Second Quarter 2026 Financial Results and Highlights

Record revenue of $82.3 million, an increase of 11% year-over-year
Cloud ARR of $103 million, an increase of 22% year-over-year
Non-GAAP diluted EPS from continuing operations of $0.30; GAAP diluted EPS from continuing operations of $0.09
Cash flow provided by continuing operations activities of $13.0 million dollars

TEL AVIV, Israel, July 29, 2026 (GLOBE NEWSWIRE) -- Radware^® (NASDAQ:RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the second quarter ended June 30, 2026.

"We delivered another strong quarter, highlighted by double-digit revenue growth, Cloud ARR exceeding $100 million, and continued momentum across our cloud security platform," said Roy Zisapel, President and Chief Executive Officer of Radware. "We continued to expand our security platform through innovation across cloud, application security, API Security, and DDoS protection, further strengthening our ability to address evolving customer requirements. We believe our expanding platform, innovation, and market position create significant opportunities for continued growth and long-term shareholder value."

Financial Highlights for the Second Quarter 2026

Revenue for the second quarter of 2026 totaled $82.3 million:

Revenue in the Americas region was $37.2 million for the second quarter of 2026, an increase of 24% from $30.1 million in the second quarter of 2025.
Revenue in the Europe, Middle East, and Africa ("EMEA") region was $27.3 million for the second quarter of 2026, a decrease of 2% from $27.8 million in the second quarter of 2025.
Revenue in the Asia-Pacific ("APAC") region was $17.8 million for the second quarter of 2026, an increase of 9% from $16.3 million in the second quarter of 2025.

GAAP net income from continuing operations for the second quarter of 2026 was $3.9 million, or $0.09 per diluted share, compared to GAAP net income from continuing operations of $6.4 million, or $0.14 per diluted share, for the second quarter of 2025.

Non-GAAP net income from continuing operations for the second quarter of 2026 was $13.0 million, or $0.30 per diluted share, compared to non-GAAP net income from continuing operations of $14.3 million, or $0.32 per diluted share, for the second quarter of 2025.

As of June 30, 2026, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $422.9 million. Operating cash flow provided by continuing operations was $13 million in the second quarter of 2026.

Conference Call

Radware management will host a call today, July 29, 2026, at 8:30 a.m. ET to discuss its second quarter 2026 results and third quarter 2026 outlook. To participate in the call, please use the following link: Q2 2026 earnings call registration link.

A replay of the call will be available within approximately 24 hours of the live event on the Investors section of Radware’s website at: https://www.radware.com/ir/financial-reports/.

Use of Non-GAAP Financial Information and Key Performance Indicators

Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company’s non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release.

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware’s management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware’s ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors.

Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "plan," "project," "forecast," "target," and similar expressions, as well as future or conditional verbs such as "will," "should," "would," "may," and "could."

Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global market and economic conditions; our dependence on independent distributors; disruptions in our supply chain, including shortages of components or manufacturing capacity; our reliance on a limited number of vendors; our ability to attract, train and retain qualified personnel; intense competition in the cybersecurity and application delivery markets; our ability to develop new solutions and enhance existing solutions; risks related to defects, vulnerabilities or failures in our products or services, including cybersecurity incidents affecting our systems or those of our customers; risks associated with the use of artificial intelligence technologies, including evolving regulatory frameworks, litigation exposure and reputational considerations; risks related to our information technology systems, including failures, disruptions or security breaches; outages, interruptions, or delays in hosting or cloud-based services; risks related to the interoperability of our products; risks associated with our global operations; and geopolitical risks, including instability in the Middle East and Israel.

These factors are not exhaustive. For a more detailed description of the risks and uncertainties affecting Radware, please refer to Radware’s Annual Report on Form 20-F and other reports filed with or furnished to the Securities and Exchange Commission (SEC) from time to time.

Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, Radware undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements. Radware’s public filings are available from the SEC’s website at www.sec.gov or on Radware’s website at www.radware.com.

About Radware

Radware^® (NASDAQ:RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, API, and AI security solutions use AI-driven algorithms for precise, behavior-based, real-time protection against sophisticated web, application, and DDoS attacks, API abuse, business logic threats, and malicious bots. Radware delivers end-to-end API security, including discovery, posture management, testing, and runtime protection, along with advanced protection for AI agents and models. Enterprises and carriers worldwide rely on Radware to address evolving cyberthreats, protect their brands and business operations, and reduce costs. For more information, please visit the Radware website.

