Radware Ltd.

First Quarter 2025Financial Results and Highlights

Revenue of $72.1 million, an increase of 11% year-over-year Cloud ARR of $80 million, an increase of 19% year-over-year Non-GAAP dilutedEPS of $0.27 vs. $0.16 in Q12024; GAAP diluted EPSof $0.10vs. $(0.03) in Q12024 Cash flow from operations of $22.4 million in Q1 and $72.9 million over the trailing 12 months

TEL AVIV, Israel, May 07, 2025 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the first quarter ended March 31, 2025.

“We had a strong start to 2025 with first quarter revenue rising 11% year-over-year, marking our third consecutive quarter of double-digit growth. In addition, our strong non-GAAP EPS growth and cash flow from operations reflect the high leverage in our business model,” said Roy Zisapel, Radware’s president and CEO.

Financial Highlights for the FirstQuarter2025
Revenue for the first quarter of 2025 totaled $72.1 million:

Revenue in the Americas region was $27.4 million for the first quarter of 2025, an increase of 1% from $27.1 million in the first quarter of 2024. Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $28.4 million for the first quarter of 2025, an increase of 25% from $22.7 million in the first quarter of 2024. Revenue in the Asia-Pacific (“APAC”) region was $16.3 million for the first quarter of 2025, an increase of 7% from $15.3 million in the first quarter of 2024.

GAAP net income for the first quarter of 2025 was $4.3 million, or $0.10 per diluted share, compared to GAAP net loss of $1.2 million, or $(0.03) per diluted share, for the first quarter of 2024.

Non-GAAP net income for the first quarter of 2025 was $11.8 million, or $0.27 per diluted share, compared to non-GAAP net income of $6.8 million, or $0.16 per diluted share, for the first quarter of 2024.

As of March 31, 2025, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $447.9 million. Cash flow from operations was $22.4 million in the first quarter of 2025.

Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company’s non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release.

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Conference Call
Radware management will host a call today, May 7, 2025, at 8:30 a.m. EDT to discuss its first quarter 2025 results and second quarter 2025 outlook. To participate on the call, please use the following numbers:
U.S. participants call toll free: 1-877-704-4453 
International participants call: 1-201-389-0920

A replay will be available for seven days, starting two hours after the end of the call, on telephone number 1-844-512-2921 (US toll-free) or 1-412-317-6671. Access ID 13752770.

The call will be webcast live on the Company’s website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.

Use of Non-GAAP Financial Information and Key Performance Indicators
In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs,restructuring costs,exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware’s management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware’s ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors.

Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business.

Safe Harbor Statement
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia’s military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; complications with the design or implementation of our new enterprise resource planning (“ERP”) system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.

About Radware
Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware’s solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.

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©2025 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

CONTACTS
Investor Relations:
Yisca Erez, +972-72-3917211, [email protected]

Media Contact:
Gerri Dyrek, [email protected]

Radware Ltd. Condensed Consolidated Balance Sheets (U.S. Dollars in thousands)  March 31,  December 31, 2025  2024 (Unaudited)  (Unaudited) Assets   Current assets  Cash and cash equivalents 114,239  98,714 Marketable securities 55,118  72,994 Short-term bank deposits 122,361  104,073 Trade receivables, net 25,036  16,823 Other receivables and prepaid expenses 9,627  14,242 Inventories 13,511  14,030 339,892  320,876  Long-term investments  Marketable securities 31,229  29,523 Long-term bank deposits 124,968  114,354 Other assets 2,203  2,171 158,400  146,048   Property and equipment, net 14,584  15,632 Intangible assets, net 10,758  11,750 Other long-term assets 36,492  37,906 Operating lease right-of-use assets 17,560  18,456 Goodwill 68,008  68,008 Total assets 645,694  618,676  Liabilities and equity   Current liabilities  Trade payables 3,646  5,581 Deferred revenues 119,329  106,303 Operating lease liabilities 4,642  4,750 Other payables and accrued expenses 55,678  51,836 183,295  168,470  Long-term liabilities  Deferred revenues 69,505  64,708 Operating lease liabilities 12,497  13,519 Other long-term liabilities 14,319  14,904 96,321  93,131  Equity  Radware Ltd. equity  Share capital 756  754 Additional paid-in capital 560,833  555,154 Accumulated other comprehensive income (loss) (140)  1,103 Treasury stock, at cost (366,588)  (366,588) Retained earnings 130,194  125,850 Total Radware Ltd. shareholder's equity 325,055  316,273  Non–controlling interest 41,023  40,802  Total equity 366,078  357,075  Total liabilities and equity 645,694  618,676

Radware Ltd. Condensed Consolidated Statements of Income (Loss) (U.S Dollars in thousands, except share and per share data)  For the three months ended March 31, 2025  2024 (Unaudited)  (Unaudited)  Revenues  72,079  65,085 Cost of revenues  13,990  12,812 Gross profit  58,089  52,273  Operating expenses, net:  Research and development, net  18,776  18,896 Selling and marketing  31,281  29,701 General and administrative  6,463  7,339 Total operating expenses, net  56,520  55,936  Operating income (loss)  1,569  (3,663) Financial income, net  4,875  3,608 Income (loss) before taxes on income  6,444  (55) Taxes on income  2,100  1,167 Net income (loss)  4,344  (1,222)  Basic net income (loss) per share attributed to Radware Ltd.'s shareholders  0.10  (0.03)  Weighted average number of shares used to compute basic net income (loss) per share  42,663,787  41,750,203  Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders  0.10  (0.03)  Weighted average number of shares used to compute diluted net income (loss) per share  44,192,474  41,750,203

