, litigation exposure and reputational considerations; risks related to our information technology systems, including failures, disruptions or security breaches; outages, interruptions, or delays in hosting or cloud-based services; risks related to the interoperability of our products; risks associated with our global operations; and geopolitical risks, including instability in the Middle East and Israel.These factors are not exhaustive. For a more detailed description of the risks and uncertainties affecting Radware, please refer to Radware’s Annual Report on Form 20-F and other reports filed with or furnished to the Securities and Exchange Commission (SEC) from time to time.Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, Radware undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements. Radware’s public filings are available from the SEC’s website at www.sec.gov or on Radware’s website at www.radware.com. About RadwareRadware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, API, and AI security solutions use AI-driven algorithms for precise, behavior-based, real-time protection against sophisticated web, application, and DDoS attacks, API abuse, business logic threats, and malicious bots. Radware delivers end-to-end API security, including discovery, posture management, testing, and runtime protection, along with advanced protection for AI agents and models. Enterprises and carriers worldwide rely on Radware to address evolving cyberthreats, protect their brands and business operations, and reduce costs. For more information, please visit the Radware website.Radware encourages you to join our community and follow us on Facebook, LinkedIn, Radware Blog, X, and YouTube. ©2026 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners. Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice. The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release. CONTACTSInvestor Relations:Yisca Erez, +972-72-3917211, [email protected] Media Contact:Gina Sorice, [email protected] * The results of our subsidiary, SkyHawk, have been classified as discontinued operations effective the first quarter of 2026 and are presented accordingly. Comparative prior-year figures have been adjusted to align with this presentation and ensure consistency. * The results of our subsidiary, SkyHawk, have been classified as discontinued operations effective the first quarter of 2026 and are presented accordingly. Comparative prior-year figures have been adjusted to align with this presentation and ensure consistency. * The results of our subsidiary, SkyHawk, have been classified as discontinued operations effective the first quarter of 2026 and are presented accordingly. Comparative prior-year figures have been adjusted to align with this presentation and ensure consistency.

Interested in Radware Ltd.? Here are five stocks we like better. Record Q2 revenue: Radware’s revenue rose 11% year over year to $82.3 million, driven by cloud security, API protection and on-premises DDoS mitigation. Cloud ARR surpassed $100 million, up 22% and accounting for 40% of total ARR. Product and regional momentum: Demand increased for the company’s API-security platform and new Xploit Shield vulnerability-protection service, while DefensePro X benefited from infrastructure refresh cycles. Americas revenue grew 24%, offsetting a 2% decline in EMEA. Profitability and outlook: Foreign-exchange and supply-chain pressures reduced operating income and net income, though operating income would have risen 41% excluding currency effects. Radware forecast third-quarter revenue of $82.5 million to $83.5 million and repurchased $18.8 million of shares during Q2. Radware (NASDAQ:RDWR) reported record second-quarter 2026 revenue as demand for cloud security services, API protection and on-premises DDoS mitigation supported growth across key parts of its business. Revenue rose 11% year over year to $82.3 million, marking the company’s seventh quarter of double-digit growth over the past two years, President and Chief Executive Officer Roy Zisapel said on the company’s earnings call. Cloud annual recurring revenue increased 22% from a year earlier and exceeded $100 million, representing 40% of total ARR compared with 36% in the second quarter of 2025. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Subscription revenue remained Radware’s largest revenue stream, accounting for 55% of total quarterly revenue, Chief Financial Officer Guy Avidan said. Zisapel said cloud security remained the largest contributor to recurring-revenue growth. The company cited demand for its managed security service provider channel and increasing customer activity for its API security offering, which launched earlier in 2026. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Among recent API-security wins, Radware said two financial-services providers in Asia-Pacific selected its platform to protect business-critical applications handling a combined 250 million API calls per month. Zisapel said the customers chose Radware for its API discovery, runtime-protection and bot-management capabilities, expanding their existing cloud-security deployments. The company also introduced Xploit Shield, a product designed to create application-specific protections based on vulnerabilities identified by frontier AI models or other security scanners. Zisapel said the offering is intended to provide customers time to assess and remediate vulnerabilities while maintaining protections around applications. → Innovative ETF Strategies That Are Paying Off This Summer During the question-and-answer session, Zisapel said Radware is seeing stronger interest from customers concerned about the volume of vulnerabilities and the faster pace at which they can be exploited using AI-related tools. Xploit Shield is sold as part of the cloud-security platform on a subscription basis and is priced per application, he said. Zisapel characterized protection of AI infrastructure as an earlier-stage opportunity, noting that customers are still early in deploying internal AI for mission-critical applications. However, he said AI-assisted vulnerability discovery and attacks are already creating demand for security services. Radware’s DefensePro X on-premises security platform also had a strong quarter, according to Zisapel. The company said a refresh cycle for aging infrastructure continues to create opportunities as customers seek to strengthen DDoS protections. One DefensePro X transaction during the quarter was a seven-digit deal with a global business and financial-information provider. The customer selected the platform for a DDoS-protection infrastructure refresh across the U.S., U.K. and Japan, along with multiyear application- and network-protection subscriptions. Zisapel said Radware recently added cloud-augmented protection capabilities to its on-premises platform, combining cloud intelligence with on-premises enforcement. He also said the company generally does not view its cloud DDoS business and on-premises DDoS appliance business as cannibalizing one another, since large enterprises often deploy hybrid environments. In response to a question about supply-chain conditions, Zisapel said Radware has seen some customer delays related to broader data-center projects, including server and switch delays. He said those delays have not been critical and primarily affect customers building complete new data centers rather than those upgrading existing infrastructure. Americas revenue was $37.2 million, up 24% year over year and representing about 45% of total revenue. EMEA revenue was $27.3 million, down 2% year over year and representing about 33% of total revenue. Asia-Pacific revenue was $17.8 million, up 9% year over year and representing about 22% of total revenue. Zisapel said North American growth reflected go-to-market investments, including changes to the sales organization. He added that the company is beginning to see encouraging signs from similar investments in Asia-Pacific. Radware’s cloud-security platform pipeline is growing faster than current ARR growth, he said, with customers increasingly considering broader platform deployments and enterprise agreements. On a non-GAAP basis, gross profit increased 10% year over year to $67.3 million, while gross margin was 81.8%, compared with 82.4% a year earlier. Avidan said gross margin was affected primarily by foreign-exchange headwinds and supply-chain cost pressures. Operating income was $10.9 million, down from $11.4 million in the prior-year period. Avidan attributed the decline primarily to the strengthening of the Israeli shekel against the U.S. dollar. Excluding that foreign-exchange impact, he said second-quarter operating income would have been $16.1 million, or 41% above the year-earlier period. Net income from continuing operations was $13 million, down 9% year over year, while diluted earnings per share from continuing operations were $0.30, compared with $0.32 in the second quarter of 2025. Cash flow provided by continuing operations was $13 million, down from $15.6 million a year earlier. Radware repurchased approximately $18.8 million of shares during the quarter and ended the period with $422.9 million in cash equivalents, bank deposits and marketable securities. For the third quarter of 2026, the company forecast revenue of $82.5 million to $83.5 million, non-GAAP operating expenses of $57 million to $58 million, and non-GAAP diluted earnings per share of $0.28 to $0.29. Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions. Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Radware Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

