Radware (RDWR) Q4 2025 earnings summary

Executive summary

• Ended 2025 with record highs in revenue, EPS, total ARR, and cloud ARR, driven by strong execution, innovation in cloud and AI security, and robust demand for advanced protection solutions.

• Delivered comprehensive real-time protection for enterprises and carriers against evolving cyber threats, leveraging AI and cloud-first solutions.

• Recognized as a global leader in mission-critical cybersecurity, serving ~3,400 customers and operating 25 scrubbing centers worldwide.

• Trusted by top global telecom, SaaS, and financial institutions, with a strong presence in high-value, mission-critical accounts.

Financial highlights

• Achieved $302M in revenue for 2025, with Q4 revenue of $80.2M, both up 10% year-over-year; 80% of revenue was recurring and 38% of total ARR from cloud services.

• Cloud ARR grew 23% year-over-year to $95M in Q4 2025.

• Q4 non-GAAP EPS increased 19% to $0.32; full-year diluted EPS up 32% to $1.15.

• Net income for Q4 up 21% to $14.5M; full-year net income up 37% to $51.5M.

• Free cash flow margin stood at 14%, and gross margin at 82.2%.

Outlook and guidance

• Q1 2026 revenue expected between $78–$79M; non-GAAP EPS guidance of $0.28–$0.29.

• Targeting 25% growth in cloud ARR, with continued focus on cloud-first, AI-driven technology.

• Positioned for sustained double-digit growth, supported by GTM expansion and innovation in AI and API security.

• Continued investment in innovation and go-to-market, with increased OPEX expected in Q1 2026.

• RPO growth in 2026 expected to align with revenue growth.