RADWARE LTD (RDWR): Financial results for Q3 2026
RADWARE LTD (RDWR) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Radware Reports Third Quarter 2026 Financial Results Third Quarter 2026 Financial Results and Highlights • Record quarterly revenue of $84.4 million, an increase of 12% year-over-year • Cloud ARR of $107 million, an increase of 21% year-over-year • Non-GAAP diluted E
How this was made
The 30-second read
Why it matters
The earnings beat and ARR growth may attract new institutional interest and support the stock price.
Market read
First‑hand earnings data provides a clear catalyst for short‑term trading decisions.
What to watch
Currency headwinds from a stronger shekel may compress margins if not offset by growth.
Record quarterly revenue of $84.4 million, an increase of 12% year-over-year
Record revenue, 12% growth across each reported region, 21% cloud ARR growth, and positive operating cash flow were offset by lower GAAP and non-GAAP income from continuing operations, lower operating income, and a stated $4.6 million unfavorable exchange-rate impact on non-GAAP results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $84.4M | – | 12% |
| Revenue, nine months ended September 30GAAP | $246.5M | – | – |
| Cloud ARRother | $107M | – | 21% |
| Gross profit, three months ended September 30GAAP | $67.79M | – | – |
| Gross profit, nine months ended September 30GAAP | $199.0M | – | – |
| Non-GAAP gross profit, three months ended September 30non-GAAP | $68.68M | – | – |
| Non-GAAP gross profit, nine months ended September 30non-GAAP | $201.6M | – | – |
| Research and development, net, three months ended September 30GAAP | $24.06M | – | – |
| Selling and marketing, three months ended September 30GAAP | $31.72M | – | – |
| General and administrative, three months ended September 30GAAP | $9.85M | – | – |
| Total operating expenses, net, three months ended September 30GAAP | $65.63M | – | – |
| Total operating expenses, net, nine months ended September 30GAAP | $189.8M | – | – |
| Non-GAAP total operating expenses, net, three months ended September 30non-GAAP | $56.80M | – | – |
| Non-GAAP total operating expenses, net, nine months ended September 30non-GAAP | $167.8M | – | – |
| Operating income, three months ended September 30GAAP | $2.16M | – | – |
| Operating income, nine months ended September 30GAAP | $9.15M | – | – |
| Non-GAAP operating income, three months ended September 30non-GAAP | $11.89M | – | – |
| Non-GAAP operating income, nine months ended September 30non-GAAP | $33.82M | – | – |
| Financial income, net, three months ended September 30GAAP | $4.73M | – | – |
| Income before taxes on income from continuing operations, three months ended September 30GAAP | $6.89M | – | – |
| Taxes on income, three months ended September 30GAAP | $2.38M | – | – |
| Net income from continuing operations, three months ended September 30GAAP | $4.5M | – | – |
| Net income from continuing operations, nine months ended September 30GAAP | $14.51M | – | – |
| Net income, three months ended September 30GAAP | $2.64M | – | – |
| Net income, nine months ended September 30GAAP | $7.89M | – | – |
| Non-GAAP net income from continuing operations, three months ended September 30non-GAAP | $13.9M | – | – |
| Non-GAAP net income from continuing operations, nine months ended September 30non-GAAP | $40.31M | – | – |
| Non-GAAP net income, three months ended September 30non-GAAP | $12.35M | – | – |
| Non-GAAP net income, nine months ended September 30non-GAAP | $34.55M | – | – |
| Diluted net income per share from continuing operations, three months ended September 30GAAP | $0.11 per diluted share | – | – |
| Diluted net income per share from continuing operations, nine months ended September 30GAAP | 0.34 | – | – |
| Total diluted net income per share, three months ended September 30GAAP | 0.06 | – | – |
| Total diluted net income per share, nine months ended September 30GAAP | 0.18 | – | – |
| Non-GAAP diluted net earnings per share from continuing operations, three months ended September 30non-GAAP | $0.32 | – | – |
| Non-GAAP diluted net earnings per share from continuing operations, nine months ended September 30non-GAAP | 0.92 | – | – |
| Non-GAAP diluted net earnings per share, three months ended September 30non-GAAP | 0.28 | – | – |
| Non-GAAP diluted net earnings per share, nine months ended September 30non-GAAP | 0.78 | – | – |
| Adjusted EBITDA for continuing operations, three months ended September 30non-GAAP | $13.97M | – | – |
| Adjusted EBITDA for continuing operations, nine months ended September 30non-GAAP | $39.69M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas regionRevenue increased from $35.4 million in the third quarter of 2025. | $39.6M | – | 12% |
| Europe, Middle East, and Africa (EMEA) regionRevenue increased from $22.8 million in the third quarter of 2025. | $25.6M | – | 12% |
| Asia-Pacific (APAC) regionRevenue increased from $17.1 million in the third quarter of 2025. | $19.2M | – | 12% |
Capital returns
- Repurchase of shares: (13,690) (U.S. Dollars in thousands) for the three months ended September 30, 2026.
