Radware (NASDAQ:RDWR) reported record fourth-quarter and full-year 2025 results, with management pointing to continued momentum in cloud security, accelerating subscription revenue, and an expanding product portfolio that now includes new offerings in API security and “Agentic AI” protection.
Q4 and full-year results hit record levels
President and CEO Roy Zisapel said the company “ended 2025 on a high note,” citing record highs in revenue, earnings per share, total annual recurring revenue (ARR), and cloud ARR. For the fourth quarter, Radware reported revenue of $80 million, up 10% year over year, while non-GAAP diluted EPS rose 19% to $0.32.
Cloud security and subscriptions drive growth
Management emphasized cloud security as a key driver of performance. Zisapel said cloud ARR rose 23% year over year and 7% sequentially to $95 million in the fourth quarter, adding that growth accelerated from earlier in the year and approached the company’s goal of “nearly $100 million” in cloud ARR by year-end.
Avidan reported total ARR grew 11% year over year to $251 million, accelerating from 8% growth in the prior quarter, with cloud ARR cited as the “primary catalyst” behind the mix shift. Subscription revenue grew 21% year over year, which Zisapel described as a sharp acceleration from 12% growth in 2024, driven by both cloud momentum and product subscription demand.
The company also highlighted infrastructure investments to support cloud demand, including the addition of a new cloud security center in Singapore and efforts to scale mitigation capacity “towards 30 terabits,” as attack volumes increase.
Bookings strength lifts RPO; regional results were mixed
Radware reported record remaining performance obligations (RPO) of $400 million, up 13% year over year and about $50 million higher than the prior year. On the Q&A, management attributed RPO growth to “very, very strong booking” across cloud and product subscriptions, with Zisapel saying the company expects RPO growth in 2026 to be “in line with the revenue growth,” while noting potential upside.
Regionally, fourth-quarter performance varied:
- Americas: Q4 revenue declined 4% year over year to $32 million; full-year revenue grew 6% to $125 million (41% of total revenue).
- EMEA: Q4 revenue increased 38% to $32 million; full-year revenue grew 18% to $111 million (37% of total revenue).
- APAC: Q4 revenue declined 3% to $16 million; full-year revenue grew 5% to $66 million (22% of total revenue).
Despite the Q4 revenue decline in the Americas, Zisapel said North America bookings were “very, very strong” and added the company plans to increase investments in the region in 2026, including additional personnel and marketing initiatives.
Defense products refresh and competitive displacement
Zisapel said demand was supported by “very strong defense products refresh cycles and major competitive displacements,” leading to “exceptional double-digit year-over-year growth in defense products” in both the fourth quarter and full year.
Management cited several large wins during the quarter, including an eight-digit expansion with a North American government IT services agency tied to an end-of-life refresh and a multi-million-dollar hybrid cloud DDoS agreement with a new logo described as a top-10 global SaaS and IT services management leader. In that second deal, the customer replaced both an on-prem vendor and a cloud DDoS vendor with Radware’s defense products and cloud DDoS protection, with Radware pointing to detection accuracy, automation, and global-scale mitigation performance.
When asked about the defense refresh cycle, Zisapel said the company is at the “end of sale” stage and “haven’t crossed half of the way,” suggesting further runway remains.
API security, acquisition of Pynt, and new “Agentic AI” protection
During prepared remarks, Zisapel described API security as a “third wave” of growth following DDoS and application security. He said Radware launched a new API Security Service and announced the acquisition of Pynt, which he said adds API testing technology that can identify vulnerabilities before APIs reach production. Zisapel said the combination enables a “full-life cycle API security solution” spanning testing, discovery, posture management, and runtime protection.
Radware also introduced a new Agentic AI Protection solution aimed at securing AI agents as enterprises deploy them. Zisapel described risks including intent manipulation, prompt-based attacks, and unauthorized data access. He said the offering uses behavioral algorithms and provides real-time AI agent discovery and intent detection, integrates with “top AI ecosystems,” and includes ongoing security management.
In the Q&A, management said API security fits within Radware’s existing sales motion, while Agentic AI represents a newer and less-defined buyer landscape. Zisapel said the company has assembled a dedicated go-to-market overlay group for Agentic AI that will work alongside the existing salesforce and channel partners.
On commercialization, Zisapel told analysts the Agentic AI offering is a hybrid model that is subscription-based and cloud-managed, with pricing options that can include per-seat, annual subscription per agent, and token-based usage depending on the deployment. He added it can be sold both à la carte and bundled, and said more details will be shared at the company’s upcoming investor day.
On profitability, Avidan reported fourth-quarter gross margin of 82.2% and operating margin expansion of 240 basis points, while full-year operating margin expanded 330 basis points. Adjusted EBITDA for Q4 increased 25% to $13.7 million. The company also discussed changes related to SkyHawk Security, stating it will be classified as discontinued operations and excluded from non-GAAP reporting starting in the first quarter of 2026, while noting SkyHawk is expected to begin generating revenue in 2026.
Radware ended the quarter with approximately $461 million in cash, cash equivalents, bank deposits, and marketable securities, and repurchased about $10.5 million in shares during the fourth quarter. Looking ahead, management guided for first-quarter 2026 revenue of $78 million to $79 million and non-GAAP diluted EPS of $0.28 to $0.29, citing strong demand in Q4 and a “very solid backlog” supporting a seasonally stronger start to the year than typical.
About Radware (NASDAQ:RDWR)
Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company’s platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions.
Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S.
