REG - Corero Network Sec. - Unaudited H1 2025 Results & Directorate Change
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250916:nRSP4222Za&default-theme=true
RNS Number : 4222Z Corero Network Security PLC 16 September 2025
16 September 2025
Corero Network Security plc
("Corero" or the "Group")
Unaudited H1 2025 Interim Results
Directorate Change
- 25% increase in ARR led by change in sales mix to subscription
products and services
- Accelerated adoption of DDPaaS solutions delivering increased
revenue visibility, and a more predictable and scalable revenue base
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, announces its
unaudited results for the six months ended 30 June 2025 ("H1 2025").
Financial Highlights
· Annualised Recurring Revenues(1) ("ARR") grew strongly by 25% to
$21.6 million (H1 2024: $17.2 million)
o Underpinned by growth in DDoS Protection-as-a-Service ("DDPaaS") solution
sales
· Group reported revenue $10.9 million down 10% on prior year (H1 2024:
$12.2 million)
o Accelerated customer adoption of DDPaaS solutions impacting in period
recognised revenue
· Order intake(2) $12.5 million, a decrease of 12% over the prior year
(H1 2024: $14.2 million)
o Q1 order intake impacted by weaker than expected Alliance Partner
performance and short-term uncertainty as a result of the anticipated US
tariffs
o Q2 2025 order intake rebounded positively, growth of 13% over Q2 2024 to
$7.8 million
· Continued high customer retention(3) at 98%
· EBITDA(4) loss of $1.4 million (H1 2024: profit of $0.7 million)
impacted by the shift to recurring revenue
(1 ) 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.
(2 ) Order intake is defined as orders received from customers in the period.
(3 ) Customer retention is defined as the percentage of annual recurring
revenue retained from existing customers during the renewal cycle across the
measurement period.
(4 ) EBITDA is defined as earnings before interest, tax, depreciation, and
amortisation.
Operational Highlights
· New customer wins and contract expansion momentum, particularly post
Q1
o Includes major $1.2 million deal and strategic regional partnership with
Forte Telecom, one of the largest telecommunications providers in the state of
Rio de Janeiro, Brazil
· Strategic expansion of partnership with Juniper Networks ("Juniper")
to sell Corero's full portfolio of DDoS protection solutions, which will open
up opportunities with Juniper tier-one telecommunication service provider
customers
· Secured the first two customer wins for the recently launched Corero
Observability & Resiliency Ecosystem ("CORE") solution totalling $1.8
million
Directorate Change
· Ashley Stephenson, currently Chief Technology Officer and Director to
retire from Corero
o Ashley joined Corero in 2013 and has held a number of roles including
Chief Executive Officer, and has been instrumental in driving the Corero
SmartWallONETM product strategy
o Ashley's responsibilities will be transitioned to the Corero senior
leadership team, and he will work closely with Carl Herberger to ensure a
seamless transition in the period to the end of the year
Current Trading & Outlook
· Trading in Q3 has continued with the positive momentum from Q2
· Management is confident in driving sustained ARR growth and adapting
to a higher mix of DDPaaS driven revenue underpinned by an improved pipeline
and Alliance Partner opportunities
· Momentum is building and management is comfortable with the guidance
for the year ending 31 December 2025 as announced on 16 July 2025 of revenue
between $24.0 million and $25.5 million (FY 2024: $24.6 million) and EBITDA
between $1.5 million loss and $0 million (FY 2024: $2.5 million profit)
Carl Herberger, Chief Executive Officer at Corero, commented:
"I am pleased with the rebound in Q2 order intake and demand for our recently
expanded product offering. The strong growth in ARR in the first half of the
year, underpinned by the accelerated customer demand for DDPaaS solutions,
will deliver more predictable revenues. We continue to see the shift in
customer demand away from upfront licenses to ARR.
The Company is focused on delivering revenue growth in the second half of 2025
over the prior year by continuing to build the new business pipeline and
expanding our global partner network.
Finally, and on behalf of the Board and the Corero team, I would like to
express my sincere gratitude to Ashley Stephenson for his significant
contribution to Corero over the past twelve years and to wish him all the very
best for the future."
Ashley Stephenson, Chief Technology Officer, commented:
"It has been a privilege to work with the outstanding Corero team over the
past decade. In that same period, the threat from cybersecurity attacks has
escalated to unprecedented levels. With an expanding product portfolio and
strategic alliances, I am confident Corero is well positioned to continue to
deliver best in class protection."
