Radware’s Cloud Annual Recurring Revenue Reaches $107 Million
Key Facts
Radware said cloud annual recurring revenue reached $107 million, up 21% year over year, in its third-quarter 2026 results. The figure reflects the value of orders recorded for term-based cloud services, subscription licenses and active maintenance contracts at the end of the reporting period. The company defines the metric as an annualized value calculated from those existing commitments. It said in its definition that the metric is not a forecast of future revenue. Chief Executive Roy Zisapel said, "Customer demand for our application security solutions is strong," pointing to cloud bookings and large deals as a reflection of that demand.
Operating cash flow from continuing operations was $15.5 million in the third quarter. As of September 30, 2026, the company had $421.5 million in cash and cash equivalents, short- and long-term bank deposits, and marketable securities. These figures provide a picture of liquidity and cash flows alongside growth in the cloud business metric. Radware reported record revenue of $82.3 million in the second quarter, up 11% year over year. It also said at the time that cloud annual recurring revenue had surpassed $100 million and that momentum continued across its cloud security platform.
Revenue growth in the second quarter varied across regions: revenue in the Americas rose 24% to $37.2 million. In Europe, the Middle East and Africa, revenue fell 2% to $27.3 million, while it increased 9% to $17.8 million in Asia-Pacific. Net income from continuing operations under accounting standards was $3.9 million, or $0.09 per diluted share, in the second quarter of 2026. That compared with net income of $6.4 million and diluted earnings of $0.14 per share in the same period of 2025. The company had announced on October 7 that it would hold an earnings call to discuss its third-quarter results and fourth-quarter outlook on October 28 at 8:30 a.m. Eastern Time.
Radware shares, traded under the ticker RDWR, closed at $35.5 on October 27, according to EL7 data. The closing date came before the release of third-quarter results, while the shares closed at $32.30 on October 26, according to coverage published ahead of the results. Management is scheduled to discuss third-quarter results and its outlook for the fourth quarter of 2026 on the October 28 call. The call follows the company’s report of record second-quarter revenue and year-over-year growth in the Americas and Asia-Pacific, alongside a modest decline in Europe, the Middle East and Africa. Under the company’s definition, cloud annual recurring revenue remains a measure of orders and contracts in place at period-end, not a forecast of future sales.