- Repurchase of shares: (61,849) (U.S. Dollars in thousands) for the nine months ended September 30, 2026.
What drove it
- Record quarterly revenue of $84.4 million, an increase of 12% year-over-year.
- Cloud ARR of $107 million, an increase of 21% year-over-year.
- Management cited robust customer demand for application security solutions, cloud bookings, and large deal activity.
- Management stated that customers are increasingly adopting Radware to protect applications, APIs, infrastructure, and AI environments through a unified platform.
Concerns
- GAAP net income from continuing operations was $4.5 million, compared with $8.2 million in the third quarter of 2025.
- Non-GAAP net income from continuing operations was $13.9 million, compared with $14.8 million in the third quarter of 2025.
- GAAP operating income was 2,161 (U.S Dollars in thousands), compared with 5,808 (U.S Dollars in thousands) in the third quarter of 2025.
- The appreciation of the Israeli shekel against the U.S. dollar had an adverse impact on expenses during the third quarter, including a $4.6 million unfavorable impact of exchange-rate movements on non-GAAP results.
What to watch
- Cloud ARR and cloud bookings.
- Large deal activity and customer adoption of the cloud security platform.
- The expense effect of Israeli shekel exchange-rate movements.
- Fourth quarter 2026 outlook, which was referenced for the conference call but was not provided in the filing text.
- Operating-income and cash-flow conversion following the reported increase in operating expenses.
Balance sheet and cash flow
- Cash, cash equivalents, short-term and long-term bank deposits, and marketable securities as of September 30, 2026: $421.5 million.
- Cash and cash equivalents as of September 30, 2026: 102,934 (U.S. Dollars in thousands).
- Short-term bank deposits as of September 30, 2026: 129,882 (U.S. Dollars in thousands).
- Long-term bank deposits as of September 30, 2026: 101,344 (U.S. Dollars in thousands).
- Marketable securities as of September 30, 2026: 31,546 (U.S. Dollars in thousands) current and 55,797 (U.S. Dollars in thousands) long-term.
- Net cash provided by operating activities, continuing operations, for the three months ended September 30, 2026: 15,491 (U.S. Dollars in thousands).
- Net cash provided by operating activities, continuing operations, for the nine months ended September 30, 2026: 48,459 (U.S. Dollars in thousands).
- Net cash provided by operating activities for the three months ended September 30, 2026: 13,632 (U.S. Dollars in thousands).
- Net cash provided by operating activities for the nine months ended September 30, 2026: 42,410 (U.S. Dollars in thousands).
- Purchase of property and equipment for the three months ended September 30, 2026: (3,075) (U.S. Dollars in thousands).
- Purchase of property and equipment for the nine months ended September 30, 2026: (7,753) (U.S. Dollars in thousands).
