Q2 2026 Corero Network Security PLC Earnings Call

September 9, 2026

Speaker #2: Good afternoon. Welcome to the Corero Network Security PLC off-year results investor presentation. Thank you for joining this recorded meeting. Investors will be in listen-only mode. Questions are encouraged.

Moderator: Good afternoon and welcome to the Corero Network Security PLC H1 results investor presentation. It is a recorded meeting. Investors will be in listen-only mode. Questions are encouraged, can be submitted any time by the Q&A tab situated on the right-hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted then, so feel free for it to do so. Before we begin, we would like to submit the following poll. I would now like to hand you over to the team at Corero Network Security. Good afternoon.

Operator: Good afternoon and welcome to the Corero Network Security PLC half year results investor presentation. It is a recorded meeting. Investors will be in listen-only mode. Questions are encouraged, can be submitted any time by the Q&A tab situated on the right-hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted then, so feel free for it to do so. Before we begin, we would like to submit the following poll. I would now like to hand you over to the team at Corero Network Security. Good afternoon.

Speaker #2: Questions can be submitted anytime by using the Q&A tab situated on the right-hand corner of your screen. Simply type in your question and press send.

Speaker #2: The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted there.

Speaker #2: Appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to see how you're doing as a team at Corero Network Security.

Speaker #2: Good afternoon.

Speaker #3: Good afternoon, Charlie. Thanks for the introductions. Welcome, everybody, to Corero's first half 2026 financial performance results. I have with me today Chris Golden, our CFO.

Carl Herberger: Good afternoon, Charlie. Thanks for the introductions. Welcome everybody to Corero's H1 2026 financial performance results. I have with me today Chris Goulden, our CFO for Corero Network Security, and we have Jonathan Patterson, who is responsible for our investor relations. We are excited to have a conversation here today with you. Moving along. Quick note on Safe Harbor and about where we are, overview on our business. Corero has been well-positioned for growth throughout 2026 and is well-positioned in the reporting financials that we were able to produce in the H1 of 2026. We will talk more about the momentum and the product traction and market reach that we have been able to achieve in the business as we go through today's conversation.

Speaker #3: This is Corero Network Security, and we have Jonathan Patterson, who's responsible for our investor relations. We're excited to have a conversation here today with you.

Speaker #3: Moving along. Quick note on Safe Harbor and about where we are—an overview on our business. Corero has been well positioned for growth throughout 2026 and is well positioned in the reporting financials that we were able to produce in 2020 and the first half of 2026.

Speaker #3: And we'll talk more about the momentum, product traction, and market reach that we've been able to achieve in the business as we go through today's conversation.

Speaker #3: But the big items to take away are that we've been named, once again, the only innovator in the DDoS or cyber resiliency space, against all competitors and all tech companies in our competing industry.

Carl Herberger: The big items to take away is that we have been named, once again, the only innovator in the DDoS space or cyber resiliency space against all competitors and all tech companies in our competing industry. This is for the second time in a year, second time in 2 years that we have been in that space, and we are the only ones that have been named an innovator. We had very nice accelerated revenue growth through the H1. We will talk more about that, but 42% year-on-year growth, along with very nice new product traction. We will demonstrate some execution success on new products that we brought to the market and new products that have actually established very strong resiliency with our selling.

Speaker #3: This is the second time in a year, the second time in two years, that we've been in that space, and we're the only ones that have been named an innovator.

Speaker #3: We had very nice accelerated revenue growth through the first half. We'll talk more about that, but 42% year-on-year growth, along with very nice new product traction.

Speaker #3: We'll demonstrate some execution success on new products that we've brought to the market, and new products that have actually established very strong resiliency with our selling.

Speaker #3: That's led to a lot of new markets for us. That market reach includes opening up, for the first time ever, very large tier one telcos, both in the US and the UK, which came in after the period in the reporting period and has established us as an eligible option for any extreme vendor requirements or complex solution requirements in the world.

Carl Herberger: That has led to a lot of new markets for us. That market reach includes opening up, for the first time ever, very large Tier 1 telcos, both in the US and the UK, which came in after the period, in the reporting period, and has established us as an eligible option for any extreme vendor requirements or complex solution requirements in the world. This has established us as well-positioned for growth, both in 2026 and thereafter. Next slide. I will hand this on over to Chris to talk through the numbers.

Speaker #3: And this has established us as well-positioned for growth both in 2026 and thereafter. Next slide. I'll hand this one over to Chris to talk through the numbers.

Speaker #4: Yeah, just some quick highlights. Growth at 42%, up to $15.5 million for the period. ARR growth year over year was also strong at 12%.

