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1. Company Snapshot

1.a. Company Description

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for applications in cloud, physical, and software defined data centers worldwide.The company offers DefensePro, a real-time network attack mitigation device; AppWall, a Web application firewall; Radware Kubernetes WAF, a Web application firewall solution for CI/CD environments orchestrated by Kubernetes; and DefenseFlow, a cyber-command and control application.It also provides Alteon, an application delivery controller/load balancer for web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications.


In addition, the company offers Security Updates Subscription, which provides protection from network elements, hosts and applications against the latest security vulnerabilities and threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks and web attacks; Alteon Global Elastic License that enables a high level of flexibility for ADC services across datacenters, private and public clouds; APSolute Vision, a network monitoring tool for cyber security and application delivery solutions; and MSSP Portal, a DDoS detection and mitigation service portal.Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers.The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators.


Radware Ltd.was founded in 1996 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on RDWR

Radware's recent performance was negatively impacted by concerns over slowing growth, despite a revenue increase of 8% year-over-year to $75.3 million in Q3 2025. Non-GAAP diluted EPS was $0.28. The company's Cloud ARR grew 24% year-over-year to $89 million. Radware's cybersecurity solutions have received recognition, including being named an Overall Leader in KuppingerCole's 2025 Leadership Compass Report for Web Application and API Protection. However, investors are closely watching the company's ability to maintain growth momentum.

1.c. Company Highlights

2. Radware Delivers Solid Q3 2025 Earnings with 8% Revenue Growth

Radware reported a strong third quarter, with revenue reaching $75.3 million, an 8% year-over-year increase, driven by sustained demand in cloud security. Non-GAAP earnings per share (EPS) came in at $0.28, significantly beating estimates of $0.17 and representing a 22% year-over-year growth. The company's cloud security business continues to scale efficiently, with Annual Recurring Revenue (ARR) climbing to $89 million, up from $72 million in Q3 last year, marking an accelerated 24% year-over-year growth. Total ARR rose to $240 million, up 8% year-over-year, reflecting the momentum behind revenue growth.

Publication Date: Nov -04

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue hits $75 million, up 8% YoY, driven by cloud security demand.
  • Non-GAAP Earnings:: Earnings per share rise 22% YoY to $0.28, with Q4 guidance at $0.29–$0.30.
  • Cloud ARR Expansion:: Annual Recurring Revenue jumps to $89 million, accelerating to 24% YoY growth from 21% in Q2.
  • Geographic Momentum:: Americas revenue surges 28% YoY, contributing to 15% trailing 12-month growth.
  • Future Revenue Outlook:: Q4 2025 revenue guided to $78–79 million, with non-GAAP operating expenses projected at $52.5–$53.5 million.

Cloud Security Drives Growth

The cloud security segment remains a key growth driver for Radware, with ARR growth accelerating from 21% in Q2 2025 to 24% year-over-year. The company's leadership in application security is recognized, with honors in the 2025 SPARK Matrix for web application firewall and bot management and the 2025 KuppingerCole Leadership Compass Report for web application and API protection. As Roy Zisapel mentioned, "the demand environment is solid, with strong growth in ARR and good visibility for Q4," underscoring the company's competitive position in the market.

Guidance and Outlook

For the fourth quarter of 2025, Radware expects total revenue to be in the range of $78 million to $79 million, with non-GAAP diluted net earnings per share expected to be between $0.29 and $0.30. The company anticipates a rebound in RPO, with a high single-digit year-over-year growth, and expects billing and cash collection to be stronger in Q4, with a return to positive cash flow from operations. Analysts estimate next year's revenue growth at 7.3%, indicating a continued upward trajectory.

Valuation and Growth Prospects

Radware's current valuation metrics indicate a premium, with a P/E Ratio of 63.89 and an EV/EBITDA of 34.59. The company's ROE stands at 5.02%, and its ROIC is 1.15%. With a significant market opportunity ahead, driven by its unique algorithmic-based approach and a fully managed service, Radware is poised for long-term growth. The company's focus on security, AI, and API as the third wave of growth positions it well in the expanding cybersecurity landscape.

