Radware (RDWR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 10% year-over-year to $74.2 million, with cloud ARR up 21% to $85 million.

• Non-GAAP EPS rose 39% year-over-year to $0.28, and net income increased 43% to $12.6 million.

• Cloud security and AI-driven innovation remain primary growth engines, with recognition as a leader in application and API security.

• Major wins included seven-digit deals with global organizations and expansion of strategic partnerships.

• Operating cash flow for Q2 2025 was $14.5 million.

Financial highlights

• Total ARR increased 8% year-over-year to $235 million; recurring revenue now 84% of total.

• Gross margin (non-GAAP) held steady at 82.2%; operating income rose over 50% to $9.5 million.

• Adjusted EBITDA increased 37% to $11.4 million; margin (excluding Hawks) was 19%.

• Cash, cash equivalents, and investments totaled $459.1 million at quarter-end.

• Operating expenses increased 5% year-over-year to $51.5 million.

Outlook and guidance

• Q3 2025 revenue expected between $74.5–$75.5 million.

• Q3 non-GAAP operating expenses projected at $51.5–$52.5 million.

• Q3 non-GAAP diluted EPS guidance is $0.26–$0.27.

• Focus remains on accelerating cloud ARR growth beyond 21% year-over-year and continued investment in AI and partnerships.