Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Radware Ltd RDWR achieved record revenue of $82 million, marking a 11% year-over-year growth and the seventh consecutive quarter of double-digit growth.
- Cloud Annual Recurring Revenue (ARR) exceeded $100 million, driven by strong demand for cloud security services and new API security solutions.
- The company secured significant customer wins, including two leading financial service providers in Asia-Pacific, highlighting the strength of their API security capabilities.
- Radware Ltd (RDWR) introduced the Xploit Shield, a first-to-market solution designed to address AI-driven vulnerability discovery and exploitation, which has received positive market feedback.
- Revenue in the Americas grew 24% year over year, representing 45% of total revenue, indicating strong execution in the region.
Negative Points
- Gross margin decreased slightly to 81.8% from 82.4% in the same quarter last year, impacted by foreign exchange headwinds and supply chain cost pressures.
- Operating income declined to $10.9 million from $11.4 million in the same period last year, primarily due to the strengthening of the Israeli shekel against the US dollar.
- Net income from continued operations decreased by 9% year over year, with diluted earnings per share dropping from $0.32 to $0.30.
- EMEA revenue declined by 2% year over year, representing a challenge in maintaining growth in this region.
- Cash flow from continued operations decreased to $13 million from $15.6 million in the same quarter last year, reflecting a reduction in cash balances following share repurchases.
Q & A Highlights
Q: Are you seeing any changes in customer buying behaviors due to supply chain issues or memory prices?
A: Roy Zisapel, CEO: We observe some delays due to global supply chain issues, such as server and switch delays, but these are not critical. Our on-prem business, particularly DDoS mitigation, is less affected as it involves fewer devices that can be added to existing infrastructure.
Q: How is AI contributing to your revenue, and what is the timing of its benefits?
A: Roy Zisapel, CEO: AI is impacting us in multiple ways. While AI infrastructure protection is still early, there's a strong demand for security services due to AI-driven vulnerability discoveries. Our Xploit Shield product addresses these needs, providing tailored protection and creating demand.
Q: With the acceleration of revenue growth and AI tailwinds, should we expect continued growth acceleration?
A: Roy Zisapel, CEO: Yes, we aim for continued growth. Our total ARR numbers are a good indicator of future growth. We are targeting to increase cloud growth to 25% and beyond, and the opportunity is there for us to execute.
Q: Are you seeing any impact from the Mythos model release, and do you plan to experiment with frontier models?
A: Roy Zisapel, CEO: There's increased interest and urgency among customers to protect against vulnerabilities. Our Xploit Shield product addresses this by providing a tailored shield for applications, allowing enterprises time to fix vulnerabilities while remaining protected.
Q: How are you monetizing the Xploit Shield product?
A: Roy Zisapel, CEO: Xploit Shield is part of our cloud security platform, and all revenues are subscription-based. We charge per application annually, providing a shield against vulnerabilities discovered by AI scanning.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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