Chris Goulden: Yeah, just some quick highlights. Growth of 42%, so to $15.5 million for the period. ARR growth year-over-year, also strong at 12%. We are now running at $24.1 million as we come out of H1 2026. I will touch on ARR in a bit more detail in a further slide. Handsome EBITDA conversion actually on that revenue growth. So H1 2025, we actually generated an EBITDA loss of -1.4 million. That revenue growth largely translating into operational leverage and pulling through into EBITDA, which is really positive. In-period gross margin increased to 93%. Now, we typically run at around 90%, 91%. So this elevated margin was partly driven by sales mix in the period, so may not be reflective of H2, but positive to see it strong above 90%, and we expect that gross margin to remain above 90% through the rest of the year.

Speaker #4: We're now running at $24.1 million as we come out of the first half of 2026. I'll touch on ARR in a bit more detail in a further slide.

Speaker #4: Handsome EBITDA conversion actually on that revenue growth. So, first half of 2025, we actually generated an EBITDA loss of $1.4 million. That revenue growth is largely translating into operational leverage and pulling through into EBITDA.

Speaker #4: Which is really positive. In the period, gross margin increased to 93%. Now, we typically run at around 90% to 91%, so this elevated margin was partly driven by sales mix in the period.

Speaker #4: So, it may not be fully reflective of H2, but it's positive to see it strong above 90%. We expect gross margins to remain above 90% through the rest of the year.

Speaker #4: Continued strong customer renewal rate—96% in the period. We typically hold that 96%, 97%, 98% range. Ninety-five people. I think last time we reported this, we were at 90 people, with growth.

Chris Goulden: Continued strong customer renewal rate, 96% in the period. We typically hold that 96%, 97%, 98% range. 95 people. I think last time we reported this, we were at 90 people. With growth, we have been able to put some more headcounts in there, which is great. Yeah, increasing country footprint period over period.

Speaker #4: We've been able to put some more headcount in there, which is great. And yeah, increasing country footprint period over period.

Speaker #3: So, some of the highlights to the growth—as we've mentioned, we have nice revenue growth. It's building on the back of strong recurring revenue growth.

Carl Herberger: Some of the highlights to the growth. As we have mentioned, we have nice revenue growth. It is building on the back of a nice recurring revenue growth, but it comes on top of some significant partner and deal flows that we accomplished and have communicated to the investment community throughout H1. One was a web application protection contract extension from $1.1 million to TierPoint. It is a three-year contract. It is building upon the relationship we have with TierPoint, especially in the web application space, which is a new and emerging space for us to cohabitate in this world of cyber resiliency. The solution that we are providing there is very specific non-volume denial of service protection, as well as application security protection that would help a customer stay up for those complex web application attacks.

Speaker #3: But it comes on top of some significant partner and deal flows that we accomplished and communicated to the investment community throughout the first half.

Speaker #3: One was a web application protection contract extension for $1.1 million to TierPoint. It's a three-year contract. It's building upon the relationship we have with TierPoint, especially in the web application space, which is a new and emerging space for us to cohabitate in this world of cyber resiliency.

Speaker #3: The solution that we're providing there is very specific non-volume denial of service protection, as well as application security protection, that would help a customer stay up for those complex web application attacks that, wedded together with DDoS or network-based attacks, builds up an entire complement of cyber resiliency.

Carl Herberger: That, wedded together with DDoS or network-based attacks, builds up an entire complement of cyber resiliency. We also took on a very major new customer in Brazil, building upon our Brazilian business book. This new major service provider in Brazil was actually at the tune of $1.1 million USD for a 3-year contract and represents both a new logo and, once again, increasing base of business in Brazil, now representing over about 10% of our businesses in Brazil for Corero, up from zero 2 years ago. Post the period end of H1, we also have announced a few deals that have come through. One was with a US-based major telco, one of the top 3 telco providers in the US, for $1.4 million on an initial tranche to us. This is, of course, against all the leading world's competitors in our space.

Speaker #3: We have also— we also took on a very major new customer in Brazil, building upon our Brazilian business book, and this new major service provider in Brazil was actually at the tune of $1.1 million for a three-year contract.

Speaker #3: And represents both a new logo and, once again, an increasing base of business in Brazil, now representing over about 10% of our business in Brazil for Corero.

Speaker #3: Up from zero two years ago. Post the period end of H1, we also have announced a few deals that have come through. One was with a US-based major telco—one of the top three telco providers in the US—for $1.4 million on an initial tranche to us.

Speaker #3: And this is, of course, against all the leading world competitors in our space. They selected us, for the first time, to establish in a state into that tier-one operator.