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) Simon Bridges / Tel: +44(0)20 7523 8000
Andrew Potts / Harry Rees
Zeus Capital (Joint Broker) Tel: +44(0)20 3829 5000
Ben Robertson / Ed Beddows
Vigo Consulting (Financial PR and Investor Relations) Tel: +44(0)20 7390 0230
Jeremy Garcia / Anna Sutton
corero@vigoconsulting.com
Harbor Access (Investor Relations) Tel: +1 475 477 9401
Jonathan Paterson
About Corero Network Security
Corero Network Security is a leading provider of DDoS protection solutions,
delivering real-time, automated detection and mitigation with deep network
visibility and analytics. Corero safeguards critical infrastructure across
diverse deployment models-from inline to edge to hybrid cloud-through its
SmartWallONE(TM) solution and CORE, an observability and resiliency ecosystem
to unify defensive actions across the modern threat landscape. With
operational centres in Marlborough, Massachusetts, USA, and Edinburgh, UK,
Corero is 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) .
Chief Executive Officer's Review
Introduction
Group reported revenue for H1 2025 was $10.9 million, down 10% on the prior
year (H1 2024: $12.2 million), as a result of accelerated customer adoption of
DDoS Protection-as-a-Service ("DDPaaS") solutions and a corresponding
reduction in upfront appliance and license sales. The impact of the increased
DDPaaS sales was a reduction of in period recognised revenue with a
corresponding strong increase in ARR, which grew 25% to $21.6 million (H1
2024: $17.2 million). This shift in revenue also had an impact on EBITDA.
The H1 2025 EBITDA loss was $1.4 million (H1 2024: profit of $0.7 million).
Notably, management expects this shift in revenue to ARR will benefit future
years, resulting in more consistent revenue recognition over the duration of
these contracts, typically three years. As such, it represents an opportunity
to build a more predictable and resilient business model that provides
visibility of secured revenues and supports retention rates across the Group's
customer base in the long term.
Order intake across H1 2025 was $12.5 million (H1 2024: $14.5 million). Q1
order intake was impacted by a weaker than expected Alliance Partner
performance and notable uncertainty as a result of the anticipated US tariffs.
However, order intake rebounded strongly in Q2 2025 as tariff concerns eased,
growing 13% year-on-year to $7.8 million. This included three significant
customer expansion orders totalling $2.7 million and the first two customer
wins for the recently launched new Corero Observability & Resiliency
Ecosystem ("CORE") solution totalling $1.8 million. The Group also made
progress on its strategic objective of broadening Corero's global footprint
through the creation and expansion of strategic channel partnerships, with
particular success in Latin America across H1 2025.
Corero reported a net cash balance at 30 June 2025 of $3.1 million (H1 2024:
$7.9 million) and has no outstanding debt. The Group is in the advanced stages
of finalising a bank overdraft facility from its existing banking partner to
support the increased working capital requirements resulting from the growth
in DDPaaS solutions where cash receipts are spread over the life of the
contract.
Corero remains at the forefront of DDoS innovation, being named an Emerging
Innovator in the 2025 SPARK Matrix, a leading independent third-party industry
research organisation. Corero was recognised for its real-time threat
intelligence and behavioural-based DDoS defences(1), evidence of Corero's best
in class solutions. In the context of an increasingly complex DDoS threat
landscape where businesses are more vulnerable than ever, demand for
comprehensive DDoS solutions remains robust. The Group is therefore
well-placed to capitalise on providing market leading DDoS solutions through
both internally generated leads and its strategic partnerships.
