Stock Analysis

Stock Analysis · Radware Ltd (RDWR)

Overview

Radware Ltd (RDWR) is a cybersecurity company focused on keeping applications and digital services available, fast, and protected. In simple terms, it helps organizations defend their websites, apps, and networks against attacks (especially disruption-style attacks) and performance issues. Its offerings include security and availability solutions delivered as software and as cloud-based services, typically sold to enterprises, service providers, and public-sector organizations.

Radware’s revenue is generally generated from a mix of product/solution sales and ongoing services (including cloud-based security services and maintenance/support). In its reporting, revenue is commonly discussed through broad categories such as:

Subscription and cloud security/services (recurring revenue tied to cloud-delivered protection and subscriptions)
Maintenance and support (ongoing customer support and updates)
Product and licenses (appliances and/or software licenses, typically more upfront in nature)

The exact percentage split can vary by year and should be taken from the most recent annual report for the latest breakdown by category and geography.

Over the 2021–2025 period shown, total revenue trends upward overall (from about $286.5M in 2021 to about $301.9M in 2025). Profitability also looks uneven across the years, with net income dipping negative in 2022–2023 and then recovering to about $20.3M in 2025. Research and development spending remains a major cost line, which is typical for cybersecurity vendors that must continuously update products to respond to new threats.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 16, 2026
Context
Sector	Technology
Industry	Software - Infrastructure
Market Cap ⓘ	$1.21B
Beta ⓘ	0.97
Fundamental
P/E Ratio ⓘ	62.04	25.13
Profit Margin ⓘ	6.71%	6.91%
Revenue Growth ⓘ	9.90%	15.25%
Debt to Equity ⓘ	4.87%	19.82%
PEG ⓘ	30.49
Free Cash Flow ⓘ	$42.79M

Radware’s market capitalization is about $1.21B, placing it in the smaller end of publicly traded cybersecurity-focused software/infrastructure firms. The stock’s beta of ~0.97 suggests price moves that have been roughly in line with the broader market on average (though any single stock can still be volatile). The company’s P/E ratio is ~62.0 versus an industry median around 25.1, meaning the market is valuing Radware at a higher multiple of earnings than many peers. Profit margin is about 6.7%, close to the industry median (~6.9%). Revenue growth year-over-year is about 9.9%, below the industry median (~15.3%). Debt-to-equity is about 4.9%, notably below the industry median (~19.8%). Trailing twelve-month free cash flow is about $42.8M.

Growth (Medium)

Cybersecurity is a structurally important area of technology because organizations increasingly operate online, rely on cloud services, and face persistent threats. Within cybersecurity, protecting applications (including web applications and APIs) and maintaining availability during attacks are ongoing priorities because downtime can directly impact revenue, operations, and reputation.

Radware’s strategy—combining application protection, availability, and cloud-delivered security services—fits a market where many customers prefer recurring, subscription-like services rather than one-time hardware purchases. A continued shift toward cloud and subscription delivery can support more predictable revenue over time, but it also increases competition since customers can compare providers more easily.

The year-over-year revenue pattern appears cyclical: positive growth in 2021, a contraction phase during 2022–2023, and then a return to growth through 2024–2025. The latest shown growth rate is around 9.9%, which indicates expansion, but it is still below the industry median in the table—suggesting Radware may be growing more slowly than many comparable infrastructure software firms at this moment.

Free cash flow (cash generated after operating costs and capital spending) fluctuates meaningfully across the period shown: roughly $49.4M (2021), down to $8.7M (2022), then improving to $32.9M (2023), dipping to $13.4M (2024), and rising to $68.3M (2025). This variability can matter for long-term evaluation because steady cash generation often helps fund product development and go-to-market investment without relying heavily on debt or dilution.

Potential growth catalysts for a company like Radware typically include increased demand for DDoS mitigation and application/API protection, customer migration to cloud-delivered security, and adoption of broader security platforms that bundle multiple protections. However, the pace at which those translate into Radware’s results depends on execution, competitive wins, and customer budgets.