Corero Network Security plc (LON:CNS) (OTCQX: DDOSF), the distributed denial of service (DDoS) protection specialists and champions of service availability, has announced its audited results for the year ended 31 December 2025.
Financial Highlights
· Revenues of $25.5 million (FY 2024: $24.6 million)
· EBITDA1 of $1.5 million (FY 2024: $2.5 million)
· Adjusted EBITDA2 of $2.0 million (FY 2024: $3.0 million)
· Annual Recurring Revenues3 (“ARR”) increased by 23% to $23.9 million (FY 2024: $19.5 million)
o Strong demand for both Corero’s subscription-based and DDoS Protection as-a-Service (“DDPaaS”) products
· Order intake4 (“Orders”) increased by 20% to $33.8 million (FY 2024: $28.2 million)
· Continued high customer retention at 98% (FY 2024: 97%)
· Strong new business pipeline for FY 2026
· Loss before taxation of $0.7 million (FY 2024: $0.6 million profit)
· Gross margins of 90% (FY: 2024: 91%)
· Net cash at the year-end of $4.0 million (FY 2024: $5.3 million)
o Positive cash generation in H2 2025
· (Loss)/earnings per share and diluted (loss)/earnings per share of (0.1) cents (FY 2024: 0.1 cents)
Operational Highlights
· Strong H2 2025 sales traction supported by new customer wins and contract expansion momentum
o $6.8 million customer renewal and significant expansion order with a leading US cloud computing provider in October 2025
· Channel partners, including TechEnabler and Juniper, continue to underpin new business momentum and geographic expansion
· Corero’s next generation 400GB platform and CORE platform solution continue to generate sales growth with new and existing customers
Current Trading & Outlook
· Q1 2026 has started strongly, significantly exceeding Q1 2025 which was a challenging quarter
· Management remains positive in the Group’s ability to deliver sustained ARR growth, alongside continued migration to a subscription-based sale model which further improves revenue predictability, noting that contract structures will be customer led
· Global cybersecurity threats continue to drive further demand for Corero’s market leading products
· The Board remains confident in the prospects of the Group to deliver ongoing progress, notwithstanding ongoing global economic uncertainty
Carl Herberger, CEO of Corero, said:
“I am pleased with the performance of the business, especially in the second half where we delivered particularly strong sales growth. Our ongoing transition to a subscription-based sales model gathered pace in the year, and further investment in R&D and new product development has underpinned our sales growth with both new and existing customers.
The DDoS market has remained buoyant, fuelled by ongoing cyber threats and increasing regulatory obligations. High-profile attacks on companies, especially across Europe, have reinforced the value of comprehensive DDoS solutions, further driving demand for our products and services from partners and customers.
Corero remains well placed for future growth, with our sales and marketing efforts generating strong sales growth in the current financial year.”
1 EBITDA is defined as earnings before interest, tax, depreciation, and amortisation.
2 Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortisation and adjusted for share based payment charges and one-off restructuring costs in the period.
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 DDPaaS contracts.
4 Order intake is defined as orders received from customers in the period.
