Radware Ltd (RDWR)

Price$28.28Cached quoteAs of 2026-09-05 00:33 UTC

AI: Fair-priced

Price checkThe stock looks fairly priced, with a big cash pile offsetting a high earnings multiple.

Shares trade near the middle of their one-year trading range, valuing the company near $1.1 billion. Radware holds about $423 million in cash and securities with no debt, so the operating business costs roughly $700 million — about 2.3 times annual sales. Reported profits are thin, so the trailing price-to-earnings ratio (price over yearly profit) is near 60; on management's adjusted measure, excluding employee share costs, the forward multiple is nearer 21. Free cash flow — cash left after running and investing in the business — was about $42 million last year, a mid-single-digit return on the cash-adjusted price. That balance supports a fair-priced call.

Big pictureSteady double-digit sales growth has returned, led by fast-growing cloud security subscriptions.

Revenue slid from about $293 million in 2022 to $261 million in 2023 when cautious customers delayed purchases, then recovered to records: $275 million in 2024 and $302 million in 2025, up nearly 10%. Trailing revenue now tops $317 million, and management counts seven straight quarters of double-digit growth. The mix has shifted: subscriptions bring in 55% of revenue, and cloud annual recurring revenue — the yearly value of active cloud subscriptions — passed $100 million, growing 22%. That recurring base makes sales less cyclical than the appliance-heavy past and underpins management's target of $500 million in recurring revenue by 2030.

Business strengthA debt-free balance sheet with large cash reserves cushions downside while buybacks trim share count.

Radware carries no debt and held about $423 million in cash, deposits, and securities as of the latest quarter — over a third of its market value. Cash generation is improving but lumpy: operating cash flow — cash earned from daily business — was $50 million in 2025 versus an outflow in 2023, and free cash flow reached about $42 million given modest equipment spending. Employee share grants cost about $24 million last year, half of operating cash flow. Management still bought back about $19 million of stock last quarter, nudging the share count down.

What could change the storySustained cloud growth above twenty percent would justify the price; stalling would leave it looking expensive.

The bull case rests on cloud momentum: recurring cloud revenue compounding above 20%, new artificial-intelligence protection products filling the sales pipeline — prospective deals — faster than revenue grows, and Americas sales up 24% last quarter. If adjusted earnings keep compounding similarly, today's moderate forward multiple looks reasonable. The bear case: reported profits remain slim — about $20 million on $302 million of 2025 sales — the stronger Israeli currency shaved roughly $4.5 million off last quarter's profit, and the on-premises equipment refresh eventually fades. Watch two markers: whether cloud recurring-revenue growth holds above 20%, and whether adjusted profits convert into cash rather than receivables.

AI: News

Record second-quarter resultsQuarterly revenue hit a record with faster cloud growth, beating forecasts and reinforcing the turnaround story.

About three weeks ago, Radware reported record quarterly revenue of $82.3 million, up 11% from a year earlier — its seventh straight quarter of double-digit growth. Cloud annual recurring revenue, the yearly value of active cloud subscriptions, crossed $100 million, growing 22%. Adjusted earnings per share of $0.30 beat the roughly $0.28 analysts expected, and management guided next-quarter revenue to $82.5–83.5 million. The print strengthened evidence that the shift to recurring cloud revenue is working, which is central to the growth expectations embedded in the share price.

AI security product pushNew artificial-intelligence defense products launched recently aim to turn urgent customer worries into subscription growth.

Over the past two months, Radware launched Xploit Shield, which automatically shields applications from software flaws that AI tools can now find and exploit within hours instead of weeks, added cloud-linked features to its on-premises DefensePro X devices, and partnered with Dataiku to secure enterprise AI platforms. Management says the related sales pipeline — prospective deals — is growing faster than current cloud revenue. These launches matter because they widen the subscription platform beyond traditional firewall and attack-blocking services, supporting the assumption that cloud growth can stay above twenty percent.

Continued share buybacksManagement keeps repurchasing shares, returning cash to owners while trimming the share count modestly.

