Radware Ltd. Q4 FY2025 earnings call

• Core pillars: Gaining market share in cloud security, leading through AI and algorithmic-driven innovation, expanding go-to-market. • Cloud security: Cloud ARR grew strongly, with a 7-digit deal with a European financial group in Q4. Expanded global footprint with a new cloud security center in Singapore and scaled cloud security network. Launched Radware API security service and acquired Pynt Security. • AI Innovation: Released Agentic AI Protection Solution to secure agentic AI. • DefensePro X: Closed large deals, including with a government IT services agency and a global SaaS leader, driven by strong technical engagement and proven capabilities. • Financials: Q4 non-GAAP earnings per share grew 19% to $0.32; full year RPO reached $400 million.

In Q4, revenue increased 10% year-over-year to $80 million. For the full year, revenues grew 10% year-over-year to surpass $300 million. Cloud security business was a key driver: cloud ARR rose 23% year-over-year and 7% sequentially to $95 million in Q4, ending 2025 at $95 million. DefensePro X had double-digit year-over-year growth in Q4 and full year 2025. Regional performance: Americas Q4 down 4% YOY, full year up 6% (41% of revenue); EMEA Q4 up 38% YOY, full year up 18% (37% of revenue); APAC Q4 down 3% YOY, full year up 5% (22% of revenue).

• Expect total revenue for Q1 2026 to be in the range of $78 million to $79 million. • Q1 2026 non-GAAP operating expenses expected to be between $54 million to $55 million, with ~$1.5 million exchange rate impact. • Q1 2026 non-GAAP diluted net earnings per share expected to be between $0.28 and $0.29.

• Impact from changing or severe global economic conditions, general business conditions, and ability to address industry changes. • Changes in demand for products, timing and amount of orders, and other risks detailed in Radware's SEC filings.

Q: Our RPO grew 14% in 2025, double the target. Talk about what drove that strength and expectations for 2026 RPO growth.

A: Strong booking driven by cloud and product subscriptions. Expect RPOs to grow in line with revenue growth in 2026.

Q: EMEA was strong, Americas declined. Update on Americas and rebound expectations.

A: North America had strong Q4 booking with progress. Increasing investments in North America for growth.

Q: Broader market environment with AI disruption. How is security positioned?

A: Attacks are more sophisticated with AI, requiring AI-based defense. Radware's agentic AI protection solution targets securing AI agents, seeing significant TAM expansion.

Q: Changes needed to sales motion for API and agentic AI solutions.

A: API security fits within existing go-to-market. Agentic AI has a dedicated overlay group working with sellers and channels.

Q: Details on agentic AI product, pricing, go-to-market.

A: Hybrid model, subscription-based, cloud managed. Options include per seat, yearly subscription, usage-based. Details to be shared at Investor Day.