Radware Q2 Earnings Call Highlights

Radware (NASDAQ:RDWR) reported record second-quarter 2026 revenue as demand for cloud security services, API protection and on-premises DDoS mitigation supported growth across key parts of its business.

Revenue rose 11% year over year to $82.3 million, marking the company’s seventh quarter of double-digit growth over the past two years, President and Chief Executive Officer Roy Zisapel said on the company’s earnings call. Cloud annual recurring revenue increased 22% from a year earlier and exceeded $100 million, representing 40% of total ARR compared with 36% in the second quarter of 2025.

Subscription revenue remained Radware’s largest revenue stream, accounting for 55% of total quarterly revenue, Chief Financial Officer Guy Avidan said.

Cloud platform expansion and new security products

Zisapel said cloud security remained the largest contributor to recurring-revenue growth. The company cited demand for its managed security service provider channel and increasing customer activity for its API security offering, which launched earlier in 2026.

Among recent API-security wins, Radware said two financial-services providers in Asia-Pacific selected its platform to protect business-critical applications handling a combined 250 million API calls per month. Zisapel said the customers chose Radware for its API discovery, runtime-protection and bot-management capabilities, expanding their existing cloud-security deployments.

The company also introduced Xploit Shield, a product designed to create application-specific protections based on vulnerabilities identified by frontier AI models or other security scanners. Zisapel said the offering is intended to provide customers time to assess and remediate vulnerabilities while maintaining protections around applications.

During the question-and-answer session, Zisapel said Radware is seeing stronger interest from customers concerned about the volume of vulnerabilities and the faster pace at which they can be exploited using AI-related tools. Xploit Shield is sold as part of the cloud-security platform on a subscription basis and is priced per application, he said.

Zisapel characterized protection of AI infrastructure as an earlier-stage opportunity, noting that customers are still early in deploying internal AI for mission-critical applications. However, he said AI-assisted vulnerability discovery and attacks are already creating demand for security services.

On-premises demand and regional results

Radware’s DefensePro X on-premises security platform also had a strong quarter, according to Zisapel. The company said a refresh cycle for aging infrastructure continues to create opportunities as customers seek to strengthen DDoS protections.

One DefensePro X transaction during the quarter was a seven-digit deal with a global business and financial-information provider. The customer selected the platform for a DDoS-protection infrastructure refresh across the U.S., U.K. and Japan, along with multiyear application- and network-protection subscriptions.

Zisapel said Radware recently added cloud-augmented protection capabilities to its on-premises platform, combining cloud intelligence with on-premises enforcement. He also said the company generally does not view its cloud DDoS business and on-premises DDoS appliance business as cannibalizing one another, since large enterprises often deploy hybrid environments.

In response to a question about supply-chain conditions, Zisapel said Radware has seen some customer delays related to broader data-center projects, including server and switch delays. He said those delays have not been critical and primarily affect customers building complete new data centers rather than those upgrading existing infrastructure.

• Americas revenue was $37.2 million, up 24% year over year and representing about 45% of total revenue.
• EMEA revenue was $27.3 million, down 2% year over year and representing about 33% of total revenue.
• Asia-Pacific revenue was $17.8 million, up 9% year over year and representing about 22% of total revenue.

Zisapel said North American growth reflected go-to-market investments, including changes to the sales organization. He added that the company is beginning to see encouraging signs from similar investments in Asia-Pacific. Radware’s cloud-security platform pipeline is growing faster than current ARR growth, he said, with customers increasingly considering broader platform deployments and enterprise agreements.

Profitability, cash and outlook

On a non-GAAP basis, gross profit increased 10% year over year to $67.3 million, while gross margin was 81.8%, compared with 82.4% a year earlier. Avidan said gross margin was affected primarily by foreign-exchange headwinds and supply-chain cost pressures.

Operating income was $10.9 million, down from $11.4 million in the prior-year period. Avidan attributed the decline primarily to the strengthening of the Israeli shekel against the U.S. dollar. Excluding that foreign-exchange impact, he said second-quarter operating income would have been $16.1 million, or 41% above the year-earlier period.

Net income from continuing operations was $13 million, down 9% year over year, while diluted earnings per share from continuing operations were $0.30, compared with $0.32 in the second quarter of 2025. Cash flow provided by continuing operations was $13 million, down from $15.6 million a year earlier.

Radware repurchased approximately $18.8 million of shares during the quarter and ended the period with $422.9 million in cash equivalents, bank deposits and marketable securities.

For the third quarter of 2026, the company forecast revenue of $82.5 million to $83.5 million, non-GAAP operating expenses of $57 million to $58 million, and non-GAAP diluted earnings per share of $0.28 to $0.29.

About Radware (NASDAQ:RDWR)

Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions.

Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Source MarketBeat