Radware Reports First Quarter 2025 Financial Results

First Quarter 2025 Financial Results and Highlights Revenue of $72.1 million, an increase of 11% year-over-yearCloud ARR of $80 million, an increase of 19% year-over-yearNon-GAAP diluted EPS of $0.27 vs. $0.16 in Q1 2024; GAAP diluted EPS of $0.10 vs. $(0.03) in Q1 2024Cash flow from operations of $22.4 million in Q1 and $72.9 million over the trailing 12 months TEL AVIV, Israel, May 07, 2025 (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 first quarter ended March 31, 2025. “We had a strong start to 2025 with first quarter revenue rising 11% year-over-year, marking our third consecutive quarter of double-digit growth. In addition, our strong non-GAAP EPS growth and cash flow from operations reflect the high leverage in our business model,” said Roy Zisapel, Radware’s president and CEO. Financial Highlights for the First Quarter 2025Revenue for the first quarter of 2025 totaled $72.1 million: Revenue in the Americas region was $27.4 million for the first quarter of 2025, an increase of 1% from $27.1 million in the first quarter of 2024.Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $28.4 million for the first quarter of 2025, an increase of 25% from $22.7 million in the first quarter of 2024.Revenue in the Asia-Pacific (“APAC”) region was $16.3 million for the first quarter of 2025, an increase of 7% from $15.3 million in the first quarter of 2024. GAAP net income for the first quarter of 2025 was $4.3 million, or $0.10 per diluted share, compared to GAAP net loss of $1.2 million, or $(0.03) per diluted share, for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 was $11.8 million, or $0.27 per diluted share, compared to non-GAAP net income of $6.8 million, or $0.16 per diluted share, for the first quarter of 2024. As of March 31, 2025, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $447.9 million. Cash flow from operations was $22.4 million in the first quarter of 2025. 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. Conference CallRadware management will host a call today, May 7, 2025, at 8:30 a.m. EDT to discuss its first quarter 2025 results and second quarter 2025 outlook. To participate on the call, please use the following numbers:U.S. participants call toll free: 1-877-704-4453 International participants call: 1-201-389-0920 A replay will be available for seven days, starting two hours after the end of the call, on telephone number 1-844-512-2921 (US toll-free) or 1-412-317-6671. Access ID 13752770.The call will be webcast live on the Company’s website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months. Use of Non-GAAP Financial Information and Key Performance IndicatorsIn 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 includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or 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, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia’s military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; complications with the design or implementation of our new enterprise resource planning (“ERP”) system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com. About RadwareRadware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware’s solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing 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. ©2025 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. CONTACTSInvestor Relations:Yisca Erez, +972-72-3917211, ir@radware.com Media Contact:Gerri Dyrek, gerri.dyrek@radware.com Radware Ltd.Condensed Consolidated Balance Sheets(U.S. Dollars in thousands) March 31, December 31, 2025 2024 (Unaudited) (Unaudited)Assets Current assets Cash and cash equivalents114,239 98,714Marketable securities55,118 72,994Short-term bank deposits122,361 104,073Trade receivables, net25,036 16,823Other receivables and prepaid expenses9,627 14,242Inventories13,511 14,030 339,892 320,876 Long-term investments Marketable securities31,229 29,523Long-term bank deposits124,968 114,354Other assets2,203 2,171 158,400 146,048 Property and equipment, net14,584 15,632Intangible assets, net10,758 11,750Other long-term assets36,492 37,906Operating lease right-of-use assets17,560 18,456Goodwill68,008 68,008Total assets645,694 618,676 Liabilities and equity Current liabilities Trade payables3,646 5,581Deferred revenues119,329 106,303Operating lease liabilities4,642 4,750Other payables and accrued expenses55,678 51,836 183,295 168,470 Long-term liabilities Deferred revenues69,505 64,708Operating lease liabilities12,497 13,519Other long-term liabilities14,319 14,904 96,321 93,131 Equity Radware Ltd. equity Share capital756 754Additional paid-in capital560,833 555,154Accumulated other comprehensive income (loss)(140) 1,103Treasury stock, at cost(366,588) (366,588)Retained earnings130,194 125,850Total Radware Ltd. shareholder's equity325,055 316,273 Non–controlling interest41,023 40,802 Total equity366,078 357,075 Total liabilities and equity645,694 618,676 Radware Ltd.Condensed Consolidated Statements of Income (Loss)(U.S Dollars in thousands, except share and per share data) For the three months ended March 31, 2025 2024 (Unaudited) (Unaudited) Revenues 72,079 65,085Cost of revenues 13,990 12,812Gross profit 58,089 52,273 Operating expenses, net: Research and development, net 