Core Insights - QKS Group has recognized Radware as a leader in the SPARK Matrix™: Bot Management for the fourth consecutive year [1][8] 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] Product Features - Radware's Bot Manager employs real-time, AI-powered protection to combat advanced bot attacks on websites, mobile applications, and APIs, utilizing CAPTCHA-less AI-based behavioral algorithms for accurate identification of bad bots [2][3] - The solution integrates real-time automation with intelligent behavioral analysis, allowing legitimate users access while blocking malicious traffic [2] Competitive Positioning - The QKS Group SPARK Matrix™ provides a detailed analysis of market dynamics, trends, and vendor landscape, ranking Radware with the strongest rating for technology excellence and customer impact [2][8] - Radware's multi-layered, AI-driven approach combines behavioral intent-based analysis with proactive mitigation strategies, distinguishing it from traditional defenses [3]

Industry Overview - Cybersecurity has become a top priority for organizations due to the increasing frequency and sophistication of cyberattacks, which threaten financial stability and brand reputation [1] - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.77 billion by 2032, reflecting a robust CAGR of 14.4% [2] Technological Advancements - Traditional security tools are becoming inadequate against modern threats, leading to a shift towards artificial intelligence (AI) for proactive threat detection and response [3] - AI enables companies to analyze large volumes of data, automating detection and response processes, which is essential given the rapid emergence of threats [3] Key Players - CrowdStrike Holdings (CRWD) is a leader in endpoint protection and is leveraging AI to enhance its Falcon platform for real-time threat detection and automated responses [6][7] - Qualys (QLYS) focuses on vulnerability management and cloud security, enhancing its AI capabilities to improve threat detection and remediation [9][10] - Radware (RDWR) provides cybersecurity solutions and is integrating AI to enhance its product offerings, including DDoS protection and traffic management [12][13] Competitive Positioning - CrowdStrike's deep integration of AI not only enhances its competitive edge but also supports sustainable revenue growth, positioning it as a strong buy [8] - Qualys' AI-powered platform is expected to drive customer adoption and long-term revenue growth, also classified as a strong buy [11] - Radware's AI-driven tools improve scalability and customer loyalty, creating opportunities for recurring revenues through subscription services [14]

Core Insights - Radware Ltd is recognized as a leading cybersecurity stock, emphasizing its commitment to global expansion and enhanced attack mitigation capabilities [1][2] - The company has opened two new cloud security centers in Tel Aviv, Israel, and Bogota, Colombia, increasing its total to 50 centers worldwide [2][3] - The expansion has boosted Radware's attack mitigation capacity to over 15 terabytes per second, improving response times for application and denial-of-service attacks [2] Company Overview - Radware Ltd specializes in application security and delivery solutions for multi-cloud environments, utilizing artificial intelligence algorithms to protect against various cyber threats [4] - The company aims to strengthen its presence in the EMEA and Latin America regions through its recent expansion efforts [3]

Core Insights - Radware has launched two new cloud security centers in Tel Aviv, Israel, and Bogotá, Colombia, expanding its global footprint in cybersecurity [1][2][3] - The new centers are part of Radware's strategy to enhance its global cloud security network, which now includes over 50 centers worldwide with a total attack mitigation capacity exceeding 15 Tbps [2][3] - The company aims to provide local customers with advanced cyber protection while ensuring compliance with data privacy regulations [3] Company Expansion - The addition of the second center in Tel Aviv and the new site in Bogotá is part of Radware's ongoing global expansion efforts, particularly in the EMEA and Latin America regions [3] - Recent expansions also included new cloud security centers in India, Kenya, and Peru, indicating a robust growth strategy [2][3] Cybersecurity Landscape - According to Radware's 2025 Global Threat Analysis Report, web DDoS attacks surged by 550% globally, while web application and API attacks increased by 41% from 2023 to 2024, highlighting the growing threat landscape [4] - The company's solutions are designed to mitigate various types of attacks, including denial-of-service and web application attacks, thereby improving application response times and reducing mitigation response times [3] Industry Recognition - Radware has received multiple awards for its cybersecurity solutions, including DDoS mitigation and application protection, and is recognized as a market leader by industry analysts such as Forrester and Gartner [5]

