Radware (RDWR) Q2 2025 Earnings Call July 30, 2025 08:30 AM ET Speaker0Welcome to the Radware conference discussing second quarter twenty twenty five results, and thank you all for holding. At this time, all participants are in listen only mode. A brief question and answer session will follow the normal presentation. If anyone requires any operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded ...

Investor Presentation July 2025 Safe Harbor This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware's plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," and similar ex ...

Second Quarter 2025 Financial Results and Highlights Revenue of $74.2 million, an increase of 10% year-over-yearCloud ARR of $85 million, an increase of 21% year-over-yearNon-GAAP diluted EPS of $0.28 vs. $0.20 in Q2 2024; GAAP diluted EPS of $0.09 vs. $0.04 in Q2 2024Cash flow from operations of $14.5 million TEL AVIV, Israel, July 30, 2025 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidat ...

Core Viewpoint - Radware, a leader in application security and delivery solutions, is set to announce its second quarter results on July 30, 2025, and will provide an outlook for the third quarter of 2025 [1][2]. Company Overview - Radware specializes in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [3]. - The company's solutions are relied upon by enterprises and carriers globally to address evolving cybersecurity challenges while reducing operational costs [3]. Conference Call Details - The management will host a conference call on July 30, 2025, at 8:30 AM EDT to discuss the second quarter results and future outlook [2]. - Participants are encouraged to join the call 15 minutes early, with toll-free numbers provided for both US and international participants [2]. Replay Information - A replay of the conference call will be available for seven days after the call, accessible via specified telephone numbers [3].

Company Performance - Radware's shares have increased by 11.8% over the past month, reaching a new 52-week high of $27.11 [1] - Year-to-date, Radware has gained 18.1%, outperforming the Zacks Computer and Technology sector's 1.1% and the Zacks Internet - Software industry's 11.2% [1] Earnings and Revenue Expectations - Radware has consistently exceeded earnings estimates, reporting EPS of $0.27 against a consensus estimate of $0.23 in its last earnings report [2] - For the current fiscal year, Radware is projected to achieve earnings of $1.05 per share on revenues of $295.2 million, reflecting a 20.69% increase in EPS and a 7.39% increase in revenues [3] - The next fiscal year is expected to see earnings of $1.13 per share on $314 million in revenues, indicating year-over-year changes of 7.62% and 6.37%, respectively [3] Valuation Metrics - Radware's current trading metrics show a P/E ratio of 25.3X for the current fiscal year, below the peer industry average of 27.4X [7] - On a trailing cash flow basis, Radware trades at 47.5X compared to the peer group's average of 25.5X, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - Radware holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with investment recommendations for stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a combined VGM Score of B [6] Industry Context - The Internet - Software industry ranks in the top 22% of all industries, indicating favorable conditions for both Radware and its peers [11] - Creative Realities, Inc. (CREX), a peer company, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, gaining 62.6% over the past month [9][10]

Core Insights - Skyhawk Security has launched a partner program aimed at enhancing its channel-first strategy, allowing value-added resellers (VARs), managed security service providers (MSSPs), and consultants to meet the growing demand for cloud security solutions [1][2] Partner Program Structure - The partner program is designed to be flexible, accommodating partners of various sizes and business models, enabling them to engage at a level that suits their operations [3] - The program includes different partner types: Referral Partners, Reseller Partners (VARs), and MSSPs, each with tailored benefits and support structures [7] Program Benefits - Partners will benefit from protected deal registration, immediate access to a partner portal with marketing and sales resources, and consultative support from Skyhawk's teams [4] - By Q3 2025, partners will have access to an on-demand training curriculum to enhance sales and technical capabilities [4] Security Solution Features - Skyhawk's platform consolidates visibility into a single view, providing continuous threat detection without disrupting production systems [5] - The platform utilizes a real-time digital twin of each customer's cloud environment to enhance threat detection and reduce alert noise [5] Advanced Capabilities - The recent expansion of AI-driven Autonomous Purple Team capabilities allows for proactive validation of exposure by simulating real-world attacker behavior [6] - This positions partners to offer differentiated security services, increasing customer trust and retention [6] Company Background - Skyhawk Security is recognized as the originator of Cloud Threat Detection and Response (CDR), employing a multi-layer AI approach to preemptively identify and mitigate cloud threats [8]

Intent to use AI-based cyber security solutions Despite the concerns about hackers embracing AI, only 8% of organizations are currently using AI-based solutions for defenses. Distribution of API documentation Rates On average, only 6% of organizations have full documentation for all their APIs. Concerns and responses to business logic attacks Business logic attacks represent a threat area of rapidly growing concern. Only 8% of organizations use AI-based protection solutionsJust 6% of responden ...

Core Viewpoint - Radware (RDWR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Radware's Earnings Outlook - For the fiscal year ending December 2025, Radware is expected to earn $1.05 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Radware has increased by 55.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Radware's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Radware has launched new Threat Intelligence Services, including the Telegram Claimed Attacks Report and TLS Fingerprint Reputation Feed, aimed at providing real-time intelligence to combat cyber threats before they occur [1][2][3] Product Features - The Telegram Claimed Attacks Report aggregates claims from hacker groups on Telegram, offering real-time visibility into cyber threats targeting specific regions or industries [3] - The TLS Fingerprint Reputation Feed proactively identifies and blocks malicious TLS fingerprints using advanced analytics and global threat intelligence, enhancing Radware's DDoS Protection [3][6] - The services provide timely insights, proactive threat management, and intuitive dashboards that refresh data every 15 minutes, allowing easy filtering by industry and geography [5][6] Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [4] - The company has received numerous awards and recognitions from industry analysts, highlighting its strong position in the cybersecurity market [3]

Core Insights - Radware recognized Bell Canada and Presidio as its Partners of the Year for their dedication to cybersecurity innovation and customer service excellence [1][2] - The partnership focuses on equipping customers with critical cloud security solutions to mitigate risks and combat cybercrime [2][4] Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [6] - The company's solutions include DDoS protection, application and API security, and are designed to address evolving cybersecurity challenges [6] Partner Contributions - Presidio integrates Radware's application and API security solutions, DDoS protection, and bot management into its cybersecurity offerings, leveraging its expertise in IT foundations and digital transformation [3][4] - Bell Canada provides Radware's full cloud security stack as part of its security-as-a-service offering, enhancing its capability to protect customers from web and application cyber threats [4][5] Awards and Recognition - The Partner of the Year award highlights the exceptional business outcomes achieved by Bell and Presidio through their collaboration with Radware [1][5] - This marks the second consecutive year that Bell has received this award, underscoring the importance of its partnership with Radware in safeguarding customer interests [5]