Radware Ltd. (NASDAQ: RDWR) shares surged 9.46% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results, which exceeded analyst expectations and showcased strong growth in its cloud security business.
The cybersecurity and application delivery solutions provider reported Q2 revenue of $74.2 million, marking a 10% year-over-year increase and beating the analyst consensus estimate of $73.5 million. Non-GAAP diluted earnings per share (EPS) rose to $0.28, surpassing the $0.26 analyst estimate and showing a significant improvement from $0.20 in the same quarter last year.
Investors were particularly encouraged by Radware's cloud business performance, with Cloud Annual Recurring Revenue (ARR) growing 21% year-over-year to reach $85 million. This growth underscores the company's successful focus on cloud security as its primary growth engine. Roy Zisapel, president and CEO of Radware, emphasized that the strong Q2 performance was driven by the successful execution of their business strategy, reflected in the acceleration of cloud ARR growth. The company also highlighted its advancements in AI innovation, which are expected to further strengthen its competitive position in the global market.
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