(1)
https://www.corero.com/corero-leads-in-2025-spark-matrix-with-higher-customer-impact/
(https://www.corero.com/corero-leads-in-2025-spark-matrix-with-higher-customer-impact/)
Strategic Priorities
Corero continues to focus on increasing its DDoS defence market share globally
and remains committed to four key established strategic pillars:
1. Expanding global footprint and partnership channels - leveraging
alliance and channel partnerships to grow presence across key regions,
including Latin America, the Middle East and APAC
2. Investing in sales and marketing initiatives - increasing targeted
marketing activity and spend, and hiring experienced personnel in new
geographies
3. Securing client renewals and realising upsell opportunities -
maintaining or improving on the excellent 98% customer retention rate,
delivering price increases for renewals and extensions as standard, and
continuing to diversify the product mix
4. Accelerating market competitiveness - actively targeting competitor
displacements in key geographies, and launching new product innovations and
add-on features aimed at attracting new customers
Operational Review
As part of the Group's reinvigorated go-to-market strategy and following
targeted sales investment in FY 2024, Corero is focused on generating new
business opportunities globally and leveraging alliance and channel
partnerships to secure new routes to market and revenue streams. The business
has had notable success growing its footprint in Latin America in H1 2025,
having secured a number of new customer wins. The Group has also enlarged its
enterprise addressable market through an expansion of its partnership with
Juniper to sell Corero's full product suite of DDoS solutions.
New Alliance and channel partnerships secured in H1 2025 include:
· Channel partner TechEnabler secured a new contract to implement
Corero's SmartWallONE(TM) solution for a leading telecommunications provider
in Brazil, replacing the incumbent provider
· Strategic expansion of partnership with Juniper to sell Corero's full
portfolio of DDoS protection solutions to Juniper's customers, opening up new
opportunities with tier-one telecommunication providers and enterprises
· Secured Certified Partner status with World Wide Technology (WWT), a
leading global technology integrator with deep expertise in cybersecurity
Customer deals secured in H1 2025 include:
· Significant $1.5 million expansion of TierPoint relationship,
deploying Corero's next-generation CORE solution
· 3-year, $1.2 million partnership with Forte Telecom, one of the
largest telecommunications providers in Rio de Janeiro, Brazil
· 5-year, $1.2 million expansion of its partnership with Lightedge,
extending Corero's protection across its data centres and replacing an
existing provider
· $0.8 million contract renewal and extension with partner TechEnabler,
a leading technology service provider in Brazil
· $0.3 million deal with Cooper Health incorporating Corero's new CORE
Zero Trust Admission Control capabilities across its almost 14,000 employees
across three hospitals
Post the period end, Corero secured a multi-year deal with a leading European
banking and insurance customer through its Alliance Partner, Akamai. The
customer selected Akamai's Prolexic On-Prem solution, which is powered by
Corero's SmartWallONE(TM) platform, with the initial 3-year DDPaaS contract
worth $0.6 million in total contract value to Corero.
Product innovation
Corero continues to invest in R&D to deliver enhancements to its existing
offerings and maintain leadership in its solutions offering across
on-premises, hybrid, and cloud environments. Being named a Leader in the 2025
SPARK Matrix for DDoS Mitigation for the first time, awarded to vendors
demonstrating the highest standards across both technology excellence and
customer impact(1), exemplifies Corero's commitment to remaining at the
forefront of the DDoS protection market.
The Group also secured its first two deals deploying its next generation CORE
solution, a new SaaS cloud-based availability protection platform that has
evolved the Corero offering beyond DDoS protection solutions. The platform has
market leading capabilities including Traffic Analysis, Zero Trust Admission
Control and Layer 7 DDoS protection, solutions in demand from Corero's target
market, which complement the existing suite of Corero products. Continued
investment into the CORE platform alongside Corero's existing SmartWallONE(TM)
solution will enable the Group to further establish its position as a
technical leader and unlock new commercial opportunities.
(1)
https://www.corero.com/corero-leads-in-2025-spark-matrix-with-higher-customer-impact/
(https://www.corero.com/corero-leads-in-2025-spark-matrix-with-higher-customer-impact/)
Addressable Market and Market Drivers
Demand for DDoS solutions continues to grow in the face of frequent and
sophisticated cyber-attacks, with the market estimated to be worth $9.6
billion by 2029 (2024: $5.2 billion), representing a CAGR of 13.2%(1). Corero
operates within a significant segment of this overall market; management
estimates that the total addressable market exceeds $2.0 billion for its
SmartWallONE(TM) solutions.
DDoS attacks are easy to execute whilst still inflicting a significant impact
on the target, including reputational damage, operational downtime, and
financial losses, estimated to cost $100,000 for every hour an attack
persists(2). The largest DDoS botnet(3) ever recorded was identified in the
second quarter of 2025, comprising 4.6 million infected devices and almost 20
times bigger than the largest botnet seen in 2024(4). As evidence of the
growing threat of DDoS, a newly discovered attack method, dubbed Win-DDoS, has
the capability to create a powerful botnet by harnessing publicly accessible
Windows domain controllers(5).