TEL AVIV, Israel, July 06, 2026 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in AI and application security and delivery solutions for multi-cloud environments, will announce its second quarter 2026 financial results on Wednesday, July 29, 2026.Conference Call DetailsRadware management will host a conference call on Wednesday, July 29, 2026, at 8:30 a.m. EDT to discuss the company’s second quarter 2026 results, as well as its outlook for the third quarter of 2026. Investors are invited to join the call by registering via the following link: Q2 2026 earnings call registration link. A replay of the call will be available within approximately 24 hours of the live event on the Investors section of Radware’s website at: https://www.radware.com/ir/financial-reports/. About RadwareRadware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, API, and AI security solutions use AI-driven algorithms for precise, behavior-based, real-time protection against sophisticated web, application, and DDoS attacks, API abuse, business logic threats, and malicious bots. Radware delivers end-to-end API security, including discovery, posture management, testing, and runtime protection, along with advanced protection for AI agents and models. Enterprises and carriers worldwide rely on Radware to address evolving cyberthreats, protect their brands and business operations, and reduce costs. For more information, please visit the Radware website. Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, and YouTube. ©2026 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners. Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice. The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “forecast,” “target,” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.”Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global market and economic conditions; our dependence on independent distributors; disruptions in our supply chain, including shortages of components or manufacturing capacity; our reliance on a limited number of vendors; our ability to attract, train and retain qualified personnel; intense competition in the cybersecurity and application delivery markets; our ability to develop new solutions and enhance existing solutions; risks related to defects, vulnerabilities or failures in our products or services, including cybersecurity incidents affecting our systems or those of our customers; risks associated with the use of artificial intelligence technologies, including evolving regulatory frameworks, litigation exposure and reputational considerations; risks related to our information technology systems, including failures, disruptions or security breaches; outages, interruptions, or delays in hosting or cloud-based services; risks related to the interoperability of our products; risks associated with our global operations; and geopolitical risks, including instability in the Middle East and Israel.These factors are not exhaustive. For a more detailed description of the risks and uncertainties affecting Radware, please refer to Radware’s Annual Report on Form 20-F and other reports filed with or furnished to the Securities and Exchange Commission (SEC) from time to time.Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, Radware undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements. Radware’s public filings are available from the SEC’s website at www.sec.gov or on Radware’s website at www.radware.com. CONTACTSInvestor Relations:Yisca Erez, +972-72-3917211, [email protected] Media Contact:Gina Sorice, [email protected]

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET Chief Executive Officer — Roy Zisapel Chief Financial Officer — Guy Avidan Roy Zisapel: Thank you, Yisca, and thank you all for joining us today. We started 2026 with solid execution across the business and steady progress against our long-term strategic priorities, scaling our cloud security platform, growing our MSSP business, driving innovation and executing with discipline across regions and functions. In the first quarter, we delivered another quarter of double-digit growth in revenue, marking the fourth quarter of double-digit growth in the past 5 quarters. Revenue grew 11% year-over-year to $80 million, and EPS was $0.30. Cloud security is driving our growth. Cloud ARR grew 23% year-over-year in the quarter, supported by strong demand for application security, hybrid DDoS services and our new API security. One cloud win example is with a large government institution in Latin America, where Radware was selected to secure critical applications and national-level digital infrastructure. The customer expanded its deployment across our full portfolio, including cloud application protection, API security and advanced DDoS mitigation. The decision was driven by our ability to deliver real-time protection at scale for highly sensitive mission-critical environments. Another cloud deal we secured is a new logo hybrid cloud DDoS deployment with a large global fintech company. The customer selected Radware DefensePro X appliances, combined with our cloud DDoS service to address escalating volumetric and low-and-slow attacks that were impacting payment availability. I would like now to share with you why we're so excited about the opportunity Radware is seeing in the security market. At our Investor Day, we outlined 4 major waves of disruption shaping our journey in the cybersecurity market. DDoS, application security, API protection and now Agentic AI security. Radware operates at the intersection of all 4, a position that become more critical as attacks grow increasingly automated, distributed and AI-driven. In particular, our new API security solution is one of the fastest-growing areas of our portfolio and a meaningful contributor to our cloud security momentum. Following the Pynt integration, the API security testing company we acquired, we now offer an end-to-end API security solution spanning discovery, posture management, testing and real-time runtime protection. We see strong customer traction with tens of projects in various stages across production deployments, upgrades, testing and POCs. We believe many of our customers will choose to standardize their API security on Radware as part of our broader application security platform, and we feel very encouraged by the momentum and visibility we have as we look ahead to the rest of the year. Next, AI continues to be both a catalyst and a clear differentiator for our platform. Our long-standing investment in behavioral algorithms and AI-powered automation remains the key reason customers choose Radware, particularly as attackers leverage AI-powered automation and manual responses can no longer keep pace. In addition, advanced AI penetration and code scanning tools are accelerating vulnerability discovery and compressing the time between exposure and exploitation. This widens the gap between what organizations can identify and what they can realistically remediate, making prevention-only and shift left approaches increasingly insufficient. Radware addresses this challenge through real-time platform-based protection that secures application and infrastructure as attack occur. Our architecture is designed to operate at scale to stop zero-day exploits, API abuse and automated attack chains in