Radware (RDWR) investor relations material

Executive summary

• Achieved $79.8 million in Q1 2026 revenue, up 11% year-over-year, with strong cloud and API security momentum and Americas revenue up 40%.

• Cloud ARR grew 23% year-over-year to $98 million, now 39% of total ARR.

• 78% of Q1 2026 revenue was recurring, reflecting a robust subscription model.

• Results reflect the discontinuation of the SkyHawk subsidiary, with all figures now from continuing operations.

• Strategic focus on scaling cloud platform, MSSP business, and innovation in AI and API security.

Financial highlights

• Q1 2026 revenue: $79.8 million, up 11% year-over-year; total ARR reached $250 million, up 9% year-over-year.

• Cloud ARR reached $98 million; gross margin stable at 82.2%; operating income up 4% to $11 million.

• Non-GAAP net income from continuing operations: $13.4 million ($0.30/share); GAAP net income: $6.1 million ($0.14/share).

• Cash flow from continuing operations: $19.9 million; free cash flow: $17.3 million.

• Cash, equivalents, deposits, and marketable securities totaled $433.8 million at quarter end.

Outlook and guidance

• Q2 2026 revenue expected between $81 million and $82 million.

• Q2 2026 non-GAAP operating expenses projected at $56–$57 million, with non-GAAP diluted EPS expected between $0.28 and $0.29.

• Cloud ARR growth expected to remain in the 20%+ range; total ARR growth guided at 8–9% for 2026.

• Targeting 25% cloud ARR growth, supported by cloud-first, AI-driven technology.

• Cloud and DDoS markets expected to nearly double by 2028, providing significant growth opportunities.