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Radware Ltd.

Rank #158ValueWatchlistCompare with other stocks

RDWR · Nasdaq · Technology

Radware Ltd. (RDWR) — Rank #158 by gross profitability (GP/assets 0.36) · ROE 5.8% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0001094366 · all metrics point-in-time as of the filing date.

About

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers.

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The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers cloud application protection service, cloud WAF, bot manager, API protection, web DDoS protection, client-side protection, threat intelligence, Kubernetes WAAP, and Alteon integrated WAF; cloud DDoS protection service, web DDoS protection defencepro X, cyber controller, AI SOC Xpert, and firewall-as-a-service; and Alteon, linkproof NG, and SSL inspection services. The company serves healthcare, government, online business, SaaS, education, open banking, MSSP solutions, and financial services through independent distributors, which include value added resellers, original equipment manufacturers, and system integrators. It operates in the United States, the Asia Pacific, Europe, the Middle East, Africa, and internationally. Radware Ltd.

was incorporated in 1996 and is headquartered in Tel Aviv-Yafo, Israel.

Industry
Software - Infrastructure
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,228

Industry

Software - Infrastructure

Exchange

Nasdaq

10/12

Flags passed

RDWR passes 10/12 quality flags

2 cautions to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · RPO outpacing revenue

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.36
Return on equity
5.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.72
Current ratio
1.63×
Net cash
$327.13M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.0%

Growth

1/2 pass
Revenue growth
9.8%
Piotroski F-Score
6 / 9
Share dilution
3.1%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

No warning flags · GP/assets 0.36

Gross profitability (GP / assets)

0.36

Primary signal (Novy-Marx).

6th of 11 SIC 7389 peers

Return on equity

5.8%

Gross margin

80.7%

2nd of 11 SIC 7389 peers

Revenue growth (YoY)

9.8%

RPO growth (YoY)

13.1%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

0.9%

Revenue CAGR (5Y)

3.8%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

21.2%

Cash Flow Health

Is the cash real?

No warning flags · FCF 105% above net income

Free cash flow

$41.55M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

105.1%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.0%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $327.13M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

2nd of 10 SIC 7389 peers (best = lowest)

Current ratio

1.63×

7th of 11 SIC 7389 peers

Quick ratio

0.80×

Net cash

$327.13M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend
3.1%1/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
1.4%3/5 Good

Lifecycle Phase History

20202025
Capital Return
Op. Leverage
Startup
Decline
Value

Price History

RDWR-20.2% · -4.4% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports