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1. |
Radware Reports Second Quarter 2025 Financial Results, dated July 30, 2025
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RADWARE LTD.
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Date: July 30, 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 $74.2 million, an increase of 10% year-over-year
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• |
Cloud ARR of $85 million, an increase of 21% year-over-year
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• |
Non-GAAP diluted EPS of $0.28 vs. $0.20 in Q2 2024; GAAP diluted EPS of $0.09 vs. $0.04 in Q2 2024
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• |
Cash flow from operations of $14.5 million
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• |
Revenue in the Americas region was $30.1 million for the second quarter of 2025, the same as in the second quarter of 2024.
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• |
Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $27.8 million for the second quarter of
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o |
2025, an increase of 22% from $22.8 million in the second quarter of 2024.
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• |
Revenue in the Asia-Pacific (“APAC”) region was $16.3 million for the second quarter of 2025, an increase of 13% from $14.4 million in the second 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)
|
|
|
June 30,
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December 31,
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||||||
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|
2025
|
2024
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||||||
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|
(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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Cash and cash equivalents
|
103,842
|
98,714
|
||||||
|
Marketable securities
|
35,425
|
72,994
|
||||||
|
Short-term bank deposits
|
134,239
|
104,073
|
||||||
|
Trade receivables, net
|
22,865
|
16,823
|
||||||
|
Other receivables and prepaid expenses
|
13,732
|
14,242
|
||||||
|
Inventories
|
13,312
|
14,030
|
||||||
|
|
323,415
|
320,876
|
||||||
|
Long-term investments
|
||||||||
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Marketable securities
|
56,391
|
29,523
|
||||||
|
Long-term bank deposits
|
129,215
|
114,354
|
||||||
|
Other assets
|
2,429
|
2,171
|
||||||
|
|
188,035
|
146,048
|
||||||
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|
||||||||
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Property and equipment, net
|
15,371
|
15,632
|
||||||
|
Intangible assets, net
|
9,766
|
11,750
|
||||||
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Other long-term assets
|
37,062
|
37,906
|
||||||
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Operating lease right-of-use assets
|
16,883
|
18,456
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||||||
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Goodwill
|
68,008
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68,008
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||||||
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Total assets
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658,540
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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
|
4,096
|
5,581
|
||||||
|
Deferred revenues
|
119,732
|
106,303
|
||||||
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Operating lease liabilities
|
4,970
|
4,750
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||||||
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Other payables and accrued expenses
|
55,692
|
51,836
|
||||||
|
|
184,490
|
168,470
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||||||
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Long-term liabilities
|
||||||||
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Deferred revenues
|
67,757
|
64,708
|
||||||
|
Operating lease liabilities
|
12,750
|
13,519
|
||||||
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Other long-term liabilities
|
13,801
|
14,904
|
||||||
|
|
94,308
|
93,131
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||||||
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Equity
|
||||||||
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Radware Ltd. equity
|
||||||||
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Share capital
|
758
|
754
|
||||||
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Additional paid-in capital
|
566,286
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555,154
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||||||
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Accumulated other comprehensive income
|
3,702
|
1,103
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||||||
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Treasury stock, at cost
|
(366,588
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)
|
(366,588
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)
