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 ...

Core Insights - Radware (RDWR) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of +7.69% [1] - The company achieved revenues of $74.22 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.97% and up from $67.28 million year-over-year [2] - Radware's stock has increased approximately 25.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $73 million, while for the current fiscal year, the estimate is $1.05 on revenues of $295.2 million [7] - The estimate revisions trend for Radware was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Radware belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Radware reported strong financial performance for Q2 2025, with a revenue of $74.2 million, reflecting a 10% year-over-year increase. The company emphasized the growth in cloud Annual Recurring Revenue (ARR), which accelerated to 21% [2][9]. Financial Highlights - Revenue for Q2 2025 was $74.2 million, up from $67.3 million in Q2 2024 [9][20]. - GAAP net income for Q2 2025 was $4.2 million ($0.09 per diluted share), compared to $1.7 million ($0.04 per diluted share) in Q2 2024 [3][20]. - Non-GAAP net income for Q2 2025 was $12.6 million ($0.28 per diluted share), an increase from $8.8 million ($0.20 per diluted share) in Q2 2024 [3][20]. - Cash flow from operations was $14.5 million in Q2 2025 [4][23]. Regional Performance - Revenue in the Americas was $30.1 million, unchanged from Q2 2024 [10]. - Revenue in the EMEA region increased by 22% to $27.8 million from $22.8 million in Q2 2024 [10]. - Revenue in the Asia-Pacific region rose by 13% to $16.3 million from $14.4 million in Q2 2024 [10]. Cash and Assets - As of June 30, 2025, the company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities totaling $459.1 million [4][18]. - The total assets of the company increased to $658.5 million as of June 30, 2025, compared to $618.7 million at the end of 2024 [18]. Operational Metrics - The company’s cloud ARR reached $85 million, marking a 21% increase year-over-year [9]. - Total operating expenses for Q2 2025 were $57.1 million, compared to $55.4 million in Q2 2024 [20]. Management Commentary - The CEO highlighted the focus on cloud security as the primary growth engine and the importance of AI innovation in maintaining competitive leadership [2].

MAHWAH, N.J., July 29, 2025 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced it signed managed security service provider (MSSP) agreements with Epcom World Industries, Inc., GLESEC, North Atlantic Networks and Tech Pro. The four U.S. based companies are adding Radware's Cloud Application Protection Services to their managed services portfolios to scale their businesses and expand their security offerings ...

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]

Core Insights - The report highlights a significant gap in cybersecurity defenses, particularly against AI threats and API vulnerabilities, with only 8% of organizations currently utilizing AI-based protection solutions [3][17] - There is a growing concern regarding business logic attacks, with many organizations lacking adequate training and documentation to effectively mitigate these risks [6][17] Group 1: Cybersecurity Landscape - The weaponization of AI by malicious actors is intensifying cybersecurity threats, leading to increased vulnerabilities in web applications and APIs [4][17] - Organizations are experiencing a surge in API usage, with a 42% increase in 2025 compared to 2023, yet they remain poorly protected against associated risks [17] - Only 29% of security staff are fully trained to handle API business logic attacks, indicating a significant skills gap in the industry [6][17] Group 2: Organizational Preparedness - A lack of confidence in defensive measures is prevalent, with many organizations admitting to major concerns about their cybersecurity readiness [8][17] - On average, only 6% of organizations have full documentation for all their APIs, which complicates risk management [3][17] - Half of the respondents are unaware of the third-party code being used in their applications, raising concerns about data security [6][17] Group 3: Financial Implications - Downtime caused by application DDoS attacks can be costly, averaging $6,100 per minute or $366,000 per hour [17] - Organizations face high compliance pressures, with 54% expressing significant concern regarding various regulations [17]

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]