Core Insights - Radware reported a total annual recurring revenue (ARR) growth of 11% year over year to $251 million, with cloud ARR being the primary catalyst for this growth [1][7] - Subscription revenue increased by 21% year over year, significantly accelerating from 12% growth in the previous year, driven by cloud momentum and product subscription demand [1][5] Financial Performance - For the full year 2025, Radware achieved a record revenue of $302 million, reflecting a 10% growth, while non-GAAP net income rose by 37% to $51.5 million, and non-GAAP diluted EPS increased by 32% to $1.15 [3][4] - In Q4, Radware reported revenue of $80 million, up 10% year over year, with non-GAAP diluted EPS rising 19% to $0.32 [4][7] Cloud Security and Product Expansion - Cloud security was emphasized as a key performance driver, with cloud ARR growing 23% year over year to $95 million in Q4, nearing the company's goal of "nearly $100 million" in cloud ARR by year-end [2][7] - The company expanded its product portfolio with new offerings in API security and "Agentic AI" protection, supported by the acquisition of Pynt [5][6][13] Remaining Performance Obligations (RPO) - Radware reported record remaining performance obligations (RPO) of $400 million, up 13% year over year, attributed to strong bookings across cloud and product subscriptions [8][7] - Management expects RPO growth in 2026 to align with revenue growth, indicating potential upside [8] Regional Performance - Q4 revenue performance varied by region: Americas revenue declined 4% to $32 million, EMEA revenue increased 38% to $32 million, and APAC revenue declined 3% to $16 million [9] - Full-year revenue for the Americas grew 6% to $125 million, EMEA grew 18% to $111 million, and APAC grew 5% to $66 million [9] Defense Products and Competitive Positioning - Demand for defense products was supported by strong refresh cycles and competitive displacements, leading to double-digit growth in defense products [10][11] - Management highlighted significant wins, including a major contract with a North American government IT services agency and a multi-million-dollar hybrid cloud DDoS agreement [11] API Security and Agentic AI Protection - API security was described as a new growth wave, with the launch of a new API Security Service and the acquisition of Pynt to enhance API testing capabilities [13] - The Agentic AI Protection solution aims to secure AI agents against various risks, utilizing behavioral algorithms for real-time detection and integration with major AI ecosystems [14][16] Profitability and Future Guidance - Radware reported a Q4 gross margin of 82.2% and an operating margin expansion of 240 basis points, with adjusted EBITDA increasing by 25% to $13.7 million [17] - The company ended the quarter with approximately $461 million in cash and guided for Q1 2026 revenue of $78 million to $79 million, citing strong demand and a solid backlog [18]