REG - Corero Network Sec. - Trading Update

Corero Network SecurityAnnouncement

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RNS Number : 4889O  Corero Network Security PLC  12 January 2026

12 January 2026

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

 

Corero Network Security plc

("Corero" or the "Company")

 

Trading Update

 

FY 2025 EBITDA expected to exceed guidance with FY 2025 revenues at the upper
end of guidance(2)

 

Strong sales momentum across H2 2025

 

Corero (https://www.corero.com/) (AIM: CNS)
(https://www.londonstockexchange.com/stock/CNS/corero-network-security-plc/company-page)
(OTCQX: DDOSF) (https://www.otcmarkets.com/stock/DDOSF/overview) , the
distributed denial of service ("DDoS") protection specialists with real-time
service availability, provides the following trading update for the year ended
31 December 2025(1) ("FY 2025") and is pleased to report that the positive
trading momentum in Q2 2025 continued throughout H2 2025.

 

The Company, subject to audit, expects to report revenue at the upper end of
guidance(2) and EBITDA ahead of guidance for FY 2025.

 

Corero delivered a solid performance across all financial KPIs in FY 2025,
supported by strong H2 trading, summarised as follows:

 

·    Annual Recurring Revenues ("ARR")(3) increased by 23% to $23.9
million

·    Order Intake(4) ("Orders") increased by 20% to $33.8 million

·    Revenue increased by 4% to $25.5 million

·    EBITDA(5) expected to be in excess of $1.3 million, representing a
significant improvement over H1 2025

·    Net cash at the year end of $4.0 million, with positive cash
generation in H2 2025

·    Continued high customer retention(6) at 98%

 

ARR, a key performance metric for the Group, increased 23% to $23.9 million as
at 1 January 2026 (ARR at 1 January 2025: $19.5 million), with good demand for
both Corero's subscription-based and DDoS Protection as-a-Service ("DDPaaS")
products.

 

Order Intake(4) grew a healthy 20% to $33.8 million (FY 2024: $28.2 million)
with strong demand in H2 2025 for Corero's SmartWall ONE(TM) solution and CORE
platform products, overcoming the external headwinds faced in Q1 2025 which
adversely impacted H1 2025 Order Intake.  Sales of new products released in
2025 was encouraging with over 40 units of Corero's next generation 400GB
platform and five new customer wins for the CORE platform solution.

 

Subject to audit, revenue for FY 2025 is expected to be approximately $25.5
million (FY 2024: $24.6 million), with Corero delivering growth in H2 2025 of
18% and 4% for FY 2025. This growth reflects the significant shift in sales
mix away from upfront revenue towards a more predictable recurring
subscription-based revenue model as reported in H1 2025.

 

Subject to audit, EBITDA for FY 2025 is expected to exceed $1.3 million (FY
2024: $2.5 million), representing a significant improvement over H1 2025. This
was driven by an increase in H2 2025 revenue and actions taken to realign the
cost base.

 

Cash as at 31 December 2025 was $4.0 million (cash as at 31 December 2024:
$5.3 million; cash as at 30 June 2025: $3.1 million), with no outstanding
debt.

 

Carl Herberger, CEO of Corero, commented:

 

"We are pleased to have generated solid growth in H2 2025 with the business
generating strong sales momentum across the second half of the year. 2025 was
a transitional year with the business moving to a recurring subscription-based
sales model.

 

As we continue to innovate and enhance our product portfolio to deploy
market-leading solutions to our global customer base, Corero is well
positioned to deliver increased recurring revenues and profitable growth in
2026 and beyond."

 

 

(1) All numbers for year ending 31 December 2025 disclosed within this
announcement are management estimates based on current information and are
unaudited.

(2) FY 2025 guidance, as announced by RNS on 16(th) July 2025, was revenue
between $24.0 million and $25.5 million and EBITDA between $1.5 million loss
and $0 million.

(3) ARR is defined as the normalised annualised recurring revenues and
includes recurring revenues from contract values of annual support, software
subscriptions including terms greater than one year, and from DDoS
Protection-as-a-Service ("DDPaaS") contracts.

(4) Order intake is defined as orders received from customers in the period.

(5) EBITDA is defined as earnings before interest, tax, depreciation, and
amortisation.

(6) Customer retention is defined as the percentage of annual recurring
revenue retained from existing customers during the renewal cycle across the
measurement period.

 

 

Enquiries:

 

 Corero Network Security plc                                     Tel: +44(0)20 7390 0230
 Carl Herberger, Chief Executive Officer
 Chris Goulden, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser and Joint Broker)  Tel: +44(0)20 7523 8000
 Simon Bridges / Andrew Potts / Harry Rees

 Zeus Capital (Joint Broker)                                     Tel: +44(0)20 3829 5000

 Ben Robertson / Ed Beddows

 Vigo Consulting (U.K Financial PR and Investor Relations)       Tel: +44(0)20 7390 0230
 Jeremy Garcia / Anna Sutton
 corero@vigoconsulting.com (mailto:corero@vigoconsulting.com)

 Harbor Access (U.S Investor Relations)                          Tel: +1 475 477 9401

 Jonathan Paterson

 

About Corero Network Security

 

Corero Network Security is a leading provider of DDoS protection solutions,
specialising in automatic detection and protection solutions with network
visibility, analytics, and reporting tools. Corero's technology protects
against external and internal DDoS threats in complex edge and subscriber
environments, ensuring internet service availability. With operational centres
in Marlborough, Massachusetts, USA, and Edinburgh, UK, Corero is headquartered
in London and listed on the London Stock Exchange's AIM market (ticker: CNS)
and the US OTCQX Market (OTCQX: DDOSF).

 

For more information, visit www.corero.com (http://www.corero.com/) , and
follow us on LinkedIn (https://www.linkedin.com/company/corero/)  and X
(https://twitter.com/Corero) .

 

 

 

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