Revenue growth reached 10.7% in 2026Q1, yet operating margins remain constrained at 6.0% as the company absorbs significant R&D and SG&A expenses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 309.58M | 301.85M | 274.88M | 261.29M | 293.43M | 286.5M | 250.03M | 252.07M | 234.4M | 211.37M | 196.59M | 216.57M | 221.89M | 193M | 189.17M | 167.02M | 144.12M | 108.9M | 94.58M | 88.63M | 81.41M | 77.58M | 68.44M | 54.78M | 43.66M | 43.33M | 38.35M | 14.14M | 4.9M |
| Revenue Growth % | 9.83% | 9.81% | 5.2% | -10.95% | 2.42% | 14.59% | -0.81% | 7.54% | 10.9% | 7.52% | -9.23% | -2.4% | 14.97% | 2.02% | 13.26% | 15.89% | 32.34% | 15.14% | 6.71% | 8.87% | 4.93% | 13.36% | 24.93% | 25.46% | 0.78% | 12.97% | 171.22% | 188.59% | - |
| Cost of Goods Sold | 59.46M | 58.34M | 53.25M | 51.71M | 53.88M | 52.45M | 45.08M | 45.17M | 41.67M | 39.62M | 35.7M | 38.2M | 39.73M | 36.73M | 35.72M | 33.36M | 29.2M | 22.33M | 21.57M | 19.03M | 15.79M | 14.9M | 12.18M | 9.85M | 7.95M | 7.71M | 5.51M | 1.43M | 800K |
| COGS % of Revenue | - | 19.33% | 19.37% | 19.79% | 18.36% | 18.31% | 18.03% | 17.92% | 17.78% | 18.74% | 18.16% | 17.64% | 17.91% | 19.03% | 18.88% | 19.97% | 20.26% | 20.51% | 22.81% | 21.47% | 19.4% | 19.2% | 17.8% | 17.99% | 18.2% | 17.79% | 14.36% | 10.14% | 16.33% |
| Gross Profit | 250.12M | 243.51M | 221.63M | 209.58M | 239.54M | 234.05M | 204.94M | 206.9M | 192.73M | 171.75M | 160.89M | 178.37M | 182.16M | 156.26M | 153.45M | 133.66M | 114.92M | 86.57M | 73.01M | 69.6M | 65.62M | 62.69M | 56.26M | 44.93M | 35.72M | 35.62M | 32.85M | 12.71M | 4.1M |
| Gross Margin % | 80.79% | 80.67% | 80.63% | 80.21% | 81.64% | 81.69% | 81.97% | 82.08% | 82.22% | 81.26% | 81.84% | 82.36% | 82.09% | 80.97% | 81.12% | 80.03% | 79.74% | 79.49% | 77.19% | 78.53% | 80.6% | 80.8% | 82.2% | 82.01% | 81.8% | 82.21% | 85.64% | 89.86% | 83.67% |
| Gross Profit Growth % | - | 9.87% | 5.75% | -12.51% | 2.35% | 14.2% | -0.94% | 7.35% | 12.21% | 6.75% | -9.8% | -2.08% | 16.57% | 1.83% | 14.81% | 16.31% | 32.74% | 18.58% | 4.89% | 6.07% | 4.68% | 11.44% | 25.22% | 25.78% | 0.28% | 8.44% | 158.49% | 209.93% | - |
| Operating Expenses | 235.24M | 232.1M | 225.51M | 241.26M | 242.88M | 215.82M | 198.78M | 189.98M | 185.21M | 178.42M | 173.64M | 160.37M | 157.08M | 138.69M | 122.53M | 115.24M | 106.46M | 93.68M | 104.01M | 88.61M | 73.97M | 58.26M | 46.73M | 42.27M | 42.05M | 42.82M | 33.21M | 13.28M | 5.3M |
| OpEx % of Revenue | - | 76.89% | 82.04% | 92.33% | 82.77% | 75.33% | 79.5% | 75.37% | 79.01% | 84.41% | 88.33% | 74.05% | 70.79% | 71.86% | 64.77% | 69% | 73.87% | 86.02% | 109.97% | 99.97% | 90.85% | 75.1% | 68.28% | 77.16% | 96.3% | 98.83% | 86.6% | 93.93% | 108.16% |
