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Radware
(NASDAQ:RDWR)
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Rating:65Neutral
Price Target:
$31.00
▲(11.31% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial stability (strong balance sheet and profitability recovery) and a constructive earnings call with reaffirmed guidance. These positives are tempered by a rich valuation (high P/E) and mixed technicals showing limited near-term momentum.
Positive Factors
Cloud Recurring Growth
Strong cloud ARR growth indicates increasing adoption of Radware’s recurring security platform and supports a more durable revenue base. Continued expansion in application, API and DDoS protection can deepen customer relationships and improve visibility across future periods.
Negative Factors
Uneven Cash Generation
Recent cash generation is positive overall but lacks consistency, with negative growth and a prior period of operating and free cash flow deficits. Such volatility can constrain internally funded investment and makes execution more important when converting earnings into durable cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cloud Recurring Growth
Strong cloud ARR growth indicates increasing adoption of Radware’s recurring security platform and supports a more durable revenue base. Continued expansion in application, API and DDoS protection can deepen customer relationships and improve visibility across future periods.
Read all positive factors
Radware Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
Breaks down Radware’s sales across regions (Americas, EMEA, APAC), revealing where demand for its DDoS protection, application delivery and cloud security services is strongest. Highlights geographic concentration, currency and regulatory exposure, and where future growth or weakness is most likely, which helps assess market diversification and regional risk.
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The Fly
The FlyRadware (RDWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)299.08K
Price to Earnings (P/E)78.9
Beta (1Y)0.92
Revenue Growth9.98%
EPS Growth18.53%
CountryUS
Employees1,228
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.39
Shares Outstanding42,082,490
10 Day Avg. Volume330,584
30 Day Avg. Volume299,077
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.96
Price to Sales (P/S)3.42
P/FCF Ratio24.86
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit4.51
Enterprise Value/Ebitda30.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.17
Revenue Forecast (FY)$329.17M
Radware Business Overview & Revenue Model
Company Description
Radware Ltd. and its affiliated companies are dedicated to the development, production, and distribution of advanced cybersecurity and application management tools. These sophisticated solutions cater to applications hosted across global cloud inf...
How the Company Makes Money
Radware primarily generates revenue by selling cybersecurity and application delivery solutions through two main models: (1) product revenue from on-premises/appliance-based systems and related components used for functions such as application del...
Radware Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a predominately constructive operational and commercial picture: order entry, backlog, retail growth, margin expansion in products, record service levels, lean productivity gains, and a strong balance sheet. The company acknowledged manageable near-term headwinds — notably memory cost pressure, elevated inventory that weighed on free cash flow, a one-time tariff benefit, and discrete tax cash payments — and said mitigation actions are underway while reaffirming full-year guidance. Overall, positive execution and solid financial flexibility outweigh the short-term timing and cost challenges, assuming the company converts backlog and reduces inventory as planned.Positive Updates
Order Momentum and Backlog
Order entry increased 3% year-over-year and 6% sequentially; first-half order entry was the highest in 4 years and backlog grew sequentially to $814 million, supporting confidence in the full-year outlook.
Negative Updates
Memory Cost Headwind
Higher memory costs were a headwind of approximately $10 million in the quarter (primarily affecting retail); memory pricing remains uncertain despite sourcing and pricing mitigation actions.
Read all updates
Q2-2026 Updates
Positive
Negative
Order Momentum and Backlog
Order entry increased 3% year-over-year and 6% sequentially; first-half order entry was the highest in 4 years and backlog grew sequentially to $814 million, supporting confidence in the full-year outlook.
