Start here if you're new
what it is
Radware sells tools that keep websites and apps online when traffic spikes or attackers try to knock them over.
how it gets paid
Last year Radware made $275M in revenue. cloud security services was the main engine at $96M, or 35% of sales.
what just happened
The last reported quarter delivered $0.13 EPS, while the bigger story is that gross margin stayed at 80.6%.
At a glance
n/a balance sheet
25/100 earnings predictability — expect surprises
64.2x trailing p/e — you're paying up for this one
1.9% return on capital — nothing to write home about
$0.14 fy2024 eps est
xvary composite: 56/100 — below average
What they do
Radware sells tools that keep websites and apps online when traffic spikes or attackers try to knock them over.
Radware wins because downtime is expensive and panic-buying security after an attack is a bad life choice. Its own threat data showed network DDoS attacks rose 85% in H1 2025, and it doubled cloud mitigation capacity from 15 Tbps to 30 Tbps in January 2026. If your app is the checkout page, you pay for protection before you explain an outage.
How they make money
$275M
annual revenue
cloud security services
$96M
+9.9%
application delivery controllers
$69M
flat
ddos protection appliances
$55M
+4.6%
support and maintenance
$41M
+4.6%
professional services and training
$14M
flat
The products that matter
application delivery controller
Alteon
inside the $165M product bucket
it sits in the 60% of revenue still coming from product sales. mature traffic-management tools keep the lights on, even if they don't justify a premium valuation by themselves.
core infrastructure
ddos protection
DefensePro
part of product sales growth of +8%
this is one of the products carrying the legacy hardware-and-appliance story, and that segment only grew 8% last year. useful business, crowded category.
competitive market
cloud web application firewall
Cloud WAF Service
cloud shift tied to $80.25M q1 guide
Radware does not break out revenue for this product here, which tells you the story is still ahead of the disclosure. if cloud tools work, they need to help keep company-wide growth above the current 5.2% pace.
the bet
Key numbers
64.2x
trailing p/e
P/E → price-to-earnings → how much you pay for each dollar of profit. You are paying a luxury multiple for a company with a 2.9% operating margin.
2.9%
operating margin
Operating margin → profit after running the business → what is left before interest and tax. On $275M of sales, that is only about $8M of operating profit.
80.6%
gross margin
Gross margin → money left after direct delivery costs → product economics. The software is rich; the rest of the cost structure is the problem.
85%
attack growth
DDoS growth → rise in denial-of-service attacks → demand fuel. Radware saw network DDoS attacks up 85% in H1 2025 versus H1 2024.
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RDWR right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The last reported quarter delivered $0.13 EPS, while the bigger story is that gross margin stayed at 80.6%.
Value Line shows FY2024 EPS of $0.14 after quarterly EPS improved from negative results in 2023 to positive results in Q2 through Q4 of 2024. That is progress, but a 2.9% operating margin says most of the improvement still gets swallowed by operating costs.
$69M
revenue
$0.13
eps
80.6%
gross margin
the number that mattered
80.6% gross margin matters most because it tells you the product is not broken. The issue is converting that rich gross profit into more than a 2.9% operating margin.
source: company earnings report, 2026
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What could go wrong
The #1 risk here is paying a 64.2x trailing p/e for a business with a 6.7% net margin and 1.9% return on capital.
med
the multiple is doing most of the work
RDWR trades at 64.2x trailing earnings while the business only keeps 6.7% of revenue as profit. You are paying for improvement before the margins actually look premium.
If growth or margins wobble, the rerating can hit faster than the fundamentals improve.
med
the cloud shift still has to show up in the numbers
Services & Support grew 12% and management guided Q1 2026 revenue to $80.25M, up 9.9% from a year ago. That is progress. It is not proof yet.
If cloud-led growth slips back toward the current 5.2% annual pace, the stock loses its best excuse for trading rich.
med
crowded categories keep pricing power in check
Alteon and DefensePro compete in application delivery and DDoS protection, where larger vendors and cloud-native platforms are not exactly taking the week off.
That helps explain the 1.9% return on capital. Crowded markets tend to show up there first.
med
low predictability means the stock can gap on small misses
Earnings predictability is just 25/100. In human-speak: you should expect uneven quarters, not a neat software compounding story.
When predictability is low and valuation is high, even modest misses can matter a lot.
At $275M in annual revenue, this is still a small business with thin margins. If growth stays merely decent instead of clearly accelerating, the valuation is the part most exposed.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
q1 2026 revenue versus the $80.25M guide
This is the near-term scorecard for the cloud-growth story. A 9.9% increase from a year ago is solid. You need proof it is repeatable.
trend
services & support growing faster than product sales
The current split is $110M growing 12% versus $165M growing 8%. If that gap widens, the business mix gets better. If it narrows, the premium story weakens.
risk
whether new security launches translate into adoption
The encrypted DDoS tool launched in mar 2026 sounds good on paper. What matters next is whether it changes growth, margin, or customer mix.
calendar
how aggressively management uses the $80M buyback
Repurchases can support EPS, but the signal matters too. A faster pace suggests management sees value at these levels. A slow pace tells a different story.
Analyst rankings
earnings predictability
25 / 100
In human-speak, analysts do not view RDWR's earnings stream as especially steady. Expect more noise than polish.
risk rank
3
Safer than roughly half the market. Not a bunker stock, not a disaster candidate.
price stability
50 / 100
The stock's trading behavior is basically average. The business story is more volatile than the chart score suggests.
source: institutional data
Institutional activity
institutional ownership data for RDWR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$24
current price
n/a
target midpoint · n/a from current
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