3. NewsRoom

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Analysts Set Radware Ltd. (NASDAQ:RDWR) PT at $32.50

Nov -25

Source: defenseworld.net

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Radware Protects Generative AI Use within Enterprises with New LLM Firewall

Nov -18

Source: globenewswire.com

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Hitachi Solutions and Radware To Launch Radware Cloud Application Protection Service to Defend Against Evolving Web DDoS Attacks Using AI

Nov -13

Source: globenewswire.com

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Radware Ltd. (RDWR) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Radware Reports Third Quarter 2025 Financial Results

Oct -29

Source: globenewswire.com

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Radware AI SOC Xpert Now Covers New Use Cases To Drive Efficiencies

Oct -15

Source: globenewswire.com

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Radware Schedules Conference Call for Its Third Quarter 2025 Earnings

Oct -06

Source: globenewswire.com

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MULTIMEDIA UPDATE - Radware Uncovers First Zero-Click, Service-Side Vulnerability in ChatGPT

Sep -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.02%)

6. Segments

Subscriptions

Expected Growth: 4%

Radware's subscription growth is driven by increasing demand for cloud-based cybersecurity solutions, expansion into new markets, and strategic partnerships. The company's focus on cloud-native and containerized solutions, as well as its AI-powered security offerings, are also contributing to its growth. Additionally, the rise of 5G and IoT has led to increased adoption of Radware's security solutions.

Services

Expected Growth: 3%

Radware's services growth is driven by increasing demand for cybersecurity and cloud-based solutions, as well as the need for organizations to protect against cyber threats and ensure application delivery and performance. Additionally, the growing adoption of 5G and IoT technologies is fueling demand for Radware's services, which provide real-time threat detection and mitigation.

Cyber Security and Application Delivery Solutions

Expected Growth: 6%

Radware's 6% growth in Cyber Security and Application Delivery Solutions is driven by increasing demand for cloud-based security services, rising adoption of 5G networks, and growing need for protection against cyber threats. Additionally, the shift to remote work and digital transformation initiatives are fueling demand for application delivery solutions that ensure fast, secure, and reliable access to online resources.

7. Detailed Products

Application Delivery and Load Balancing

Radware's application delivery and load balancing solutions ensure fast, secure, and reliable delivery of applications across data centers and cloud environments.

Cybersecurity and DDoS Protection

Radware's cybersecurity solutions provide real-time threat detection and mitigation, protecting against DDoS attacks, malware, and other cyber threats.

Cloud Workload Protection

Radware's cloud workload protection solutions provide automated security and compliance for cloud-native applications and workloads.

WAF and API Protection

Radware's web application firewall (WAF) and API protection solutions provide advanced threat detection and mitigation for web applications and APIs.

Network Performance Monitoring

Radware's network performance monitoring solutions provide real-time visibility and analytics for network performance optimization.

8. Radware Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Radware Ltd. faces moderate threat from substitutes, as customers have limited alternatives for its cybersecurity solutions.

Bargaining Power Of Customers

Radware Ltd.'s customers have limited bargaining power due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

Radware Ltd. has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The cybersecurity industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions.

Intensity Of Rivalry

The cybersecurity industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.79%
Debt Cost 3.95%
Equity Weight 93.21%
Equity Cost 8.82%
WACC 8.49%
Leverage 7.29%

11. Quality Control: Radware Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
F-Secure

A-Score: 4.8/10

Value: 5.5

Growth: 4.2

Quality: 8.1

Yield: 3.1

Momentum: 1.5

Volatility: 6.3

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WAGPS

A-Score: 4.3/10

Value: 4.5

Growth: 5.7

Quality: 2.0

Yield: 2.5

Momentum: 9.0

Volatility: 2.0

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Spirent Communications

A-Score: 4.1/10

Value: 0.8

Growth: 1.7

Quality: 5.1

Yield: 3.1

Momentum: 7.0

Volatility: 7.0

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Stock-Card
Radware

A-Score: 3.6/10

Value: 1.2

Growth: 3.6

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

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Stock-Card
Cognyte Software

A-Score: 3.4/10

Value: 3.6

Growth: 4.7

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

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Stock-Card
XBP Europe Holdings

A-Score: 3.3/10

Value: 8.7

Growth: 1.6

Quality: 4.2

Yield: 0.0

Momentum: 5.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.75$

Current Price

23.75$

Potential

-0.00%

Expected Cash-Flows