Radware Reports Record Fourth Quarter and Full Year 2025 Financial Results

Fourth Quarter 2025 Financial Results and Highlights

• Record revenue of $80.2 million, an increase of 10% year-over-year
• Cloud ARR of $95.2 million, an increase of 23% year-over-year
• Total ARR of $251.0 million, an increase of 11% year-over-year
• Record non-GAAP diluted EPS of $0.32 vs. $0.27 in Q4 2024; GAAP diluted EPS of $0.13 vs. $0.06 in Q4 2024

Full Year 2025 Financial Results and Highlights

• Record revenue of $301.9 million, an increase of 10% year-over-year
• Record non-GAAP diluted EPS of $1.15 vs. $0.87 in 2024; GAAP diluted EPS of $0.45 vs. $0.14 in 2024

TEL AVIV, Israel, Feb. 11, 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 fourth quarter and full year ended December 31, 2025.

"2025 was a year of strong execution and significant progress for Radware. We closed the year with record revenue and earnings, driven by continued expansion in our cloud security business, momentum in our go-to-market strategy, and robust demand for our advanced protection solutions," said Roy Zisapel, president and CEO of Radware. "Our cloud ARR approached the $100 million milestone, and we advanced our cloud application platform with API security and agentic-AI protection, further strengthening our market position. As we enter 2026 with a healthy pipeline, an enhanced platform, and growing customer adoption of cloud-based security, we are well-positioned to sustain our growth."

Financial Highlights for the Fourth Quarter 2025

Revenue for the fourth quarter and full year of 2025 totaled $80.2 million and $301.9 million, respectively:

• Revenue in the Americas region was $31.6 million for the fourth quarter of 2025, a decrease of 4% from $32.8 million in the fourth quarter of 2024. Revenue in the Americas region for the full year of 2025 was $124.5 million, an increase of 6% from $117.7 million in the full year of 2024.
• Revenue in the Europe, Middle East, and Africa ("EMEA") region was $32.2 million for the fourth quarter of 2025, an increase of 38% from $23.3 million in the fourth quarter of 2024. Revenue in the EMEA region for the full year of 2025 was $111.3 million, an increase of 18% from $94.1 million in the full year of 2024.
• Revenue in the Asia-Pacific ("APAC") region was $16.4 million for the fourth quarter of 2025, a decrease of 3% from $16.9 million in the fourth quarter of 2024. Revenue in APAC region for the full year of 2025 was $66.1 million, an increase of 5% from $63.1 million in the full year of 2024.
  
  
  
  

GAAP net income for the fourth quarter of 2025 was $6.0 million, or $0.13 per diluted share, compared to GAAP net income of $2.5 million, or $0.06 per diluted share, for the fourth quarter of 2024. GAAP net income for the full year of 2025 was $20.3 million, or $0.45 per diluted share, compared to GAAP net income of $6.0 million, or $0.14 per diluted share, for the full year of 2024.

Non-GAAP net income for the fourth quarter of 2025 was $14.5 million, or $0.32 per diluted share, compared to non-GAAP net income of $11.9 million, or $0.27 per diluted share, for the fourth quarter of 2024. Non-GAAP net income for the full year of 2025 was $51.5 million, or $1.15 per diluted share, compared to non-GAAP net income of $37.7 million, or $0.87 per diluted share, for the full year of 2024.

As of December 31, 2025, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $460.6 million. Cash flow from operations was $17.3 million and $50.1 million in the fourth quarter and full year of 2025, respectively.

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.

Conference Call

Radware management will host a call today, February 11, 2026, at 8:30 a.m. ET to discuss its Fourth quarter and full year 2025 results and first quarter 2026 outlook. To participate in the call, please use the following link: Q4 2025 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

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 includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware's plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," and similar expressions or 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, and actual results, expressed or implied by such forward-looking statements, 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: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia's military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by Fourth parties; laws, regulations, and industry standards affecting our business; compliance with open source and Fourth-party licenses; complications with the design or implementation of our new enterprise resource planning ("ERP") system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware's Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware's public filings are available from the SEC's website at www.sec.gov or may be obtained on Radware's website at www.radware.com.

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, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware's solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.



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©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.

