Corero Network Security (LSE:CNS) has indicated that it expects to deliver full-year 2025 revenue at the top end of its guidance range, with EBITDA coming in ahead of expectations, after strong second-half trading compensated for a slower start to the year. Annual recurring revenue increased by 23% to $23.9m, while order intake rose 20% to $33.8m, reflecting growing demand for the SmartWall ONE and CORE platform offerings.
The performance was underpinned by continued momentum in subscription-based sales and the expansion of DDoS Protection-as-a-Service deployments. Full-year revenue increased by around 4% to approximately $25.5m, while EBITDA is expected to exceed $1.3m. The balance sheet remains solid, with net cash of $4.0m and no debt, supported by a customer retention rate of 98%.
Management characterised 2025 as a transitional year, as the group accelerates its shift toward a more predictable, recurring revenue model. While this transition resulted in lower EBITDA compared with the prior year, it is intended to lay the foundations for higher-quality growth and improved profitability from 2026 onwards. This trade-off between near-term margins and long-term value creation is likely to remain a key focus for investors, particularly those assessing cash generation and scalability in the cybersecurity sector.
From an outlook perspective, Corero benefits from solid underlying financial delivery and supportive corporate developments that point to future growth potential. However, bearish technical indicators and valuation pressure linked to negative earnings continue to weigh on sentiment. While strategic progress and strong contract wins are encouraging, sustained improvements in profitability and cash flow remain important execution priorities.
More about Corero Network Security
Corero Network Security is a London-headquartered cybersecurity company specialising in distributed denial of service (DDoS) protection. The group provides automated detection and mitigation, network visibility, analytics and reporting solutions designed to protect complex edge and subscriber environments and ensure service availability. Corero operates from centres in Marlborough, Massachusetts, and Edinburgh, and is listed on AIM in London and on the US OTCQX market, serving global service providers and enterprises requiring real-time DDoS defence.
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