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.
Corero (AIM: CNS), which supplies real-time protection against distributed denial-of-service (DDoS) attacks to telecoms carriers and internet providers, said first-half revenue climbed 42% to US$15.5m from US$10.9m a year earlier, with order intake up 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 — the measure of contracted, repeatable income — rose 12% to US$24.1m.
Despite that, the shares eased around 6% to about 8.25p on the day, valuing the business at roughly £45m on London’s junior market. 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 about how much of the growth is repeatable.
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.
Corero is due to publish unaudited interim results in mid-September, when 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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