Third Quarter 2026 Financial Results and Highlights

  • Record quarterly revenue of $84.4 million, an increase of 12% year-over-year
  • Cloud ARR of $107 million, an increase of 21% year-over-year
  • Non-GAAP diluted EPS from continuing operations of $0.32; GAAP diluted EPS from continuing operations of $0.11
  • Cash flow provided by continuing operations activities of $15.5 million dollars

TEL AVIV, Israel, Oct. 28, 2026 (GLOBE NEWSWIRE) -- 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, 2026.

“We delivered another record quarter, highlighted by accelerating revenue growth and continued expansion of our cloud security business,” said Roy Zisapel, President and Chief Executive Officer of Radware. “Customer demand for our application security solutions is robust, as reflected in our cloud bookings and large deal activity. As we continue to expand our cloud security platform with new AI security capabilities, customers are increasingly adopting Radware to protect applications, APIs, infrastructure, and AI environments through a unified platform.”

Financial Highlights for the Third Quarter 2026
Revenue for the third quarter of 2026 totaled $84.4 million:

  • Revenue in the Americas region was $39.6 million, an increase of 12% from $35.4 million in the third quarter of 2025.
  • Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $25.6 million, an increase of 12% from $22.8 million in the third quarter of 2025.
  • Revenue in the Asia-Pacific (“APAC”) region was $19.2 million, an increase of 12% from $17.1 million in the third quarter of 2025.

GAAP net income from continuing operations for the third quarter of 2026 was $4.5 million, or $0.11 per diluted share, compared to GAAP net income from continuing operations of $8.2 million, or $0.19 per diluted share, for the third quarter of 2025.

Non-GAAP net income from continuing operations for the third quarter of 2026 was $13.9 million, or $0.32 per diluted share, compared to non-GAAP net income from continuing operations of $14.8 million, or $0.33 per diluted share, for the third quarter of 2025.

The appreciation of the Israeli shekel against the U.S. dollar had an adverse impact on expenses during the third quarter. Excluding the $4.6 million unfavorable impact of exchange rate movements in the third quarter of 2026, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations would have been $17.8 million and $0.41, respectively. This compares with the reported $14.8 million and $0.33 per diluted share in the third quarter of 2025, representing year-over-year growth of 20% in non-GAAP net income from continuing operations and 24% in non-GAAP diluted EPS from continuing operations.

As of September 30, 2026, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $421.5 million. Operating cash flow provided by continuing operations was $15.5 million in the third quarter of 2026.

Conference Call
Radware management will host a call today, October 28, 2026, at 8:30 a.m. ET to discuss its third quarter 2026 results and fourth quarter 2026 outlook. To participate in the call, please use the following link: Q3 2026 earnings call registration link.

A replay of the call will be available within approximately 24 hours of the live event on the Investors section of Radware’s website at: https://www.radware.com/ir/financial-reports/.

Use of Non-GAAP Financial Information and Key Performance Indicators

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.

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.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “forecast,” “target,” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.”

Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global market and economic conditions; our dependence on independent distributors; disruptions in our supply chain, including shortages of components or manufacturing capacity; our reliance on a limited number of vendors; our ability to attract, train and retain qualified personnel; intense competition in the cybersecurity and application delivery markets; our ability to develop new solutions and enhance existing solutions; risks related to defects, vulnerabilities or failures in our products or services, including cybersecurity incidents affecting our systems or those of our customers; risks associated with the use of artificial intelligence technologies, including evolving regulatory frameworks, litigation exposure and reputational considerations; risks related to our information technology systems, including failures, disruptions or security breaches; outages, interruptions, or delays in hosting or cloud-based services; risks related to the interoperability of our products; risks associated with our global operations; and geopolitical risks, including instability in the Middle East and Israel.

These factors are not exhaustive. For a more detailed description of the risks and uncertainties affecting Radware, please refer to Radware’s Annual Report on Form 20-F and other reports filed with or furnished to the Securities and Exchange Commission (SEC) from time to time.

Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, Radware undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements. Radware’s public filings are available from the SEC’s website at www.sec.gov or on Radware’s website at www.radware.com.