Carl Herberger: They selected us for the first time to establish an estate into that tier 1 operator. A few weeks later, we were awarded, officially, a 5-year contract with a tier 1 UK-based operator, once again, one of the top telcos in the UK, to the tune of $3.4 million, establishing a brand new estate of Corero in this operator going forward. At the same time, we announced an initial tranche into one of the world's largest neocloud providers, which, if you are not familiar with the term, is a cloud provider that is purpose-built for AI applications. Its service is to be very, very extensible and resilient. What you are finding is neoclouds have requisite requirements for DDoS and cyber resiliency. This is meant to be the first foray for them with us. It was greenfield opportunity.

Speaker #3: A few weeks later, we were officially awarded a five-year contract with a tier-one UK-based operator—once again, one of the top telcos in the UK.

Speaker #3: To the tune of 3.4 million dollars. Establishing a brand new estate of Corero in this operator going forward. And then at the same time we announced an initial tranche into one of the world's largest neo cloud providers which if you're not familiar with the term is a cloud provider that is purpose built for AI AI applications it's a it's services to be very very extensible and resilient and what you're finding is neo clouds have requisite requirements for DDoS and cyber resiliency.

Speaker #3: This is meant to be the first foray for them with us. It was a Greenfield opportunity. They weren't replacing an existing stage, and we're very excited about the way that looks.

Carl Herberger: They were not replacing an estate, and we are very excited about the way that that looks.

Speaker #4: Switch staging at this point as well, that based on this deal flow and the strong first half of 2026, management now expects to exceed revenue guidance from analyst consensus and to significantly exceed EBITDA guidance.

Chris Goulden: It is worth stating at this point as well that based on this deal flow and the strong H1 of 2026, management, we now expect to exceed revenue guidance from analyst consensus and to significantly exceed EBITDA guidance. So that guidance coming into these results, the consensus analyst guidance was around $29.2 million on revenue, so exceed that, and it was around $3.3 million of EBITDA. We are looking to significantly exceed that for the year.

Speaker #4: So, that guidance coming into these results—the consensus analyst guidance was around $29.2 million on revenue, so we exceeded that. And it was around $20.3 million of EBITDA.

Speaker #4: We're looking to significantly exceed that for the year.

Speaker #3: So where are we winning and what what is going on in our space? If you've been if you're new to the Corero journey you'll probably be hearing this for the for the first time but if you've been through the Corero journey together we've been talking about this ever increasing need for solutions in AI data centers and neo clouds.

Carl Herberger: Where are we winning and what is going on in our space? If you are new to the Corero journey, you will probably be hearing this for the first time. But if you have been through the Corero journey together, we have been talking about this ever-increasing need for solutions in AI data centers and neoclouds. AI data centers are heavily invested in at the moment. Infrastructure in the US is a very hot sector. In fact, anybody trying to procure equipment at the moment, networking equipment, switching gear, chips, I think we have all heard about the RAMpocalypse. This is all factoring into DDoS installations. As these data centers and these neoclouds get built, not only can they not deal with cyberattacks that would bleed them or render them out or have outages, these data centers are incredibly sensitive to latency problems.

Speaker #3: AI data centers are heavily invested in at the moment. Infrastructure in the US is a very hot sector. In fact, anybody trying to procure equipment at the moment—networking equipment, switching gear, chips—I think we've all heard about the RAM apocalypse.

Speaker #3: This is all factoring into actual DDoS installations. As these data centers and these new neo-clouds get built, not only can they not deal with cyber attacks that would bleed them out or render them down or have outages, these data centers are incredibly sensitive to latency problems. Disruptions in network traffic alone can actually cause these data centers to be non-responsive and non-value added.

Carl Herberger: Disruptions in network traffic alone can actually cause these data centers to be non-responsive and non-value added. So they are looking for increased cyber resiliency solutions as they move into installing and delivering AI models. This will continue, we believe, for the indefinite future. This is a large investment trend, and what you are seeing is the early indicators of how we contribute to that trend. We today have three of the top neocloud providers as customers, and we think it is well-suited for us moving forward as our product portfolio is purpose-built for neocloud as it is completely software and completely agnostic to hardware, which is a unique position for us in the marketplace. You see some examples of some of the contract wins that come off of that. Moving on from there, what we believe. Sorry. I kept myself kind of turning around.

Speaker #3: So they're looking for increased resiliency solutions as they move into installing and delivering AI models. This will continue, we believe, for the indefinite future.

Speaker #3: This is a a large investment trend and what you're seeing is the first early indicators of how we contribute to that trend. We today have three of the top neo cloud providers as customers and we think it's it's well suited for us moving forward as our product portfolio is purpose built for neo cloud as it's completely software and completely agnostic to hardware which is a unique position for us in the marketplace.

Speaker #3: And you see some examples of some of the contract wins that come off of that. Moving on from there, what we believe—sorry, I got myself kind of turned around.

