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Radware

RDWR
58
Software - Infrastructure · Technology
Price
$27.85
+0.87 (+3.22%)
Market Cap
$1.20B
Exchange
NASDAQ
Winston Score
58
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Strong
Cash Flow
Strong
Stability
Good
Valuation
Good

Share count falling — buybacks

5.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 47.5M (2021) → 44.7M (2025)

Winston Score History

The full picture

Radware is an Israeli cybersecurity and networking company that protects websites, apps, and data centers from cyberattacks and traffic overloads. Its main products include tools that block DDoS attacks (floods of fake internet traffic meant to crash systems), application security software, and load balancing hardware that keeps networks running smoothly. Customers include large enterprises, banks, telecom companies, and government agencies around the world.

Radware makes money by selling software subscriptions, cloud-based security services, and hardware appliances, with a growing push toward recurring cloud revenue. The company operates globally, with headquarters in Tel Aviv and customers across North America, Europe, and Asia-Pacific, generating roughly $300 million in annual revenue. Its technical expertise in DDoS protection and application delivery gives it a niche position, but it competes against much larger rivals like Cloudflare and Akamai, which have greater scale and resources — making customer retention and continued cloud growth the key challenges ahead.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-59.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$79M/ year

Rising (+6% vs prior year)

26.2% of revenue

1.7x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

18.5%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$426M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Radware is putting 26% of revenue into R&D and that number is rising. That's 1.7x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
80.8%
Premium pricing power — 80.8% gross margin
Profit after running costs
Operating Margin
3.0%
Thin — 3.0% operating margin
Return on the money invested
ROCE
4.5%
Weak — 4.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+10.0%
Steady sales growth (+10.0% YoY)
Profit growth
EPS YoY
+18.4%
Earnings growing fast (+18.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
255%
Turns 255% of profit into real cash
Spare cash per sale
FCF Margin
10.6%
Modest free cash flow (10.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
70.9x
Expensive — P/E 70.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+45.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (70.9 → 25.3)

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Dividends

Not applicable for this business.
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