Companies across industry sectors are therefore taking an increasingly
proactive approach to their DDoS defence capabilities to mitigate the rapidly
evolving DDoS landscape, leaving Corero well-placed to leverage current market
sentiment.
Demand for DDoS solutions in the US, Corero's largest customer base and
geographical footprint, remains high. Hactivism following geopolitical events
continues to represent a significant threat, with DDoS attacks in the US
surging 800% following the US military action targeting Iran's nuclear
facilities(6).
The addressable DDoS market in Latin America is also growing rapidly as a
result of digital expansion and increasing connectivity in the region, driving
demand for scalable DDoS solutions.
The new CORE products provide Corero with access to an incremental market with
a current estimated value of $36.0 billion(7). Management estimates that the
total addressable market for CORE is 15-20% of this market, $5.4 to $7.2
billion.
Corero is well-placed to leverage these market trends and opportunities.
(1)
https://www.marketsandmarkets.com/PressReleases/ddos-protection-mitigation.asp
(https://www.marketsandmarkets.com/PressReleases/ddos-protection-mitigation.asp)
(2) https://www.mordorintelligence.com/industry-reports/ddos-protection-market
(https://www.mordorintelligence.com/industry-reports/ddos-protection-market)
(3) A botnet is a network of interconnected computers or devices that are
infected with malicious software, allowing a remote attacker to control them
without the users' knowledge or consent. These botnets are then used to
initiate cyberattacks including DDoS attacks.
(4)
https://www.itpro.com/security/cyber-attacks/application-layer-ddos-attacks-are-skyrocketing-heres-why
(https://www.itpro.com/security/cyber-attacks/application-layer-ddos-attacks-are-skyrocketing-heres-why)
(5) https://the420.in/win-ddos-windows-domain-controller-botnet-vulnerability/
(https://the420.in/win-ddos-windows-domain-controller-botnet-vulnerability/)
(6)
https://www.techradar.com/pro/security/mr-hamza-mysterious-team-bangladesh-and-keynous-led-a-massive-surge-in-ddos-on-us-businesses-following-an-attack-on-iran?utm_source=chatgpt.com
(https://www.techradar.com/pro/security/mr-hamza-mysterious-team-bangladesh-and-keynous-led-a-massive-surge-in-ddos-on-us-businesses-following-an-attack-on-iran?utm_source=chatgpt.com)
(7) https://www.marketsandmarkets.com/telecom-and-IT-market-research-113.html
(https://www.marketsandmarkets.com/telecom-and-IT-market-research-113.html)
Directorate Changes
Ashley Stephenson, currently the Company's Chief Technology Officer and
Director, has informed the Board of his intention to retire from the Company
with effect from 31 December 2025, and will therefore step down as a director
of the Company with effect from 30 September 2025. Ashley joined Corero in
2013 and has held a number of key roles across the Group including Chief
Executive Officer, and more recently Chief Technology Officer, and has been
instrumental in driving the Corero SmartWall product strategy.
Ashley's responsibilities will be transitioned to the Corero senior leadership
team, and he will work closely with Carl Herberger to ensure a seamless
transition in the period to the end of the year.
In addition, Chris Goulden, Corero's Chief Financial Officer, was appointed to
the Board in April 2025.
Outlook
The business remains well placed to expand our revenues with existing
customers and further develop its new business pipeline across H2 2025. The
shift from customers to a DDPaaS subscription solutions rather than upfront
licences will deliver more predictable revenues for the business and further
support ARR growth.
The guidance for FY 2025, which was revised on 16 July 2025, remains unchanged
at revenue between $24.0 and $25.5 million (FY 2024: $24.6 million) and EBITDA
between $1.5 million loss and $0 million (FY 2024: $2.5 million profit).
Momentum is building and management is confident in driving sustained ARR
growth and adapting to a higher mix of DDPaaS driven revenue underpinned by an
improved pipeline and Alliance Partner opportunities.