Core Insights - Radware has been recognized as an Overall Leader in the 2025 KuppingerCole Leadership Compass Report for Web Application and API Protection, excelling in Product, Innovation, and Market Leadership categories [1][2][3] - The report highlights Radware's comprehensive suite of application protection services, including Cloud WAF, Bot Manager, and DDoS Protection [2][3] - Radware's solutions utilize AI-driven algorithms for real-time protection against sophisticated cyber threats, including zero-click and zero-day attacks [3][5] Company Recognition - Radware has received multiple awards for its DDoS mitigation, application and API protection, web application firewall, and bot detection solutions [4] - Industry analysts from Aite-Novarica Group, Forrester, Gartner, GigaOm, IDC, and QKS Group consistently recognize Radware as a market leader in cybersecurity [4] Product Offerings - The company's application protection services include Cloud Application Protection Services, AppWall standalone WAF, Alteon application delivery controller, and DefensePro X DDoS Protection [2][3] - Radware's Bot Manager employs a semi-supervised machine learning algorithm for intent-based traffic classification [7] Market Context - The 2025 KuppingerCole Leadership Compass Report assesses the WAAP market and evaluates solutions that protect cloud-native applications throughout their development and production lifecycle [3]

Core Viewpoint - Radware and EPIC Cloud Company have entered into a managed security service provider (MSSP) agreement to enhance cloud application security through AI-powered services [1][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 [7]. - EPIC Cloud specializes in enterprise applications, cloud reliability hosting, information security management, and project software development, aiming to strengthen security for its cloud-based platform [2][6]. Partnership Details - The agreement allows EPIC Cloud to incorporate Radware's Cloud Application Protection Services into its managed services portfolio, enhancing its security offerings [1][3]. - Radware's Cloud Application Protection Service provides a comprehensive solution for application security, including web application firewall, bot detection, API protection, and DDoS protection [3]. Strategic Goals - The MSSP model is designed to help partners meet customer expectations for advanced AI-powered cyber defense technologies without significant infrastructure investments [4]. - Radware aims to assist EPIC Cloud in mitigating security risks amid challenges such as shrinking security teams and an expanding threat landscape [4]. Infrastructure and Capacity - Radware has established a cloud security service center in Taipei, part of a global network of over 50 centers, with a mitigation capacity of up to 15 Tbps [4]. - This network is intended to improve application response times and reduce mitigation response times against various cyber threats [4]. Industry Recognition - Radware has received accolades from various industry analysts, including Aite-Novarica Group, Forrester, Gartner, KuppingerCole, and QKS Group, for its application and network security solutions [5].

Core Insights - Radware and Tet have signed a managed security service provider (MSSP) agreement to enhance Tet's security offerings with Radware's AI-powered Cloud Application Protection Services [1][2] - The partnership builds on an existing relationship, with Tet already utilizing Radware's DefensePro® DDoS Protection for its business customers [2][3] - The collaboration aims to address the increasing threat of web DDoS attacks, which surged by 550% from 2023 to 2024, primarily driven by hacktivist groups [3][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 [7] - Tet is one of Latvia's largest technology companies, providing a wide range of ICT and pay-TV services, as well as cloud and cybersecurity solutions [6] Market Context - The MSSP model offered by Radware provides ISPs like Tet a low-risk method to introduce proven security services while creating new revenue streams [4] - The growing threat landscape and shortage of in-house security staff are prompting organizations to seek alternative strategies to enhance their security posture [4] Technology and Services - Radware's Cloud Application Protection Service includes a comprehensive suite of security solutions such as web application firewall (WAF), bot detection, API protection, and application-layer DDoS protection [4] - The service is designed to defend against over 150 known attack vectors, including the OWASP's Top 10 Web Application Security Risks [4]

Core Viewpoint - Radware (RDWR) has experienced significant selling pressure, resulting in a 15.2% decline over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the stock [1]. Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - RDWR's current RSI reading is 28.35, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Fundamental Analysis - Over the past 30 days, the consensus EPS estimate for RDWR has increased by 26.8%, indicating strong agreement among analysts regarding improved earnings [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. - RDWR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, further supporting the potential for a turnaround [8].

