Corero Network Security (AIM:CNS) told investors that revenue rose 42% to $15.5 million in the six months to 30 June, up from $10.9 million a year earlier, as the AIM-listed distributed denial of service (DDoS) protection specialist swung from an EBITDA loss to a profit.
Earnings (EBITDA) is expected to reach approximately $2.6 million for the period, reversing a $1.4 million loss in the first half of 2025.
Order intake grew 14% to $14.3 million, driven by new customer wins and expanded contracts with existing clients, while annualised recurring revenue rose 12% to $24.1 million. Gross margin improved to 93% from 91%, and renewal rates on multi-year subscription and DDoS Protection-as-a-Service contracts reached 96%.
Cash fell to $2.1 million at the end of June from $4.0 million at the end of December, a shift the company attributed to customers increasingly buying subscription services rather than upfront products.
Corero has arranged a $2.0 million overdraft facility to manage the changing cashflow profile, which remains undrawn.
Since the period ended, Corero secured a $1.4 million, three-year contract with a Tier-1 US telecommunications service provider, selected after a competitive procurement process against rival DDoS vendors.
"Our recent success in securing a notable contract with a prominent Tier-1 provider further validates our technology and sales strategies", said chief executive Carl Herberger, adding that the company is "confident in delivering continued growth in H2".
Corero expects to publish unaudited interim results for the six months ended 30 June in mid-September.
News Intelligence what this means for the company
Corero swung to EBITDA profitability in H1 2026 on 42% revenue growth to $15.5 million, driven by new customer wins and contract expansions that lifted annualised recurring revenue 12% to $24.1 million. The $1.4 million Tier-1 US telecom contract win post-period-end validates the sales strategy, though cash fell sharply to $2.1 million (from $4.0 million year-start) as customers shifted to subscription models—a shift the company is managing via a $2.0 million undrawn overdraft facility.
The path to profitability on strong recurring revenue growth and 96% renewal rates strengthens the core DDoS business case. However, the cash burn (halving in six months despite revenue growth) and reliance on an undrawn facility signal that the subscription shift, while strategically sound, creates near-term liquidity pressure that will need monitoring through H2.
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