This report is an updated version of the report published on 24 November 2025 at 09:01 AM, GMT

Corero Network Security PLC

Corero Network Security PLC (LSE: CNS) is an FTSE AIM All share listed company that offers Distributed Denial of Service (DDoS) protection solutions, specializing in automated detection and protection solutions with network visibility, analytics, and reporting tools. Its technology protects against external and internal DDoS threats in complex edge and subscriber environments and ensures Internet service availability. 

Key Investment Rationale – Speculative Buy at GBX 10.07

• Financial trajectory: ARR increased +25% to $21.6m with 98% retention, while H1 order intake was $12.5m and Q2 rebounded +13% YoY to $7.8m, followed by Q3 trading that maintained the positive Q2 momentum. This combination points to improving revenue visibility into H2 despite lower in-period recognised revenue from the subscription shift.

• Subscription mix (DDPaaS): Accelerated adoption of DDPaaS is tilting sales toward recurring contracts (typically ~3 years), creating a more predictable and scalable base. Near-term EBITDA moved to a $1.4m loss versus a $0.7m profit in H1 2024, but the higher recurring mix supports steadier recognition and should aid medium-term cash conversion as cohorts mature.

• Product innovation gaining traction: First two customer wins for CORE totaled $1.8m, and a $1.5m TierPoint expansion is deploying CORE, extending Corero beyond classic DDoS mitigation into observability/resiliency (e.g., Traffic Analysis, Zero Trust Admission Control, Layer-7 protection). This broadens the use-case surface across on-prem, hybrid and cloud, supporting upsell and ARPU over time alongside SmartWallONE™.

• Outlook: Management remains comfortable with FY25 guidance of $24.0–$25.5m revenue (vs. $24.6m in FY24) and EBITDA in a range of $(1.5) m to $0m, reflecting an improving pipeline and partner opportunities. The company reported net cash $3.1m on 30 Jun 2025 with no debt and is finalising a bank overdraft facility to bridge working-capital timing as DDPaaS billings phase over contract lives.

CNS Daily Chart & Valuation

For conducting the valuation, the following peers have been considered: Itin Group PLC (LSE: ITIM), Intercede Group PLC (LSE: IGP), etc.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Corero Network Security PLC (LSE: CNS) at the current Market Price of GBX 10.07, as of November 24, 2025, 08:05 AM, GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 24, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.