Core Insights - The report by Radware highlights a significant shift in credential stuffing attacks, moving from volume-based methods to sophisticated, multi-stage infiltration techniques [1][2] Attack Methodologies - 94% of analyzed configurations implement four or more business logic attack elements, with 54% demonstrating advanced orchestration using over 13 distinct techniques [6] - 83% of configurations contain explicit API-targeting techniques [6] - 24% of attack scripts alternate between two device types during execution, with 71% employing cross-platform transitions, primarily between iOS and Windows [6] Target Industries - The primary target sector for these attacks is Technology/SaaS at 27%, followed by financial services/government at 16%, and travel/airline at 13% [6] - High-value AI tools are targeted in 44% of all technology-related attacks, indicating a shift towards exploiting these tools for phishing content [6] - Corporate tools, including Microsoft 365, OneDrive, and Outlook, are also significant targets for ransomware groups seeking initial access to organizational systems [6] Threat Actor Concentration - 51% of the analyzed configurations were created by just three advanced threat actors, indicating a concentration of expertise in the field [6] - Each of these threat actors has over two years of operational experience in specialized areas such as AI platform authentication bypass and mobile API exploitation [6]

Financial Data and Key Metrics Changes - Revenue increased by 10% year over year to $74 million, marking the fourth consecutive quarter of double-digit revenue growth [5][15] - Non-GAAP earnings per share rose by 39% year over year to $0.28, reflecting the scalability and efficiency of the business model [5][20] - Cash flow from operations was $14.5 million, down from $23 million in the same quarter last year [20] - Net income increased by 43% year over year to $12.6 million compared to $8.8 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - Cloud ARR growth accelerated from 19% to 21% year over year, reaching $85 million [6][16] - Total ARR increased by 8% year over year to $235 million, with recurring revenue now representing 84% of total revenue, up from 82% in Q2 2024 [16] - Operating income grew more than 50% year over year to $9.5 million [18] Market Data and Key Metrics Changes - Americas revenue remained stable year over year at $30.1 million, accounting for 41% of total revenue [16] - EMEA revenue increased by 22% year over year to $27.8 million, representing 37% of total revenue [16] - APAC revenue grew by 30% year over year to $16.3 million, contributing 22% of total revenue [17] Company Strategy and Development Direction - The company focuses on three strategic pillars: gaining market share in cloud security, leading with AI-driven innovation, and expanding market presence [6][14] - The cloud security business is identified as the primary growth engine, with significant wins in API protection solutions and partnerships with major organizations [7][13] - Continued investment in sales, marketing, and R&D is planned to capitalize on robust demand for security offerings [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current momentum and strategic focus, anticipating long-term growth opportunities [14][21] - The operating environment is characterized by budget constraints and long sales cycles, particularly in the enterprise market [40] - The company expects total revenue for 2025 to be in the range of $74.5 million to $75.5 million [21] Other Important Information - The company has been recognized as a leader in application and API security by GigaOM, highlighting its competitive position [8] - The effective tax rate for the quarter was 15.4%, consistent with the previous year [20] Q&A Session Summary Question: Early returns from sales and marketing investments - Management noted that investments in North America are paying off, with stronger pipeline and better customer engagement [26][28] Question: Progress on DefensePro X - All on-premise DDoS mitigation sales are now from DefensePro X, which is expected to drive subscription revenue [33] Question: Dynamics in the carrier segment - Management observed opportunities in the carrier segment, particularly in MSSP business partnerships [39] Question: Changes in MSSP business models - There is a shift in MSSP portfolios to meet increasing customer compliance demands [46] Question: Competitive environment - Management reported an increase in win ratios and confidence in their competitive position, with no significant new entrants noted [48][50]