Financial Data and Key Metrics Changes - In Q4 2025, revenue increased 10% year-over-year to $80 million, with non-GAAP earnings per share growing 19% to $0.32 [5][14] - For the full year 2025, revenue also grew 10% year-over-year, surpassing $300 million, with net income rising 37% to $51.5 million [5][20] - Adjusted EBITDA for Q4 2025 increased by 25% to $13.7 million, while for the full year, it rose by 37% to $47.4 million [18][20] Business Line Data and Key Metrics Changes - Cloud ARR rose 23% year-over-year to $95 million in Q4 2025, contributing significantly to overall revenue growth [6][15] - Subscription revenues surged 21% year-over-year, driven by strong demand for defense products [10] - The defense products segment saw exceptional double-digit year-over-year growth in Q4 and for the full year [10] Market Data and Key Metrics Changes - The Americas region saw a revenue decline of 4% year-over-year in Q4, but grew 6% for the full year [16] - EMEA revenue increased 38% year-over-year in Q4, accounting for 40% of total revenue, while APAC revenue declined 3% in Q4 [16] Company Strategy and Development Direction - The company aims to gain market share in cloud security, lead through AI innovation, and expand its go-to-market footprint [5][12] - The acquisition of Pynt enhances the company's API security capabilities, positioning it for growth in a rapidly expanding market [9] - The introduction of the Agentic AI Protection solution marks a significant expansion of the company's security platform [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing sophistication of cyberattacks, necessitating advanced AI-based security solutions [31][32] - The company expects RPO growth to align with revenue growth in 2026, reflecting strong booking performance [25] - Management expressed confidence in the robust demand and backlog entering 2026, which supports the revenue guidance for Q1 2026 [36] Other Important Information - The company plans to increase investments in innovation and go-to-market initiatives in 2026 [17][22] - The effective tax rate for 2025 was 15.3%, with expectations to remain stable in the coming quarters [19] Q&A Session Summary Question: What drove the strength in RPO growth? - Management attributed the strength to strong bookings in both cloud and product subscriptions, expecting RPO growth to align with revenue growth in 2026 [25] Question: Update on the Americas market and growth profile? - Management noted strong booking performance in North America and plans to increase investments in the region to support growth [27] Question: How is security positioned in relation to AI disruption? - Management emphasized the need for AI-based security solutions due to the increasing sophistication of attacks, positioning the company well in the market [31][32] Question: Changes needed for selling API and Agentic AI security solutions? - API security is integrated into the existing sales force, while a dedicated team is being formed for the new Agentic AI market [40] Question: Timing of product delivery relative to marketplace development? - Management believes the timing is favorable as enterprises are moving from proof of concept to production, with a strong offering ready to address security concerns [49]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 10% year-over-year to $80 million, with non-GAAP earnings per share growing by 19% to $0.32 [5][14] - For the full year 2025, revenue also grew by 10% year-over-year, surpassing $300 million, while net income rose by 37% to $51.5 million [20][5] - Adjusted EBITDA for Q4 2025 increased by 25% to $13.7 million, and for the full year, it rose by 37% to $47.4 million [18][20] Business Line Data and Key Metrics Changes - Cloud ARR grew by 23% year-over-year to $95 million in Q4 2025, marking a significant acceleration from 19% growth at the beginning of the year [6][15] - Subscription revenues surged by 21% year-over-year, driven by strong demand for product subscriptions and defense products [10][12] - The defense products segment saw exceptional double-digit year-over-year growth in Q4 and for the full year [10] Market Data and Key Metrics Changes - The Americas region experienced a 4% decline in Q4 year-over-year, but grew by 6% for the full year, accounting for 41% of total revenue [16] - EMEA revenue increased by 38% year-over-year in Q4, representing 40% of total revenue, while APAC revenue declined by 3% in Q4 but grew by 5% for the full year [16] Company Strategy and Development Direction - The company aims to gain market share in cloud security, lead through AI and algorithmic-driven innovation, and expand its go-to-market footprint [5][12] - The acquisition of Pynt enhances the company's API security capabilities, providing a full-life cycle API security solution [9] - The introduction of the Agentic AI Protection solution positions the company at the forefront of securing the next era of AI [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing sophistication of cyberattacks, necessitating stronger security measures, particularly as attackers leverage AI [31][32] - The company expects RPO growth to align with revenue growth in 2026, reflecting strong booking performance [25] - The outlook for Q1 2026 anticipates total revenue in the range of $78 to $79 million, supported by a solid backlog [22][36] Other Important Information - The company plans to increase investments in innovation and go-to-market initiatives in 2026 [17][22] - The effective tax rate for 2025 was 15.3%, with expectations to remain stable in the coming quarters [19] Q&A Session Summary Question: What drove the strength in RPO growth? - Management attributed the strength to strong bookings in both cloud and product subscriptions, expecting RPOs to grow in line with revenue growth for 2026 [25] Question: Update on the Americas market and growth profile? - Management noted strong booking performance