production. In this environment, new AI security tools do not replace our cybersecurity platform. They underscore the necessity for runtime protection that can keep pace with machine speed threats. We see this as a clear tailwind for our business. Furthermore, with the emergence of agentic AI and the broad access right granted to AI agents, a new and expanded attack surface must be protected. We introduced Agentic AI Protection last quarter, further expanding our cloud security platform. While still early, we are already seeing strong engagement as customers recognize that runtime protection is essential for their Agentic AI journey. From a go-to-market perspective, execution in North America remains a key priority and a significant contributor to growth. Revenues from the Americas grew 40% year-over-year, representing nearly 50% of total revenues. Investments in leadership, sales coverage and partner engagement are translating into improved execution. Within our go-to-market framework, our MSSP business is increasingly becoming more pronounced. Led by large strategic MSSP partners, the momentum is accelerating globally. During the quarter, we made meaningful progress onboarding Tier 1 carriers and service providers and building a substantial pipeline across regions that we expect to convert in the second half of the year. To that end, we just announced this week a partnership with Chief Telecom from Taiwan. Chief operates the Taipei Internet Exchange, which is the largest carrier-neutral Internet exchange in Taiwan and is the leading provider for direct private connections to global public clouds in the country. Through our partnership, Chief will provide Go Shield Pro, a new DDoS protection service for enterprises in Taiwan. The service combines Radware's AI-driven DDoS mitigation with Chief Telecom local network, enabling in-network scrubbing that minimizes latency. Delivered as a subscription, Godshield Pro provides immediate high-performance protection without the need for on-premise hardware. On the product side, our on-premise DDoS protection solution, DefensePro X, had an outstanding quarter, driven by multiple large-scale refresh and expansion deals globally, including one of the largest SaaS companies in the world, a leading multinational e-commerce provider and one of the largest healthcare systems in the U.S. DefensePro X delivers unmatched performance, scale and resiliency, which customers consistently validate through repeat refresh and expansion activity. This powerful refresh cycle underscores the durability of our hybrid foundation while simultaneously accelerating subscription adoption. In summary, Q1 marked a very strong start to 2026 with solid execution across the business. We delivered double-digit growth in revenues driven by cloud ARR, strong momentum with our new API security offering, continued strength in our hybrid portfolio led by DefensePro X and solid execution in North America. We continue to execute against our strategy and are well positioned for continued growth as we move through the year. With that, I'll turn the call over to Guy. Guy Avidan: Thank you, Roy, and good day, everyone. I will review the financial results and business performance for the first quarter of 2026 as well as our outlook for the second quarter of 2026. Before beginning the financial overview, I would like to remind you that unless otherwise indicated, all financial results are non-GAAP. A full reconciliation of our results on a GAAP to non-GAAP basis is available in the press release issued earlier today and in the Investors section of our website. As announced last quarter, the results of our subsidiary, SkyHawk, have been classified as a discontinued operation effective the first quarter of 2026 and are presented accordingly. As a result, all financial results discussed today related solely to continued operations. In connection with this change, the previously reported Hawk segment will no longer be presented separately. Comparative prior year figures have been adjusted to align with this presentation and ensure consistency. We started 2026 with a solid first quarter, delivering revenue of $79.8 million, representing a year-over-year growth of 11% and marking this the fourth quarter of double-digit growth for the past 5 quarters. Cloud security offerings continue to play an important role in our overall performance. Cloud ARR grew 23% year-over-year in the first quarter, reaching $98 million, increasing to 39% of total ARR, up from 35% in the first quarter of 2025. This growth was the primary driver of total ARR, which increased 9% year-over-year to $250 million in the quarter. Looking at regional performance. In the first quarter, the Americas region delivered robust growth with revenue increasing 40% year-over-year to $38.4 million. On a trailing 12-month basis, revenue in the Americas grew 15% year-over-year. Revenue from the Americas region represent nearly 50% of total revenue, and we are encouraged by the momentum in the region, which is also reflected in the strong pipeline for the coming quarters. EMEA revenue in the first quarter was $25.1 million, a decrease of 11% year-over-year. On a trailing 12-month basis, revenue in the EMEA increased 8% year-over-year. In APAC, first quarter revenue was $16.3 million, the same as in the first quarter last year. On a trailing 12-month basis, revenue in APAC increased 3% year-over-year. Turning to profitability. Gross margin was relatively consistent at 82.2% in the quarter compared to 82.4% in the same quarter last year. The slight change year-over-year reflects a favorable revenue mix, partially offset by supply chain and foreign exchange impacts. During the quarter, we experienced supply chain pressure, primarily driven by higher memory components costs. While this had a modest impact on gross margin, we are actively managing these dynamics through pricing and procurement. Looking ahead, we expect memory-related cost pressure to persist in the near term. However, we believe we can manage it effectively and maintain margin discipline throughout the year. Operating income for the first quarter increased 4% year-over-year to $11 million, while operating margin declined by 90 basis points to 13.8%. Decline was directly impacted by a negative $2.6 million impact from currency exchange changes, predominantly the strengthening of the Israeli shekel. Constant exchange rate currency, the operating income for the first quarter would have been $13.6 million, a 28% increase year-over-year. Financial income for the first quarter was $4.5 million compared with $5.2 million in the same period last year. primarily reflecting lower market interest rate and reduced cash balances following share repurchase over the past 2 quarters. Looking ahead, we expect financial income to gradually decrease over the remaining quarters of 2026, reflecting the same dynamics. Our effective tax rate for the first quarter was 14.3% compared to 13.7% in the same period of 2025. We expect the effective tax rate to be between 14% to 15% in the coming quarter. Net income from continued operations in Q1 2026 was $13.4 million compared to $13.6 million in Q1 2025. Diluted earnings per share from continued operations were $0.30 compared to $0.31 in the same period last year. Turning to cash and the balance sheet. Cash flow provided by continued operations in Q1 2026 was $19.9 million compared to $24.6 million in the same quarter last year. During the first quarter, we repurchased shares in the amount of approximately $29.4 million. We ended the quarter with a strong liquidity position, holding approximately $434 million in cash, cash equivalents, bank deposits and marketable securities. And now to the guidance. Turning to our guidance to note that our operating expenses and EPS outlook reflect current foreign exchange rates. Strengthening of the Israeli shekel will impact operating expenses and EPS over the course of the year. We expect total revenue for the second quarter of 2026 to be in the range of $81 million to $82 million. We expect Q2 2026 non-GAAP operating expenses to be between $56 million to $57 million. Expected increase in Q2 2026 OpEx versus the first quarter of 2026 reflect our continued investment in innovation and go-to-market, along with approximately $2 million of exchange rate impact associated with the U.S. dollar weakening. We expect Q2 2026 non-GAAP diluted net earnings per share to be between $0.28 and $0.29. With that, I'll