Are Radware’s (RDWR) New Security Partnerships a Turning Point for Its Cloud Strategy?

• Radware recently reported earnings for the second quarter of 2025, showing higher sales and net income compared to the previous year, and provided revenue guidance for the third quarter ranging from US$74.5 million to US$75.5 million.
• The company also announced new managed security service provider agreements in the U.S., underscoring a growing demand for its cloud security solutions among enterprise-focused partners.
• We’ll consider how Radware’s expanded MSSP partnerships could play a central role in shaping its longer-term investment narrative.

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What Is Radware's Investment Narrative?

To be a Radware shareholder today is to believe in its ability to capitalize on the rising demand for cloud-based security, especially as more managed security service providers (MSSPs) sign onto its solutions. The most recent earnings reveal higher sales and net income compared to last year, pointing to traction with customers, while new MSSP agreements in the U.S. could help broaden Radware’s enterprise reach. These partnerships may serve as a catalyst for future growth, but their financial impact will only matter if they translate into expanding margins and sustained client wins. The near-term outlook is influenced by the company’s Q3 revenue guidance, which is steady rather than signaling a major inflection point, and the stock’s recent moves suggest that the market has yet to price in any material benefit from these announcements. Investors still need to weigh the high valuation multiple and episodic, one-off gains against evidence of durable profit growth.
However, while new partnerships offer upside, Radware’s high price-to-earnings ratio compared to peers can’t be ignored.

Radware's share price has been on the slide but might be up to 18% below fair value. Find out if it's a bargain.

Exploring Other Perspectives

Among four fair value estimates from the Simply Wall St Community, prices span US$14.53 to US$32.33 per share, revealing wide-ranging views on where Radware’s real worth lies. Against these diverse perspectives, recent MSSP wins may not be enough to offset market concerns about profitability quality in the short term. Consider how sharply opinions differ before reaching your own view.

Explore 4 other fair value estimates on Radware - why the stock might be worth 43% less than the current price!

Build Your Own Radware Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Radware research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Radware research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Radware's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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