Corero Network Security — New customer wins support our growth thesis

Corero Network Security (AIM: CNS)

Last close As at 01/09/2026

GBP0.07

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Market capitalisation

GBP38m

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Research: TMT

Corero Network Security — New customer wins support our growth thesis

Corero has announced two significant new customer wins that provide further evidence that the growth drivers we highlighted in our recent outlook note are beginning to deliver. Specifically, the new business wins highlight the success of the alliance partner strategy and the favourable impact of new products in broadening the product portfolio.

Written by

Dan Ridsdale

Head of Technology

Software and comp services

2 September 2026

Price 7.25p
Market cap £37m

Net cash/(debt) at end December 2025

$4.0m

Shares in issue

512.2m
Free float 32.0%
Code CNS
Primary exchange AIM
Secondary exchange OTCQX
Price Performance

Business description

Corero Network Security is a leading provider of DDoS attack detection and mitigation solutions, protecting organisations against external and internal threats and ensuring the ability to continually operate web-based services.

Analysts

Dan Ridsdale
+44 (0)20 3077 5700
Neil Steer
+44 (0)20 3077 5700

Corero Network Security is a research client of Edison Investment Research Limited

Note: EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and stock-based payments.

Year end Revenue ($m) EBITDA ($m) PBT ($m) EPS (¢) P/E (x) EV/sales (x) EV/EBITDA (x)
12/25 25.5 1.8 (0.3) (0.05) N/A 1.8 25.2
12/26e 29.5 3.4 1.0 0.15 66.5 1.6 13.6
12/27e 33.6 5.0 2.3 0.33 29.3 1.4 9.3
12/28e 38.4 7.5 4.6 0.67 14.7 1.2 6.2

Alongside one of its strategic partners, Corero has announced a $3.4m, five-year contract with a leading UK Tier-1 telecoms provider. This win validates several elements of the investment case. First, it demonstrates Corero’s ability to compete successfully for large Tier-1 customers. Second, it provides further evidence that its strengthened partner strategy is improving access to major opportunities. Third, it highlights how increasingly stringent cybersecurity and resilience requirements are reinforcing demand for Corero’s solutions among providers of critical digital infrastructure. The contract also incorporates Corero’s newer CORE platform and Layer 7 TLS protection, illustrating the opportunity to broaden its offering beyond traditional distributed denial-of-service (DDoS) protection.

Separately, Corero has secured a three-year, $0.5m contract with another major NeoCloud provider, initially covering two data centres but with potential to expand across the customer’s wider estate. With this contract, Corero now provides security products to three of the world’s largest NeoCloud operators, strengthening its position in what could become a significant new growth market as investment in AI infrastructure accelerates.

These wins reinforce our view that Corero is entering a faster phase of growth. H126 revenue increased 42%, while the company has already demonstrated substantial operating leverage from its c 90% gross margins and largely established cost base. This news of new contract wins totalling $3.9m shows that the performance in the final stages of 2025 and excellent momentum in H126 is not temporary. Instead, it provides evidence that Corero has entered a new phase of growth as the alliance strategy and new products have materially expanded the pipeline and addressable opportunities.

Our existing forecasts do not assume full success across all these growth initiatives. Continued evidence of this kind therefore strengthens our view that the principal risk to forecasts is increasingly on the upside, while the valuation has yet to reflect the potential medium-term growth and margin profile of the business. Our detailed valuation analysis in our recent outlook note highlights a fair value of 12.5–17.0p per share or upside of 70–130%.

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