Sparks - Corero Network Security

Corero has announced two significant new customer wins that provide further evidence that the growth drivers we highlighted when selecting the company as our recent Stock of the Month are beginning to deliver.

The larger is a $3.4m, five-year contract with a leading UK Tier-1 telecoms provider, secured alongside one of Corero’s strategic alliance partners. This win validates several elements of the investment case.  1) It demonstrates Corero’s ability to compete successfully for large Tier-1 customers 2) provides further evidence that its strengthened partner strategy is improving access to major opportunities and 3) 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 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. Corero now protects 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. The significance of today’s announcement therefore extends beyond the initial $3.9m combined contract value: it provides further evidence that the larger pipeline, alliance strategy, new products and emerging opportunities such as NeoCloud are translating into customer wins.

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 recent, comprehensive outlook report on Corero can be found here:
Corero Network Security — Moving up a gear in 2026 and beyond – Edison Group