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1. |
Radware Reports First Quarter 2025 Financial Results, dated May 7, 2025
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| RADWARE LTD. | |||
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Date: May 7, 2025
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By:
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/s/ Gadi Meroz
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Gadi Meroz
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Vice President & General Counsel
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Exhibit Number
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Description of Exhibits
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• |
Revenue of $72.1 million, an increase of 11% year-over-year
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• |
Cloud ARR of $80 million, an increase of 19% year-over-year
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• |
Non-GAAP diluted EPS of $0.27 vs. $0.16 in Q1 2024; GAAP diluted EPS of $0.10 vs. $(0.03) in Q1 2024
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• |
Cash flow from operations of $22.4 million in Q1 and $72.9 million over the trailing 12 months
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• |
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.
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• |
Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $28.4 million for the first quarter of
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• |
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.
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Radware Ltd.
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Condensed Consolidated Balance Sheets
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(U.S. Dollars in thousands)
|
|
|
March 31,
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December 31,
|
||||||
|
|
2025
|
2024
|
||||||
|
|
(Unaudited)
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(Unaudited)
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||||||
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Assets
|
||||||||
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|
||||||||
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Current assets
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||||||||
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Cash and cash equivalents
|
114,239
|
98,714
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||||||
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Marketable securities
|
55,118
|
72,994
|
||||||
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Short-term bank deposits
|
122,361
|
104,073
|
||||||
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Trade receivables, net
|
25,036
|
16,823
|
||||||
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Other receivables and prepaid expenses
|
9,627
|
14,242
|
||||||
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Inventories
|
13,511
|
14,030
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||||||
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|
339,892
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320,876
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||||||
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||||||||
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Long-term investments
|
||||||||
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Marketable securities
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31,229
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29,523
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||||||
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Long-term bank deposits
|
124,968
|
114,354
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||||||
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Other assets
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2,203
|
2,171
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||||||
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|
158,400
|
146,048
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||||||
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||||||||
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Property and equipment, net
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14,584
|
15,632
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||||||
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Intangible assets, net
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10,758
|
11,750
|
||||||
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Other long-term assets
|
36,492
|
37,906
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||||||
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Operating lease right-of-use assets
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17,560
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18,456
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||||||
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Goodwill
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68,008
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68,008
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||||||
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Total assets
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645,694
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618,676
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||||||
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||||||||
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Liabilities and equity
|
||||||||
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||||||||
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Current liabilities
|
||||||||
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Trade payables
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3,646
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5,581
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||||||
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Deferred revenues
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119,329
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106,303
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||||||
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Operating lease liabilities
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4,642
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4,750
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||||||
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Other payables and accrued expenses
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55,678
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51,836
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||||||
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183,295
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168,470
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||||||
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||||||||
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Long-term liabilities
|
||||||||
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Deferred revenues
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69,505
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64,708
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||||||
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Operating lease liabilities
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12,497
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13,519
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||||||
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Other long-term liabilities
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14,319
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14,904
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||||||
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96,321
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93,131
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||||||
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Equity
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||||||||
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Radware Ltd. equity
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||||||||
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Share capital
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756
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754
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||||||
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Additional paid-in capital
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560,833
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555,154
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||||||
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Accumulated other comprehensive income (loss)
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(140
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)
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1,103
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|||||
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Treasury stock, at cost
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(366,588
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)
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(366,588
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)
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Retained earnings
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130,194
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125,850
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||||||
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Total Radware Ltd. shareholder's equity
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325,055
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316,273
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||||||
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Non–controlling interest
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41,023
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40,802
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||||||
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||||||||
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Total equity
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366,078
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357,075
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||||||
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Total liabilities and equity
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645,694
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618,676
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||||||
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Radware Ltd.
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Condensed Consolidated Statements of Income (Loss)
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(U.S Dollars in thousands, except share and per share data)
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|
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For the three months ended
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|||||||
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March 31,
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|||||||
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2025
|
2024
|
||||||
|
|
(Unaudited)
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(Unaudited)
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||||||
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||||||||
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Revenues
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72,079
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65,085
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Cost of revenues
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13,990
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12,812
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||||||
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Gross profit
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58,089
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52,273
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||||||
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Operating expenses, net:
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||||||||
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Research and development, net
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18,776
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18,896
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||||||
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Selling and marketing
|
31,281
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29,701
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||||||
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General and administrative
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6,463
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7,339
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||||||
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Total operating expenses, net
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56,520
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55,936
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||||||
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Operating income (loss)
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1,569
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(3,663
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)
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|||||
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Financial income, net
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4,875
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3,608
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||||||
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Income (loss) before taxes on income
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6,444
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(55
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)
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Taxes on income
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2,100
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1,167
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Net income (loss)
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4,344
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(1,222
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)
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Basic net income (loss) per share attributed to Radware Ltd.'s shareholders
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0.10
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(0.03
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)
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Weighted average number of shares used to compute basic net income (loss) per share
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42,663,787
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41,750,203
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Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders
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0.10
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(0.03
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)
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Weighted average number of shares used to compute diluted net income (loss) per share
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44,192,474
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41,750,203
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Radware Ltd.
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Reconciliation of GAAP to Non-GAAP Financial Information
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(U.S Dollars in thousands, except share and per share data)
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For the three months ended
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|||||||
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March 31,
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|||||||
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2025
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2024
|
||||||
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(Unaudited)
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(Unaudited)
|
||||||
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GAAP gross profit
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58,089
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52,273
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||||||
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Share-based compensation
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120
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79
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||||||
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Amortization of intangible assets
|
992
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992
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||||||
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Non-GAAP gross profit
|
59,201
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53,344
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||||||
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|
||||||||
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GAAP research and development, net
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18,776
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18,896
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||||||
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Share-based compensation
|
1,223
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1,722
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||||||
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Non-GAAP Research and development, net
|
17,553
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17,174
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||||||
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|
||||||||
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GAAP selling and marketing
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31,281
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29,701
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||||||
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Share-based compensation
|
3,076
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2,551
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||||||
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Non-GAAP selling and marketing
|
28,205
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27,150
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||||||
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||||||||
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GAAP general and administrative
|
6,463
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7,339
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||||||
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Share-based compensation
|
1,479
|
2,395
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||||||
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Acquisition costs
|
153
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220
|
||||||
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Non-GAAP general and administrative
|
4,831
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4,724
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||||||
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|
||||||||
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GAAP total operating expenses, net
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56,520
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55,936
|
||||||
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Share-based compensation
|
5,778
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6,668
|
||||||
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Acquisition costs
|
153
|
220
|
||||||
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Non-GAAP total operating expenses, net
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50,589
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49,048
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||||||
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|
||||||||
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GAAP operating income (loss)
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1,569
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(3,663
|
)
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|||||
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Share-based compensation
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5,898
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6,747
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||||||
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Amortization of intangible assets
|
992
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992
|
||||||
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Acquisition costs
|
153
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220
|
||||||
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Non-GAAP operating income
|
8,612
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4,296
|
||||||
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|
||||||||
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GAAP financial income, net
|
4,875
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3,608
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||||||
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Exchange rate differences, net on balance sheet items included in financial income, net
|
492
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153
|
||||||
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Non-GAAP financial income, net
|
5,367
|
3,761
|
||||||
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|
||||||||
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GAAP income (loss) before taxes on income
|
6,444
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(55
|
)
|
|||||
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Share-based compensation
|
5,898
|
6,747
|
||||||
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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
|
0
|
||||||
|
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
|
||||||