CONTACTS

Investor Relations:

Yisca Erez, +972-72-3917211, [email protected]

Media Contact:

Gina Sorice, [email protected]

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
	December 31,			December 31,
	2025			2024
	(Unaudited)			(Unaudited)
Assets
Current assets
Cash and cash equivalents	105,078			98,714
Marketable securities	15,900			72,994
Short-term bank deposits	136,282			104,073
Trade receivables, net	35,023			16,823
Other receivables and prepaid expenses	11,004			14,242
Inventories	13,220			14,030
	316,507			320,876
Long-term investments
Marketable securities	71,398			29,523
Long-term bank deposits	131,922			114,354
Other assets	2,830			2,171
	206,150			146,048
Property and equipment, net	16,452			15,632
Intangible assets, net	7,782			11,750
Other long-term assets	40,641			37,906
Operating lease right-of-use assets	15,625			18,456
Goodwill	68,008			68,008
Total assets	671,165			618,676
Liabilities and equity
Current liabilities
Trade payables	7,234			5,581
Deferred revenues	112,054			106,303
Operating lease liabilities	5,051			4,750
Other payables and accrued expenses	69,357			51,836
	193,696			168,470
Long-term liabilities
Deferred revenues	65,764			64,708
Operating lease liabilities	11,970			13,519
Other long-term liabilities	9,051			14,904
	86,785			93,131
Equity
Radware Ltd. equity
Share capital	770			754
Additional paid-in capital	578,652			555,154
Accumulated other comprehensive income	1,393			1,103
Treasury stock, at cost	(377,561	)		(366,588	)
Retained earnings	146,107			125,850
Total Radware Ltd. shareholder's equity	349,361			316,273
Non–controlling interest	41,323			40,802
Total equity	390,684			357,075
Total liabilities and equity	671,165			618,676

Radware Ltd.
Condensed Consolidated Statements of Income
(U.S Dollars in thousands, except share and per share data)
		For the three months ended				For the twelve months ended
		December 31,				December 31,
		2025		2024		2025		2024
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues		80,245		73,031		301,850		274,880
Cost of revenues		15,471		13,992		58,339		53,252
Gross profit		64,774		59,039		243,511		221,628
Operating expenses, net:
Research and development, net		21,132		18,472		78,981		74,723
Selling and marketing		33,391		32,505		127,586		122,450
General and administrative		6,308		7,071		25,536		28,342
Total operating expenses, net		60,831		58,048		232,103		225,515
Operating income (loss)		3,943		991		11,408		(3,887	)
Financial income, net		4,562		3,570		17,899		16,552
Income before taxes on income		8,505		4,561		29,307		12,665
Taxes on income		2,464		2,109		9,050		6,627
Net income		6,041		2,452		20,257		6,038
Basic net income per share attributed to Radware Ltd.'s shareholders		0.14		0.06		0.47		0.14
Weighted average number of shares used to compute basic net income per share		43,275,172		42,238,469		42,879,056		41,982,851
Diluted net income per share attributed to Radware Ltd.'s shareholders		0.13		0.06		0.45		0.14
Weighted average number of shares used to compute diluted net income per share		45,129,136		43,725,803		44,698,538		43,362,906

	Radware Ltd.
	Reconciliation of GAAP to Non-GAAP Financial Information
	(U.S Dollars in thousands, except share and per share data)
		For the three months ended						For the twelve months ended
		December 31,						December 31,
		2025			2024			2025			2024
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP gross profit		64,774			59,039			243,511			221,628
	Share-based compensation	180			126			574			366
	Amortization of intangible assets	992			992			3,968			3,968
Non-GAAP gross profit		65,946			60,157			248,053			225,962
GAAP research and development, net		21,132			18,472			78,981			74,723
	Share-based compensation	1,825			1,434			5,674			6,113
Non-GAAP research and development, net		19,307			17,038			73,307			68,610
GAAP selling and marketing		33,391			32,505			127,586			122,450
	Share-based compensation	3,678			3,173			12,084			10,881
Non-GAAP selling and marketing		29,713			29,332			115,502			111,569
GAAP general and administrative		6,308			7,071			25,536			28,342
	Share-based compensation	1,414			2,187			5,703			8,667
	Acquisition costs	(153	)		130			237			701
Non-GAAP general and administrative		5,047			4,754			19,596			18,974
GAAP total operating expenses, net		60,831			58,048			232,103			225,515
	Share-based compensation	6,917			6,794			23,461			25,661
	Acquisition costs	(153	)		130			237			701
Non-GAAP total operating expenses, net		54,067			51,124			208,405			199,153
GAAP operating income (loss)		3,943			991			11,408			(3,887	)
	Share-based compensation	7,097			6,920			24,035			26,027
	Amortization of intangible assets	992			992			3,968			3,968
	Acquisition costs	(153	)		130			237			701
Non-GAAP operating income		11,879			9,033			39,648			26,809
GAAP financial income, net		4,562			3,570			17,899			16,552
	Exchange rate differences, net on balance sheet items included in financial income, net	535			1,463			3,233			1,232
Non-GAAP financial income, net		5,097			5,033			21,132			17,784
GAAP income before taxes on income		8,505			4,561			29,307			12,665
	Share-based compensation	7,097			6,920			24,035			26,027
	Amortization of intangible assets	992			992			3,968			3,968
	Acquisition costs	(153	)		130			237			701
	Exchange rate differences, net on balance sheet items included in financial income, net	535			1,463			3,233			1,232
Non-GAAP income before taxes on income		16,976			14,066			60,780			44,593
GAAP taxes on income		2,464			2,109			9,050			6,627
	Tax related adjustments	61			61			246			246
Non-GAAP taxes on income		2,525			2,170			9,296			6,873
GAAP net income		6,041			2,452			20,257			6,038
	Share-based compensation	7,097			6,920			24,035			26,027
	Amortization of intangible assets	992			992			3,968			3,968
	Acquisition costs	(153	)		130			237			701
	Exchange rate differences, net on balance sheet items included in financial income, net	535			1,463			3,233			1,232
	Tax related adjustments	(61	)		(61	)		(246	)		(246	)
Non-GAAP net income		14,451			11,896			51,484			37,720
GAAP diluted net income per share		0.13			0.06			0.45			0.14
	Share-based compensation	0.16			0.16			0.54			0.60
	Amortization of intangible assets	0.02			0.02			0.09			0.09
	Acquisition costs	(0.00	)		0.00			0.01			0.02
	Exchange rate differences, net on balance sheet items included in financial income, net	0.01			0.03			0.07			0.03
	Tax related adjustments	(0.00	)		(0.00	)		(0.01	)		(0.01	)
Non-GAAP diluted net earnings per share		0.32			0.27			1.15			0.87
Weighted average number of shares used to compute non-GAAP diluted net earnings per share		45,129,136			43,725,803			44,698,538			43,362,906

