Radware (RDWR) Q3 2025 earnings summary

Executive summary

• Revenue reached $75.3 million in Q3 2025, up 8% year-over-year, driven by strong cloud security demand and cloud ARR growth of 24% to $89 million.

• Non-GAAP EPS rose 22% year-over-year to $0.28, with net income up 24% to $12.6 million; GAAP EPS was $0.13.

• Subscription revenue increased to 52% of total revenue, up from 47% a year ago.

• Strategic wins in healthcare and telecom sectors, with notable competitive displacements.

• The Americas led revenue growth with a 28% year-over-year increase, while EMEA declined 10% and APAC grew 3%.

Financial highlights

• Total ARR reached $240 million, up 8% year-over-year; cloud ARR at $89 million, up 24% year-over-year.

• Gross margin (non-GAAP) remained strong at 82.2%; GAAP gross margin was approximately 80.7%.

• Operating income grew 34% year-over-year to $9.6 million (non-GAAP); GAAP operating income was $3.1 million.

• Adjusted EBITDA increased 25% to $11.4 million; margin (excluding Hawkes) rose to 19.1%.

• Cash, equivalents, deposits, and marketable securities totaled $454.6 million at quarter end.

Outlook and guidance

• Q4 2025 revenue expected between $78 million and $79 million.

• Q4 non-GAAP operating expenses projected at $52.5–$53.5 million.

• Q4 non-GAAP diluted EPS expected between $0.29 and $0.30.

• Anticipates return to positive operating cash flow in Q4 and RPO to exceed 2024 year-end levels.

• Management expects to capture long-term growth opportunities, driven by AI-powered innovation and cloud security demand.