Alongside quarterly results, Radware disclosed buying back about $18.8 million of its own stock, extending repurchases from prior quarters, while still holding roughly $423 million in cash and securities. Buybacks return capital without committing to a dividend and help offset new shares issued to employees, a cost that ran about $24 million last year. Management flagged one trade-off: interest income on the cash pile will dip modestly as balances shrink. Steady repurchases signal confidence that operations generate enough cash to fund growth and still return capital to shareholders.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$301.9M	$274.9M	$261.3M	$293.4M	$286.5M	$250.0M	$252.1M	$234.4M	$211.4M	$196.6M	$216.6M	$221.9M	$193.0M	$189.2M	$167.0M	$144.1M	$108.9M
Gross profit	$243.5M	$221.6M	$209.6M	$239.5M	$234.1M	$204.9M	$206.9M	$192.7M	$171.8M	$160.9M	$178.4M	$182.2M	$156.3M	$153.5M	$133.7M	$114.9M	$85.6M
Gross margin	80.67%	80.63%	80.21%	81.64%	81.69%	81.97%	82.08%	82.22%	81.26%	81.84%	82.36%	82.09%	80.97%	81.12%	80.03%	79.74%	78.63%
Research & development	$79.0M	$74.7M	$82.6M	$86.6M	$74.1M	$66.8M	$61.8M	$57.7M	$59.0M	$51.7M	$50.0M	$44.1M	$41.0M	$36.2M	$36.1M	$31.7M	$25.7M
Operating expenses	$232.1M	$225.5M	$241.3M	$242.9M	$215.8M	$198.8M	$190.0M	$185.2M	$178.4M	$173.6M	$160.4M	$157.1M	$138.7M	$122.5M	$115.2M	$106.5M	$92.7M
Operating income	$11.4M	−$3.9M	−$31.7M	−$3.3M	$18.2M	$6.2M	$16.9M	$7.5M	−$6.7M	−$12.7M	$18.0M	$25.1M	$17.6M	$30.9M	$18.4M	$8.5M	−$7.1M
Operating margin	3.78%	−1.41%	−12.12%	−1.14%	6.36%	2.47%	6.71%	3.21%	−3.16%	−6.49%	8.31%	11.30%	9.10%	16.35%	11.03%	5.87%	−6.52%
EBITDA	$23.1M	$7.9M	−$19.4M	$8.4M	$28.4M	$16.7M	$28.2M	$17.3M	$4.6M	−$2.4M	$27.4M	$33.2M	$25.7M	$40.8M	$28.7M	$17.5M	$2.7M
EBITDA margin	7.65%	2.89%	−7.44%	2.85%	9.92%	6.69%	11.19%	7.38%	2.16%	−1.21%	12.65%	14.95%	13.29%	21.56%	17.20%	12.15%	2.47%
Net income	$20.3M	$6.0M	−$21.6M	−$166,000	$7.8M	$9.6M	$22.6M	$11.7M	−$7.5M	−$8.7M	$18.6M	$24.9M	$18.1M	$31.8M	$21.3M	$9.6M	−$5.9M
Net profit margin	6.71%	2.20%	−8.26%	−0.06%	2.73%	3.85%	8.95%	5.01%	−3.54%	−4.40%	8.57%	11.24%	9.36%	16.79%	12.78%	6.68%	−5.45%
Basic EPSper basic share	$0.47	$0.14	-$0.50	$0.00	$0.17	$0.21	$0.48	$0.26	-$0.17	-$0.20	$0.40	$0.55	$0.40	$0.73	$0.51	$0.25	-$0.16
Diluted EPSper diluted share	$0.45	$0.14	-$0.50	$0.00	$0.16	$0.20	$0.47	$0.25	-$0.17	-$0.20	$0.40	$0.53	$0.39	$0.68	$0.47	$0.22	-$0.16

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of RDWR
Holder	Shares held
Senvest Management, LLC	4.05M
Penserra Capital Management LLC	2.72M
MORGAN STANLEY	2.41M
Zisapel Roy	2.39M
Artisan Partners Limited Partnership	2.37M
Legal & General Group Plc	2.32M
Cohen Yuval	2.09M
ACADIAN ASSET MANAGEMENT LLC	1.7M
BlackRock, Inc.	1.67M
NEUBERGER BERMAN GROUP LLC	1.65M
RENAISSANCE TECHNOLOGIES LLC	1.28M
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	837.72K
FIRST TRUST ADVISORS LP	824.93K
COOPER CREEK PARTNERS MANAGEMENT LLC	706.75K
RICE HALL JAMES & ASSOCIATES, LLC	680.85K
STATE STREET CORP	596.86K
Nuveen, LLC	549.99K
HERALD INVESTMENT MANAGEMENT Ltd	456.82K
Connor, Clark & Lunn Investment Management Ltd.	383.88K
Defiance ETFs, LLC	343.97K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)3$340.8K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 29, 2026Form 4	Malka GabrielChief Operating Officer	SellOrdinary shares	7.0K	$30.00	$210.0K	54.4K
May 22, 2026Form 4	Goldriech RivkahChief People Officer	SellOrdinary shares	1.4K	$29.50	$40.6K	60.7K
May 8, 2026Form 4	Malka GabrielChief Operating Officer	SellOrdinary shares	3.1K	$29.00	$90.2K	61.4K

Review ownership filings at SEC.gov ↗

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