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, API, and AI security solutions use AI-driven algorithms for precise, behavior-based, real-time protection against sophisticated web, application, and DDoS attacks, API abuse, business logic threats, and malicious bots. Radware delivers end-to-end API security, including discovery, posture management, testing, and runtime protection, along with advanced protection for AI agents and models. Enterprises and carriers worldwide rely on Radware to address evolving cyberthreats, protect their brands and business operations, and reduce 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.

©2026 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,
 2026
 2025
 (Unaudited) (Unaudited)
Assets   
    
Current assets   
Cash and cash equivalents102,934  102,748 
Marketable securities31,546  15,900 
Short-term bank deposits129,882  129,961 
Trade receivables, net40,654  34,604 
Other receivables and prepaid expenses12,983  10,639 
Inventories13,981  13,220 
Current assets held for sale3,244  9,435 
 335,224  316,507 
    
Long-term investments   
Marketable securities55,797  71,398 
Long-term bank deposits101,344  131,922 
Other assets3,067  2,830 
 160,208  206,150 
    
    
Property and equipment, net18,273  16,387 
Goodwill and intangible assets, net77,171  72,159 
Other long-term assets47,136  40,641 
Operating lease right-of-use assets13,490  15,456 
Long-term assets held for sale3,077  3,865 
Total assets654,579  671,165 
    
Liabilities and equity   
    
Current liabilities   
Trade payables6,640  7,231 
Deferred revenues123,256  111,917 
Operating lease liabilities4,747  4,862 
Other payables and accrued expenses60,293  67,948 
Current liabilities held for sale1,735  2,325 
 196,671  194,283 
    
Long-term liabilities   
Deferred revenues84,025  65,764 
Operating lease liabilities10,144  11,970 
Other long-term liabilities7,642  8,464 
Long-term liabilities held for sale7  - 
 101,818  86,198 
    
Equity   
Radware Ltd. equity   
Share capital776  770 
Additional paid-in capital600,338  578,652 
Accumulated other comprehensive income (loss)(1,166)  1,393 
Treasury stock, at cost(439,410)  (377,561) 
Retained earnings154,000  146,107 
Total Radware Ltd. shareholder's equity314,538  349,361 
    
Non–controlling interest41,552  41,323 
    
Total equity356,090  390,684 
    
Total liabilities and equity654,579  671,165 
    


Radware Ltd.   
Condensed Consolidated Statements of Income   
(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,
  2026  2025  2026  2025 
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Revenues 84,364  75,273  246,457  221,403 
Cost of revenues 16,573  14,142  47,504  41,608 
Gross profit 67,791  61,131  198,953  179,795 
         
Operating expenses, net:        
Research and development, net 24,058  18,306  68,934  54,021 
Selling and marketing 31,719  30,845  96,575  92,222 
General and administrative 9,853  6,172  24,296  18,596 
Total operating expenses, net 65,630  55,323  189,805  164,839 
         
Operating income 2,161  5,808  9,148  14,956 
Financial income, net 4,731  4,674  12,046  12,853 
Income before taxes on income from continuing operations6,892  10,482  21,194  27,809 
Taxes on income 2,382  2,249  6,682  6,586 
Net income from continuing operations4,510  8,233  14,512  21,223 
Loss from discontinued operations (1,874)  (2,583)  (6,619)  (7,007) 
Net income 2,636  5,650  7,893  14,216 
         
         
  Basic net income (loss) per share attributed to Radware Ltd.'s shareholders:        
Continuing operations 0.11  0.19  0.34  0.49 
Discontinued operations (0.05)  (0.06)  (0.16)  (0.16) 
Total basic net income per share attributed to Radware Ltd.'s shareholders 0.06  0.13  0.18  0.33 
         
Weighted average number of shares used to compute basic net income per share 41,379,608  42,833,456  41,956,824  42,774,664 
         
Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders:        
Continuing operations 0.11  0.19  0.34  0.48 
Discontinued operations (0.05)  (0.06)  (0.16)  (0.16) 
Total diluted net income per share attributed to Radware Ltd.'s shareholders 0.06  0.13  0.18  0.32 
         
Weighted average number of shares used to compute diluted net income per share 43,546,668  44,951,866  43,904,670  44,582,652 