Read all positive updates
Company Guidance
The company reaffirmed 2026 guidance with full‑year revenue of $3.86–$3.94 billion, adjusted EBITDA of $510–$535 million, free cash flow of $255–$270 million (excluding an expected ~$50 million of higher-than-anticipated cash tax payments related to 2024–2025), and adjusted EPS of $5.25–$5.75 assuming an effective tax rate of 35–40% (with higher tax expected in Q3 vs Q4). Product gross margins are expected to be comparable with prior year while service gross margins should improve up to ~50 basis points; total operating expenses are now expected to decline about 2% for the year. Quarterly cadence: Q3 revenue is expected to be roughly 25% of full year at the midpoint, Q3 gross margin ~25% (ex‑tariff refund), and Q3 adjusted EBITDA ~24% of full year at the midpoint, with Q3 free cash flow broadly similar to Q2 due to elevated inventory and one‑time items. Management expects inventories to remain elevated through Q3 and normalize in Q4, driving a Q4 FCF improvement from approximately $100–$120 million of inventory reductions plus other working capital improvements and annual customer prepayments; ending liquidity was ~>$590 million (cash $282M + $310M revolver) and net leverage ~1.4x, and the company has repurchased ~$60 million of shares (~752k shares) with about $57 million remaining on the $200 million authorization.Radware Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 317.65M | 301.85M | 274.88M | 261.29M | 293.43M | 286.50M |
| Gross Profit | 256.68M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M |
| EBITDA | 38.33M | 40.99M | 24.74M | -5.31M | 16.61M | 33.03M |
| Net Income | 16.95M | 20.26M | 6.04M | -21.59M | -166.00K | 7.81M |
Balance Sheet | ||||||
| Total Assets | 654.39M | 671.16M | 618.68M | 571.92M | 643.59M | 635.37M |
| Cash, Cash Equivalents and Short-Term Investments | 248.44M | 257.26M | 275.78M | 330.59M | 298.04M | 287.89M |
| Total Debt | 16.09M | 17.02M | 18.27M | 20.70M | 24.15M | 27.45M |
| Total Liabilities | 295.25M | 280.48M | 261.60M | 248.64M | 275.14M | 265.38M |
| Stockholders Equity | 317.65M | 349.36M | 316.27M | 284.09M | 332.16M | 369.99M |
Cash Flow | ||||||
| Free Cash Flow | 33.57M | 41.55M | 66.33M | -8.93M | 23.33M | 66.17M |
| Operating Cash Flow | 43.25M | 50.09M | 71.61M | -3.50M | 32.15M | 71.77M |
| Investing Cash Flow | 1.18M | -30.07M | -39.52M | 92.78M | -56.02M | 7.85M |
| Financing Cash Flow | -62.18M | -13.66M | -3.91M | -64.93M | -22.46M | -41.88M |
Radware Technical Analysis
Positive
27.85
Price Trends
28.90
Positive
29.07
Positive
27.22
Positive
Market Momentum
0.43
Negative
59.46
Neutral
52.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDWR, the sentiment is Positive. The current price of 27.85 is below the 20-day moving average (MA) of 29.92, below the 50-day MA of 28.90, and above the 200-day MA of 27.22, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDWR.
Radware Risk Analysis
Radware disclosed 43 risk factors in its most recent earnings report. Radware reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Radware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $27.17B | 37.92 | 19.86% | ― | 9.41% | 10.59% | |
72 Outperform | $2.96B | 24.36 | 7.42% | ― | 5.79% | 65.56% | |
66 Neutral | $128.52B | -620.67 | -13.86% | ― | 33.53% | -72.17% | |
65 Neutral | $1.30B | 78.87 | 5.05% | ― | 9.98% | 18.53% | |
63 Neutral | $2.15B | 49.04 | 19.61% | 0.81% | 12.20% | -13.97% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $15.37B | 37.97 | 8.49% | ― | 5.87% | -0.31% |
* Technology Sector Average
RDWR
Radware
30.98
5.05
19.48%
AKAM
Akamai
106.95
33.15
44.92%
FFIV
F5, Inc.
479.83
139.19
40.86%
NTCT
Netscout Systems
40.69
14.99
58.33%
ATEN
A10 Networks
29.63
11.96
67.69%
NET
Cloudflare
360.93
138.37
62.17%
Radware Corporate Events
Radware Sets October 28 Date for Third-Quarter 2026 Earnings Call
Oct 7, 2026
On October 7, 2026, Radware reported to the U.S. Securities and Exchange Commission that it has scheduled the release of its third quarter 2026 financial results for October 28, 2026. Management will host a conference call that same day at 8:30 a....
Radware Posts Record Q2 2026 Revenue as Cloud ARR Surges
Jul 29, 2026
On July 29, 2026, Radware reported consolidated financial results for the quarter ended June 30, 2026, highlighting its position as a leading multi-cloud application security vendor. The company continues to build out its cloud-focused security pl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.