| Selling, General & Admin | 153.93M | 153.12M | 150.79M | 158.65M | 156.32M | 141.73M | 131.94M | 128.14M | 127.53M | 126.32M | 121.91M | 110.38M | 113M | 97.71M | 86.34M | 79.17M | 74.8M | 67.63M | 75.66M | 65.09M | 56.31M | 45.25M | 36.39M | 33.87M | 34.24M | 34.53M | 27.75M | 10.81M | 4.5M |
| SG&A % of Revenue | - | 50.73% | 54.86% | 60.72% | 53.27% | 49.47% | 52.77% | 50.83% | 54.41% | 59.76% | 62.01% | 50.97% | 50.93% | 50.63% | 45.64% | 47.4% | 51.9% | 62.1% | 79.99% | 73.44% | 69.16% | 58.32% | 53.17% | 61.83% | 78.41% | 79.69% | 72.35% | 76.48% | 91.84% |
| Research & Development | 81.31M | 78.98M | 74.72M | 82.62M | 86.56M | 74.1M | 66.84M | 61.84M | 57.67M | 59M | 51.73M | 49.99M | 44.08M | 40.98M | 36.19M | 36.06M | 31.66M | 26.05M | 28.36M | 23.52M | 17.66M | 13.02M | 10.34M | 8.4M | 7.81M | 8.29M | 5.46M | 1.63M | 700K |
| R&D % of Revenue | - | 26.17% | 27.18% | 31.62% | 29.5% | 25.86% | 26.73% | 24.53% | 24.6% | 27.91% | 26.32% | 23.08% | 19.87% | 21.23% | 19.13% | 21.59% | 21.97% | 23.92% | 29.98% | 26.53% | 21.69% | 16.78% | 15.11% | 15.33% | 17.88% | 19.14% | 14.25% | 11.55% | 14.29% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 835K | 100K |
| Operating Income | 14.74M | 11.41M | -3.89M | -31.68M | -3.34M | 18.23M | 6.17M | 16.92M | 7.52M | -6.67M | -12.75M | 18M | 25.08M | 17.57M | 30.92M | 18.43M | 8.46M | -7.11M | -31.01M | -19M | -8.35M | 4.42M | 9.52M | 2.65M | -6.33M | -7.2M | -984K | -576K | -1.2M |
| Operating Margin % | 4.76% | 3.78% | -1.41% | -12.12% | -1.14% | 6.36% | 2.47% | 6.71% | 3.21% | -3.16% | -6.49% | 8.31% | 11.3% | 9.1% | 16.35% | 11.03% | 5.87% | -6.52% | -32.78% | -21.44% | -10.25% | 5.7% | 13.91% | 4.85% | -14.5% | -16.63% | -2.57% | -4.07% | -24.49% |
| Operating Income Growth % | - | 393.49% | 87.73% | -848.79% | -118.32% | 195.48% | -63.54% | 124.84% | 212.79% | 47.67% | -170.83% | -28.23% | 42.75% | -43.18% | 67.81% | 117.92% | 219.01% | 77.09% | -63.17% | -127.69% | -288.61% | -53.53% | 258.64% | 141.94% | 12.13% | -632.11% | -70.83% | 52% | - |
| EBITDA | 25.87M | 23.09M | 7.95M | -19.44M | 8.35M | 28.42M | 16.73M | 28.2M | 17.31M | 4.56M | -2.38M | 27.4M | 33.18M | 25.66M | 40.79M | 28.73M | 17.51M | 2.69M | -24.93M | -17.43M | -4.91M | 5.93M | 11.27M | 4.48M | -4.52M | -5.45M | 258K | 259K | -1.1M |
| EBITDA Margin % | 8.36% | 7.65% | 2.89% | -7.44% | 2.85% | 9.92% | 6.69% | 11.19% | 7.38% | 2.16% | -1.21% | 12.65% | 14.95% | 13.29% | 21.56% | 17.2% | 12.15% | 2.47% | -26.36% | -19.67% | -6.03% | 7.64% | 16.47% | 8.17% | -10.35% | -12.58% | 0.67% | 1.83% | -22.45% |
| EBITDA Growth % | 93.21% | 190.5% | 140.9% | -332.68% | -70.61% | 69.91% | -40.68% | 62.95% | 279.43% | 291.88% | -108.68% | -17.42% | 29.34% | -37.1% | 42% | 64.07% | 551.1% | 110.78% | -43.04% | -254.89% | -182.85% | -47.39% | 151.76% | 199% | 17.06% | -2212.79% | -0.39% | 123.55% | - |
