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Radware Reports Third Quarter 2025 Financial Results

TEL AVIV, Israel, October 29, 2025 - Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the third quarter ended September 30, 2025.

“Our third quarter results reflect continued execution against our strategic roadmap,” said Roy Zisapel, president and CEO of Radware. “Cloud ARR growth accelerated to 24%, reinforcing the strength of our cloud security offering. Our investment in AI-powered innovation is enhancing our platform and strengthening our competitive edge. With a healthy cloud security business, a growing global partner base, and increasing demand for AI-based security solutions, we believe we are well-positioned to continue capturing long-term growth opportunities.”

Revenue for the third quarter of 2025 totaled $75.3 million:

GAAP net income for the third quarter of 2025 was $5.7 million, or $0.13 per diluted share, compared to GAAP net income of $3.1 million, or $0.07 per diluted share, for the third quarter of 2024.

Non-GAAP net income for the third quarter of 2025 was $12.6 million, or $0.28 per diluted share, compared to non-GAAP net income of $10.2 million, or $0.23 per diluted share, for the third quarter of 2024.

As of September 30, 2025, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $454.6 million.

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.

Radware management will host a call today, October 29, 2025, at 8:30 a.m. EDT to discuss its third quarter 2025 results and fourth quarter 2025 outlook. To participate in the call, please use the following numbers:

U.S. participants call toll free: 1-877-704-4453

International participants call: 1-201-389-0920

A replay will be available for seven days, starting two hours after the end of the call, on telephone number 1-844-512-2921 (US toll-free) or 1-412-317-6671. Access ID 137555874.

The call will be webcast live on the Company’s website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.

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.

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.

Radware encourages you to join our community and follow us on Facebook,  LinkedIn, Radware Blog, X, and YouTube.

©2025 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, ir@radware.com

Media Contact:

Gina Sorice, ginaso@radware.com

Radware Ltd.

Condensed Consolidated Balance Sheets

(U.S. Dollars in thousands)

		September 30,				December 31,
		2025				2024
		(Unaudited)				(Unaudited)
Assets
Current assets
Cash and cash equivalents			87,281				98,714
Marketable securities			25,226				72,994
Short-term bank deposits			128,577				104,073
Trade receivables, net			29,992				16,823
Other receivables and prepaid expenses			14,738				14,242
Inventories			13,326				14,030
			299,140				320,876
Long-term investments
Marketable securities			65,642				29,523
Long-term bank deposits			147,922				114,354
Other assets			2,551				2,171
			216,115				146,048
Property and equipment, net			15,433				15,632
Intangible assets, net			8,774				11,750
Other long-term assets			37,304				37,906
Operating lease right-of-use assets			16,725				18,456
Goodwill			68,008				68,008
Total assets			661,499				618,676
Liabilities and equity
Current liabilities
Trade payables			5,629				5,581
Deferred revenues			107,527				106,303
Operating lease liabilities			5,157				4,750
Other payables and accrued expenses			59,906				51,836
			178,219				168,470
Long-term liabilities
Deferred revenues			67,841				64,708
Operating lease liabilities			12,602				13,519
Other long-term liabilities			13,125				14,904
			93,568				93,131
Equity
Radware Ltd. equity
Share capital			759				754
Additional paid-in capital			571,603				555,154
Accumulated other comprehensive income			2,584				1,103
Treasury stock, at cost			(366,588	)			(366,588	)
Retained earnings			140,066				125,850
Total Radware Ltd. shareholder's equity			348,424				316,273
Non–controlling interest			41,288				40,802
Total equity			389,712				357,075
Total liabilities and equity			661,499				618,676

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 nine months ended
		September 30,								September 30,
		2025				2024				2025				2024
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
GAAP gross profit			60,749				56,096				178,737				162,589
Share-based compensation			143				81				394				240
Amortization of intangible assets			992				992				2,976				2,976
Non-GAAP gross profit			61,884				57,169				182,107				165,805
GAAP research and development, net			19,694				18,654				57,849				56,251
Share-based compensation			1,299				1,421				3,849				4,679
Non-GAAP research and development, net			18,395				17,233				54,000				51,572
GAAP selling and marketing			31,577				30,500				94,195				89,945
Share-based compensation			2,630				2,548				8,406				7,708
Non-GAAP selling and marketing			28,947				27,952				85,789				82,237
GAAP general and administrative			6,379				6,948				19,228				21,271
Share-based compensation			1,365				2,008				4,289				6,480
Acquisition costs			99				159				390				571
Non-GAAP general and administrative			4,915				4,781				14,549				14,220
GAAP total operating expenses, net			57,650				56,102				171,272				167,467
Share-based compensation			5,294				5,977				16,544				18,867
Acquisition costs			99				159				390				571
Non-GAAP total operating expenses, net			52,257				49,966				154,338				148,029
GAAP operating income (loss)			3,099				(6	)			7,465				(4,878	)
Share-based compensation			5,437				6,058				16,938				19,107
Amortization of intangible assets			992				992				2,976				2,976
Acquisition costs			99				159				390				571
Non-GAAP operating income			9,627				7,203				27,769				17,776
GAAP financial income, net			4,800				4,957				13,337				12,982
Exchange rate differences, net on balance sheet items included in financial income, net			504				(86	)			2,698				(231	)
Non-GAAP financial income, net			5,304				4,871				16,035				12,751
GAAP income before taxes on income			7,899				4,951				20,802				8,104
Share-based compensation			5,437				6,058				16,938				19,107
Amortization of intangible assets			992				992				2,976				2,976
Acquisition costs			99				159				390				571
Exchange rate differences, net on balance sheet items included in financial income, net			504				(86	)			2,698				(231	)
Non-GAAP income before taxes on income			14,931				12,074				43,804				30,527
GAAP taxes on income			2,249				1,807				6,586				4,518
Tax related adjustments			62				62				185				185
Non-GAAP taxes on income			2,311				1,869				6,771				4,703
GAAP net income			5,650				3,144				14,216				3,586
Share-based compensation			5,437				6,058				16,938				19,107
Amortization of intangible assets			992				992				2,976				2,976
Acquisition costs			99				159				390				571
Exchange rate differences, net on balance sheet items included in financial income, net			504				(86	)			2,698				(231	)
Tax related adjustments			(62	)			(62	)			(185	)			(185	)
Non-GAAP net income			12,620				10,205				37,033				25,824
GAAP diluted net income per share			0.13				0.07				0.32				0.08
Share-based compensation			0.12				0.14				0.38				0.45
Amortization of intangible assets			0.02				0.02				0.06				0.07
Acquisition costs			0.00				0.00				0.01				0.01
Exchange rate differences, net on balance sheet items included in financial income, net			0.01				(0.00	)			0.06				(0.01	)
Tax related adjustments			(0.00	)			(0.00	)			(0.00	)			(0.00	)
Non-GAAP diluted net earnings per share			0.28				0.23				0.83				0.60
Weighted average number of shares used to compute non-GAAP diluted net earnings per share			44,951,866				43,573,161				44,582,652				43,199,279