Detailed financial statements for Radware Ltd. (RDWR): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Radware Ltd. and its affiliated companies are dedicated to the development, production, and distribution of advanced cybersecurity and application management tools. These sophisticated solutions cater to applications hosted across global cloud infrastructures, traditional physical data centers, and modern software-defined environments.
Analysis Summary
Radware Ltd. reported revenue of $301.9M in the most recent fiscal year, growing at a 5-year CAGR of 3.8%. Net income reached $20.3M, with a 16.0% 5-year CAGR.
Trailing-twelve-month margins: gross margin 80.8%, operating margin 4.5%, net margin 5.3%. Free cash flow grew at -4.8% CAGR over 5 years.
At the current price of $29.45, RDWR trades at a P/E of 76.27 and an ROE of 5.05%. Market capitalisation stands at $1.3B.
Balance sheet quality for RDWR: current ratio of 1.6, net cash position of $240.2M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $41.6M represents 205% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $196.6M | $211.4M | $234.4M | $252.1M | $250.0M | $286.5M | $293.4M | $261.3M | $274.9M | $301.9M |
| Cost of Revenue | $35.7M | $39.6M | $41.7M | $45.2M | $45.1M | $52.4M | $53.9M | $51.7M | $53.3M | $58.3M |
| Gross Profit | $160.9M | $171.8M | $192.7M | $206.9M | $204.9M | $234.1M | $239.5M | $209.6M | $221.6M | $243.5M |
| Research & Development | $51.7M | $59.0M | $57.7M | $61.8M | $66.8M | $74.1M | $86.6M | $82.6M | $74.7M | $79.0M |
| Selling, General & Admin | $121.9M | $126.3M | $127.5M | $128.1M | $131.9M | $141.7M | $156.3M | $158.6M | $150.8M | $153.1M |
| Operating Expenses | $173.6M | $178.4M | $185.2M | $190.0M | $198.8M | $215.8M | $242.9M | $241.3M | $225.5M | $232.1M |
| Operating Income | -$12.7M | -$6.7M | $7.5M | $16.9M | $6.2M | $18.2M | -$3.3M | -$31.7M | -$3.9M | $11.4M |
| EBITDA | -$2.4M | $4.6M | $17.3M | $28.2M | $16.7M | $33.0M | $16.6M | -$5.3M | $24.7M | $41.0M |
| Interest Expense | $116000 | $89000 | $113000 | $124000 | $189000 | $200000 | $207000 | $197000 | $236000 | 0 |
| Pre-tax Income | -$7.0M | -$1.8M | $14.8M | $25.7M | $14.0M | $22.6M | $4.7M | -$17.8M | $12.7M | $29.3M |
| Income Tax | $1.7M | $5.7M | $3.1M | $3.1M | $4.3M | $14.8M | $4.9M | $3.8M | $6.6M | $9.1M |
| Net Income | -$8.7M | -$7.5M | $11.7M | $22.6M | $9.6M | $7.8M | -$166000 | -$21.6M | $6.0M | $20.3M |
| EPS | $-0.20 | $-0.17 | $0.25 | $0.48 | $0.21 | $0.17 | $-0.00 | $-0.50 | $0.14 | $0.47 |
| EPS (Diluted) | $-0.20 | $-0.17 | $0.25 | $0.47 | $0.20 | $0.16 | $-0.00 | $-0.50 | $0.14 | $0.45 |
| Shares Outstanding (Diluted) | $43.9M | $43.5M | $47.7M | $48.5M | $47.7M | $47.5M | $44.9M | $42.9M | $43.4M | $44.7M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $75.3M | $80.2M | $79.8M | $82.3M |
| Gross Profit | $60.7M | $64.8M | $64.7M | $66.5M |
| Operating Income | $3.2M | $3.9M | $4.8M | $2.5M |
| EBITDA | $10.7M | $11.4M | $10.9M | $5.4M |
| Net Income | $5.7M | $6.0M | $3.5M | $1.7M |
| EPS | $0.13 | $0.14 | $0.08 | $0.04 |