| D&A (Non-Cash Add-back) | 11.13M | 11.68M | 11.84M | 12.24M | 11.69M | 10.2M | 10.56M | 11.28M | 9.78M | 11.23M | 10.37M | 9.4M | 8.1M | 8.09M | 9.87M | 10.3M | 9.05M | 9.79M | 6.07M | 1.57M | 3.43M | 1.5M | 1.75M | 1.82M | 1.81M | 1.75M | 1.24M | 835K | 100K |
| EBIT | 19.45M | 11.41M | -3.89M | -31.68M | -3.34M | 18.23M | 6.17M | 16.92M | 7.52M | -6.67M | -12.75M | 18M | 31.12M | 22.34M | 30.92M | 18.43M | 8.46M | -7.11M | -27.39M | -19M | -8.35M | 9.65M | 14.2M | 2.65M | -6.33M | -7.2M | -368K | -576K | -1.2M |
| Net Interest Income | 13.28M | 14.67M | 17.79M | 13.97M | 6.68M | 5.79M | 9.43M | 10.53M | 7.47M | 5.45M | 4.64M | 4.58M | 5.21M | 5.2M | 2.26M | 4.21M | 600K | 44K | 964K | 7.35M | 6.53M | 6.21M | 3.78M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 13.28M | 14.67M | 18.02M | 14.16M | 6.89M | 5.99M | 9.62M | 10.65M | 7.58M | 5.54M | 4.76M | 4.73M | 5.46M | 5.48M | 2.48M | 4.38M | 786K | 143K | 1.19M | 7.49M | 6.67M | 6.28M | 3.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 236K | 197K | 207K | 200K | 189K | 124K | 113K | 89K | 116K | 157K | 242K | 281K | 219K | 163K | 186K | 99K | 222K | 136K | 138K | 70K | 116K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 16.41M | 17.9M | 16.55M | 13.93M | 8.05M | 4.41M | 7.8M | 8.79M | 7.27M | 4.83M | 5.74M | 5.87M | 5.8M | 4.49M | 4.79M | 4.2M | 2.06M | 1.99M | 3.61M | 7.42M | 7.42M | 5.16M | 4.57M | 3.74M | 0 | 16K | 7.46M | 576K | 1.2M |
| Pretax Income | 31.15M | 29.31M | 12.66M | -17.75M | 4.71M | 22.63M | 13.96M | 25.71M | 14.8M | -1.84M | -7.01M | 23.87M | 30.88M | 22.06M | 35.72M | 22.63M | 10.51M | -5.12M | -27.39M | -11.58M | -924K | 9.58M | 14.09M | 6.39M | 2.11M | -7.19M | 6.47M | 0 | 0 |
| Pretax Margin % | 10.06% | 9.71% | 4.61% | -6.79% | 1.61% | 7.9% | 5.58% | 10.2% | 6.31% | -0.87% | -3.56% | 11.02% | 13.92% | 11.43% | 18.88% | 13.55% | 7.29% | -4.7% | -28.96% | -13.07% | -1.14% | 12.35% | 20.58% | 11.67% | 4.84% | -16.59% | 16.88% | - | - |
| Income Tax | 9.12M | 9.05M | 6.63M | 3.84M | 4.88M | 14.82M | 4.33M | 3.14M | 3.06M | 5.65M | 1.65M | 5.3M | 5.93M | 4.01M | 3.96M | 1.29M | 879K | 818K | 3.63M | 428K | 356K | 240K | 341K | -3.7M | 4.22M | 389K | 387K | -856K | 1.3M |
| Effective Tax Rate % | 29.27% | 30.88% | 52.33% | -21.61% | 103.52% | 65.49% | 30.99% | 12.23% | 20.7% | -307.01% | -23.56% | 22.19% | 19.21% | 18.17% | 11.08% | 5.7% | 8.36% | -15.98% | -13.24% | -3.7% | -38.53% | 2.5% | 2.42% | -57.86% | 199.57% | -5.41% | 5.98% | - | - |
| Net Income | 19.46M | 20.26M | 6.04M | -21.59M | -166K | 7.81M | 9.64M | 22.57M | 11.73M | -7.49M | -8.66M | 18.57M | 24.95M | 18.05M | 31.76M | 21.34M | 9.63M | -5.94M | -31.02M | -12.01M | -1.28M | 9.34M | 13.78M | 6.36M | -2.11M | -7.58M | 6.09M | 280K | -1.3M |