 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,
  2026  2025  2026  2025 
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP gross profit67,791  61,131  198,953  179,795 
 Share-based compensation158  143  438  394 
 Amortization of intangible assets732  733  2,198  2,199 
Non-GAAP gross profit68,681  62,007  201,589  182,388 
         
GAAP research and development, net24,058  18,306  68,934  54,021 
 Share-based compensation2,118  1,223  5,529  3,617 
 Amortization of intangible assets137  -  390  - 
Non-GAAP research and development, net21,803  17,083  63,015  50,404 
         
GAAP selling and marketing31,719  30,845  96,575  92,222 
 Share-based compensation2,543  2,605  8,474  8,327 
Non-GAAP selling and marketing29,176  28,240  88,101  83,895 
         
GAAP general and administrative9,853  6,172  24,296  18,596 
 Share-based compensation4,037  1,353  7,255  4,125 
 Acquisition costs-  99  389  390 
Non-GAAP general and administrative5,816  4,720  16,652  14,081 
         
GAAP total operating expenses, net65,630  55,323  189,805  164,839 
 Share-based compensation8,698  5,181  21,258  16,069 
 Amortization of intangible assets137  -  390  - 
 Acquisition costs-  99  389  390 
Non-GAAP total operating expenses, net56,795  50,043  167,768  148,380 
         
GAAP operating income2,161  5,808  9,148  14,956 
 Share-based compensation8,856  5,324  21,696  16,463 
 Amortization of intangible assets869  733  2,588  2,199 
 Acquisition costs-  99  389  390 
Non-GAAP operating income11,886  11,964  33,821  34,008 
         
GAAP financial income, net4,731  4,674  12,046  12,853 
 Exchange rate differences, net on balance sheet items included in financial income, net(242)  498  1,356  2,680 
Non-GAAP financial income, net4,489  5,172  13,402  15,533 
         
GAAP income before taxes on income from continuing operations6,892  10,482  21,194  27,809 
 Share-based compensation8,856  5,324  21,696  16,463 
 Amortization of intangible assets869  733  2,588  2,199 
 Acquisition costs-  99  389  390 
 Exchange rate differences, net on balance sheet items included in financial income, net(242)  498  1,356  2,680 
Non-GAAP income before taxes on income from continuing operations16,375  17,136  47,223  49,541 
         
GAAP taxes on income2,382  2,249  6,682  6,586 
 Tax related adjustments78  62  231  185 
Non-GAAP taxes on income2,460  2,311  6,913  6,771 
         
GAAP net income from continuing operations4,510  8,233  14,512  21,223 
 Share-based compensation8,856  5,324  21,696  16,463 
 Amortization of intangible assets869  733  2,588  2,199 
 Acquisition costs-  99  389  390 
 Exchange rate differences, net on balance sheet items included in financial income, net(242)  498  1,356  2,680 
 Tax related adjustments(78)  (62)  (231)  (185) 
Non-GAAP net income from continuing operations13,915  14,825  40,310  42,770 
         
Non-GAAP loss from discontinued operations1,570  2,205  5,762  5,737 
         
Non-GAAP net income12,345  12,620  34,548  37,033 
         
GAAP diluted net income per share from continuing operations0.11  0.19  0.34  0.47 
 Share-based compensation0.20  0.12  0.49  0.37 
 Amortization of intangible assets0.02  0.01  0.06  0.05 
 Acquisition costs0.00  0.00  0.01  0.01 
 Exchange rate differences, net on balance sheet items included in financial income, net(0.01)  0.01  0.03  0.06 
 Tax related adjustments(0.00)  (0.00)  (0.01)  (0.00) 
Non-GAAP diluted net earnings per share from continuing operations0.32  0.33  0.92  0.96 
         
Non-GAAP diluted net loss per share from discontinued operations(0.04)) (0.05)  (0.14)  (0.13) 
         
Non-GAAP diluted net earnings per share0.28  0.28  0.78  0.83 
         
Weighted average number of shares used to compute non-GAAP diluted net earnings per share43,546,668  44,951,866  43,904,670  44,582,652 


Radware Ltd.   
Condensed Consolidated Statements of Cash Flow   
    
(U.S. Dollars in thousands)   
        
 For the three months ended For the nine months ended
 September 30, September 30,
 2026  2025  2026  2025 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash flow from operating activities:       
        