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Retained earnings
|
134,416
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125,850
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||||||
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Total Radware Ltd. shareholder's equity
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338,574
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316,273
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||||||
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||||||||
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Non–controlling interest
|
41,168
|
40,802
|
||||||
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|
||||||||
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Total equity
|
379,742
|
357,075
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||||||
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||||||||
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Total liabilities and equity
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658,540
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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
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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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For the six months ended
|
||||||||||||||
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June 30,
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June 30,
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||||||||||||||
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2025
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2024
|
2025
|
2024
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
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||||||||||||
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Revenues
|
74,215
|
67,276
|
146,294
|
132,361
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||||||||||||
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Cost of revenues
|
14,316
|
13,056
|
28,306
|
25,868
|
||||||||||||
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Gross profit
|
59,899
|
54,220
|
117,988
|
106,493
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||||||||||||
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||||||||||||||||
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Operating expenses, net:
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||||||||||||||||
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Research and development, net
|
19,379
|
18,701
|
38,155
|
37,597
|
||||||||||||
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Selling and marketing
|
31,337
|
29,744
|
62,618
|
59,445
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||||||||||||
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General and administrative
|
6,386
|
6,984
|
12,849
|
14,323
|
||||||||||||
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Total operating expenses, net
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57,102
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55,429
|
113,622
|
111,365
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||||||||||||
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||||||||||||||||
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Operating income (loss)
|
2,797
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(1,209
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)
|
4,366
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(4,872
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)
|
||||||||||
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Financial income, net
|
3,662
|
4,417
|
8,537
|
8,025
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||||||||||||
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Income before taxes on income
|
6,459
|
3,208
|
12,903
|
3,153
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||||||||||||
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Taxes on income
|
2,237
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1,544
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4,337
|
2,711
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||||||||||||
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Net income
|
4,222
|
1,664
|
8,566
|
442
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||||||||||||
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||||||||||||||||
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Basic net income per share attributed to Radware Ltd.'s shareholders
|
0.10
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0.04
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0.20
|
0.01
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||||||||||||
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||||||||||||||||
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Weighted average number of shares used to compute basic net income per share
|
42,734,026
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41,857,259
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42,711,279