turn the call back to the operator, and we'll be happy to take your questions. Operator: [Operator Instructions] The first question is from Joe Gallo from Jefferies. Joseph Gallo: Can you just walk through the total ARR performance a little bit in 1Q? Cloud was very strong but you saw a decline in total ARR of $1 million quarter-over-quarter. Can you just kind of walk through that dynamic and how we should think about total ARR growth in 2026? Roy Zisapel: Yes. I think the trends that we've seen in Q1 happening to us generally almost every year, although this year, there was a small decline so far. And it's because many of the contracts are expiring end of the year, and then we might see some churn, which is not exactly linear throughout the quarters. But we do continue to expect strong cloud growth in the 20s, and we do expect, like we've guided before for ARR to continue between 8% to 9%. And as the cloud portion of the total ARR growing, that figure to continue to accelerate. Last year, I think in this period, we were at 7%, give or take, ARR growth. Now we are at 9%, and we think that trend would continue to happen as we scale the cloud. Joseph Gallo: Okay. That makes total sense. And then just as a follow-up, you mentioned memory-related costs will persist. How are you thinking about pricing? Are you able to kind of raise prices to offset some of that? And have you seen any changes in buying behavior related to memory costs from your customers? Roy Zisapel: We just took an action and raised for some of the hardware platforms that are highly affected by memory. We did increase price lists by 5% to 8%. We didn't see yet a change in buying behavior, although those pricing changes will now go into effect end of Q2. Our customers will be made aware of that. And I believe there will be some acceleration in some of the hybrid projects. But I don't expect a major change. We didn't increase prices by 10% or 20%. We are much more, I would say, disciplined in discounting to make sure gross margin stays intact and of course, pushing a lot of the cloud security, the API security and AI that are isolated from those memory and supply chain issues. Operator: Our next question is from Jeffrey Hopson from Needham. John Jeffrey Hopson: At your Analyst Day, you were talking a little bit about a new go-to-market strategy with a hunter/farmer model. Any update on where we are with that transition or any early contributions? Roy Zisapel: So thanks a lot, Jeffrey. As we stated, North America was our first to execute this transition. And in the last several quarters, I think we've started to see very strong growth and contribution from this activity, and we believe that would continue as we progress. We're very happy with the initial results, both on farming and on hunting. We are now country by country. It depends on the situation globally. We are executing that in Europe and in Asia, and we believe that we would see the same results. So I think the model itself proved itself. We're seeing very good results, not only in the numbers, by the way, which is the most important, but also in our strengthening customer relationships in the cross-sell and the broadening of the usage of our platforms in the key accounts. So we have many leading indicators to the improved business traction that we have, and we are continuing with implementation. John Jeffrey Hopson: And you have new products in both API security and AI security that you've been highlighting. And I think those are going to be big longer-term drivers of growth. But do you expect like a large meaningful contribution from those products in 2026? Or are they still very early in the ramp? Roy Zisapel: So it is very early. The AI security we just launched, I don't know, 3 months ago, and the sales cycles in enterprise are 6 to 9 months on the short side, I would say. However, as it relates to API security, I was actually -- we were actually very surprised with the strong traction already in Q1, and we were able to close double-digit number of customers orders already within that quarter, and the traction continues to be very, very strong. So API security, I think it's much more immediate. It's a very easy expansion of our platform, especially for our existing customers. It's enabling another module on the same cloud platform. It's the same buyer, and we see a lot of interest in the market. So I actually would increase my expectations from API security contribution for 2026 versus where I was, I would say, in the Analyst Day or 3 months ago. And AI, we continue. We increased the number of POCs. I believe we will start to closing orders this quarter. And from there, hopefully, we'll see a strong ramp. It's earlier to talk about it versus API where we see the business right now. Operator: Okay. We have no further questions. I'd like to hand the call back to Roy for closing remarks. Roy Zisapel: Okay. Thank you, everyone, for joining us, and have a great day. Before you buy stock in Radware, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Radware wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Radware. The Motley Fool has a disclosure policy. Radware (RDWR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Wednesday, February 11, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Roy Zisapel Chief Financial Officer — Guy Avidan Vice President of Investor Relations — Yisca Erez Need a quote from a Motley Fool analyst? Email [email protected] Yisca Erez: Good morning, everyone, and welcome to Radware's Fourth Quarter and Full Year 2025 Earnings Conference Call. Joining me today are Roy Zisapel, President and Chief Executive Officer; and Guy Avidan, Chief Financial Officer. A copy of today's press release and financial statements as well as the investor kit for the fourth quarter and full year are available in the Investor Relations section of our website. During today's call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risks and uncertainties, and actual results could differ materially from Radware's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to, impact from changing or severe global economic conditions, general business conditions and our ability to address changes in our industry, changes in demand for products, the timing in the amount of orders and other risks detailed from time to time in Radware's filing. We refer you to the documents the company files and furnishes from time to time with the SEC, specifically the company's last annual report on Form 20-F as filed on March 28, 2025. We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date of such statement is made. Before I turn it over to Roy, I'd like to remind you that we're hosting our Investor Day on February 17, in New York City. If you haven't received the registration e-mail, please e-mail us at [email protected]. I will now turn the call to Roy Zisapel. Roy Zisapel: Thank you, Yisca, and thank you all for joining us today. I'm pleased to report that we ended 2025 on a high note with all major financial metrics, revenues, EPS, total ARR and cloud ARR reaching record highs. In Q4, revenue increased 10% year-over-year to $80 million and non-GAAP earnings per share grew 19% to $0.32. For the full year, we also delivered 10% year-over-year growth in revenues, surpassing $300 million while growing our RPO to $400 million. Over the last year, we've executed a strategy to accelerate our revenue growth and strengthen our position as the best-of-breed provider in application and data center security. Our strategy is built on three core pillars: gaining meaningful market share in cloud security; leading through AI and algorithmic-driven innovation; and expanding our go-to-market footprint. Well, we did it and our strategy proved itself. The cloud security business continued to grow at a healthy pace and remain a key driver of our results with cloud ARR rising 23% year-over-year and 7% sequentially to $95 million in the fourth quarter. This shows accelerated growth from 19% in the beginning of 2025 and demonstrates strengthening momentum throughout the year. We achieved our goal of reaching nearly $100 million in cloud ARR by year-end, underscoring the confidence customers place in Radware to protect their mission-critical application. One example among the many cloud deals we secured in Q4 is a 7-digit deal with a European financial group, a new logo, which is undergoing a major data center build-out. We were selected to provide a comprehensive cloud, web