Net income2,636  5,650  7,893  14,216 
Loss from discontinued operations activities1,874  2,583  6,619  7,007 
Adjustments to reconcile net income to net cash provided by operating activities:       
Depreciation and amortization2,951  2,542  8,455  8,018 
Share-based compensation8,856  5,324  21,696  16,463 
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net(5)  150  132  (104) 
Decrease in accrued interest on bank deposits(495)  (1,501)  (1,573)  (5,941) 
Increase (decrease) in accrued severance pay, net120  (28)  (360)  48 
Increase in trade receivables, net(1,174)  (7,127)  (6,050)  (13,180) 
Increase in other receivables and prepaid expenses and other long-term assets(3,223)  (2,540)  (10,475)  (3,628) 
Decrease (increase) in inventories(326)  (14)  (761)  704 
Increase (decrease) in trade payables(1,517)  1,546  (591)  144 
Increase (decrease) in deferred revenues(1,280)  (12,124)  29,600  4,347 
Increase (decrease) in other payables and accrued expenses7,551  3,274  (6,151)  8,836 
Operating lease liabilities, net(477)  195  25  1,195 
Net cash provided by (used in) operating activities - continuing operations15,491  (2,070)  48,459  38,125 
Net cash used in operating activities - discontinued operations(1,859)  (2,104)  (6,049)  (5,365) 
Net cash provided by (used in) operating activities13,632  (4,174)  42,410  32,760 
        
Cash flows from investing activities:       
        
Purchase of property and equipment(3,075)  (1,879)  (7,753)  (5,649) 
Proceeds from (investment in) other long-term assets, net(20)  (12)  (36)  78 
Proceeds from (investment in) bank deposits, net19,609  (12,551)  32,230  (57,064) 
Investment in, redemption of and purchase of marketable securities ,net(579)  958  (1,524)  11,913 
Acquisition of subsidiary, net of cash acquired-  -  (5,938)  - 
Proceeds from other deposits-  -  -  5,000 
Net cash provided by (used in) investing activities - continuing operations15,935  (13,484)  16,979  (45,722) 
Net cash provided by investing activities - discontinued operations3,022  1,096  6,322  4,694 
Net cash provided by (used in) investing activities18,957  (12,388)  23,301  (41,028) 
        
Cash flows from financing activities:       
        
Proceeds from exercise of share options(2)  1  2  2 
Payment of contingent consideration related to acquisition-  -  (3,405)  (3,167) 
Repurchase of shares(13,690)  -  (61,849)  - 
Net cash used in financing activities - continuing operations(13,692)  1  (65,252)  (3,165) 
Net cash used in financing activities - discontinued operations-  -  -  - 
Net cash provided by (used in) financing activities(13,692)  1  (65,252)  (3,165) 
        
Increase (decrease) in cash and cash equivalents18,897  (16,561)  459  (11,433) 
Cash and cash equivalents at the beginning of the period86,640  103,842  105,078  98,714 
Cash and cash equivalents at the end of the period105,537  87,281  105,537  87,281 
Less cash and cash equivalents of discontinued operations(2,603)  (2,202)  (2,603)  (2,202) 
Cash and cash equivalents at the end of the period - continuing operations102,934  85,079  102,934  85,079 
        


 Radware Ltd.   
 RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)   
 (U.S Dollars in thousands)   
         
  For the three months ended For the nine months ended
  September 30, September 30,
  2026  2025  2026  2025 
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net income for continuing operations4,510  8,233  14,512  21,223 
 Exclude: Financial income, net(4,731)  (4,674  (12,046)  (12,853) 
 Exclude: Depreciation and amortization expense2,951  2,542  8,455  8,018 
 Exclude: Taxes on income2,382  2,249  6,682  6,586 
EBITDA5,112  8,350  17,603  22,974 
         
 Share-based compensation8,856  5,324  21,696  16,463 
 Acquisition costs-  99  389  390 
Adjusted EBITDA for continuing operations13,968  13,773  39,688  39,827 
         
         
  For the three months ended For the nine months ended
  September 30, September 30,
  2026  2025  2026  2025 
 Amortization of intangible assets869  733  2,588  2,199 
 Depreciation2,082  1,809  5,867  5,819 
  2,951  2,542  8,455  8,018