**Summary of Corero Network Security PLCs H1 2025 Unaudited Results and Directorate Change**
Corero Network Security PLC, a leading provider of DDoS protection solutions, announced its unaudited results for the first half of 2025 (H1 2025), highlighting significant growth in Annualised Recurring Revenues (ARR) and strategic shifts in its business model.
**Financial Highlights**
**ARR Growth** ARR increased by 25% to $21.6 million, driven by a shift in sales mix towards subscription-based products and services, particularly DDoS Protection-as-a-Service (DDPaaS) solutions.
**Revenue Decline** Group reported revenue decreased by 10% to $10.9 million due to accelerated customer adoption of DDPaaS, which impacts in-period recognized revenue.
**Order Intake** Order intake decreased by 12% to $12.5 million, with Q1 impacted by weaker Alliance Partner performance and US tariff uncertainty. Q2 rebounded with a 13% growth to $7.8 million.
**EBITDA Loss** EBITDA recorded a loss of $1.4 million, compared to a profit of $0.7 million in H1 2024, primarily due to the shift towards recurring revenue models.
**Operational Highlights**
**Customer Wins and Expansions** Secured major deals, including a $1.2 million partnership with Forte Telecom in Brazil and strategic regional partnerships.
**Strategic Partnerships** Expanded partnership with Juniper Networks to sell Coreros full portfolio of DDoS protection solutions, targeting tier-one telecommunication service providers.
**Product Launch** Successfully launched the Corero Observability & Resiliency Ecosystem (CORE) solution, securing $1.8 million in initial customer wins.
**Directorate Change**
**Ashley Stephenson Retirement** Chief Technology Officer and Director Ashley Stephenson announced his retirement, effective 31 December 2025. Stephenson, who joined Corero in 2013, played a pivotal role in driving the SmartWall product strategy. His responsibilities will be transitioned to the senior leadership team, with Carl Herberger ensuring a seamless transition.
**Current Trading & Outlook**
**Positive Momentum** Q3 trading continues the positive momentum from Q2, with management confident in driving sustained ARR growth and adapting to the higher mix of DDPaaS-driven revenue.
**Guidance** Management maintains its guidance for FY 2025, expecting revenue between $24.0 million and $25.5 million and EBITDA between a $1.5 million loss and $0 million.
**CEO Commentary**
Carl Herberger, CEO, expressed satisfaction with the rebound in Q2 order intake and the demand for the expanded product offering. He emphasized the shift towards ARR, which provides more predictable revenues, and the focus on building the new business pipeline and expanding the global partner network.
**Market Position and Future Prospects**
Corero remains at the forefront of DDoS innovation, recognized as an Emerging Innovator in the 2025 SPARK Matrix. The company is well-positioned to capitalize on the growing demand for comprehensive DDoS solutions, driven by increasing cyber threats and the expansion of its addressable market through new products like CORE.
In summary, Corero Network Security PLCs H1 2025 results reflect a strategic shift towards subscription-based services, driving ARR growth despite short-term revenue declines. The company continues to strengthen its market position through strategic partnerships, product innovation, and a focus on recurring revenue models, positioning itself for long-term growth in the DDoS protection market.