and API solution, web DDoS protection and more, all aligned with the stringent regulatory and operational demands. Our strong technological leadership and trust relationship enabled us to overtake the competition. To support rising cloud demands, we continue to invest in our cloud infrastructure. We expanded our global footprint with a new cloud security center in Singapore, and we also continued scaling our cloud security network, advancing mitigation capacity towards 30 terabit to stay ahead of the increased attack volume and fortifying the foundation for continued cloud security growth. This quarter, we expanded our cloud security offering with the launch of our new Radware API security service. We view API security as a new wave of growth, the third wave following DDoS and application security. As APIs become increasingly central to modern software architecture, customers need real-time visibility and protection against business logic attacks and coverage for shadow APIs. To further expand our API security offering, we announced the acquisition of Pynt Security, whose API testing technology identified vulnerabilities before the APIs reach production. With Pynt, we now offer a full life cycle API security solution, spanning testing, discovery, posture management and runtime protection, enhancing our value proposition, accelerating our road map and strengthening our position to capture opportunities in this rapidly expanding market. This is truly exciting news and an enhancement to our cloud security platform. But we did not stop here. We just released our new Agentic AI Protection Solution, which marks yet another major expansion of the Radware security platform. As organizations use anonymous AI agents, risks like intent manipulation, prompt-based attacks and unauthorized data access increase. Our solution leverages a new set of behavioral algorithms and provide real-time AI agent discovery, intent detection, integration with top AI ecosystems and ongoing security management. These advancements help enterprise adopt AI securely and supports Radware continued platform growth. This new capability positions Radware at the forefront of securing the next era of AI. We look forward to sharing more about our AI vision and road map on our Investor Day. Fueled by strong cloud ARR momentum, subscription revenue surged 21% year-over-year, a sharp acceleration from 12% growth in 2024. Importantly, this momentum was also driven by robust demand for product subscription. This demand was driven by very strong DefensePro X cycle and major competitive displacements, resulting in exceptional double-digit year-over-year growth in DefensePro X in Q4 and for the full year of 2025. Looking ahead, our pipeline remains robust across both existing and new logos, and we plan to take full advantage of our technology leadership in this space. We closed multiple large DefensePro X deals in the fourth quarter. One 8-digit win was a major strategic expansion with a government IT services agency in North America. Facing an upcoming end-of-life refresh, the customer selected our next-generation DefensePro architecture, reinforcing our deep technical engagement and proven on-prem capabilities as well as our long-term relationships. Another important win is a multiyear, multimillion dollar agreement for a hybrid cloud DDoS with a new logo, top 10 global SaaS and IT services management leader. Facing repeated large-scale DDoS, the customer required fast, reliable mitigation at global scale and its legacy solution could no longer meet performance and resilience needs. The customer replaced its on-prem vendor and cloud DDoS vendor with Radware DefensePro X and Cloud DDoS Protection. Our detection accuracy, automation capabilities and proven ability to protect mission-critical applications were key differentiators that drove the wins and position us as a strategic partner for their continued expansion. Overall, 2025 was a year of improved execution and meaningful progress across the business. We delivered record results driven by continued expansion in cloud security and increased momentum in our go-to-market engine. Additionally, we advanced our technology leadership with significant innovation in AI security and API security. With a stronger foundation, a strengthening go-to-market approach and enhanced TAM, leading security platform and rising demand for modern security solutions, we're carrying this momentum forward as we move into 2026. With that, I will turn the call over to Guy. Guy Avidan: Thank you, Roy, and good day, everyone. I will review the financial results and business performance for the fourth quarter and the full year of 2025 as well as our outlook for the first quarter of 2026. Before beginning the financial overview, I would like to remind you that unless otherwise indicated, all financial results are non-GAAP. A full reconciliation of our results on a GAAP to non-GAAP basis is available in the press release issued earlier today and in the Investors section of our website. We closed the fourth quarter with a strong finish, delivering record revenue and record non-GAAP earnings per share for both the quarter and the full year. In Q4, revenue increased 10% year-over-year to $80 million, driven primarily by continued momentum in our cloud security offering and the DefensePro X, both new logos and refresh. For the full year, we delivered 10% year-over-year growth in revenue to a record of $302 million. Cloud security offering continued to be a key contributor to our performance. Cloud ARR grew strongly in the fourth quarter, increasing 23% year-over-year, and we ended 2025 with $95 million in cloud ARR. Cloud ARR was the primary catalyst behind the acceleration of total ARR from 8% in Q3 to 11% growth year-over-year, reaching $251 million and becoming a larger share of our overall ARR mix. We will elaborate on this trend at our upcoming Investor Day next week. As we indicated on our last call, Q4 delivered exceptional booking performance, delivering RPO to a record of $400 million, up nearly $50 million from 2025 and 13% year-over-year growth. This reflects solid demand and improving deal visibility as we look ahead to 2026 and beyond. Looking at regional performance. In the fourth quarter, the Americas region declined 4% year-over-year to $32 million, while in the full year of 2025, the Americas grew 6% year-over-year to $125 million, representing 41% of total revenue. As highlighted earlier, we had an exceptional booking quarter led by the Americas, and we expect this strength to translate into revenues over the coming quarters. EMEA delivered performance in Q4, revenue increased 38% year-over-year to $32 million, accounting for 40% of total revenue. For the full year, EMEA revenue grew 18% year-over-year to $111 million, representing 37% of total revenue. In APAC, fourth quarter revenue declined 3% year-over-year to $16 million, accounting for 20% of total revenue. For the full year, APAC revenue grew 5% year-over-year to $66 million, accounting for 22% of total revenue. Turning to profitability. We delivered solid margin in the quarter, supported by favorable mix, model leverage and continued scalability in our cloud business. Gross margin was healthy at 82.2% in Q4 and in the full year of 2025 compared to 82.4% in Q4 2024 and 82.2% in 2024. Operating margin expanded by 240 basis points in the fourth quarter and by 330 basis points in the full year of 2025. Our operating expenses reflected targeted investment in innovation, cloud infrastructure, and go-to-market initiatives that support our future growth, and we plan to increase these investments in 2026. Following February 2026 financial review, it was decided based on accounting principle to classify SkyHawk's operation as a discontinued operation and excluded from our non-GAAP reporting as of the first quarter of 2026. Importantly, we expect EdgeHawk to begin generating revenues in 2026. Therefore, we will be no longer providing EBITDA breakdown as we expect it to negative EBITDA contribution to be marginal. Adjusted EBITDA for the fourth quarter of 2025 increased by 25% to $13.7 million compared to $11 million in the same period of last year. Excluding the Hawks business, adjusted EBITDA for the fourth quarter was $16.9 million, representing a 21.1% EBITDA margin, up from $13.7 million and 18.8% margin -- EBITDA margin in Q4 2024. Adjusted EBITDA for the full year of 2025 increased by 37% to $47.4 million compared to $34.7 