| Net Margin % | 6.28% | 6.71% | 2.2% | -8.26% | -0.06% | 2.73% | 3.85% | 8.95% | 5.01% | -3.55% | -4.4% | 8.57% | 11.24% | 9.36% | 16.79% | 12.78% | 6.68% | -5.45% | -32.8% | -13.55% | -1.57% | 12.04% | 20.13% | 11.6% | -4.84% | -17.49% | 15.87% | 1.98% | -26.53% |
| Net Income Growth % | 67.67% | 235.49% | 127.97% | -12906.02% | -102.13% | -18.94% | -57.3% | 92.3% | 256.61% | 13.47% | -146.63% | -25.58% | 38.19% | -43.15% | 48.84% | 121.48% | 262.3% | 80.87% | -158.28% | -838.36% | -113.7% | -32.19% | 116.84% | 400.76% | 72.11% | -224.5% | 2073.57% | 121.54% | - |
| Net Income (Continuing) | 22.03M | 20.26M | 6.04M | -21.59M | -166K | 7.81M | 9.64M | 22.57M | 11.73M | -7.49M | -8.66M | 18.57M | 24.95M | 18.05M | 31.76M | 21.34M | 9.63M | -5.94M | -31.02M | -12.01M | -1.28M | 9.34M | 13.78M | 6.36M | -2.11M | -7.58M | 6.09M | 280K | -1.3M |
| Discontinued Operations | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 41.4M | 41.32M | 40.8M | 39.18M | 36.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 61K | 31K | 1K | 45K | 0 | 0 |
| EPS (Diluted) | 0.44 | 0.45 | 0.14 | -0.50 | -0.00 | 0.16 | 0.20 | 0.47 | 0.25 | -0.17 | -0.20 | 0.40 | 0.53 | 0.39 | 0.68 | 0.47 | 0.22 | -0.15 | -0.80 | -0.31 | -0.04 | 0.24 | 0.35 | 0.17 | -0.07 | -0.23 | 0.18 | 0.01 | -0.08 |
| EPS Growth % | 63.8% | 221.43% | 128% | - | -102.31% | -20% | -57.45% | 88% | 247.06% | 15% | -150% | -24.53% | 35.9% | -42.65% | 44.68% | 113.64% | 246.67% | 81.25% | -158.06% | -785.71% | -114.58% | -31.43% | 105.88% | 361.54% | 71.74% | -227.78% | 1700% | 111.96% | - |
| EPS (Basic) | - | 0.47 | 0.14 | -0.50 | -0.00 | 0.17 | 0.21 | 0.48 | 0.25 | -0.17 | -0.20 | 0.40 | 0.55 | 0.40 | 0.73 | 0.51 | 0.25 | -0.15 | -0.80 | -0.31 | -0.04 | 0.25 | 0.39 | 0.19 | -0.07 | -0.23 | 0.19 | 0.02 | -0.08 |
| Diluted Shares Outstanding | 44.5M | 44.7M | 43.36M | 42.87M | 44.94M | 47.5M | 47.74M | 48.52M | 47.69M | 43.48M | 43.87M | 46.74M | 46.89M | 46.72M | 46.59M | 45.78M | 43.47M | 37.76M | 38.88M | 38.95M | 36.57M | 39.76M | 39.37M | 37.38M | 32.51M | 32.85M | 35.2M | 24.94M | 15.56M |
| Basic Shares Outstanding | 42.79M | 42.88M | 41.98M | 42.87M | 44.94M | 45.92M | 46.46M | 46.82M | 46.94M | 43.48M | 43.3M | 45.9M | 45.31M | 44.76M | 43.71M | 41.91M | 39.12M | 37.76M | 38.88M | 38.95M | 36.57M | 37.38M | 35.79M | 34.35M | 32.51M | 32.85M | 31.75M | 22.35M | 15.56M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical and competitive pressure
As reported in recent financial filings, Radware has achieved a consistent revenue growth trajectory, reaching $79.8 million in 2026Q1, which represents a 10.7% year-over-year increase and underscores the successful, albeit gradual, transition toward a recurring subscription-based model within its core security infrastructure business.
