Corero Network Security – 2025 loss-maker states that strong order intake and revenue growth underpins operational progress, recovery underway, Interims within a month

Mark Watson-Mitchell - 21.08.2026

If investing in a company currently rated at over 130 times 2026 estimated earnings scares you – then do not read this article!

However, I do feel that patient investors looking for capital growth situations could do well taking a view on the shares of Corero Network Security (LON:CNS), now just 7.25p.

The £37m-capitalised company is a global provider of automated business continuity and network security solutions.

When network disruptions, cyber-attacks, or unauthorised access threaten operations, Corero ensures digital services remain available, defended, and optimised.

After slipping into a trading loss last year, I believe that the company could well soon indicate its bounce back into current-year profitability, with the potential of more than quadrupling profits next year.

In early February this year, the group’s shares were trading at around 13.50p, since when they have gradually fallen away to having more than halved in price by the end of last week.

But in the last few days they have recovered from 6.50p to 7.75p and now back to 7.25p, having been helped by a recent optimistic Interim Trading Update.

The Business

Listed on both AIM and on the US OTC Markets, Corero provides best-in-class automatic detection and protection DDoS solutions with network visibility, analytics, and reporting tools.

Its technology protects against external and internal DDoS threats in complex edge and subscriber environments, ensuring internet service availability.

Headquartered in London, the group has operational centres in Massachusetts, USA, and Edinburgh.

Leader in advanced distributed denial of service protection and mitigation security solutions for any architecture.

It specialises in delivering intelligently tailored automated DDoS protection with robust, real-time defence against a broad spectrum of internal and external cyber-attacks in under one second.

Corero safeguards critical infrastructure across diverse deployment models - from inline to edge to hybrid cloud - and is currently developing CORE, an observability and resiliency ecosystem to unify defensive actions across the modern threat landscape.

The group’s global customer base includes internet service providers, hosting providers, SaaS providers, cloud providers, and edge providers.

Half-Year Trading Update

On Thursday, 6^th August, the group reported a strong first half of 2026, with revenue increasing 42% to $15.5m and order intake up 14% to $14.3m, driven by new customer wins and expanded contracts.

Annualised Recurring Revenues grew 12% to $24.1m, and the company expects EBITDA of approximately $2.6m, a significant improvement from a $1.4m loss in the prior year.

Post-period, Corero secured a new $1.4m contract with a US Tier-1 service provider, and maintains a cash balance of $2.1m with no debt.

Management Comment

CEO Carl Herberger stated that:

"We are pleased to report an excellent start to the current financial year, delivering strong revenue growth which has been supported by both ongoing customer wins and upselling to our existing customer footprint.

We continue to extend our market reach alongside enhancing our product offering. 

In addition, our sales teams have further developed our channel partner ecosystem, which has expanded our international reach but more importantly, accelerated our go-to-market strategy and supported our customer wins and growing pipeline.

Our recent success in securing a notable contract with a prominent Tier-1 provider further validates our technology and sales strategies and reinforces our confidence in our new business pipeline and the strength of our alliance partner relationships.

We look forward to delivering trusted solutions that meet the demands of Tier-1 customers - both in terms of technical excellence and compliance requirements.

Corero remains well positioned to build on this strong first-half performance, and we are confident in delivering continued growth in H2."

The Equity

There are some 512.2m shares in issue.

The largest shareholder is Jens Montanana with 36.57% of the equity.

Other larger holders include CFM Indosuez Wealth SA (Private Banking) (16.77%), Sabvest Capital Holdings (British Virgin Islands) (11.75%), abrdn Investments (5.30%), Investec Bank (Switzerland) AG (3.91%), River Global Investors (2.73%), Accrue Investment Management (1.78%), LGT Capital Partners AG (Investment Management) (1.63%), Bank Julius Baer & Co. (1.35%), and Richard Last (0.88%).

Broker’s Views

Analysts Kai Korschelt, Hayley Palmer and Tom Like, at Canaccord Genuity Capital Markets, rate the shares as a Buy, with a 20p Target Price.

Their opinion is that given the high visibility and growth momentum, they reiterate their Buy advice with that TP giving a 2.6 times upside.

Analyst Lorne Daniel, at Zeus Capital, is looking to review his analysis upon the company declaring its Interims in mid-September.

He estimates that the current year to end-December 2026 will see revenues rise to $29.0m ($25.5m), while it could show recovery to $0.4m profit from the 2025 pre-tax loss of $0.7m, lifting earnings to 0.07c (0.12c loss) per share.

For the 2027 year, the analyst looks for $32.5m revenues, $1.8m profits and 0.31c per share in earnings.

My View

The group, which specialises in distributed-denial-of-service protection, is a champion of adaptive, real-time service availability.

The continued sales momentum and maturing margins could drive earnings outperformance, while it is very possible that the market will soon re-

rate Corero as a high-growth, high-margin SaaS company. 

If its shares, now 7.25p, stay too low a US bidder could well emerge.