Corero Network Security plc (LON:CNS) has delivered a robust end to FY25, with its latest research note from Canaccord Genuity highlighting a marked recovery in growth momentum, improving profitability and strengthening cash flow.
In a trading update published on 12 January 2026, Canaccord Genuity reiterated its Buy rating and 19p price target, pointing to a business that appears to have regained its stride after a softer first half.
Analyst Kai Korschelt summed up the performance succinctly, describing the results as, “+23% ARR growth; high end of sales guidance; EBITDA beat.”
Strong Second Half Recovery
The second half of FY25 showed clear signs of acceleration. According to the latest research note from Canaccord Genuity, full year sales reached $25.5m. This implies second half growth of 18% year on year and 4% for the full year, a notable improvement from the 10% decline seen in the first half.
The recovery was supported by healthy demand across Corero’s portfolio, including its new CORE observability platform, which ended the year with five customers, adding three during the second half.
Annual recurring revenue, a key metric for software businesses, continued to expand at pace. ARR rose to $23.9m, up 23% year on year and 11% sequentially from the first half. This level of recurring income provides improved visibility and underpins confidence in forward projections.
Order intake was also particularly strong. Total order intake in the second half reached $21.3m, representing a 52% year on year increase, with 20% growth for the full year.
EBITDA and Cash Flow Ahead of Expectations
One of the most encouraging aspects of the update was the improvement in profitability. At the reported EBITDA level, Corero delivered $1.3m, comfortably ahead of Canaccord Genuity’s forecast of a $1.2m loss and already exceeding its FY26 estimate.
Net cash is guided at $4.0m, also ahead of the broker’s $3m expectation, implying positive free cash flow of $0.9m in the second half following an outflow of $2.6m in the first half.
Kai Korschelt commented that, “Today’s update confirms that Corero seems back on track to a sustainable, profitable growth path taking market share and outperforming its TAM and major peers.”
FY25 Highlights
- FY25 sales of $25.5m, with 18% second half year on year growth
- ARR of $23.9m, up 23% year on year
- Second half order intake of $21.3m, up 52% year on year
- Reported EBITDA of $1.3m, ahead of expectations
- Net cash of $4.0m, above forecast
Valuation and Outlook
The broker notes that ARR already covers 87% of its current FY26 sales estimate, offering a high degree of revenue visibility. With the shares trading on 2.3x CY26E EV to Sales and 2.7x EV to ARR multiples, Canaccord Genuity describes the valuation as undemanding relative to peers.
As Kai Korschelt wrote, “with the stock trading on undemanding 2.3x CY26E EV/Sales & 2.7x EV/ARR multiples, we reiterate Buy & 19p target = 90% upside.”
Corero, known for its SmartWall solution that protects against Distributed Denial of Service attacks, sells directly and through channel partners to enterprises and service providers. With commercial momentum reaccelerating and profitability improving, the group appears to be entering FY26 with renewed confidence.
Final Thoughts
The latest research note from Canaccord Genuity paints a picture of a company that has navigated a challenging first half and emerged stronger. With recurring revenues growing at over 20%, a clear EBITDA beat and improved cash generation, Corero Network Security plc seems well positioned for a more stable and profitable growth phase in the year ahead.
