Radware Reports Strong Q3 2026 Financial Results
News related to:Radware · 4 min read
Radware, a global leader in application security and delivery solutions for multi-cloud environments, reported strong financial results for the third quarter of 2026. The company saw a record quarterly revenue of $84.4 million, marking a 12% increase year-over-year. Revenue breakdowns showed growth across all regions: the Americas region contributed $39.6 million, up 12% from the $35.4 million recorded in the same period last year. The Europe, Middle East, and Africa (EMEA) region saw a 12% increase to $25.6 million, from $22.8 million in the third quarter of 2025. The Asia-Pacific (APAC) region also experienced a 12% rise, reaching $19.2 million, compared to $17.1 million in the previous year.
In terms of non-GAAP financial metrics, Radware reported a non-GAAP diluted earnings per share (EPS) from continuing operations of $0.32, a significant improvement from the $0.11 per share reported in the third quarter of 2025. The company's GAAP diluted EPS from continuing operations was $0.11, reflecting a decrease from the $0.19 per share reported in the same period last year. Cash flow provided by continuing operations activities stood at $15.5 million, indicating robust financial health.
Cloud Application Recurring Revenue (ARR) also saw a notable increase, reaching $107 million, up 21% year-over-year. This growth underscores the company's expanding cloud security business and customer demand for its application security solutions.
The third quarter results reflect Radware's strategic focus on expanding its cloud security offerings and leveraging AI-driven security solutions to meet the evolving needs of its customers. The company's strong financial performance and growing market share in the application security space are expected to drive continued growth in the future.
As of September 30, 2026, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $421.5 million. Operating cash flow provided by continuing operations was $15.5 million in the third quarter of 2026.
Radware management will host a call today, October 28, 2026, at 8:30 a.m. ET to discuss its third quarter 2026 results and fourth quarter 2026 outlook. To participate in the call, please use the following link: Q3 2026 earnings call registration link.
A replay of the call will be available within approximately 24 hours of the live event on the Investors section of Radware’s website at: www.radware.com/ir/financial-reports.
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 contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Any forward-looking statements made herein that are not statements of historical fact, including statements about Radware’s plans, objectives, expectations, beliefs, projections, future financial performance, business strategies, market opportunities, and developments in our industry, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,”