| EPS (Diluted) | $0.13 | $0.13 | $0.08 | $0.04 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $79.6M | $65.2M | $45.2M | $40.8M | $54.8M | $92.5M | $46.2M | $70.5M | $98.7M | $105.1M |
| Short-term Investments | $146.4M | $135.7M | $271.2M | $137.2M | $255.7M | $195.4M | $251.9M | $260.1M | $177.1M | $152.2M |
| Receivables | $19.4M | $16.1M | $17.2M | $22.6M | $16.8M | $13.2M | $17.8M | $20.3M | $16.8M | $35.0M |
| Inventory | $17.1M | $18.8M | $18.4M | $13.9M | $13.9M | $11.6M | $11.4M | $15.5M | $14.0M | $13.2M |
| Total Current Assets | $266.8M | $248.1M | $358.6M | $222.5M | $348.0M | $320.2M | $335.9M | $375.9M | $320.9M | $316.5M |
| Property, Plant & Equipment | $26.4M | $23.6M | $23.7M | $41.1M | $50.8M | $45.1M | $44.1M | $39.0M | $34.1M | $32.1M |
| Goodwill | $30.1M | $32.2M | $32.2M | $41.1M | $41.1M | $41.1M | $68.0M | $68.0M | $68.0M | $68.0M |
| Intangible Assets | $2.4M | $10.4M | $9.5M | $14.5M | $12.6M | $10.7M | $19.7M | $15.7M | $11.8M | $7.8M |
| Total Assets | $429.8M | $469.1M | $532.3M | $595.7M | $623.3M | $635.4M | $643.6M | $571.9M | $618.7M | $671.2M |
| Accounts Payable | $6.0M | $5.4M | $4.5M | $6.3M | $3.9M | $4.3M | $6.5M | $4.3M | $5.6M | $7.2M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $85.3M | $107.4M | $118.4M | $126.0M | $143.7M | $165.9M | $164.0M | $155.0M | $168.5M | $193.7M |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $130.2M | $153.7M | $168.4M | $200.3M | $234.8M | $265.4M | $275.1M | $248.6M | $261.6M | $280.5M |
| Retained Earnings | $89.8M | $82.3M | $101.6M | $124.1M | $133.8M | $141.6M | $141.4M | $119.8M | $125.8M | $146.1M |
| Total Equity | $299.6M | $315.4M | $364.0M | $395.3M | $388.5M | $370.0M | $332.2M | $284.1M | $316.3M | $349.4M |
| Total Debt | 0 | 0 | 0 | $19.1M | $30.1M | $27.4M | $24.1M | $20.7M | $18.3M | $17.0M |
| Net Debt | -$226.1M | -$201.0M | -$316.4M | -$158.8M | -$280.4M | -$260.4M | -$273.9M | -$309.9M | -$257.5M | -$240.2M |
| Working Capital | $181.5M | $140.8M | $240.3M | $96.5M | $204.2M | $154.3M | $171.8M | $220.9M | $152.4M | $122.8M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $87.3M | $105.1M | $108.8M | $85.2M |
| Total Assets | $661.5M | $671.2M | $656.5M | $654.4M |
| Total Liabilities | $271.8M | $280.5M | $288.2M | $295.3M |
| Total Equity | $348.4M | $349.4M | $326.8M | $317.7M |
| Total Debt | $30.4M | $17.0M | $16.4M | $16.1M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$8.7M | -$7.5M | $11.7M | $22.6M | $9.6M | $7.8M | -$166000 | -$21.6M | $6.0M | $20.3M |
| Depreciation & Amortization | $10.4M | $11.2M | $9.8M | $11.3M | $10.6M | $10.2M | $11.7M | $12.2M | $11.8M | $11.7M |
| Stock-based Compensation | $11.5M | $13.0M | $12.5M | $13.1M | $16.5M | $17.6M | $27.4M | $34.0M | $26.0M | $24.0M |
| Change in Working Capital | $23.3M | $12.9M | $16.2M | $3.7M | $26.0M | $31.5M | -$6.5M | -$26.9M | $25.8M | $1.9M |
| Operating Cash Flow | $38.6M | $31.5M | $49.3M | $52.9M | $61.8M | $71.8M | $32.1M | -$3.5M | $71.6M | $50.1M |