Radware encourages you to join our community and follow us on Facebook, LinkedIn, Radware Blog, X, and YouTube.

©2026 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

CONTACTS

Investor Relations:

Yisca Erez, +972-72-3917211, ir@radware.com

Media Contact:

Gina Sorice, ginaso@radware.com

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)

	June 30,		December 31,
	2026		2025
	(Unaudited)		(Unaudited)
Assets

Current assets
Cash and cash equivalents	85,200		102,748
Marketable securities	28,379		15,900
Short-term bank deposits	134,858		129,961
Trade receivables, net	39,480		34,604
Other receivables and prepaid expenses	13,423		10,639
Inventories	13,655		13,220
Current assets held for sale	5,149		9,435
	320,144		316,507

Long-term investments
Marketable securities	59,006		71,398
Long-term bank deposits	115,482		131,922
Other assets	3,150		2,830
	177,638		206,150


Property and equipment, net	17,280		16,387
Goodwill and intangible assets, net	78,041		72,159
Other long-term assets	43,740		40,641
Operating lease right-of-use assets	14,208		15,456
Long-term assets held for sale	3,337		3,865
Total assets	654,388		671,165

Liabilities and equity

Current liabilities
Trade payables	8,157		7,231
Deferred revenues	128,212		111,917
Operating lease liabilities	4,861		4,862
Other payables and accrued expenses	52,743		67,948
Current liabilities held for sale	2,103		2,325
	196,076		194,283

Long-term liabilities
Deferred revenues	80,349		65,764
Operating lease liabilities	11,225		11,970
Other long-term liabilities	7,605		8,464
	99,179		86,198

Equity
Radware Ltd. equity
Share capital	775		770
Additional paid-in capital	591,486		578,652
Accumulated other comprehensive income (loss)	(252	)	1,393
Treasury stock, at cost	(425,720	)	(377,561	)
Retained earnings	151,364		146,107
Total Radware Ltd. shareholder's equity	317,653		349,361

Non–controlling interest	41,480		41,323

Total equity	359,133		390,684

Total liabilities and equity	654,388		671,165

* The results of our subsidiary, SkyHawk, have been classified as discontinued operations effective the first quarter of 2026 and are presented accordingly. Comparative prior-year figures have been adjusted to align with this presentation and ensure consistency.

Radware Ltd.
Condensed Consolidated Statements of Income
(U.S Dollars in thousands, except share and per share data)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2026		2025		2026		2025
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Revenues	82,280		74,108		162,093		146,130
Cost of revenues	15,819		13,904		30,931		27,466
Gross profit	66,461		60,204		131,162		118,664

Operating expenses, net:
Research and development, net	23,773		18,163		44,876		35,715
Selling and marketing	32,264		30,737		64,856		61,377
General and administrative	7,955		6,192		14,443		12,424
Total operating expenses, net	63,992		55,092		124,175		109,516

Operating income	2,469		5,112		6,987		9,148
Financial income, net	3,543		3,517		7,315		8,179
Income before taxes on income from continuing operations	6,012		8,629		14,302		17,327
Taxes on income	2,131		2,237		4,300		4,337
Net income from continuing operations	3,881		6,392		10,002		12,990
Loss from discontinued operations	(2,168	)	(2,170	)	(4,745	)	(4,424	)
Net income	1,713		4,222		5,257		8,566


Basic net income per share attributed to Radware Ltd.'s shareholders:
Continuing operations	0.09		0.15		0.23		0.30
Discontinued operations	(0.05	)	(0.05	)	(0.11	)	(0.10	)
Total basic net income per share attributed to Radware Ltd.'s shareholders	0.04		0.10		0.12		0.20

Weighted average number of shares used to compute basic net income per share	41,714,046		42,734,026		42,250,915		42,711,279

Diluted net income per share attributed to Radware Ltd.'s shareholders:
Continuing operations	0.09		0.14		0.23		0.29
Discontinued operations	(0.05	)	(0.05	)	(0.11	)	(0.10	)
Total diluted net income per share attributed to Radware Ltd.'s shareholders	0.04		0.09		0.12		0.19

Weighted average number of shares used to compute diluted net income per share	43,687,694		44,510,896		44,089,154		44,364,057

	Radware Ltd.
	Reconciliation of GAAP to Non-GAAP Financial Information
	(U.S Dollars in thousands, except share and per share data)

		For the three months ended				For the six months ended
		June 30,				June 30,
		2026		2025		2026		2025
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP gross profit		66,461		60,204		131,162		118,664
	Share-based compensation	114		131		280		252
	Amortization of intangible assets	734		732		1,466		1,465
Non-GAAP gross profit		67,309		61,067		132,908		120,381

GAAP research and development, net		23,773		18,163		44,876		35,715
	Share-based compensation	1,723		1,259		3,411		2,394
	Amortization of intangible assets	253		-		253		-
Non-GAAP research and development, net		21,797		16,904		41,212		33,321

GAAP selling and marketing		32,264		30,737		64,856		61,377
	Share-based compensation	3,279		2,669		5,931		5,722
Non-GAAP selling and marketing		28,985		28,068		58,925		55,655

GAAP general and administrative		7,955		6,192		14,443		12,424
	Share-based compensation	2,216		1,401		3,218		2,772
	Acquisition costs	100		138		389		291
Non-GAAP general and administrative		5,639		4,653		10,836		9,361

GAAP total operating expenses, net		63,992		55,092		124,175		109,516
	Share-based compensation	7,218		5,329		12,560		10,888
	Acquisition costs	100		138		389		291
Non-GAAP total operating expenses, net		56,674		49,625		111,226		98,337

GAAP operating income		2,469		5,112		6,987		9,148
	Share-based compensation	7,332		5,460		12,840		11,140
	Amortization of intangible assets	987		732		1,719		1,465
	Acquisition costs	100		138		389		291
Non-GAAP operating income		10,888		11,442		21,935		22,044

GAAP financial income, net		3,543		3,517		7,315		8,179
	Exchange rate differences, net on balance sheet items included in financial income, net	824		1,673		1,598		2,182
Non-GAAP financial income, net		4,367		5,190		8,913		10,361

GAAP income before taxes on income from continuing operations		6,012		8,629		14,302		17,327
	Share-based compensation	7,332		5,460		12,840		11,140
	Amortization of intangible assets	987		732		1,719		1,465
	Acquisition costs	100		138		389		291
	Exchange rate differences, net on balance sheet items included in financial income, net	824		1,673		1,598		2,182
Non-GAAP income before taxes on income from continuing operations		15,255		16,632		30,848		32,405

GAAP taxes on income		2,131		2,237		4,300		4,337
	Tax related adjustments	91		61		153		123
Non-GAAP taxes on income		2,222		2,298		4,453		4,460

GAAP net income from continuing operations		3,881		6,392		10,002		12,990
	Share-based compensation	7,332		5,460		12,840		11,140
	Amortization of intangible assets	987		732		1,719		1,465
	Acquisition costs	100		138		389		291
	Exchange rate differences, net on balance sheet items included in financial income, net	824		1,673		1,598		2,182
	Tax related adjustments	(91	)	(61	)	(153	)	(123	)
Non-GAAP net income from continuing operations		13,033		14,334		26,395		27,945

Non-GAAP loss from discontinued operations		1,898		1,739		4,192		3,532

Non-GAAP net income		11,135		12,595		22,203		24,413

GAAP diluted net income per share from continuing operations		0.09		0.14		0.23		0.29
	Share-based compensation	0.17		0.12		0.29		0.25
	Amortization of intangible assets	0.02		0.02		0.04		0.03
	Acquisition costs	0.00		0.00		0.01		0.01
	Exchange rate differences, net on balance sheet items included in financial income, net	0.02		0.04		0.03		0.05
	Tax related adjustments	(0.00	)	(0.00	)	(0.00	)	(0.00	)
Non-GAAP diluted net earnings per share from continuing operations		0.30		0.32		0.60		0.63

Non-GAAP diluted net loss per share from discontinued operations		(0.05	)	(0.04	)	(0.10	)	(0.08	)

Non-GAAP diluted net earnings per share		0.25		0.28		0.50		0.55

Weighted average number of shares used to compute non-GAAP diluted net earnings per share		43,687,694		44,510,896		44,089,154		44,364,057

Radware Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2026		2025		2026		2025
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cash flow from operating activities:

Net income	1,713		4,222		5,257		8,566
Loss from discontinued operations activities	2,168		2,170		4,745		4,424
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,910		2,594		5,504		5,476
Share-based compensation	7,332		5,460		12,840		11,139
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net	112		(93	)	137		(254	)
Decrease in accrued interest on bank deposits	(610	)	(2,839	)	(1,078	)	(4,440	)
Increase (decrease) in accrued severance pay, net	(193	)	15		(480	)	76
Decrease (increase) in trade receivables, net	(7,545	)	2,133		(4,876	)	(6,053	)
Increase in other receivables and prepaid expenses and other long-term assets	(4,176	)	(928	)	(7,252	)	(1,088	)
Decrease (increase) in inventories	(525	)	199		(435	)	718
Increase (decrease) in trade payables	1,658		438		926		(1,402	)
Increase (decrease) in deferred revenues	16,270		(1,261	)	30,880		16,471
Increase (decrease) in other payables and accrued expenses	(6,583	)	2,281		(13,702	)	5,562
Operating lease liabilities, net	511		1,228		502		1,000
Net cash provided by operating activities - continuing operations	13,042		15,619		32,968		40,195
Net cash used in operating activities - discontinued operations	(1,904	)	(1,127	)	(4,190	)	(3,261	)
Net cash provided by operating activities	11,138		14,492		28,778		36,934

Cash flows from investing activities:

Purchase of property and equipment	(2,025	)	(2,659	)	(4,678	)	(3,770	)
Proceeds from (investment in) other long-term assets, net	(32	)	(19	)	(16	)	90
Proceeds from (investment in) bank deposits, net	(12,279	)	(17,401	)	12,621		(44,513	)
Investment in, redemption of and purchase of marketable securities, net	(147	)	(5,239	)	(945	)	10,955
Acquisition of subsidiary, net of cash acquired	-		-		(5,938	)	-
Proceeds from other deposits	-		-		-		5,000
Net cash provided by (used in) investing activities - continuing operations	(14,483	)	(25,318	)	1,044		(32,238	)
Net cash provided by investing activities - discontinued operations	299		3,599		3,300		3,598
Net cash provided by (used in) investing activities	(14,184	)	(21,719	)	4,344		(28,640	)

Cash flows from financing activities:

Proceeds from exercise of share options	1		-		4		1
Payment of contingent consideration related to acquisition	(3,405	)	(3,167	)	(3,405	)	(3,167	)
Repurchase of shares	(18,767	)	-		(48,159	)	-
Net cash used in financing activities - continuing operations	(22,171	)	(3,167	)	(51,560	)	(3,166	)
Net cash used in financing activities - discontinued operations	-		(3	)	-		-
Net cash used in financing activities	(22,171	)	(3,170	)	(51,560	)	(3,166	)

Increase (decrease) in cash and cash equivalents	(25,217	)	(10,397	)	(18,438	)	5,128
Cash and cash equivalents at the beginning of the period	111,857		114,239		105,078		98,714
Cash and cash equivalents at the end of the period	86,640		103,842		86,640		103,842
Less cash and cash equivalents of discontinued operations	(1,440	)	(3,210	)	(1,440	)	(3,210	)
Cash and cash equivalents at the end of the period - continuing operations	85,200		100,632		85,200		100,632

	Radware Ltd.
	RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)
	(U.S Dollars in thousands)

		For the three months ended				For the six months ended
		June 30,				June 30,
		2026		2025		2026		2025
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP net income for continuing operations		3,881		6,392		10,002		12,990
	Exclude: Financial income, net	(3,543	)	(3,517	)	(7,315	)	(8,179	)
	Exclude: Depreciation and amortization expense	2,910		2,594		5,504		5,476
	Exclude: Taxes on income	2,131		2,237		4,300		4,337
EBITDA		5,379		7,706		12,491		14,624

	Share-based compensation	7,332		5,460		12,840		11,140
	Acquisition costs	100		138		389		291
Adjusted EBITDA for continuing operations		12,811		13,304		25,720		26,055


		For the three months ended				For the six months ended
		June 30,				June 30,
		2026		2025		2026		2025

	Amortization of intangible assets	987		732		1,719		1,465
	Depreciation	1,923		1,862		3,785		4,011
		2,910		2,594		5,504		5,476