Radware Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Redware's fourth quarter and full year 2025 earnings call. Our prepared remarks today will be followed by a question and answer session, at which time, if you wish to ask a question, you will need to either raise your hand using your mobile or desktop application or press star nine on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded today. I now like to hand over the call to our first speaker today, Yizka Erez, Head of Investor Relations. Yizka, please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Radoa's fourth quarter and full year 2025 earnings conference call. Joining me today are Roy Zisopel, President and Chief Executive Officer, and Guy Vidan, Chief Financial Officer. A copy of today's press release and financial statements as well as the investor kit for the fourth quarter and full year are available in the investor relations section of our website. During today's call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risks and uncertainties and actual results could differ materially from RADWES current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to, impact from changing or severe global economic conditions, general business conditions and our ability to address changes in our industry, changes in demand for products, the timing in the amount of orders, and other risks detailed from time to time in RADWES filings. We refer you to the documents the company files and furnishes from time to time with the SEC, specifically the company's last annual report on Form 20F as filed on March 28, 2025. We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date of such statement is made. Before I turn it over to Roy, I'd like to remind you that we're hosting our Investor Day on February 17th in New York City. If you haven't received the registration email, please email us at ir.radware.com. I will now turn the call to Roy Zisopel.

Thank you, Iska, and thank you all for joining us today. I'm pleased to report that we ended 2025 on a high note with all major financial metrics. revenues, EPS, total ARR, and cloud ARR, reaching record highs. In Q4, revenue increased 10% year-over-year to $80 million, and on-gap earnings per share grew 19% to $0.32. For the full year, we also delivered 10% year-over-year growth in revenues, surpassing $300 million, while growing our RPO to $400 million. Over the last year, we've executed a strategy to accelerate our revenue growth and strengthen our position as the best of breed provider in application and data center security. Our strategy is built on three core pillars. Gaining meaningful market share in cloud security, leading through AI and algorithmic driven innovation, and expanding our go-to-market footprint. Well, we did it, and our strategy proved itself. The cloud security business continues to grow at a healthy pace and remain the key driver of our results, with cloud AR rising 23% year-over-year and 7% sequentially to $95 million in the fourth quarter. This shows accelerated growth from 19% in the beginning of 2025 and demonstrates strengthening momentum throughout the year. We achieved our goal of reaching nearly $100 million in cloud ARR by event, underscoring the confidence customers place in Rado to protect their mission-critical application. One example among the many cloud deals we secured in Q4 is a seven-digit deal with the European Financial Group, a new logo which is undergoing a major data center build-up. We were selected to provide a comprehensive cloud web and API solution, web DDoS protection, and more, all aligned with the stringent regulatory and operational demands. Our strong technological leadership and trust relationship enabled us to overtake the competition. To support rising cloud demands, we continue to invest in our cloud infrastructure. We expanded our global footprint with a new cloud security center in Singapore, and we also continued scaling our cloud security network advancing mitigation capacity towards 30 terabit to stay ahead of the increased attack volume, and fortifying the foundation for continued cloud security growth. This quarter, we expanded our cloud security offering with the launch of our new hardware API security service. We view API security as a new wave of growth, the third wave following DDoS and application security. As APIs become increasingly central to modern software architecture, customers need real-time visibility and protection against business logic attacks and coverage for shadow APIs. To further expand our API security offering, we announced the acquisition of Pint Security, whose API testing technology identified vulnerabilities before the API's niche production. With Pint, we now offer a full lifecycle API security solution. spending testing, discovery, posture management, and runtime protection, enhancing our value proposition, accelerating our roadmap, and strengthening our position to capture opportunities in this rapidly expanding market. This is truly exciting news and an enhancement to our cloud security platform. But we did not stop here. We just released our new agentic AI protection solution, which marks yet another major expansion of the hardware security platform. As organizations use anonymous AI agents, risks like intent manipulation, prompt-based attacks, and unauthorized data access increase. Our solution leverages a new set of behavioral algorithms and provides real-time AI agent discovery, intent detection, integration with top AI ecosystems, and ongoing security management. These advancements help enterprise adopt AI securely and supports hardware continued platform growth. This new capability positioned hardware at the forefront of securing the next era of AI. We look forward to sharing more about our AI vision and roadmap on our investor day. Fueled by strong cloud ARR momentum, subscription revenue surged 21% year over year. a sharp acceleration from 12% growth in 2024. Importantly, this momentum was also driven by robust demand for product subscription. This demand was driven by very strong DefenseProX refresh cycle and major competitive displacements, resulting in exceptional double-digit year-over-year growth in DefenseProX in Q4 and for the full year of 2025. Looking ahead, our pipeline remain robust across both existing and new logos, and we plan to take full advantage of our technology leadership in this space. We closed multiple large defense projects deals in the fourth quarter. One eight-digit win was a major strategic expansion with a government IT services agency in North America. Facing an upcoming end of life refresh, The customer selected our next generation defense for architecture, reinforcing our deep technical engagement and proven on-prem capabilities as well as our long-term relationships. Another important win is a multi-year, multi-million dollar agreement for a hybrid cloud IDOS with a new logo, top 10 global SaaS and IT services management leaders. Facing repeated large-scale DDoS, the customer required fast, reliable mitigation at global scale, and its legacy solution could no longer meet performance and resilience needs. The customer replaced its on-prem vendor and cloud DDoS vendor with Radro Defense Pro X and cloud DDoS protection. Our detection accuracy, automation capabilities, and proven ability to protect mission-critical applications were key differentiators that drove the wins and positioned us as a strategic partner for their continued expansion. Overall, 2025 was a year of improved execution and meaningful progress across the business. We delivered record results, driven by continued expansion in cloud security and increased momentum in our go-to-market engine. Additionally, we advanced our technology leadership with significant innovation, AI security and API security. With a stronger foundation, a strengthening go-to-market approach, an enhanced time, leading security platform, and rising demand for modern security solutions, we're carrying this momentum forward as we move into 2026. With that, I will turn the call over to Guy.