Radware Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)
		For the three months ended						For the twelve months ended
		December 31,						December 31,
		2025			2024			2025			2024
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cash flow from operating activities:
Net income		6,041			2,452			20,257			6,038
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,854			2,918			11,684			11,836
Share-based compensation		7,097			6,920			24,035			26,027
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net		105			(190	)		1			(417	)
Increase (decrease) in accrued interest on bank deposits		(2,028	)		(1,279	)		(7,736	)		3,366
Increase (decrease) in accrued severance pay, net		145			(151	)		193			(45	)
Decrease (increase) in trade receivables, net		(5,031	)		3,140			(18,200	)		3,444
Increase in other receivables and prepaid expenses and other long-term assets		(845	)		(1,252	)		(4,496	)		(97	)
Decrease (increase) in inventories		106			(487	)		810			1,514
Increase (decrease) in trade payables		1,605			(970	)		1,653			1,283
Increase (decrease) in deferred revenues		2,450			(4,829	)		6,807			5,500
Increase in other payables and accrued expenses		4,470			6,222			13,500			13,274
Operating lease liabilities, net		362			255			1,583			(114	)
Net cash provided by operating activities		17,331			12,749			50,091			71,609
Cash flows from investing activities:
Purchase of property and equipment		(2,881	)		(1,059	)		(8,536	)		(5,279	)
Proceeds from (investment in) other long-term assets, net		(20	)		41			58			81
Proceeds from (investment in) bank deposits, net		10,323			(46,682	)		(42,041	)		(48,115	)
Investment in, redemption of and purchase of marketable securities, net		3,536			23,249			15,449			18,793
Proceeds from (investment in) other deposits		-			(5,000	)		5,000			(5,000	)
Net cash provided by (used in) investing activities		10,958			(29,451	)		(30,070	)		(39,520	)
Cash flows from financing activities:
Proceeds from exercise of share options		(2	)		-			-			3
Repurchase of shares		(10,490	)		-			(10,490	)		(839	)
Payment of contingent consideration related to acquisition		-			-			(3,167	)		(3,077	)
Net cash used in financing activities		(10,492	)		-			(13,657	)		(3,913	)
Increase (decrease) in cash and cash equivalents		17,797			(16,702	)		6,364			28,176
Cash and cash equivalents at the beginning of the period		87,281			115,416			98,714			70,538
Cash and cash equivalents at the end of the period		105,078			98,714			105,078			98,714

	Radware Ltd.
	RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)
	(U.S Dollars in thousands)
		For the three months ended						For the twelve months ended
		December 31,						December 31,
		2025			2024			2025			2024
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP net income		6,041			2,452			20,257			6,038
	Exclude: Financial income, net	(4,562	)		(3,570	)		(17,899	)		(16,552	)
	Exclude: Depreciation and amortization expense	2,854			2,918			11,684			11,836
	Exclude: Taxes on income	2,464			2,109			9,050			6,627
EBITDA		6,797			3,909			23,092			7,949
	Share-based compensation	7,097			6,920			24,035			26,027
	Acquisition costs	(153	)		130			237			701
Adjusted EBITDA		13,741			10,959			47,364			34,677
		For the three months ended						For the twelve months ended
		December 31,						December 31,
		2025			2024			2025			2024
	Amortization of intangible assets	992			992			3,968			3,968
	Depreciation	1,862			1,926			7,716			7,868
		2,854			2,918			11,684			11,836