Carl Herberger
Chief Executive Officer
15 September 2025
Chief Financial Officer's Review
Revenue for the six months ended 30 June 2025 was $10.9 million (H1 2025:
$12.2 million). This decrease in revenue is a result of the lower H1 2025
order intake and an increase in DDPaaS order mix, for which an increased
proportion of new business revenues are recognised over the term of the
contract as opposed to up front for other Corero commercial sales models. Q1
2025 order intake was impacted by a weaker than expected Alliance Partner
performance and notable uncertainty as a result of the anticipated US tariffs,
however Q2 2025 order intake rebounded positively, growth of 13% over Q2 2024
to $7.8 million. The increase in DDPaaS order mix resulted in Annual Recurring
Revenues (ARR) increasing 25% to $21.6 million (H1 2024: $17.2 million).
Management believes this trend to increased ARR will continue going forward
and will benefit the Group as a greater percentage of future year's revenues
are already secured given the typical DDPaaS deal term of three years.
Gross margin remained high during the period at 91% (H1 2024: 91%).
The table below illustrates the typical revenue recognition and cashflow
timing of the Corero customer commercial sales models:
CAPEX DDPaaS Service
Contract term 1-5 years 3 years Monthly
Type Software license / appliance + S&M Subscription Subscription
Revenue recognition Majority up front, S&M over contract term Over contract term Monthly
Invoicing frequency Typically full term in advance Over contract term Monthly
S&M = Support and Maintenance
Total operating expenses before depreciation and amortisation were $11.3
million (H1 2024: $10.4 million), with the increase in expenses largely
attributable to an increase in sales team resources.
Depreciation and amortisation of intangible assets amounted to $1.0 million
(H1 2024: $1.0 million), with capitalised R&D costs of $1.4 million (H1
2024: $1.1 million), the increase being attributable to the CORE product
development.
EBITDA for H1 2025 was a loss of $1.4 million (H1 2024: profit $0.7 million),
with increased selling costs of $0.9 million in the period and lower revenues
of $1.3 million as a result of the sales mix change in H1 2025 with increased
DDPaaS solution sales detailed above.
Loss before taxation was $2.4 million (H1 2024: $0.2 million) and loss after
taxation was $2.4 million (H1 2024: $0.3 million). The reported loss per share
was 0.5 cents (H1 2024: 0.1 cents).
Cash and cash equivalents as at 30 June 2025 was $3.1 million (H1 2024: $7.9
million), a decrease of $2.2 million in the six-month period (H1 2024: $2.7
million increase) due to the change in timing of invoicing and cash receipts
as a result of the change in sales mix in the period.
There was no outstanding debt at 30 June 2025. The Group is in the advanced
stages of finalising a bank overdraft facility from its existing banking
partner, to support any short-term funding of working capital as a result of
the increase in DDPaaS sales which has an impact on short term cash flows as
customers are invoiced and pay over the life of the contract rather than
upfront.
Chris Goulden
Chief Financial Officer
15 September 2025
Condensed Consolidated Income Statement
for the six months ended 30 June 2025
Continuing operations Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000
$'000
$'000
Revenue 10,908 12,162 24,559
Cost of sales (1,036) (1,053) (2,134)
Gross profit 9,872 11,109 22,425
Operating expenses (12,260) (11,352) (21,933)
Consisting of:
Operating expenses before depreciation and amortisation (11,274) (10,372) (19,925)
Depreciation and amortisation of intangible assets (986) (980) (2,008)
Operating (loss) / profit (2,388) (243) 492
Finance income 40 50 99
Finance costs (16) (24) (36)
(Loss) / profit before taxation (2,364) (217) 555
Taxation charge (50) (56) (56)
(Loss) / profit after taxation for the period (2,414) (273) 498
(Loss) / profit after taxation attributable to equity holders of the parent (2,414) (273) 498
