Radware
Israeli vendor selling DDoS and web application firewall protection to carriers and enterprises.
On the record
Checkpoint: Q2 2026 earnings report and update on Israeli Tax Authority investigation
The call
Radware's carrier niche still holds while its cloud growth business faces a widening squeeze from hyperscaler bundling and a fresh tax investigation into a related-party deal.
Radware sells software that protects websites and networks from cyberattacks, particularly DDoS attacks and malicious traffic. The company has a real strength in specialized setups that big cloud companies like Cloudflare and Amazon cannot easily serve due to how their systems are built, but it is losing customers in the faster-growing cloud business where those giants bundle similar protection for almost no extra cost and undercut Radware's prices. The company is also trying to pivot toward protecting artificial intelligence systems and managing how they behave, which could become a new growth engine, but it is racing against time while also dealing with a government investigation into a past deal that could damage its reputation or force major changes to its ownership structure.
Why
01
AI pressure: Cloudflare and AWS Shield's AI-driven bot and anomaly detection. Hyperscalers bake AI anomaly detection into cloud platforms for near-zero cost, squeezing Radware's cloud DDoS pricing. Could AI do the core job? Only partly.
02
Bigger players: Cloudflare, AWS Shield Advanced, Akamai. EMEA revenue fell 11% year over year as hyperscalers bundle commodity DDoS and WAF into their platforms. Could a giant copy it? Probably.
03
What protects it. Carrier and regulated on-prem hybrid deployments that hyperscaler cloud architecture cannot easily replicate.
What would change this call
Radware's EMEA revenue trend in Q2/Q3 2026 earnings. Continued decline would show hyperscaler bundling is outpacing Radware's cross-sell defenses.
Any public disclosure of findings from the Israeli Tax Authority probe into the 2022 SecurityDAM/DC Protection deal. Governance action would signal reputational or leadership fallout beyond competitive pressure.
Whether Cloud ARR growth (23% YoY in Q1 2026) holds or slows through H2 2026. A slowdown would indicate hyperscaler competition is winning in Radware's fastest-growing segment.
Any public disclosure of findings from the Israeli Tax Authority probe into the 2022 SecurityDAM/DC Protection deal. Governance action would signal reputational or leadership fallout beyond competitive pressure.
Whether Cloud ARR growth (23% YoY in Q1 2026) holds or slows through H2 2026. A slowdown would indicate hyperscaler competition is winning in Radware's fastest-growing segment.
Key numbers
- Cloud ARR $98M, up 23% YoY
- EMEA revenue down 11% YoY to $25.1M
- Cash position $433.8M
Named risks
- Israeli Tax Authority investigation into 2022 related-party Zisapel acquisition could trigger governance fallout.
- Hyperscaler bundling of AI-driven DDoS/WAF compresses commodity cloud segment, evidenced by 11% EMEA revenue decline.
- Revenue growth of 10-11% trails cybersecurity sector leaders growing 25-35% YoY, signaling relative share loss.
- Integration risk from Pynt acquisition and new AI-security product cross-sell into existing customer base.
- Historical take-private overhang (2022 Siris Capital talks) could resurface given valuation multiples.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Cloudflare | losing to | EMEA revenue down 11% YoY as of Q1 2026 amid cloud DDoS/WAF bundling pressure |
| AWS Shield Advanced | losing to | Bundles DDoS/WAF into cloud platforms at near-zero incremental cost, per Q1 2026 filings |
| Akamai | contesting | Top-five DDoS player alongside Radware, combined 35-45% market share per MarketsandMarkets |
| Fortinet | contesting | Named as top-five DDoS competitor with FortiDDoS offering, no dated share data |
| NetScout | contesting | Named as top-five DDoS/WAF peer holding combined 35-45% share with Radware and others |
Questions people ask
- Is Radware profitable in 2026?
