Corero Network Security revenue jumps 42% as EBITDA turns positive

Corero Network Security has delivered a strong first half, with revenue rising sharply, recurring income growing and EBITDA moving into positive territory.

The AIM-listed DDoS protection specialist reported estimated revenue of $15.5 million for the six months ended 30 June 2026, up 42% from $10.9 million a year earlier. DDoS, or distributed denial of service, attacks attempt to overwhelm networks and make online services unavailable.

The trading update also included a meaningful contract win secured after the period ended. Corero has signed a three-year deal worth $1.4 million with a Tier-1 US service provider following a competitive procurement process.

There is plenty for investors to like here. However, the cash balance declined during the period as the business continued its shift towards subscription sales, so cash conversion deserves attention alongside the headline growth.

Corero's key half-year figures

Metric	H1 2026	H1 2025	Change
Revenue	$15.5 million	$10.9 million	Up 42%
Order intake	$14.3 million	$12.5 million	Up 14%
Annualised recurring revenue	$24.1 million	$21.6 million	Up 12%
Gross margin	93%	91%	Up 2 percentage points
EBITDA	Approximately $2.6 million	$1.4 million loss	Improved by approximately $4.0 million
Adjusted EBITDA	Approximately $2.7 million	$1.3 million loss	Improved by approximately $4.0 million
Cash	$2.1 million	$3.1 million	Down $1.0 million

All H1 2026 figures in the announcement are management estimates and remain unaudited. Corero expects to publish its interim results in mid-September 2026.

Investors can read the original company announcement for the complete regulatory wording.

Revenue growth is translating into profit

The standout feature is not simply the 42% revenue increase. It is the expected swing from an EBITDA loss of $1.4 million to positive EBITDA of approximately $2.6 million.

EBITDA means earnings before interest, tax, depreciation and amortisation. It is commonly used to assess underlying operating performance, although it is not the same as cash generated by the business.

The implied year-on-year EBITDA improvement is approximately $4.0 million. Adjusted EBITDA, which excludes share-based payments, is expected to be around $2.7 million, compared with a $1.3 million loss in H1 2025.

That suggests Corero achieved meaningful operational leverage during the period. In plain English, revenue grew faster than the operating cost base, allowing more of each additional dollar of sales to contribute to earnings.

The gross margin also strengthened from 91% to 93%. That is a high margin and indicates that the direct costs attached to delivering Corero's products and services remained relatively low.

For more company coverage, investors can visit the Corero Network Security PLC share page.

Recurring revenue provides better visibility

Annualised recurring revenue, or ARR, increased by 12% to $24.1 million. Corero defines ARR as normalised annual recurring income from support contracts, software subscriptions and DDoS Protection-as-a-Service agreements.

This matters because recurring revenue can offer greater visibility than relying heavily on one-off product sales. Corero said revenue benefited from ARR established during 2025, alongside renewals, upselling to existing customers and new customer wins.

Renewal rates for its multi-year subscription and DDoS Protection-as-a-Service products reached 96%. A high renewal rate suggests that most eligible customers continued using the company's services, although the update does not disclose the value or number of contracts due for renewal.

Order intake rose by a more moderate 14% to $14.3 million. That remains encouraging, but the gap between 42% revenue growth and 14% order growth is worth noting. The current revenue increase partly reflects contracts and recurring income secured previously, while future growth will depend on continued pipeline conversion and further orders.

The $1.4 million US contract adds credibility

After the half-year ended, Corero secured a $1.4 million contract with a Tier-1 US service provider. The deal runs for three years and was won in collaboration with one of Corero's strategic partners.

The customer was not named. However, Corero described it as a notable provider and a leader in global telecommunications solutions.

The competitive element makes the award particularly useful as evidence of product credibility. Corero said the selection followed an extensive procurement process involving several competing DDoS providers.

The win also supports management's channel partner strategy. Partners can expand Corero's international reach and help it access larger customers without building every sales relationship directly.

Investors should keep the contract's scale in perspective. At $1.4 million across three years, it is a valuable award but not enough on its own to determine the wider investment case. Its strategic importance may lie in demonstrating that Corero can satisfy the technical and compliance requirements of a Tier-1 service provider.

Why has cash fallen despite positive EBITDA?

The main caution in this update is cash.

Corero ended June with $2.1 million, down from $4.0 million at 31 December 2025 and $3.1 million at the end of H1 2025. The company has no debt, which is positive, but the decline shows why investors should not treat EBITDA as interchangeable with cash flow.

Management attributed the changing cash-flow profile to customers buying more subscription services rather than products paid for upfront. Subscriptions can improve revenue visibility, but payments may arrive over a longer period. That can create a timing mismatch between recognising revenue and collecting cash.

Corero has arranged a $2.0 million overdraft facility to help manage cash flow. It remained unused at the period end.

The unused facility provides some financial flexibility, although investors will want to see whether the cash balance stabilises as subscription income matures. The announcement did not disclose operating cash flow, free cash flow or detailed working-capital movements.

What investors should watch in September

The direction of travel is encouraging. Corero has delivered rapid revenue growth, higher recurring revenue, a stronger gross margin and an expected return to positive EBITDA. The post-period US contract provides further support for the sales pipeline and partner-led strategy.

The September interim results should provide the fuller test. Key areas to watch include:

• The final reported revenue and EBITDA figures compared with these estimates.
• Operating cash flow and the reasons for the $1.9 million decline in cash since December.
• The balance between upfront product sales and subscription contracts.
• Further evidence that order intake can support continued growth.
• Progress converting the existing sales pipeline into signed contracts.
• Any additional information on customer concentration or contract timing.

Management said it remains confident about continued growth in the second half. No full-year revenue, EBITDA or cash guidance was disclosed, so investors do not yet have a precise benchmark for that confidence.

Strong execution, with cash conversion still to prove

Corero's first-half update shows genuine operational progress. A 42% increase in revenue and the move from an EBITDA loss to an expected profit of approximately $2.6 million are substantial improvements, supported by a 96% renewal rate and rising ARR.

The shares' longer-term case will depend on whether Corero can keep winning customers while turning accounting earnings into cash. The unused overdraft and debt-free balance sheet provide reassurance, but the falling cash position prevents this from being an entirely clean update.

For now, the growth and profitability signals are strong. September's detailed accounts should reveal how durable and cash-generative that progress has become.