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41,803,638
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||||||||||||
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||||||||||||||||
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Diluted net income per share attributed to Radware Ltd.'s shareholders
|
0.09
|
0.04
|
0.19
|
0.01
|
||||||||||||
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|
||||||||||||||||
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Weighted average number of shares used to compute diluted net income per share
|
44,510,896
|
43,148,129
|
44,364,057
|
43,011,501
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||||||||||||
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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)
|
|
|
For the three months ended
|
For the six months ended
|
||||||||||||||
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|
June 30,
|
June 30,
|
||||||||||||||
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2025
|
2024
|
2025
|
2024
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
GAAP gross profit
|
59,899
|
54,220
|
117,988
|
106,493
|
||||||||||||
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Share-based compensation
|
131
|
80
|
251
|
159
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||||||||||||
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Amortization of intangible assets
|
992
|
992
|
1,984
|
1,984
|
||||||||||||
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Non-GAAP gross profit
|
61,022
|
55,292
|
120,223
|
108,636
|
||||||||||||
|
|
||||||||||||||||
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GAAP research and development, net
|
19,379
|
18,701
|
38,155
|
37,597
|
||||||||||||
|
Share-based compensation
|
1,327
|
1,536
|
2,550
|
3,258
|
||||||||||||
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Non-GAAP Research and development, net
|
18,052
|
17,165
|
35,605
|
34,339
|
||||||||||||
|
|
||||||||||||||||
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GAAP selling and marketing
|
31,337
|
29,744
|
62,618
|
59,445
|
||||||||||||
|
Share-based compensation
|
2,700
|
2,609
|
5,776
|
5,160
|
||||||||||||
|
Non-GAAP selling and marketing
|
28,637
|
27,135
|
56,842
|
54,285
|
||||||||||||
|
|
||||||||||||||||
|
GAAP general and administrative
|
6,386
|
6,984
|
12,849
|
14,323
|
||||||||||||
|
Share-based compensation
|
1,445
|
2,077
|
2,924
|
4,472
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Non-GAAP general and administrative
|
4,803
|
4,715
|
9,634
|
9,439
|
||||||||||||
|
|
||||||||||||||||
|
GAAP total operating expenses, net
|
57,102
|
55,429
|
113,622
|
111,365
|
||||||||||||
|
Share-based compensation
|
5,472
|
6,222
|
11,250
|
12,890
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Non-GAAP total operating expenses, net
|
51,492
|
49,015
|
102,081
|
98,063
|
||||||||||||
|
|
||||||||||||||||
|
GAAP operating income (loss)
|
2,797
|
(1,209
|
)
|
4,366
|
(4,872
|
)
|
||||||||||
|
Share-based compensation
|
5,603
|
6,302
|
11,501
|
13,049
|
||||||||||||
|
Amortization of intangible assets
|
992
|
992
|
1,984
|
1,984
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Non-GAAP operating income
|
9,530
|
6,277
|
18,142
|
10,573
|
||||||||||||
|
|
||||||||||||||||
|
GAAP financial income, net
|
3,662
|
4,417
|
8,537
|
8,025
|
||||||||||||
|
Exchange rate differences, net on balance sheet items included in financial income, net
|
1,702
|
(298
|
)
|
2,194
|
(145
|
)
|
||||||||||
|
Non-GAAP financial income, net
|
5,364
|
4,119
|
10,731
|
7,880
|
||||||||||||
|
|
||||||||||||||||
|
GAAP income before taxes on income
|
6,459
|
3,208
|
12,903
|
3,153
|
||||||||||||
|
Share-based compensation
|
5,603
|
6,302
|
11,501
|
13,049
|
||||||||||||
|
Amortization of intangible assets
|
992
|
992
|
1,984
|
1,984
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Exchange rate differences, net on balance sheet items included in financial income, net
|
1,702
|
(298
|
)
|
2,194
|
(145
|
)
|
||||||||||
|
Non-GAAP income before taxes on income
|
14,894
|
10,396
|
28,873
|
18,453
|
||||||||||||
|
|
||||||||||||||||
|
GAAP taxes on income
|
2,237
|
1,544
|
4,337
|
2,711
|
||||||||||||
|
Tax related adjustments
|
61
|
61
|
123
|
123
|
||||||||||||
|
Non-GAAP taxes on income
|
2,298
|
1,605
|
4,460
|
2,834
|
||||||||||||
|
|
||||||||||||||||
|
GAAP net income
|
4,222
|
1,664
|
8,566
|
442
|
||||||||||||
|
Share-based compensation
|
5,603
|
6,302
|
11,501
|
13,049
|
||||||||||||
|
Amortization of intangible assets
|
992
|
992
|
1,984
|
1,984
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Exchange rate differences, net on balance sheet items included in financial income, net
|
1,702
|
(298
|
)
|
2,194
|
(145
|
)
|
||||||||||
|
Tax related adjustments
|
(61
|
)
|
(61
|
)
|
(123
|
)
|
(123
|
)
|
||||||||
|
Non-GAAP net income
|
12,596
|
8,791
|
24,413
|
15,619
|
||||||||||||
|
|
||||||||||||||||
|
GAAP diluted net income per share
|
0.09
|
0.04
|
0.19
|
0.01
|
||||||||||||
|
Share-based compensation
|
0.13
|
0.15
|
0.26
|
0.30
|
||||||||||||
|
