Radware ((RDWR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Radware’s recent earnings call painted a picture of robust growth and strategic achievements, despite facing some challenges. The company reported significant revenue and cloud security ARR growth, strong performance in North America, and recognition in application security. However, it also acknowledged a decline in EMEA revenue and negative cash flow from operations. Overall, the sentiment was optimistic, driven by the positive aspects of growth and strategic milestones.
Revenue and Earnings Growth
Radware reported an 8% year-over-year increase in revenue, reaching $75 million. The company’s non-GAAP earnings per share also saw a substantial rise, climbing 22% year-over-year to $0.28. This growth underscores Radware’s ability to enhance profitability while expanding its market presence.
Cloud Security ARR Growth
The cloud security annual recurring revenue (ARR) experienced a remarkable 24% year-over-year growth, reaching $89 million. This increase from $72 million in the previous year highlights the growing demand for Radware’s cloud security solutions and its successful penetration in this market segment.
Strong Performance in North America
Radware’s revenue in the Americas surged by 28% year-over-year, reflecting the company’s strengthened position in the North American market. The fully ramped team in this region played a crucial role in achieving this impressive growth.
Recognition in Application Security
Radware’s leadership in application security was acknowledged as it was named a leader in the 2025 SPARK Matrix for web application firewall and bot management. This recognition underscores the company’s commitment to innovation and excellence in security solutions.
Operating Income Increase
Operating income saw a significant 34% year-over-year increase, reaching $9.6 million. This growth highlights the scalability and efficiency of Radware’s business model, contributing to its overall financial health.
Strong DefensePro X Refresh Cycle
The DefensePro X refresh cycle experienced approximately 40% year-over-year growth, with several 7-digit deals secured. This success demonstrates Radware’s ability to capitalize on its product offerings and secure substantial contracts.
Negative Cash Flow from Operations
Despite the positive growth metrics, Radware reported a negative cash flow from operations of $4.2 million in Q3 2025, compared to a positive $14.7 million in the same quarter last year. This was attributed to timing issues in cash collections and deferred revenue reductions.
Decline in EMEA Revenue
The EMEA region faced a 10% year-over-year decline in revenue, accounting for 30% of Radware’s total revenue. This decline presents a challenge that the company will need to address moving forward.
Forward-Looking Guidance
Looking ahead, Radware anticipates revenue between $78 million and $79 million for the fourth quarter of 2025, with non-GAAP diluted earnings per share expected to be between $0.29 and $0.30. Despite the challenges, the company remains optimistic about its growth trajectory and financial performance.
In summary, Radware’s earnings call highlighted a blend of strong growth and strategic achievements, alongside some operational challenges. The company’s robust performance in North America, cloud security ARR growth, and recognition in application security are key takeaways. While challenges such as negative cash flow and EMEA revenue decline exist, Radware’s forward-looking guidance suggests a positive outlook for the future.