for the period
Basic and diluted (loss) / earnings per share Cents Cents Cents
Basic (loss) / earnings per share (0.5) (0.1) 0.1
Diluted (loss) / earnings per share (0.5) (0.1) 0.1
EBITDA(1) (1,402) 737 2,500
1 See note 6 for definitions and reconciliation.
Condensed Consolidated Statement of Total Comprehensive Income
for the six months ended 30 June 2025
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
(Loss) / profit for the period (2,414) (273) 498
Other comprehensive income/(expense):
Items reclassified subsequently to profit or loss upon derecognition:
Foreign exchange differences 253 (7) (49)
Other comprehensive expense for the period net of taxation attributable to the 253 (7) 449
equity owners of the parent
Total comprehensive expense for the period attributable to the equity owners (2,181) (280) 449
of the parent
Condensed Consolidated Statement of Financial Position
as at 30 June 2025
Unaudited as at Unaudited as at Audited as at
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
Assets
Non-current assets
Goodwill 8,991 8,991 8,991
Intangible assets 7,104 5,101 6,422
Property, plant and equipment - owned assets 974 772 944
Leased right of use assets 526 224 139
Total Non-current assets 17,595 15,088 16,496
Current assets
Inventories 554 295 389
Trade and other receivables 8,694 9,047 11,290
Cash and cash equivalents 3,116 7,852 5,321
Total Current assets 12,364 17,194 17,000
Total assets 29,959 32,282 33,496
Liabilities
Current Liabilities
Trade and other payables (3,207) (3,812) (4,340)
Lease liabilities (154) (149) (102)
Deferred income (6,269) (5,837) (6,861)
Total Current liabilities (9,630) (9,798) (11,303)
Net current assets 2,734 7,396 5,697
Non-current liabilities
Deferred income (3,318) (5,219) (3,481)
Lease liabilities (369) (87) (48)
Total Non-current liabilities (3,687) (5,306) (3,529)
Net assets 16,642 17,178 18,664
Capital and reserves attributable to the equity owners of the parent
Share capital 7,133 7,091 7,133
Share premium 83,290 82,821 83,290
Capital redemption reserve 7,051 7,051 7,051
Share options reserve 2,630 2,245 2,491
Foreign exchange translation reserve (1,761) (1,972) (2,014)
Accumulated profit and loss reserve (81,701) (80,058) (79,287)
Total shareholders' equity 16,642 17,178 18,664
Condensed Consolidated Statement of Cash Flows
for the six month period ended 30 June 2025
Operating activities Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
(Loss) / Profit before taxation for the period (2,364) (217) 555
Adjustments for movements:
Amortisation of capitalised development expenditure 748 787 1,588
Depreciation - owned assets 68 210 467
Depreciation - leased assets 170 85 170
Finance income (40) (50) (99)
Finance expense - 7 8
Finance lease interest costs 16 17 28
Share based payments expense 141 238 484
Cash (used in) / generated from operating activities before movement (1,261) 1,077 3,201
in working capital
Movement in working capital:
(Increase) in inventories and sales evaluation assets (165) (199) (293)
Decrease / (increase) in trade and other receivables 2,596 (620) (2,863)
(Decrease) / increase in trade and other payables (1,888) 3,483 3,297
Net movement in working capital 543 2,664 141
Cash (used in) / generated from operating activities (718) 3,741 3,342
Taxation (50) (56) (56)
Net cash (used in) / generated from operating activities (768) 3,685 3,286
Cash flows from investing activities
Investment in development expenditure (1,422) (1,069) (3,190)
Purchase of property, plant and equipment (274) (350) (789)
Finance income 40 50 99
Net cash used in investing activities (1,656) (1,369) (3,879)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital - 483 994
Lease liability payments (96) (96) (193)
Finance expense (16) (7) (36)
Net cash (used in) / generated from financing activities (112) 380 765
(Decrease) / Increase in cash and cash equivalents (2,536) 2,696 171
Effects of exchange rates on cash and cash equivalents 331 (4) (10)
Cash and cash equivalents at 1 January 5,321 5,160 5,160
Cash and cash equivalents at balance sheet dates 3,116 7,852 5,321
Condensed Consolidated Statement of Changes in Equity
for the six month period ended 30 June 2025
Share capital Share premium Capital redemption reserve Share options reserve Foreign exchange translation reserve Accumulated profit and loss reserve Total attributable to equity owners of the parent
$'000 $'000 $'000 $'000 $'000 $'000 $'000
1 January 2024 6,999 82,430 7,051 2,007 (1,965) (79,785) 16,737
Loss for the period - - - - - (273) (273)
Other comprehensive expense - - - - (7) - (7)
Total comprehensive expense for the period - - - - (7) (273) (280)
Contributions by and distributions to owners
Issue of share capital - exercise of options 92 391 - - - - 483
Share based payments - - - 238 - - 238
Total contributions by and distributions to owners 92 391 - 238 - - 721
30 June 2024 7,091 82,821 7,051 2,245 (1,972) (80,058) 17,178
Profit for the period - - - - - 771 771
Other comprehensive expense - - - - (42) (42)
Total comprehensive income for the period - - - - (42) 771 729
Contributions by and distributions to owners
Issue of share capital - exercise of options 42 469 - - - - 511
Share based payments - - - 246 - - 246
Total contributions by and distributions to owners 42 469 - 246 - - 757
This 31 December 2024 and 1 January 2025 7,133 83,290 7,051 2,491 (2,014) (79,287) 18,664
Loss for the period - - - - - (2,414) (2,414)
Other comprehensive expense - - - - 253 - 253
Total comprehensive expense for the period - - - - 253 (2,414) (2,161)
Contributions by and distributions to owners
Share based payments - - - 139 - - 139
Total contributions by and distributions to owners - - - 139 - - 139
30 June 2025 7,133 83,290 7,051 2,630 (1,761) (81,701) 16,642
Notes to the Condensed Consolidated financial statements
1. General information and basis of preparation
Corero Network Security plc (the "Company") is a company domiciled in England.
