Radware (RDWR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 11% year over year to $72 million, marking the third consecutive quarter of double-digit growth.

• Non-GAAP EPS rose 69% to $0.27; net income increased 73% to $11.8 million year over year.

• Cloud security ARR increased to $80 million, with year-over-year growth reported between 19% and 24%.

• Cash flow from operations reached $22.4 million, with cash and equivalents totaling $448 million.

• Non-GAAP gross margin improved to 82.1%, up 10 basis points from Q1 2024.

Financial highlights

• Total ARR grew year over year, reported as $230 million (9% growth) and $211 million (8% growth).

• Recurring revenues accounted for 82% of total revenue, up from 79% in Q1 2024.

• Adjusted EBITDA increased 72% to $10.8 million.

• Gross profit increased to $58.1 million from $52.3 million year over year.

• Financial income was $5.4 million, up from $3.8 million year over year.

Outlook and guidance

• Q2 2025 revenue expected between $73 million and $74 million.

• Q2 2025 non-GAAP operating expenses projected at $51–$52 million.

• Q2 2025 non-GAAP diluted EPS expected between $0.26 and $0.27.

• Tax rate expected to remain around 15.5% in Q2.

• Management expects continued growth with a focus on recurring cloud revenue.