million in 2024. Excluding the Hawks business, adjusted EBITDA for 2025 was $58.8 million, representing a 19.5% EBITDA margin, up from $45.6 million and 16.6% EBITDA margin in 2024, a testament to the operational leverage in our core business. Financial income for the fourth quarter and full year of 2025 was $5.1 million and $21.1 million, respectively, up from $5 million and $17.8 million in the same period of last year. Due to lower interest rate, share repurchase plan and M&As, we expect lower financial income in 2026. Our effective tax rate for the fourth quarter was 14.9% compared to 15.4% in the same period of 2024. For the full year of 2025, effective tax rate was 15.3% compared to 15.4% in 2024. We expect the effective tax rate to remain approximately at the same level in the coming quarter. Net income rose 21% year-over-year to $14.5 million compared to $11.9 million in Q4 2024. And diluted earnings per share increased by 19% to $0.32, up from $0.27 in the same period last year. For 2025, net income rose 37% year-over-year to $51.5 million compared to $37.7 million in 2024, and diluted earnings per share increased by 32% to a record of $1.15, up from $0.87 in the same period last year. Turning to cash and the balance sheet. Cash flow from operations in Q4 2025 was $17.3 million compared to $12.7 million in the same period last year. Cash flow from operations in 2025 was $50.1 million compared to $71.6 million in 2024. During the fourth quarter, we repurchased shares in the amount of approximately $10.5 million. We ended the quarter with a strong liquidity position, holding approximately $461 million in cash, cash equivalents, bank deposits and marketable securities. This cash position provides us with flexibility to invest in organic growth, support cloud capacity expansion and product innovation, maintain a disciplined approach to capital allocation and pursue acquisitions that enhance our cloud platform, such as the acquisition of Pynt, a technology tuck-in acquisition, which strengthened our API security capabilities. And now to the guidance. We expect total revenue for the first quarter of 2026 to be in the range of $78 million to $79 million. We expect Q1 2026 non-GAAP operating expenses to be between $54 million to $55 million. The expected increase in Q1 2026 OpEx versus the fourth quarter 2025 reflect our continued investment in innovation and go-to-market, along with approximately $1.5 million of exchange rate impact associated with the U.S. dollar weakening. We expect Q1 2026 non-GAAP diluted net earnings per share to be between $0.28 and $0.29. With that, I'll turn the call back to the operator, and we'll be happy to take your questions. Operator: [Operator Instructions] Our first question comes from Joseph Gallo from Jefferies. Joseph Gallo: Nice job this quarter. Our RPO grew 14% in 2025, which I think was double what you were targeting. Can you just talk a little bit more about what drove that strength and what your expectations for RPO growth are in 2026? Roy Zisapel: Yes. I think as Guy mentioned and also in my comments, we have very, very strong booking, driven both in cloud and in product subscriptions. So definitely, we saw a lot of momentum there. And as those subscriptions are being recognized over the period of the contract, obviously, RPOs are growing nicely. For next year, at this point, we expect RPOs to grow in line with the revenue growth. Of course, there's opportunities to do more than that. But at this point, that would be our expectation. Joseph Gallo: Okay. No, that's helpful. And then, I know the EMEA was really strong. U.S. declined a little bit. Part of that is just due to the tough 4Q '24 comparables. But could you just unpack a little bit more? I know you've invested heavily in go-to-market in the Americas. Just an update on if any changes are remaining there and when we can see a rebound in the growth profile of the Americas? Roy Zisapel: Yes. I think on a booking perspective, North America had a very, very strong Q4 with very significant growth. Yes, you don't see it in the revenues, but from the numbers we see, the traction we see, we've done a lot of progress this year and in Q4 specifically. And as part of our 2026 plan, we are actually increasing our investments in North America. We'll talk about it in the Investor Day, but we are adding more personnel, additional ways to market and so on. So we think we're progressing well, and we're confident that we can continue to grow there significantly. Operator: Our next question is from Chris Reimer from Barclays. Chris Reimer: Congratulations on the strong quarter. I was wondering if you could talk about the broader market environment where we've seen a lot of volatility in relation to potential AI disruption in cloud services. How do you think security, in particular, is positioned? Would you agree that it's a bit more defensive? And then if you could just explain maybe why? Roy Zisapel: Yes. I think to begin with, obviously, attacks continue to take place and you need very strong security. And I think what's unique in security is that the hackers are also using AI. So not only that attacks continue, they're actually becoming more sophisticated, more volumetric, more frequent and more dangerous. On top of that, the circle of possible attackers is being expanded because today, even someone who's not an expert using tools and it's becoming more and more as time goes, they can become very, very professional by using prompts on open-source models, on malicious models and so on. So even the gaps between the, I would say, a regular hacker and a very professional hacker is constantly eroding. As a result of that, I think there's a fundamental shift and requirement on the defense side to use way more algorithms and AI. And it actually plays to our strength for many, many years, as you follow us, we are constantly talking about algorithmic security, AI-based security and so on. And it's becoming clear that's the only way to protect. So that's item number one. You need AI-based defense because the attackers are using AI. And it's not -- whether they displace the applications on the enterprise side or not, attacks continue becoming more frequent, more malicious. You need better security. Radware is positioned extremely well here. That's item number one. Item number two is as you deploy those AI agents, you give them access to all of your tools, data, resources, enterprise applications. And suddenly, there's a huge risk from a risk -- productivity perspective, it's clear why we do it. It's clear why enterprise are interested and so on. If you look from a security point of view, suddenly, those entities, those human entities have access to everything. And if I'm a hacker, I'm now targeting them instead of targeting the human and I'm getting control over them, the damage is enormous. There's no limit to the size of the damage, leaking personal information, changing files, deleting resources, you name it. It's a complete chaos. We are targeting that market, protecting the agentic AI, those AI agents with our new AI security offering. So we're seeing a completely new TAM a huge opportunity in front of us to secure those agentic AI and a great growth opportunity. That's what we are targeting with the new solution. So for us, this agentic AI is a significant TAM expansion that we are going after, and we believe that can be another growth area for the company beyond DDoS, beyond the continuation of the WAF, but we're doing very well there. Beyond the new wave of API, we see agentic AI as yet another growth driver. So I'm looking at AI on multiple ways, the attacker using AI and then the need to protect by AI, a lot of your applications. And then the second wave is protect the AI, agentic AI. And last but not least, as users will start to use those AI agents and AI browsers to approach applications, we will need to enable the service of those AI agents. And that's another layer. We are going to cover it in the Investor Day. We'll call that [ surve AI ]. So we're seeing three distinct major opportunities with AI, and we're excited of the opportunity ahead. Chris Reimer: Great. That's really helpful. Good color. Just one more on the revenues guide for Q1. And forgive me if I'm wrong, but to me, it seems like it's a little higher than the usual Q1 seasonality. Are there any differences going into Q1 or maybe something specific impacting? Guy Avidan: Well, actually, you're right. It is