The condensed consolidated interim financial statements of the Company for the
six months ended 30 June 2025 comprise the Company and its subsidiaries
(together referred to as the "Group").
1.1 Basis of Preparation
These condensed interim consolidated financial statements have been prepared
in accordance with UK-adopted IAS 34,"Interim Financial Reporting". They do
not include all disclosures that would otherwise be required in a complete set
of financial statements and should be read in conjunction with the Annual
Report and Accounts for the year ended 31 December 2024 ("2024 Annual Report
and Accounts"). Estimates and judgements that can have a significant impact on
the Group's interim consolidated financial statements are the same as that of
the prior year annual financial statements. The financial information for the
half years ended 30 June 2025 and 30 June 2024 do not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act 2006 and
have neither been audited nor reviewed by the Group Auditor.
The annual financial statements of Corero Network Security plc are prepared in
accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006. The comparative financial information
for the year ended 31 December 2024 included within this report does not
constitute the full statutory accounts for that period. The statutory Annual
Report and Financial Statements for 2024 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report and Accounts
for 2024 was unqualified and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006.
There have been no related party transactions or changes in related party
transactions described in the latest Annual Report and Accounts that could
have a material effect on the financial position or performance of the Group
in the first six months of the financial year.
These consolidated interim financial statements were approved by the Board on
15 September 2025 and approved for issue on 16 September 2025.
A copy of this Interim Report can be viewed on the company's website:
www.corero.com (http://www.corero.com) .
1.2 Going Concern
The financial statements have been prepared on a going concern basis.
The Directors have prepared detailed income statement, balance sheet and cash
flow projections for the period to 30 September 2026 ('going concern
assessment period'). The cash flow projections have been subjected to
sensitivity analysis of the revenue, cost and combined revenue and cost levels
through this period. In the half year period to 30 June 2025, the Group has
seen the impact of the change in sales mix away from upfront appliance and
license sales to DDPaaS solutions sales, which are recognised entirely over
the life of the contract, rather than significantly up front. The shift in
revenue mix toward DDPaaS sales contributed to 25% ARR growth, which increased
to $21.6 million (H1 2024: $17.2 million), a key performance indicator for the
Group. This increase in ARR provides strength to the going concern assessment
for the coming future periods, while impacting the short term financial
position of the Group.
Like revenue, the change in mix toward DDPaaS has increased the amount of cash
receipts deferred into future periods which has materially impacted the cash
balance at 30 June 2025, and will continue to result in lower cash flows
through the remainder of 2025. The Group has secured a bank overdraft facility
to manage the increased working capital requirements of the business as a
result of the shift in revenue mix.
As part of the sensitivity analysis, the Directors have noted that should the
forecasted revenues not be achieved, mitigating actions can be taken to
address any cash flow concerns. These actions include deferral of capital
expenditure, reduction in marketing and other variable expenditure alongside a
hiring freeze.
The Directors are also not aware of any significant matters in the remainder
of calendar 2026 that occur outside the going concern period that could
reasonably possibly impact the going concern conclusion.
The Directors have also considered the geo-political environment, including
rising inflation in some of our key markets, impacts of US tariff changes and
the conflict in Ukraine and the Middle East, and whilst the impact on the
Group is currently deemed minimal, the Directors remain vigilant and ready to
implement mitigation action in the event of a downturn in demand or an impact
on operations.
