Radware (RDWR) Q3 2025 earnings summary

Executive summary

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

• Non-GAAP diluted EPS rose 22% year-over-year to $0.28, with net income increasing to $12.6 million (non-GAAP) and $5.7 million (GAAP).

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

• Continued investment in AI, automation, and global go-to-market expansion, including new cloud security centers and the launch of an AI-powered cybersecurity platform.

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

Financial highlights

• Subscription revenue grew 21% year-over-year, now 52% of total revenue versus 47% last year.

• Gross margin (non-GAAP) remained strong at 82.2%, with GAAP gross margin at 80.7%.

• Operating income rose to $9.6 million (non-GAAP) and $3.1 million (GAAP), both up year-over-year.

• Adjusted EBITDA increased to $11.4 million, with margin (excluding Hawkes) at 19.1%.

• Cash flow from operations was -$4.2 million for Q3, but net cash from operations for the nine months ended September 30, 2025, was $32.8 million.

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 cash flow from operations in Q4 and RPO to exceed year-end 2024 levels.

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