Radware Ltd (RDWR) Q1 2026 Earnings Call Transcript

Why It Matters

The results underscore Radware’s accelerating shift to subscription‑based cloud security, positioning it for higher margins and market share gains in a rapidly expanding cyber‑risk market.

Key Takeaways

• Revenue up 11% to $72M, third straight double‑digit quarter
• Cloud security ARR rose 19% to $80M
• Adjusted EBITDA jumped 72% to $10.8M
• OEM partnerships with Cisco, Checkpoint each grew >20%
• Added Peru, India, Kenya to 50+ global cloud centers

Pulse Analysis

The cyber‑security landscape is increasingly dominated by cloud‑native solutions as enterprises migrate workloads and seek scalable protection against sophisticated attacks. Radware’s focus on cloud security aligns with this macro trend, allowing it to capture higher‑margin recurring revenue while addressing stringent data‑privacy regulations through a distributed network of service centers. By expanding its infrastructure to over 50 locations, including new hubs in Peru, India, and Kenya, the company enhances latency performance and compliance for global customers, strengthening its competitive edge.

Financially, Radware delivered an 11% revenue increase to $72 million, driven largely by a 19% jump in cloud security ARR to $80 million. The shift toward subscription models is evident as recurring revenue now represents 82% of total sales, up from 78% a year ago. Strong OEM collaborations with Cisco and Checkpoint generated more than 20% growth each, reinforcing channel reach and fueling the adjusted EBITDA surge to $10.8 million, a 72% year‑over‑year rise. These metrics illustrate the company’s operational leverage and its ability to translate top‑line growth into profitability.

Looking ahead, Radware projects Q2 revenue of $73‑$74 million and expects cloud security ARR to near $100 million by year‑end, reflecting a targeted >20% growth trajectory. The firm’s strategic investments in AI‑driven detection, expanded sales leadership in North America, and continued OEM partnership expansion are designed to accelerate market share gains. For investors, the combination of robust cash flow, modest tax exposure, and minimal tariff impact suggests a resilient growth platform positioned to benefit from the expanding demand for cloud‑based DDoS and application security services.