Download PDF

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.

Show Full description

1.b. Last Insights on RDWR

Radware Ltd.'s recent performance was driven by several positive factors. The company reported record fourth-quarter and full-year 2025 results, with management highlighting continued momentum in cloud security, accelerating subscription revenue, and an expanding product portfolio that now includes new offerings in API security and "Agentic AI" protection. This growth was fueled by a 10% year-over-year increase in revenue to $80.2 million, as well as a 23% year-over-year increase in cloud ARR to $95.2 million. Additionally, the company's total ARR reached $251.0 million, a 11% year-over-year increase. Furthermore, Radware announced a new $80 million share repurchase plan, which will help to reduce the number of outstanding shares and increase shareholder value.

1.c. Company Highlights

2. Radware's Strong Q4 2025 Earnings: A Promising Outlook

Radware reported a robust fourth quarter, with revenue increasing 10% year-over-year to $80 million, driven primarily by continued momentum in cloud security offerings and DefensePro X. Non-GAAP earnings per share grew 19% to $0.32, surpassing analyst estimates of $0.274. For the full year, revenue reached a record $302 million, representing 10% year-over-year growth. The company's cloud ARR grew strongly, increasing 23% year-over-year to $95 million.

Publication Date: Mar -08

📋 Highlights
  • Revenue & EPS Growth: Q4 revenue hit $80M (+10% YoY), full-year revenue reached $302M (+10% YoY), and non-GAAP EPS grew 19% to $0.32.
  • Cloud ARR Surge: Cloud ARR grew 23% YoY to $95M, driven by strong demand for product subscriptions and DefensePro X performance.
  • API Security Expansion: Acquired Pynt Security to offer end-to-end API security, spanning testing, discovery, and runtime protection.
  • Agentic AI Innovation: Launched Agentic AI Protection Solution targeting a new TAM, integrating AI-driven behavioral algorithms and ecosystem integrations.
  • Q1 Revenue Guidance: Forecasts $78–$79M revenue (slightly down from Q4) but reflects strong Q4 backlog, with non-GAAP EPS of $0.28–$0.29.

Business Momentum and Strategic Initiatives

The company's strategy, built on three core pillars - gaining market share in cloud security, leading through AI and algorithmic-driven innovation, and expanding go-to-market footprint - is yielding positive results. Radware achieved its goal of reaching nearly $100 million in cloud ARR by year-end, driven by the launch of its new Radware API security service and the acquisition of Pynt Security, enhancing its API security offerings. The company also released its Agentic AI Protection Solution, leveraging behavioral algorithms for real-time AI agent discovery and security management.

Valuation and Growth Expectations

With a P/E Ratio of 52.81 and an EV/EBITDA of 35.34, the market appears to have priced in significant growth expectations. Analysts estimate revenue growth at 7.5% for the next year. Radware's strong Q1 revenue guide, higher than usual due to a solid backlog from Q4, and its expansion into new markets such as agentic AI security, suggest potential for continued growth. The company's ROE of 5.95% and ROIC of 1.65% indicate a relatively efficient use of capital.

Future Outlook and New Initiatives

Radware is targeting the growing market of agentic AI security, offering a hybrid model with multiple pricing options. The company believes its new AI security offering will address significant security risks associated with AI agents, providing a strong value proposition. With a dedicated go-to-market overlay group in place, Radware is poised to capitalize on this new TAM. The refresh of DefensePro X and the expected ramp of the agentic AI product further support the company's growth prospects.

3. NewsRoom

Card image cap

Radware Announces Another DDoS Industry First - Encrypted Attack Blocking Without SSL Decryption

Mar -03

Source: globenewswire.com

Card image cap

Artisan Partners Limited Partnership Grows Stake in Radware Ltd. $RDWR

Feb -28

Source: defenseworld.net

Card image cap

Radware (NASDAQ:RDWR) Shares Gap Down – Here’s Why

Feb -22

Source: defenseworld.net

Card image cap

Radware 2026 Global Threat Report Shows DDoS Attacks Jump 168% as Cyber Threats Escalate Across Networks and Applications

Feb -19

Source: globenewswire.com

Card image cap

Radware Ltd. (RDWR) Analyst/Investor Day Transcript

Feb -17

Source: seekingalpha.com

Card image cap

Radware Announces New $80 Million Share Repurchase Plan

Feb -13

Source: globenewswire.com

Card image cap

Radware Q4 Earnings Call Highlights

Feb -13

Source: defenseworld.net

Card image cap

Radware Ltd. (RDWR) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.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
WAGPS

A-Score: 4.6/10

Value: 4.8

Growth: 5.7

Quality: 2.4

Yield: 2.5

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
F-Secure

A-Score: 4.1/10

Value: 4.3

Growth: 4.1

Quality: 6.7

Yield: 3.1

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Spirent Communications

A-Score: 4.0/10

Value: 0.8

Growth: 1.7

Quality: 5.1

Yield: 3.1

Momentum: 6.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
XBP Europe Holdings

A-Score: 3.2/10

Value: 9.2

Growth: 1.6

Quality: 3.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Radware

A-Score: 3.1/10

Value: 1.4

Growth: 3.6

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Cognyte Software

A-Score: 3.0/10

Value: 3.2

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.06$

Current Price

25.06$

Potential

-0.00%

Expected Cash-Flows