Half Year Trading Update
Summary by AI BETAClose X
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. Upon the publication of this announcement via regulatory news service this inside information is now considered to be in the public domain.
6 August 2026
Corero Network Security plc
("Corero" or the "Company")
Half Year Trading Update
Strong order intake and revenue growth underpins operational progress
Post period end, secured a new customer contract worth $1.4 million with Tier-1 service provider in US
Corero (AIM: CNS) (OTCQX: DDOSF), the distributed denial of service ("DDoS") protection specialists and champion of adaptive, real-time service availability, provides the following trading update for the six months ended 30 June 20261 ("H1 2026" or the "Period").
Financial Highlights
· Revenue increased 42% to $15.5 million (H1 2025: $10.9 million)
· Order Intake2 increased 14% to $14.3 million (H1 2025: $12.5 million)
· Annualised Recurring Revenues3 ("ARR") grew by 12% to $24.1 million (H1 2025: $21.6 million)
· Gross margin of 93% (H1 2025: 91%)
· EBITDA expected to be approximately $2.6 million (H1 2025: loss of $1.4 million)
· Cash balance of $2.1 million (H1 2025: $3.1 million) and no debt
· Notable contract win post period end
Corero delivered strong financial progress across H1 2026, underpinned by a 14% increase in Order Intake to $14.3 million (H1 2025: $12.5 million), and a combination of new customer wins and expanded contracts with existing customers. In addition, the Company experienced high renewal rates of 96% for its multi-year, subscription-based and DDoS Protection as-a-Service ("DDPaaS") products.
The Company is pleased to report substantial revenue growth in the Period, increasing by 42% to $15.5 million (H1 2025: $10.9 million). This was driven by a combination of the 2025 ARR providing revenue visibility in 2026, renewals and upsells with existing customers and continued new customer wins. The successful conversion of the Group's healthy sales pipeline across H1 2026 was further enhanced by continued improvement in ARR, a key performance metric for the Group, which grew by 12% to $24.1 million (H1 2025: $21.6 million).
The Group expects to report a significant improvement in EBITDA4 for H1 2026 to approximately $2.6 million (H1 2025: loss $1.4 million), with adjusted EBITDA of $2.7 million (H1 2025: loss $1.3 million) excluding share-based payments.
Cash as at 30 June 2026 was $2.1 million (31 December 2025: $4.0 million). The Group continues to navigate the changing cashflow profile which was experienced in FY 2025, as a result of customers buying more subscription services than up front products, and put in place a $2.0 million overdraft facility to assist with cashflow management, which remains unused.
Corero expects to report its unaudited interim results for the six months ended 30 June 2026 in mid-September 2026.
Notable contract win post period end
Post Period end, Corero secured a $1.4 million, 3-year new customer contract with a notable Tier-1 US service provider that is a leader in global telecommunications solutions. By successfully collaborating with one of Corero's strategic partners and following an extensive procurement process including a number of competitor DDoS solution providers, the Corero solution was selected, reflecting the competitiveness of Corero's solution in a global market.
This contract win demonstrates strong market demand for Corero's solutions, and a significant endorsement of the strength and maturity of the Company's product offering, protecting and supporting a leading global Tier-1 service provider.
Carl Herberger, CEO of Corero, commented:
"We are pleased to report an excellent start to the current financial year, delivering strong revenue growth which has been supported by both ongoing customer wins and upselling to our existing customer footprint.
We continue to extend our market reach alongside enhancing our product offering. In addition, our sales teams have further developed our channel partner ecosystem, which has expanded our international reach but more importantly, accelerated our go-to-market strategy and supported our customer wins and growing pipeline.
Our recent success in securing a notable contract with a prominent Tier-1 provider further validates our technology and sales strategies and reinforces our confidence in our new business pipeline and the strength of our alliance partner relationships. We look forward to delivering trusted solutions that meet the demands of Tier-1 customers - both in terms of technical excellence and compliance requirements.
Corero remains well positioned to build on this strong first-half performance, and we are confident in delivering continued growth in H2."
1 All numbers for the six months ending 30 June 2026 disclosed within this announcement are management estimates based on current information and are unaudited.
2 Order intake is defined as orders received from customers in the Period.
3 ARR is defined as the normalised annualised recurring revenues at the start of the next financial reporting period 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 EBITDA is defined as earnings before interest, tax, depreciation, and amortisation.
Enquiries:
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Corero Network Security plc |
Tel: +44(0)20 7390 0230 |
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Carl Herberger, Chief Executive Officer |
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Chris Goulden, Chief Financial Officer |
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Canaccord Genuity Limited (Nominated Adviser and Joint Broker) |
Tel: +44(0)20 7523 8000 |
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Simon Bridges / Andrew Potts / Harry Rees
Zeus Capital (Joint Broker) Nick Searle / Ed Beddows |
Tel: +44(0)20 3829 5000 |
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Vigo Consulting (U.K Financial PR and Investor Relations) |
Tel: +44(0)20 7390 0230 |
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Jeremy Garcia / Georgina Moul |
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Harbor Access (U.S Investor Relations) Jonathan Paterson |
Tel: +1 475 477 9401 |
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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, and follow us on LinkedIn and X.
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