in North America and plans to increase investments in the region to support growth [27] Question: Broader market environment and AI disruption? - Management emphasized the need for stronger security as attacks become more sophisticated, positioning the company well in the market [31][32] Question: Changes needed for API and Agentic AI security solutions? - API security is integrated into the existing sales force, while a dedicated group is being formed for the new Agentic AI market [40] Question: Timing of product delivery relative to marketplace development? - Management believes the timing is favorable as enterprises are moving from proof of concept to production, with a strong offering ready [49]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased 10% year-over-year to $80 million, and non-GAAP earnings per share grew 19% to $0.32 [5][12] - For the full year 2025, revenue also grew 10% year-over-year, surpassing $300 million, with net income rising 37% to $51.5 million [12][18] - Adjusted EBITDA for Q4 2025 increased by 25% to $13.7 million, while for the full year, it rose by 37% to $47.4 million [16][18] Business Line Data and Key Metrics Changes - Cloud ARR rose 23% year-over-year to $95 million in Q4, demonstrating accelerated growth from 19% at the beginning of 2025 [6][13] - Subscription revenues surged 21% year-over-year, driven by strong demand for product subscriptions and defense products [9][12] - The defense products segment saw exceptional double-digit year-over-year growth in Q4 and for the full year of 2025 [9] Market Data and Key Metrics Changes - In the Americas, Q4 revenue declined 4% year-over-year to $32 million, while full-year revenue grew 6% to $125 million [14] - EMEA region saw a 38% year-over-year revenue increase in Q4 to $32 million, with full-year revenue growing 18% to $111 million [14] - APAC revenue declined 3% year-over-year to $16 million in Q4, but grew 5% for the full year to $66 million [14] Company Strategy and Development Direction - The company aims to gain market share in cloud security, lead through AI innovation, and expand its go-to-market footprint [5][11] - Recent acquisitions, such as Pynt, enhance the company's API security capabilities and support its growth strategy in the rapidly expanding market [8][19] - The introduction of the Agentic AI Protection solution positions the company at the forefront of securing AI applications, indicating a strategic focus on emerging technologies [9][31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing sophistication of cyberattacks and the necessity for AI-based security solutions [28][30] - The company expects strong demand to continue into 2026, with a robust pipeline across existing and new customers [9][19] - Guidance for Q1 2026 anticipates total revenue in the range of $78-$79 million, reflecting confidence from a solid backlog [19] Other Important Information - The company plans to increase investments in innovation and go-to-market initiatives in 2026 [15][19] - The effective tax rate for 2025 was 15.3%, with expectations to remain stable in the coming quarters [17] Q&A Session Summary Question: What drove the strength in RPO growth? - Management attributed the strength to strong bookings in both cloud and product subscriptions, expecting RPO growth to align with revenue growth in 2026 [23][25] Question: Update on the growth profile of the Americas? - Management noted strong bookings in North America and plans to increase investments in the region to support growth [25] Question: How is security positioned in relation to AI disruption? - Management emphasized the need for AI-based defense due to the increasing sophistication of attacks, positioning the company well in the market [28][30] Question: Changes needed for selling API and Agentic AI security solutions? - API security is integrated into the existing sales force, while a dedicated group is being formed for Agentic AI to navigate the new market [37][41] Question: Timing of product delivery relative to marketplace development? - Management believes the timing is favorable as enterprises are moving from proof of concept to production, with a strong offering ready to address security concerns [45][46]

Core Insights - Radware has launched its API Security Service, an end-to-end solution aimed at protecting APIs throughout their lifecycle using real-time production traffic [1][3][4] Group 1: Product Features - The API Security Service provides advanced protection against the OWASP Top 10 API Security Risks, including sophisticated Layer 7 DDoS attacks [1][8] - Key capabilities include continuous runtime visibility, posture management, business logic protection, automated API discovery, and compliance support [6][8] - The service is designed to minimize false positives through AI-driven detection and offers adaptive, behavior-based protection to prevent disruption to legitimate API traffic [6][8] Group 2: Market Context - As enterprises accelerate digital transformation, APIs are increasingly critical but also create significant security blind spots [2] - Traditional API security tools often generate numerous theoretical alerts without indicating real risks, complicating prioritization for security teams [2][3] - Radware's solution addresses these challenges by providing a real-time, high-fidelity view of actual API risks based on live production traffic [3][4] Group 3: Target Audience - The API Security Service is tailored for CISOs, security operations teams, and DevSecOps organizations seeking comprehensive API visibility and strong runtime protection [6][8] - The unified platform simplifies collaboration among development, security, and operations teams while supporting regulatory compliance [8] Group 4: Availability - The Radware API Security Service is now generally available as a standalone solution and as part of Radware's broader application security and management portfolio [7]