Analysis
Radware reported record third-quarter revenue of $84.4 million, up 12% year-over-year. Growth was broad across the reported geographic regions: Americas, EMEA, and APAC revenue each increased 12%. Cloud ARR reached $107 million and increased 21% year-over-year, while management described cloud bookings and large deal activity as evidence of robust demand for its application security solutions.
The revenue performance did not translate into higher reported operating profit. GAAP operating income was 2,161 (U.S Dollars in thousands), versus 5,808 (U.S Dollars in thousands) in the prior-year quarter, as total operating expenses rose to 65,630 (U.S Dollars in thousands) from 55,323 (U.S Dollars in thousands). Research and development, selling and marketing, and general and administrative expense were each higher than in the prior-year quarter. Non-GAAP operating income was also modestly lower at 11,886 (U.S Dollars in thousands), compared with 11,964 (U.S Dollars in thousands).
GAAP net income from continuing operations was $4.5 million, or $0.11 per diluted share, compared with $8.2 million, or $0.19 per diluted share. Non-GAAP net income from continuing operations was $13.9 million, or $0.32 per diluted share, compared with $14.8 million, or $0.33 per diluted share. The company stated that Israeli shekel appreciation adversely affected expenses. Excluding the stated $4.6 million unfavorable exchange-rate impact, Radware said non-GAAP net income from continuing operations would have been $17.8 million and non-GAAP diluted EPS from continuing operations would have been $0.41.
Cash generation improved from the prior-year quarter. Net cash provided by operating activities from continuing operations was 15,491 (U.S. Dollars in thousands), compared with net cash used in operating activities from continuing operations of (2,070) (U.S. Dollars in thousands) a year earlier. The company reported $421.5 million of cash, cash equivalents, short-term and long-term bank deposits, and marketable securities as of September 30, 2026, and repurchased 13,690 (U.S. Dollars in thousands) of shares during the quarter.
For the first nine months, revenue was 246,457 (U.S Dollars in thousands), compared with 221,403 (U.S Dollars in thousands), while GAAP operating income was 9,148 (U.S Dollars in thousands), compared with 14,956 (U.S Dollars in thousands). The release contains no numerical fourth-quarter outlook despite stating that management would discuss its fourth-quarter 2026 outlook on the earnings call. The next reported indicators are cloud ARR progression, bookings and large-deal activity, the exchange-rate effect on expenses, and whether revenue growth supports operating-income expansion.
Management, verbatim
We delivered another record quarter, highlighted by accelerating revenue growth and continued expansion of our cloud security business.
Roy Zisapel, President and Chief Executive Officer of Radware
Customer demand for our application security solutions is robust, as reflected in our cloud bookings and large deal activity.
Roy Zisapel, President and Chief Executive Officer of Radware
As we continue to expand our cloud security platform with new AI security capabilities, customers are increasingly adopting Radware to protect applications, APIs, infrastructure, and AI environments through a unified platform.
Roy Zisapel, President and Chief Executive Officer of Radware
Not in the filing
stated, not guessed- Fourth quarter 2026 numerical guidance was not provided in the filing text.
- Prior-period guidance was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Dividend information was not reported.
- A prior-year dollar amount for Cloud ARR was not reported.
- Sequential revenue, segment revenue, ARR, profitability, and cash-flow comparisons were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Radware (NASDAQ:RDWR) is a provider of application security and delivery solutions for multi‑cloud environments.
Ticker impact
Q3 2026 earnings release reporting record revenue of $84.4M and GAAP EPS of $0.11.
likely modest upside as investors price in revenue growth and cloud ARR expansion
First disclosure of quarterly results; revenue up 12% YoY and cloud ARR up 21% suggest momentum.
Market effects
Highlights growth in the application security and cloud services sector.
Positive for Israeli tech exporters and U.S. investors tracking cyber‑security exposure.
Reinforces demand for multi‑cloud security solutions worldwide.
Counterpoint
If guidance falls short of expectations, the stock could face short‑term pressure.
Key entities
- ExecutiveRoy Zisapel
President and CEO of Radware, quoted on earnings performance.