Radware Ltd. Reconciliation of GAAP to Non-GAAP Financial Information (U.S Dollars in thousands, except share and per share data)  For the three months ended March 31, 2025  2024 (Unaudited)  (Unaudited) GAAP gross profit 58,089  52,273 Share-based compensation 120  79 Amortization of intangible assets 992  992 Non-GAAP gross profit 59,201  53,344  GAAP research and development, net 18,776  18,896 Share-based compensation 1,223  1,722 Non-GAAP Research and development, net 17,553  17,174  GAAP selling and marketing 31,281  29,701 Share-based compensation 3,076  2,551 Non-GAAP selling and marketing 28,205  27,150  GAAP general and administrative 6,463  7,339 Share-based compensation 1,479  2,395 Acquisition costs 153  220 Non-GAAP general and administrative 4,831  4,724  GAAP total operating expenses, net 56,520  55,936 Share-based compensation 5,778  6,668 Acquisition costs 153  220 Non-GAAP total operating expenses, net 50,589  49,048  GAAP operating income (loss) 1,569  (3,663) Share-based compensation 5,898  6,747 Amortization of intangible assets 992  992 Acquisition costs 153  220 Non-GAAP operating income 8,612  4,296  GAAP financial income, net 4,875  3,608 Exchange rate differences, net on balance sheet items included in financial income, net 492  153 Non-GAAP financial income, net 5,367  3,761  GAAP income (loss) before taxes on income 6,444  (55) Share-based compensation 5,898  6,747 Amortization of intangible assets 992  992 Acquisition costs 153  220 Exchange rate differences, net on balance sheet items included in financial income, net 492  153 Non-GAAP income before taxes on income 13,979  8,057  GAAP taxes on income 2,100  1,167 Tax related adjustments 62  62 Non-GAAP taxes on income 2,162  1,229  GAAP net income (loss) 4,344  (1,222) Share-based compensation 5,898  6,747 Amortization of intangible assets 992  992 Acquisition costs 153  220 Exchange rate differences, net on balance sheet items included in financial income, net 492  153 Tax related adjustments (62)  (62) Non-GAAP net income 11,817  6,828  GAAP diluted net income (loss) per share 0.10  (0.03) Share-based compensation 0.14  0.16 Amortization of intangible assets 0.02  0.02 Acquisition costs 0.00  0.01 Exchange rate differences, net on balance sheet items included in financial income, net 0.01  0.00 Tax related adjustments (0.00)  (0.00) Non-GAAP diluted net earnings per share 0.27  0.16   Weighted average number of shares used to compute non-GAAP diluted net earnings per share 44,192,474  42,875,058

Radware Ltd. Condensed Consolidated Statements of Cash Flow (U.S. Dollars in thousands)  For the three months ended March 31, 2025  2024 (Unaudited)  (Unaudited) Cash flow from operating activities:   Net income (loss)  4,344  (1,222) Adjustments to reconcile net income (loss) to net cash provided by operating activities:  Depreciation and amortization  3,152  2,943 Share-based compensation  5,898  6,747 Amortization of premium, accretion of discounts and accrued interest on marketable securities, net  (161)  (73) Decrease in accrued interest on bank deposits  (1,790)  (9) Increase (decrease) in accrued severance pay, net  61  (58) Increase in trade receivables, net  (8,213)  (219) Decrease (increase) in other receivables and prepaid expenses and other long-term assets  (186)  605 Decrease in inventories  519  1,004 Increase (decrease) in trade payables  (1,935)  1,406 Increase in deferred revenues  17,823  8,894 Increase in other payables and accrued expenses  3,164  1,483 Operating lease liabilities, net  (234)  (379) Net cash provided by operating activities  22,442  21,122  Cash flows from investing activities:   Purchase of property and equipment  (1,112)  (1,774) Proceeds from (investment in) other long-term assets, net  109  (25) Investment in bank deposits, net  (27,112)  (17,898) Investment in, redemption of and purchase of marketable securities ,net  16,194  3,502 Proceeds from other deposits  5,000  - Net cash used in investing activities  (6,921)  (16,195)  Cash flows from financing activities:   Proceeds from exercise of share options  4  - Repurchase of shares  -  (839) Net cash provided by (used in) financing activities  4  (839)  Increase in cash and cash equivalents  15,525  4,088 Cash and cash equivalents at the beginning of the period  98,714  70,538 Cash and cash equivalents at the end of the period  114,239  74,626

Radware Ltd. RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (U.S Dollars in thousands)  For the three months ended March 31, 2025  2024 (Unaudited)  (Unaudited) GAAP net income (loss) 4,344  (1,222) Exclude: Financial income, net (4,875)  (3,608) Exclude: Depreciation and amortization expense 3,152  2,943 Exclude: Taxes on income 2,100  1,167 EBITDA 4,721  (720)  Share-based compensation 5,898  6,747 Acquisition costs 153  220 Adjusted EBITDA 10,772  6,247   For the three months ended March 31, 2025  2024  Amortization of intangible assets 992  992 Depreciation 2,160  1,951 3,152  2,943

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