- Yes. Radware posted record FY2025 revenue of $301.9 million (up 10% YoY) and Q1 2026 revenue of $79.8 million (up 11% YoY), beating consensus estimates, with cash reserves of roughly $433.8 million as of Q1 2026, per company filings dated May 7, 2026.
- Could AI replace Radware's DDoS protection business?
- Partially. Hyperscalers like Cloudflare and AWS are baking AI-driven anomaly detection into their platforms, commoditizing basic DDoS/WAF, contributing to Radware's EMEA revenue falling 11% YoY in Q1 2026. Radware is countering by acquiring Pynt (Jan 2026) and partnering with Dataiku (June 25, 2026) to secure AI systems rather than be displaced by them.
- Who is Radware's biggest competitor?
- Cloudflare and AWS Shield Advanced pose the biggest threat by bundling DDoS/WAF into cloud/CDN platforms at near-zero cost, squeezing Radware's commodity cloud segment. Akamai, Fortinet, and NetScout round out the top-five DDoS players holding a combined 35-45% market share, per MarketsandMarkets data.
- Who owns Radware?
- Radware is an independent, publicly traded company on Nasdaq (RDWR) with no parent. Senvest Management held 9.78% as of April 2026 and Morgan Stanley entities disclosed a combined 7.2% stake in May 2026; a 2022 Siris Capital take-private bid at ~$1.6 billion did not close.
- Is Radware growing faster or slower than cybersecurity peers?
- Slower. Radware grew revenue about 10-11% YoY through FY2025 and Q1 2026, while sector leaders like CrowdStrike, Palo Alto, and SentinelOne grew 25-35% YoY as of February 2026, suggesting Radware is losing relative share in a hot market.
- What is Radware's Cloud ARR growth?
- Radware's Cloud ARR reached $98 million in Q1 2026, up 23% YoY, out of total ARR of approximately $251 million (up 11% YoY as of Q4 2025), reflecting stronger momentum in cloud offerings than the company's overall revenue growth rate.
Timeline
- 2026-07-01Israeli Tax Authority investigation into 2022 Zisapel-related DC Protection/SecurityDAM deal reported
- 2026-06-25Radware and Dataiku announce partnership to secure enterprise AI systems
- 2026-05-27Cash position reported at $433.8 million; $80 million share repurchase program active
- 2026-05-12Morgan Stanley entities disclose combined 7.2% stake in Radware
- 2026-05-07Q1 2026 results: revenue $79.8 million, up 11% YoY, Cloud ARR $98 million up 23% YoY
- 2026-04Senvest Management discloses 9.78% stake in Radware
- 2026-02-11FY2025 record revenue $301.9 million reported, up 10% YoY; RPO hits $400 million
- 2026-01-26Radware completes acquisition of API security startup Pynt
- 2022-02Radware acquires DC Protection (SecurityDAM) for $30-42.5 million from Zisapel family
- 2022Siris Capital reported in talks to take Radware private at approximately $1.6 billion
Revision history
21 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Radware Reports Record Fourth Quarter and Full Year 2025 Financial Results (2026-02-11)
- Radware Reports First Quarter 2026 Financial Results (2026-05-07)
- Radware Q4 Earnings Call Highlights (2026-02-11)
- Inside the Important Numbers (2026-05-27)
- gurufocus.com (2026-07-20)
- Radware (RDWR) Q1 2026 Earnings Transcript (2026-06-01)
- Radware Acquires Pynt to Strengthen Full-Lifecycle API Security (2026-01-26)
- Radware and Dataiku Join Forces to Secure Enterprise AI (2026-06-25)
- Israeli Tax Authority investigates Zisapel startup over $42.5 million Radware deal (2026-07-01)
- Siris Capital in talks to take cybersecurity firm Radware private at around $1.6bn
- Radware Ltd 10-K, 10-Q, 8-K Forms (2026-05-12)
- Radware - Headcount, Funding & Open Jobs (2026-06-28)