Cyber-security firm Corero Network Security reported sharply higher first-half revenue, a swing into profit and a new multi-year contract in the United States — yet its shares still fell, as investors focused on a drop in cash.
Key points
- H1 2026 revenue up 42% to US$15.5m
- EBITDA of US$2.6m, against a US$1.4m loss a year earlier
- Gross margin of 93% and a 96% customer renewal rate
- Cash down to US$2.1m from US$4.0m at the end of 2025
- New three-year, US$1.4m contract with a Tier-1 US telecoms provider
What happened
Corero (AIM: CNS), which supplies real-time protection against distributed denial-of-service (DDoS) attacks to telecoms carriers and internet providers, published a first-half trading update showing strong operational progress. The shares nonetheless eased around 6% to about 8.25p on the day, valuing the business at roughly £45m on London’s AIM market.
The numbers
Revenue climbed to US$15.5m from US$10.9m a year earlier, up 42%, while order intake rose 14% to US$14.3m. The company swung to EBITDA of US$2.6m from a US$1.4m loss, and its gross margin widened to 93% from 91%. Annualised recurring revenue (ARR) — the measure of contracted, repeatable income — rose 12% to US$24.1m.
Why the shares fell
Two figures appear to have weighed on the reaction. Cash fell to US$2.1m at 30 June, down from US$4.0m six months earlier — a decline of almost half. And the 42% jump in reported revenue outpaced the slower 12% rise in annualised recurring revenue, raising questions among investors about how much of the growth is repeatable. Together, those points offset an otherwise robust set of numbers.
The new contract
Alongside the results, Corero said it had won a three-year contract worth US$1.4m with a Tier-1 US telecommunications provider, secured through a strategic partner in a competitive process. Wins with Tier-1 carriers are closely watched in the DDoS-protection market as a signal of a supplier’s credibility with the largest operators.
What happens next
Corero is due to publish unaudited interim results in mid-September 2026. Investors will be looking for signs that cash generation is improving and that recurring revenue is catching up with reported growth.
This report is based on Corero’s H1 2026 trading update and coverage by Kalkine and Proactive Investors. Company announcements can be tracked via London Stock Exchange RNS and Investegate.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Taylor Vick on Unsplash.
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