The steady climb in quarterly revenue suggests that the company is effectively capturing demand for its cloud-based security services. Investors should monitor whether this growth rate can accelerate further as the firm pivots away from lumpy, hardware-centric sales cycles toward more predictable, high-margin recurring revenue streams.
Based on the provided income statement data, Radware has maintained robust gross margins consistently above 80% over the last ten quarters, reflecting the high-value software component inherent in its proprietary behavioral analysis algorithms and specialized DDoS mitigation services for Tier-1 service providers.
This stability in gross margin indicates strong pricing power and a successful differentiation strategy against signature-based competitors. However, the persistence of these margins despite the ongoing cloud transition suggests that the company has successfully managed the cost of delivering its security-as-a-service offerings.
According to the latest quarterly results, Radware's operating margin remains thin at 6.0%, indicating that despite high gross profitability, the company has yet to achieve significant operating leverage as it continues to absorb substantial R&D and SG&A expenses during its cloud-first business model transformation.
The narrow operating margin suggests that the firm is prioritizing market share and infrastructure investment over immediate bottom-line expansion. Future profitability will likely depend on the company's ability to scale its subscriber base without a commensurate increase in operating overhead.
As indicated by the income statement, Radware's net income has shown a positive trend, moving from a loss of $5.8 million in 2023Q4 to a profit of $3.5 million in 2026Q1, a shift that appears supported by the cessation of significant stock-based compensation charges.
The elimination of stock-based compensation, which peaked at $8.9 million in 2023Q4, suggests a cleaner earnings profile that better reflects core operational performance. Investors should remain cautious, however, as the company's net margin remains sensitive to fluctuations in operating expenses and potential geopolitical impacts on its Israeli-based R&D operations.
Quick answers to the most common questions about buying RDWR stock.
For fiscal year 2025, Radware Ltd. (RDWR) reported total revenue of $301.9M. This represents a 6060.2% increase compared to $4.9M in 1998.
Radware Ltd. (RDWR) is profitable, generating $20.3M in net income for the fiscal year ending 2025 with a net profit margin of 6.7%.
Radware Ltd. (RDWR) reported an operating income of $11.4M, resulting in an operating profit margin of 3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Radware Ltd. (RDWR) generated $243.5M in gross profit for the year, representing a gross profit margin of 80.7%. This demonstrates the company's core pricing power and production efficiency.