| Capital Expenditure | -$9.5M | -$7.2M | -$8.9M | -$8.2M | -$8.7M | -$5.6M | -$8.8M | -$5.4M | -$5.3M | -$8.5M |
| Acquisitions | $16.2M | -$8.3M | -$41.8M | -$12.2M | $33.0M | 0 | -$30.0M | 0 | 0 | 0 |
| Stock Repurchased | -$22.0M | -$413000 | -$4.3M | -$24.5M | -$45.3M | -$52.5M | -$59.5M | -$63.2M | -$839000 | -$10.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $29.2M | $24.2M | $40.4M | $44.7M | $53.1M | $66.2M | $23.3M | -$8.9M | $66.3M | $41.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | -$2.9M | $17.3M | $17.6M | $11.1M |
| Capital Expenditure | -$2.1M | -$2.9M | -$2.7M | -$2.0M |
| Free Cash Flow | -$5.0M | $14.4M | $15.0M | $9.1M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | 0 | $7.1M | $5.5M | $7.3M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +7.5% | +10.9% | +7.5% | -0.8% | +14.6% | +2.4% | -11.0% | +5.2% | +9.8% | |
| Net Income Growth (YoY) | +13.5% | +256.6% | +92.3% | -57.3% | -18.9% | -102.1% | -12906.0% | +128.0% | +235.5% | |
| EPS Growth (YoY) | +15.0% | +247.1% | +92.0% | -56.3% | -19.0% | -102.2% | -13413.5% | +128.0% | +235.7% | |
| Shares Change (YoY) | -0.9% | +9.7% | +1.7% | -1.6% | -0.5% | -5.4% | -4.6% | +1.1% | +3.1% | |
| FCF Growth (YoY) | -16.8% | +66.5% | +10.7% | +18.9% | +24.5% | -64.7% | -138.3% | +842.9% | -37.4% | |
| Gross Margin | 81.8% | 81.3% | 82.2% | 82.1% | 82.0% | 81.7% | 81.6% | 80.2% | 80.6% | 80.7% |
| Operating Margin | -6.5% | -3.2% | 3.2% | 6.7% | 2.5% | 6.4% | -1.1% | -12.1% | -1.4% | 3.8% |
| EBITDA Margin | -1.2% | 2.2% | 7.4% | 11.2% | 6.7% | 11.5% | 5.7% | -2.0% | 9.0% | 13.6% |
| Net Margin | -4.4% | -3.5% | 5.0% | 9.0% | 3.9% | 2.7% | -0.1% | -8.3% | 2.2% | 6.7% |
| FCF Margin | 14.8% | 11.5% | 17.2% | 17.7% | 21.3% | 23.1% | 8.0% | -3.4% | 24.1% | 13.8% |
| Effective Tax Rate | -23.6% | -307.0% | 20.7% | 12.2% | 31.0% | 65.5% | 103.5% | -21.6% | 52.3% | 30.9% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.66 | $0.56 | $0.85 | $0.92 | $1.11 | $1.39 | $0.52 | $-0.21 | $1.53 | $0.93 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $43.3M | $43.5M | $46.9M | $46.8M | $46.5M | $45.9M | $44.9M | $42.9M | $42.0M | $42.9M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 5.05% |
| Return on Invested Capital | 2.20% |
| Return on Assets | 2.59% |
| Gross Margin | 80.81% |
| Operating Margin | 4.54% |
| Net Margin | 5.34% |
Financial Health
| Debt / Equity | 0.05 |
| Current Ratio | 1.63 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 3.24 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -72.90 | -114.41 | 90.84 | 53.71 | 132.14 | 244.94 | -5337.84 | -33.36 | 160.93 | 51.26 |
| P/B | 2.11 | 2.68 | 2.93 | 3.05 | 3.32 | 5.17 | 2.67 | 2.52 | 2.99 | 2.96 |
| P/S | 3.21 | 4.00 | 4.55 | 4.79 | 5.16 | 6.67 | 3.03 | 2.74 | 3.44 | 3.42 |
| Gross Margin | 81.8% | 81.3% | 82.2% | 82.1% | 82.0% | 81.7% | 81.6% | 80.2% | 80.6% | 80.7% |
| Operating Margin | -6.5% | -3.2% | 3.2% | 6.7% | 2.5% | 6.4% | -1.1% | -12.1% | -1.4% | 3.8% |
| Net Margin | -4.4% | -3.5% | 5.0% | 9.0% | 3.9% | 2.7% | -0.1% | -8.3% | 2.2% | 6.7% |
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