different. Normally, we're seeing a sharp decline after Q4. But as we both mentioned in our script, we saw strong demand in Q4, and we are entering the year with very solid backlog that give us confidence that Q1 revenue is going to be according to the guidance. Operator: Our next question is from Ryan Koontz from Needham. John Jeffrey Hopson: This is Jeff Hopson on for Ryan Koontz. Congrats on the quarter, and thanks for the question. For the API and the agentic AI security solutions, will any changes needed to be made to the sales motion to best sell these? Roy Zisapel: Yes. Great question. So for the API security, we think it's squarely within the knowledge, capabilities, existing go-to-market of our sales force. And it's actually a great extension and expansion of our current cloud security motion with customers. It's the same buyer and so on. AI is a completely new market. It's even responsibilities for that within the organization of who will actually protect the agentic AI? Is it the CISO? Is it security operations? Is it the business? Are yet unclear. And for that, we've already assembled a dedicated agentic AI go-to-market overlay group that's actually working in tandem with our sellers and channels to advance our position in this market. And as the year will evolve, we'll see how to completely integrate it into our sales force. But API completely integrated, already all our workforce is trained, accessing customers. And for AI, it's this overlay effort that I've mentioned. John Jeffrey Hopson: Got it. And you also noted a win for DefensePro X refresh that was facing end of life. I guess how far along are we in that refresh cycle? Or how many customers are out there still needing to refresh? Guy Avidan: So it's -- we announced end of sale, and we haven't crossed half of the way. So we still have a long runway here in terms of refresh. Operator: Our next question is from George Notter from Wolfe Research. George Notter: A few questions. I was just curious about the agentic AI product. I'm trying to figure out how you guys are going to go to market with that in terms of just the commercial arrangement, how are you guys going to price it? I assume it's a subscription-based offering. Is it cloud managed? Does it run on DPX? Is it a hybrid model? Anything you can share would be really helpful. I've got some follow-up questions, too. Roy Zisapel: Okay. So at a high level, it's a hybrid model. It's subscription-based. It's cloud managed. And there are multiple options, some are per seat and some are a certain yearly subscription per agent and usage-based on tokens, depends if it's enterprise AI agent or it's a copilot like operation. We will provide much more information and details on all these AI, agentic AI options and go-to-market in our Investor Day, but that's the current go-to-market. George Notter: Got it. And is it sold a la carte? Or is it bundled as part of a larger Radware offering around cloud and subscription. Roy Zisapel: It can be done both ways. George Notter: Got it. Okay. And then I'm just curious, if you think about agentic AI and enterprises deploying agentic, I'm curious about how you see the intersection of the marketplace with your timing on product delivery. Certainly, it seems like many enterprises are struggling to roll out agentic and kind of move from proof of concept to commercial deployment. I know there's a lot of pitfalls in that process. Many of them are sort of operational and concerns about data and security, and that kind of feeds into your business. But how do you think about the timing of your product relative to the development of the marketplace? And then how quickly could this product ramp? Roy Zisapel: Yes. I think we have great timing because now it's really when enterprises will start moving those POCs into production. So it's very early time like you're saying. And we're coming with a very, very strong offering there. It's not only guardrails or some rules based on model. It's a complete behavioral algorithms, testing and POCs with customers have proven very, very strong results. So we think we're in a great time to the market. I think there's a lot of possible alliances as this market is very early and shaping up. And three, like you said, there's a major concern with those AI agents on compliance, on security, on data leak, and those are the problems we solve. So I think here, security is even more critical as much as I can say that than in a regular application and already there is obviously critical because it's fundamental to the use of agentic AI. So I think the role is critical. I think it can drag with it a lot of our other offerings like API security, like web security for the same applications that the agent AI is covering. So there's tremendous opportunity for us. Operator: There are no further questions. I'd like to hand over the call to Roy for a closing statement. Roy Zisapel: Thank you, everyone, and we look forward to meeting you next week in our Investor Day. Have a good day. Before you buy stock in Radware, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Radware wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Radware. The Motley Fool has a disclosure policy. Radware (RDWR) Q4 2025 Earnings Transcript was originally published by The Motley Fool

TEL AVIV, Israel, May 27, 2026 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced the results of its Annual General Meeting of Shareholders held May 25, 2026. The Company presented three proposals for the shareholders to vote on at the meeting. All three proposals voted on at the Annual General Meeting were adopted by the requisite shareholder vote. About Radware Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, API, and AI security solutions use AI-driven algorithms for precise, behavior-based, real-time protection against sophisticated web, application, and DDoS attacks, API abuse, business logic threats, and malicious bots. Radware delivers end-to-end API security, including discovery, posture management, testing, and runtime protection, along with advanced protection for AI agents and models. Enterprises and carriers worldwide rely on Radware to address evolving cyberthreats, protect their brands and business operations, and reduce costs. For more information, please visit the Radware website. Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, and YouTube. ©2026 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners. Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice. The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release. CONTACTSInvestor Relations:Yisca Erez, +972-72-3917211, [email protected] Media Contact:Gina Sorice, [email protected] Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “forecast,” “target,” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.”Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global market and economic conditions; our dependence on independent distributors; disruptions in our supply chain, including shortages of components or manufacturing capacity; our reliance on a limited number of vendors; our ability to attract, train and retain qualified personnel; intense competition in the cybersecurity and application delivery markets; our ability to develop new solutions and enhance existing solutions; risks related to defects, vulnerabilities or failures in our products or services, including cybersecurity incidents affecting our systems or those of our customers; risks associated with the use of artificial intelligence technologies, including evolving regulatory frameworks, litigation exposure and reputational considerations; risks related to our information technology systems, including failures, disruptions or security breaches; outages, interruptions, or delays in hosting or cloud-based services; risks related to the interoperability of our products; risks associated with our global operations; and geopolitical risks, including instability in the Middle East and Israel.These factors are not exhaustive. For a more detailed description of the risks and uncertainties affecting Radware, please refer to Radware’s Annual Report on Form 20-F and other reports filed with or furnished to the Securities and Exchange Commission (SEC) from time to time.Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, Radware undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements. Radware’s public filings are available from the SEC’s website at www.sec.gov or on Radware’s website at www.radware.com.

Interested in Radware Ltd.? Here are five stocks we like better. Radware posted another strong quarter with first-quarter 2026 revenue up 11% year over year to about $79.8 million and non-GAAP EPS of $0.30. Management said it was the company’s fourth double-digit revenue growth quarter in the last five. Cloud security and API protection were the main growth engines, with cloud ARR up 23% to $98 million and API security described as one of the fastest-growing parts of the portfolio. Radware also highlighted strong demand for hybrid DDoS protection and emerging interest in its AI security offerings. The Americas drove regional results and the outlook remains constructive, as revenue in the region jumped 40% year over year and North American go-to-market changes continued to improve execution. For Q2 2026, Radware guided for revenue of $81 million to $82 million and EPS of $0.28 to $0.29. Radware (NASDAQ:RDWR) reported first-quarter 2026 revenue growth of 11% year over year, as management cited continued momentum in cloud security, API protection and North American sales execution. President and CEO Roy Zisapel said the company delivered revenue of $80 million and earnings per share of $0.30 in the quarter, calling it “another quarter of double-digit growth in revenue” and the fourth such quarter in the past five quarters. Chief Financial Officer Guy Avidan later specified that first-quarter revenue was $79.8 million and non-GAAP diluted earnings per share from continuing operations were $0.30. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Zisapel said Radware’s performance reflected progress against several strategic priorities, including scaling its cloud security platform, expanding its managed security service provider, or MSSP, business, driving product innovation and maintaining operating discipline across regions and functions. Cloud security remained a major growth driver in the first quarter. Avidan said cloud annual recurring revenue grew 23% year over year to $98 million, representing 39% of total ARR, up from 35% in the first quarter of 2025. Total ARR increased 9% year over year to $250 million. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Zisapel said demand was particularly strong for application security, hybrid DDoS services and the company’s new API security offering. He pointed to a large government institution in Latin America that selected Radware to secure national-level digital infrastructure across Cloud Application Protection, API security and advanced DDoS mitigation. He also cited a new hybrid cloud DDoS deployment with a large global fintech company, which selected Radware DefensePro X appliances together with its cloud DDoS service to address attacks affecting payment availability. → Years in the Making, AMD’s Upside Movement Has Just Begun Zisapel said Radware’s API security solution has become “one of the fastest-growing areas” of the portfolio. Following the integration of Pynt, the API security testing company Radware acquired, the company now offers API security spanning discovery, posture management, testing and runtime protection, he said. In the question-and-answer session, Zisapel said Radware closed a double-digit number of API security customer orders in the first quarter and that traction remained strong. Management also emphasized artificial intelligence as both a driver of customer demand and a differentiator for Radware’s platform. Zisapel said attackers are increasingly using AI-powered automation, while advanced AI penetration and code-scanning tools are accelerating vulnerability discovery and reducing the time between exposure and exploitation. He said these trends make runtime protection more important, arguing that prevention-only and “shift left” approaches are becoming insufficient. Radware’s platform is designed to secure applications and infrastructure as attacks occur, including zero-day exploits, API abuse and automated attack chains, he said. Zisapel also discussed Radware’s agentic AI protection offering, introduced in the prior quarter. He described the product as early-stage but said the company is seeing strong customer engagement as enterprises consider the new attack surface created by AI agents with broad access rights. During the Q&A, Zisapel said AI security sales cycles in enterprise accounts are still in the early stages, with the product launched roughly three months earlier. He said Radware has increased the number of proofs of concept and expects to begin closing orders during the current quarter. Regional performance was led by the Americas, where first-quarter revenue rose 40% year over year to $38.4 million, representing nearly half of total revenue. On a trailing 12-month basis, Americas revenue grew 15% year over year. Zisapel said investments in leadership, sales coverage and partner engagement in North America are translating into improved execution. In response to a question from Needham analyst Jeffrey Hopson about the company’s hunter/farmer sales model, Zisapel said North America was the first region to implement the transition and that Radware has seen strong results in recent quarters. He said the model has improved both new account activity and existing customer expansion, adding that Radware is now implementing the approach “country by country” in Europe and Asia. EMEA revenue was $25.1 million in the quarter, down 11% year over year, though trailing 12-month revenue in the region increased 8%. APAC revenue was $16.3 million, flat with the prior-year quarter, while trailing 12-month APAC revenue increased 3%. Zisapel said Radware’s on-premise DDoS protection product, DefensePro X, had an “outstanding quarter,” supported by large-scale refresh and expansion deals. Customers cited on the call included one of the world’s largest SaaS companies, a multinational e-commerce provider and one of the largest healthcare systems in the U.S. Management also highlighted progress in the MSSP channel. Zisapel said Radware made headway onboarding tier-one carriers and service providers and building a pipeline it expects to convert in the second half of the year. He pointed to a newly announced partnership with Taiwan’s Chief Telecom, which operates the Taipei Internet Exchange. Under the partnership, Chief Telecom will offer GuardShield Pro, a DDoS protection service for enterprises in Taiwan that combines Radware’s AI-driven DDoS mitigation with Chief Telecom’s local network. Avidan said first-quarter non-GAAP gross margin was 82.2%, compared with 82.4% in the prior-year period. He said the company experienced supply chain pressure, mainly from higher memory component costs, though the impact on gross margin was modest. In response to Jefferies analyst Joe Gallo, Zisapel said Radware raised prices by 5% to 8% on some hardware platforms most affected by memory costs. He said the pricing changes will take effect at the end of the second quarter and that the company has not yet seen a change in buying behavior. Operating income increased 4% year over year to $11 million, while operating margin declined 90 basis points to 13.8%. Avidan attributed the margin decline to a $2.6 million currency exchange impact, primarily from the strengthening of the Israeli shekel. At constant exchange rates, operating income would have been $13.6 million, up 28% year over year, he said. Net income from continuing operations was $13.4 million, compared with $13.6 million a year earlier. Cash flow provided by continuing operations was $19.9 million, compared with $24.6 million in the prior-year quarter. Radware repurchased approximately $29.4 million of shares during the quarter and ended with about $434 million in cash equivalents, bank deposits and marketable securities. For the second quarter of 2026, Avidan guided for revenue of $81 million to $82 million, non-GAAP operating expenses of $56 million to $57 million and non-GAAP diluted earnings per share of $0.28 to $0.29. He said the operating expense outlook reflects continued investment in innovation and go-to-market efforts, along with approximately $2 million of foreign exchange impact tied to U.S. dollar weakness. Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions. Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S. The article "Radware Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.