On this basis, the Directors have therefore concluded that it is appropriate
to prepare the financial statements on a going concern basis.
2. Material accounting policies
The basis of preparation and accounting policies used in preparation of these
interim financial statements have been prepared in accordance with the same
accounting policies set out in the 2024 Annual Report and Accounts.
3. Segment reporting and revenue
The Group is managed according to one business unit, Corero Network Security,
which makes up the Group's reportable operating segment. This business unit
forms the basis on which the Group reports its primary segment information to
the Board, which management consider to be the Chief Operating Decision maker
for the purposes of IFRS 8 Operating Segments. Consequently, there is no
separable 'other segmental information' not otherwise shown in these Condensed
Consolidated Financial statements.
The Group's revenues from external customers are divided into the following
geographies:
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
United States 9,044 9,015 17,488
United Kingdom 805 402 1,756
Others 1,059 2,745 5,315
Total 10,908 12,162 24,559
Revenues from external customers are identified by invoicing systems and
adjusted to take into account the difference between invoiced amounts and
deferred revenue adjustments as required by IFRS accounting standards.
The revenue is analysed for each revenue category as:
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
Software licence and appliance revenue 3,149 5,063 10,066
DDoS Protection-as-a-Service revenue 3,317 3,023 5,912
Maintenance and support services revenue 4,442 4,076 8,581
Total 10,908 12,162 24,559
The revenue is analysed by timing of delivery of goods or services as:
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
Point-in-time delivery 3,149 5,063 10,066
Over time 7,759 7,099 14,163
Total 10,908 12,162 24,559
4. Taxation
Due to the utilisation of past tax losses, the Group does not recognise a
material taxation income tax expense or credit.
5. Earnings per share
Earnings / (loss) per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the period. The effects of anti-dilutive
ordinary shares resulting from the exercise of share options are excluded from
the calculation of loss per share.
30 June 2025 loss 30 June 2025 weighted average number of 1p shares 30 June 2025 loss per share 30 June 2024 loss 30 June 2024 weighted average number of 1p shares 30 June 2024 loss per share
$'000 Thousand Cents $'000 Thousand Cents
Basic loss per share
From loss for the year (2,414) 512,165 (0.5) (273) 505,623 (0.1)
Diluted loss per share
Basic loss per share (2,414) 512,165 (0.5) (273) 505,623 (0.1)
Dilutive effect of share options - - - - - -
Diluted loss per share (2,414) 512,165 (0.5) (273) 505,623 (0.1)
31 Dec 2024 31 Dec 2024 31 Dec 2024
profit
weighted average number of 1p shares
profit per share
$'000
Thousand
Cents
Basic earnings per share
Basic earnings per share 498 509,096 0.1
Diluted earnings per share
Basic earnings per share 498 509,096 0.1
Dilutive effect of share options - 56,383 -
Diluted earnings per share 498 565,479 0.1
6. Key performance measures
EBITDA and Adjusted EBITDA
Earnings before interest, tax, depreciation, and amortisation ("EBITDA") is
defined as earnings from operations before all interest, tax, depreciation,
and amortisation charges. The following is a reconciliation of EBITDA and
further adjustment for all three periods presented:
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025
30 June 2024
31 December 2024
$'000 $'000 $'000
(Loss)/profit before taxation (2,364) (217) 555
Adjustments for:
Finance income (40) (50) (99)
Finance expense - 7 8
Finance lease interest costs 16 17 28
Depreciation - owned assets 155 108 250
Depreciation - lease liabilities 83 85 170
Amortisation of capitalised development expenditure 748 787 1,588
EBITDA (1,402) 737 2,500
Unrealised foreign exchange differences - (1) -
Adjusted EBITDA - for unrealised foreign exchange differences (1,402) 736 2,500
- END -
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BELLFEKLLBBLRecent news on Coro Energy
See all newsREG - Corero Network Sec. - Unaudited H1 2025 Results & Directorate Change
AnnouncementREG - Corero Network Sec. - Notice of Results & Investor Presentation
AnnouncementREG - Corero Network Sec. - Notice of PDMR Dealings
AnnouncementREG - Corero Network Sec. - Notice of PDMR Dealings
AnnouncementREG - Corero Network Sec. - Half Year Trading Update
Announcement