Revenue grew to $84.4M in Q3 2026 with gross margin steady at roughly 80-81%, yet operating margin of 2.6% and net margin of 3.1% show that operating expenses continue to absorb nearly all gross profit.
Radware Ltd. (RDWR) annual income statement — 28-year revenue, gross profit & net income history
| 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 | 326.7M | 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 % | 10.88% | 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 | 63.11M | 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 | 263.59M | 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 % | 80.68% | 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 | 250.21M | 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 | 160.28M | 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 | 89.93M | 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 | 13.38M | 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 % | 4.1% | 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 | 24.69M | 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 % | 7.56% | 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 % | 21.6% | 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) | 11.31M | 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 | 21.42M | 29.31M | 12.9M | -17.56M | 4.92M | 22.83M | 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 | 15.54M | 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 | 15.54M | 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 | 16.32M | 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 | 29.7M | 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 % | 9.09% | 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 | 9.15M | 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 % | 30.8% | 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 | 13.93M | 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 % | 4.26% | 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 % | -16.4% | 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) | 20.55M | 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 | -3M | 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 | 41.55M | 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) | 0.32 | 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 % | -18.22% | 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 | 43.55M | 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 | 41.38M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Thin operating margin persistence
Revenue Growth Holding Near Double Digits
Based on reported quarterly figures, Radware's revenue rose from $67.3M to $84.4M over ten quarters, with year-over-year growth of 12.0% in the latest period, suggesting sustained demand for its security portfolio.
The trend shows growth moderating from the 12-13% range in 2024 toward roughly 10-12% in 2025-2026, which suggests momentum is durable but not accelerating. Because the reported figures do not break out volume versus pricing or organic versus acquired growth, the source of this expansion cannot be confirmed from the data. Investors should monitor whether subscription revenue growth continues to outpace hardware, as that mix shift would support revenue predictability.
High Gross Margin Masks Thin Operating Profit
Reported gross margin has held in a tight 80.2% to 81.1% band across recent quarters, yet operating margin of 2.6% in the latest quarter indicates that most gross profit is absorbed by operating spending.
A stable gross margin near 81% points to a high-value software and service mix with limited pricing or cost volatility at the gross line. The gap between gross and operating margin, however, suggests that R&D and SG&A consume roughly 78 cents of each gross dollar, which may reflect reinvestment in the cloud transition. Whether this gap narrows depends on the company's ability to scale cloud infrastructure costs across a larger recurring revenue base.
Operating Leverage Remains Largely Absent
Operating income declined from $4.8M in Q1 2026 to $2.2M in Q3 2026 despite revenue rising by roughly $4.6M over the same span, indicating that incremental revenue has not translated into operating leverage.
Opex growth has tracked or exceeded gross profit growth in recent quarters, which suggests the cost base is expanding in step with the top line rather than lagging it. This pattern may indicate continued investment intensity rather than structural inefficiency, but the reported data alone cannot separate the two. Investors should watch whether SG&A growth decelerates relative to gross profit in coming periods.
Net Income Exceeds Operating Profit
Net margin of 6.7% on a trailing basis exceeds the 3.8% operating margin, indicating that non-operating items contributed meaningfully to reported earnings according to the supplied financial data.
The gap between operating and net income suggests that interest income or other below-the-line items are supporting reported profitability, which warrants further investigation given the thin core operating margin. Quarterly net income has also been volatile, swinging between roughly $1.7M and $6.0M, which may reflect the timing of these non-operating contributions. Investors should assess how much of future earnings depends on these items rather than core operations.
Margin Stagnation Could Undermine the Thesis
If operating margin remains near 3% while revenue growth slows toward the high single digits, the premise of cloud-driven profitability expansion would be difficult to support based on the reported figures.
A bearish reading would argue that the high gross margin has not yet produced operating leverage, and that the cloud transition may be consuming profits without a clear payback timeline. Competitive pressure from hyperscalers offering native DDoS tools could compress pricing in the mid-market, which may further strain margins. Investors should monitor whether operating margin improves meaningfully in the next several quarters before assigning a higher earnings multiple.