18,776 18,896Selling and marketing 31,281 29,701General and administrative 6,463 7,339Total operating expenses, net 56,520 55,936 Operating income (loss) 1,569 (3,663)Financial income, net 4,875 3,608Income (loss) before taxes on income 6,444 (55)Taxes on income 2,100 1,167Net income (loss) 4,344 (1,222) Basic net income (loss) per share attributed to Radware Ltd.'s shareholders 0.10 (0.03) Weighted average number of shares used to compute basic net income (loss) per share 42,663,787 41,750,203 Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders 0.10 (0.03) Weighted average number of shares used to compute diluted net income (loss) per share 44,192,474 41,750,203 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 March 31, 2025 2024 (Unaudited) (Unaudited)GAAP gross profit58,089 52,273Share-based compensation120 79Amortization of intangible assets992 992Non-GAAP gross profit59,201 53,344 GAAP research and development, net18,776 18,896Share-based compensation1,223 1,722Non-GAAP Research and development, net17,553 17,174 GAAP selling and marketing31,281 29,701Share-based compensation3,076 2,551Non-GAAP selling and marketing28,205 27,150 GAAP general and administrative6,463 7,339Share-based compensation1,479 2,395Acquisition costs153 220Non-GAAP general and administrative4,831 4,724 GAAP total operating expenses, net56,520 55,936Share-based compensation5,778 6,668Acquisition costs153 220Non-GAAP total operating expenses, net50,589 49,048 GAAP operating income (loss)1,569 (3,663)Share-based compensation5,898 6,747Amortization of intangible assets992 992Acquisition costs153 220Non-GAAP operating income8,612 4,296 GAAP financial income, net4,875 3,608Exchange rate differences, net on balance sheet items included in financial income, net492 153Non-GAAP financial income, net5,367 3,761 GAAP income (loss) before taxes on income6,444 (55)Share-based compensation5,898 6,747Amortization of intangible assets992 992Acquisition costs153 220Exchange rate differences, net on balance sheet items included in financial income, net492 153Non-GAAP income before taxes on income13,979 8,057 GAAP taxes on income2,100 1,167Tax related adjustments62 62Non-GAAP taxes on income2,162 1,229 GAAP net income (loss)4,344 (1,222)Share-based compensation5,898 6,747Amortization of intangible assets992 992Acquisition costs153 220Exchange rate differences, net on balance sheet items included in financial income, net492 153Tax related adjustments(62) (62)Non-GAAP net income11,817 6,828 GAAP diluted net income (loss) per share0.10 (0.03)Share-based compensation0.14 0.16Amortization of intangible assets0.02 0.02Acquisition costs0.00 0.01Exchange rate differences, net on balance sheet items included in financial income, net0.01 0.00Tax related adjustments(0.00) (0.00)Non-GAAP diluted net earnings per share0.27 0.16 Weighted average number of shares used to compute non-GAAP diluted net earnings per share44,192,474 42,875,058 Radware Ltd.Condensed Consolidated Statements of Cash Flow(U.S. Dollars in thousands) For the three months ended March 31, 2025 2024 (Unaudited) (Unaudited)Cash flow from operating activities: Net income (loss) 4,344 (1,222)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,152 2,943Share-based compensation 5,898 6,747Amortization of premium, accretion of discounts and accrued interest on marketable securities, net (161) (73)Decrease in accrued interest on bank deposits (1,790) (9)Increase (decrease) in accrued severance pay, net 61 (58)Increase in trade receivables, net (8,213) (219)Decrease (increase) in other receivables and prepaid expenses and other long-term assets (186) 605Decrease in inventories 519 1,004Increase (decrease) in trade payables (1,935) 1,406Increase in deferred revenues 17,823 8,894Increase in other payables and accrued expenses 3,164 1,483Operating lease liabilities, net (234) (379)Net cash provided by operating activities 22,442 21,122 Cash flows from investing activities: Purchase of property and equipment (1,112) (1,774)Proceeds from (investment in) other long-term assets, net 109 (25)Investment in bank deposits, net (27,112) (17,898)Investment in, redemption of and purchase of marketable securities ,net 16,194 3,502Proceeds from other deposits 5,000 -Net cash used in investing activities (6,921) (16,195) Cash flows from financing activities: Proceeds from exercise of share options 4 -Repurchase of shares - (839)Net cash provided by (used in) financing activities 4 (839) Increase in cash and cash equivalents 15,525 4,088Cash and cash equivalents at the beginning of the period 98,714 70,538Cash and cash equivalents at the end of the period 114,239 74,626 Radware Ltd.RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)(U.S Dollars in thousands) For the three months ended March 31, 2025 2024 (Unaudited) (Unaudited)GAAP net income (loss)4,344 (1,222)Exclude: Financial income, net(4,875) (3,608)Exclude: Depreciation and amortization expense3,152 2,943Exclude: Taxes on income2,100 1,167EBITDA4,721 (720) Share-based compensation5,898 6,747Acquisition costs153 220Adjusted EBITDA10,772 6,247 For the three months ended March 31, 2025 2024 Amortization of intangible assets992 992Depreciation2,160 1,951 3,152 2,943

Radware Reports First Quarter 2025 Financial Results

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