Amortization of intangible assets
|
0.02
|
0.02
|
0.04
|
0.04
|
||||||||||||
|
Acquisition costs
|
0.00
|
0.00
|
0.01
|
0.01
|
||||||||||||
|
Exchange rate differences, net on balance sheet items included in financial income, net
|
0.04
|
(0.01
|
)
|
0.05
|
(0.00
|
)
|
||||||||||
|
Tax related adjustments
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
||||||||
|
Non-GAAP diluted net earnings per share
|
0.28
|
0.20
|
0.55
|
0.36
|
||||||||||||
|
|
||||||||||||||||
|
Weighted average number of shares used to compute non-GAAP diluted net earnings per share
|
44,510,896
|
43,148,129
|
44,364,057
|
43,011,501
|
||||||||||||
|
Radware Ltd.
|
|
Condensed Consolidated Statements of Cash Flow
|
|
(U.S. Dollars in thousands)
|
|
|
For the three months ended
|
For the six months ended
|
||||||||||||||
|
|
June 30,
|
June 30,
|
||||||||||||||
|
|
2025
|
2024
|
2025
|
2024
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Cash flow from operating activities:
|
||||||||||||||||
|
|
||||||||||||||||
|
Net income
|
4,222
|
1,664
|
8,566
|
442
|
||||||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
2,865
|
3,028
|
6,017
|
5,971
|
||||||||||||
|
Share-based compensation
|
5,603
|
6,302
|
11,501
|
13,049
|
||||||||||||
|
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net
|
(93
|
)
|
80
|
(254
|
)
|
7
|
||||||||||
|
Increase (decrease) in accrued interest on bank deposits
|
(2,324
|
)
|
5,468
|
(4,114
|
)
|
5,459
|
||||||||||
|
Increase (decrease) in accrued severance pay, net
|
15
|
17
|
76
|
(41
|
)
|
|||||||||||
|
Decrease (increase) in trade receivables, net
|
2,171
|
(5,013
|
)
|
(6,042
|
)
|
(5,232
|
)
|
|||||||||
|
Decrease (increase) in other receivables and prepaid expenses and other long-term assets
|
(951
|
)
|
(199
|
)
|
(1,137
|
)
|
406
|
|||||||||
|
Decrease in inventories
|
199
|
744
|
718
|
1,748
|
||||||||||||
|
Increase (decrease) in trade payables
|
450
|
(1,627
|
)
|
(1,485
|
)
|
(221
|
)
|
|||||||||
|
Increase (decrease) in deferred revenues
|
(1,345
|
)
|
7,494
|
16,478
|
16,388
|
|||||||||||
|
Increase in other payables and accrued expenses
|
2,422
|
5,310
|
5,586
|
6,793
|
||||||||||||
|
Operating lease liabilities, net
|
1,258
|
(238
|
)
|
1,024
|
(617
|
)
|
||||||||||
|
Net cash provided by operating activities
|
14,492
|
23,030
|
36,934
|
44,152
|
||||||||||||
|
|
||||||||||||||||
|
Cash flows from investing activities:
|
||||||||||||||||
|
|
||||||||||||||||
|
Purchase of property and equipment
|
(2,660
|
)
|
(1,034
|
)
|
(3,772
|
)
|
(2,808
|
)
|
||||||||
|
Proceeds from (investment in) other long-term assets, net
|
(19
|
)
|
19
|
90
|
(6
|
)
|
||||||||||
|
Proceeds from (investment in) bank deposits, net
|
(13,801
|
)
|
6,734
|
(40,913
|
)
|
(11,164
|
)
|
|||||||||
|
Investment in, redemption of and purchase of marketable securities, net
|
(5,239
|
)
|
(13,499
|
)
|
10,955
|
(9,997
|
)
|
|||||||||
|
Proceeds from other deposits
|
-
|
-
|
5,000
|
-
|
||||||||||||
|
Net cash used in investing activities
|
(21,719
|
)
|
(7,780
|
)
|
(28,640
|
)
|
(23,975
|
)
|
||||||||
|
|
||||||||||||||||
|
Cash flows from financing activities:
|
||||||||||||||||
|
|
||||||||||||||||
|
Proceeds from exercise of share options
|
(3
|
)
|
3
|
1
|
3
|
|||||||||||
|
Repurchase of shares
|
-
|
-
|
-
|
(839
|
)
|
|||||||||||
|
Payment of contingent consideration related to acquisition
|
(3,167
|
)
|
(3,077
|
)
|
(3,167
|
)
|
(3,077
|
)
|
||||||||
|
Net cash used in financing activities
|
(3,170
|
)
|
(3,074
|
)
|
(3,166
|
)
|
(3,913
|
)
|
||||||||
|
|
||||||||||||||||
|
Increase in cash and cash equivalents
|
(10,397
|
)
|
12,176
|
5,128
|
16,264
|
|||||||||||
|
Cash and cash equivalents at the beginning of the period
|
114,239
|
74,626
|
98,714
|
70,538
|
||||||||||||
|
Cash and cash equivalents at the end of the period
|
103,842
|
86,802
|
103,842
|
86,802
|
||||||||||||
|
Radware Ltd.
|
|
RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)
|
|
(U.S Dollars in thousands)
|
|
|
For the three months ended
|
For the six months ended
|
||||||||||||||
|
|
June 30,
|
June 30,
|
||||||||||||||
|
|
2025
|
2024
|
2025
|
2024
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
GAAP net income
|
4,222
|
1,664
|
8,566
|
442
|
||||||||||||
|
Exclude: Financial income, net
|
(3,662
|
)
|
(4,417
|
)
|
(8,537
|
)
|
(8,025
|
)
|
||||||||
|
Exclude: Depreciation and amortization expense
|
2,865
|
3,028
|
6,017
|
5,971
|
||||||||||||
|
Exclude: Taxes on income
|
2,237
|
1,544
|
4,337
|
2,711
|
||||||||||||
|
EBITDA
|
5,662
|
1,819
|
10,383
|
1,099
|
||||||||||||
|
|
||||||||||||||||
|
Share-based compensation
|
5,603
|
6,302
|
11,501
|
13,049
|
||||||||||||
|
Acquisition costs
|
138
|
192
|
291
|
412
|
||||||||||||
|
Adjusted EBITDA
|
11,403
|
8,313
|
22,175
|
14,560
|
||||||||||||
|
|
For the three months ended
|
For the six months ended
|
||||||||||||||
|
|
June 30,
|
June 30,
|
||||||||||||||
|
|
2025
|
2024
|
2025
|
2024
|
||||||||||||
|
Amortization of intangible assets
|
992
|
992
|
1,984
|
1,984
|
||||||||||||
|
Depreciation
|
1,873
|
2,036
|
4,033
|
3,987
|
||||||||||||
|
|
2,865
|
3,028
|
6,017
|
5,971
|
||||||||||||