Corero Network Security (AIM:CNS), the AIM-listed distributed denial of service (DDoS) protection specialist, said it now expects full-year 2026 revenue to exceed market expectations and EBITDA to significantly exceed expectations.
Revenue for the six months to 30 June rose 42% to $15.5 million, against $10.9 million in H1 2025. EBITDA swung to a profit of $2.6 million, from a loss of $1.4 million a year earlier.
Order intake grew 14% to $14.3 million, while annualised recurring revenue rose 12% to $24.1 million. Customer retention stood at 96%, slightly down from 98% a year earlier.
The period included a $1.1 million, three-year contract with data centre provider TierPoint for its new web application security product.
Since the half-year end, Corero has secured a $1.4 million, three-year deal with a Tier-1 US telecoms provider and a $3.4 million, five-year contract with a Tier-1 UK telecoms operator.
It also signed an initial $0.5 million, three-year contract with a leading "NeoCloud" provider.
"This positive momentum has continued into the second half with notable customer wins secured," said chief executive Carl Herberger, adding the company remains "confident in delivering continued growth and exceeding market expectations for the full year."
Corero said market consensus for FY2026 stood at revenue of $29.2 million and EBITDA of $3.3 million.
Management said H2 has started positively, supported by an improving sales pipeline and continued momentum in its shift toward subscription-based revenue.
News Intelligence what this means for the company
Corero delivered H1 revenue growth of 42% to $15.5 million and swung to $2.6 million EBITDA profit, prompting management to raise FY26 guidance above consensus ($29.2 million revenue, $3.3 million EBITDA). The lift rests on three post-period Tier-1 wins—a $1.4 million US telecoms deal, a $3.4 million UK telecoms contract, and a $0.5 million NeoCloud arrangement—that collectively exceed the $1.1 million TierPoint deal closed in-period, signalling sustained momentum in its shift toward subscription revenue and broader security offerings.
The company has moved from EBITDA loss to profit on 42% revenue growth while maintaining 96% customer retention and 93% gross margin, materially strengthening the unit economics case for a £20–30m-cap AIM stock. Guidance raise and post-period contract wins suggest the transition toward WAAP and cloud-native security is gaining traction with enterprise customers, though execution risk remains on sustaining this growth rate and converting the $24.1 million ARR base into higher-margin recurring revenue.
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