Carl Herberger: We are winning also based upon changing requirements in words. There is a big move to data sovereignty, and data sovereignty is essentially a category where you have increased requirements for local providers to provide these services and for local technology to be delivered locally and for it to be certified resilient. So that is both for customers that have resilient critical infrastructure as well as providers of cybersecurity solutions for cyber resiliency. This has led to many solutions for Corero, mostly because our product portfolio is purpose-built and fit for purpose for these changes. The software allows companies to run our solutions locally, and the economic aspects of our tool sets being much more advantaged than many of our competitors, both in pricing and terms, allows different countries around the world to be able to enjoy us at different revenue and cost models.

Speaker #3: We're winning also based upon changing requirements in words. There's a big move to sovereignty, and sovereignty is essentially a category where you have increased requirements for local providers to provide these services.

Speaker #3: And for local technology to be delivered locally, and for it to be certified resilient. So that's both for customers that have resilient, critical infrastructure, as well as providers of cybersecurity solutions for resiliency.

Speaker #3: This has led to many solutions for Corero, mostly because our product portfolio is purpose-built and fit for purpose for these changes. The software allows companies to run our solutions locally, and the economic aspects of our tool sets are much more advantaged than many of our competitors, both in pricing terms and in allowing different countries around the world to be able to enjoy us at different revenue and cost models.

Speaker #3: So, the tier one deal that we did with the UK service provider was completely driven by UK requirements, and this is an example of a UK requirement for telco providers to make sure that they're resilient against the Telecom Security Act in the UK.

Carl Herberger: The 2-1 deal that we did with the UK service provider was completely driven by a UK requirement. This is an example of a UK requirement of telco providers to make sure that they are resilient against the Telecommunications (Security) Act in the UK. There is ever increasingly more and more legislation. This is a brand-new set of legislations around the world that are being instantiated. There is an equivalent set of rules coming out of, or actually been already adopted in continental Europe called the DORA Act, and you see that listed here. That stands for the Digital-

Speaker #3: There's ever increasingly more and more legislation; this is a brand new set of legislations around the world that are being instantiated. There's an equivalent set of rules coming out of, or actually already adopted in, continental Europe called the DORA Act.

Speaker #3: And you see that listed here. That stands for the Digital Operational Resiliency Act, out of the EU. But essentially, nearly every country in the world has this notion of resiliency or resilient operations.

Chris Goulden: Operational Resiliency.

Carl Herberger: the Digital Operational Resilience Act out of the EU. Nearly every country in the world has this notion of resiliency or resilient operations. India has this. Saudi Arabia has this. Most of the countries in the Middle East actually operate from this premise. Going forward, there is a huge change, and in that change, Corero is actually getting much more customer acquisition and much more sales pipeline. In addition, of course, what drives our business beyond brand-new data centers, beyond changing legislation is, of course, the threat. The threat continues to evolve at a bigger, faster, and smarter way, and the solutions that are in the marketplace are really tasked hard to make sure that they can address these changes. The changes are bigger.

Speaker #3: India has this. Saudi Arabia has this. Most of the countries in the Middle East actually operate from this premise. So, going forward, there's a huge change, and in that change, Corero is actually getting much more customer acquisition and a much larger sales pipeline.

Speaker #3: In addition, of course, what drives our business—beyond brand new data centers, beyond changing legislation—is, of course, the threat. And the threat continues to evolve in a bigger, faster, and smarter way, and the solutions that are in the marketplace are really tasked hard to make sure that they can address these changes.

Speaker #3: The changes are bigger. You can see here by our own internal estimates for the customers that we protect that there's been a 262% increase in average peak size attacks, and they've gotten faster.

Carl Herberger: You can see here by our own internal estimates for the customers that we protect, that there has been a 262% increase in average peak size attacks, and they have gotten faster. The attacks generally last seconds and can render you out in seconds. That means the mean time to resolution has to be sub-second to be able to deal with these. Most vendors are troubled with being able to detect and mitigate within seconds. We are the fastest provider in the marketplace in this space, and by far. In addition, the attackers, of course, understand protection algorithms, and they are working their way around these algorithms. Attackers have gotten smarter. They essentially embed multiple unique attack vectors in a single attack, tasking the vendor that is actually trying to protect the company to be able to track all these varied attack types at the same time. Next slide.

Speaker #3: The attack generally lasts seconds and can render you out in seconds. That means the mean time to resolution has to be sub-second to be able to deal with these.

Speaker #3: Most vendors are troubled with being able to detect and mitigate within seconds. We're the fastest provider in the marketplace in this space, and by far.

Speaker #3: And in addition, the attackers, of course, understand protection algorithms, and they are working their way around these algorithms. So, what attackers have done is get smarter.

Speaker #3: They essentially embed multiple unique attack vectors in a single attack, tasking the vendor that's actually trying to protect the company to be able to track all these varied attack types at the same time.

Speaker #1: Next slide.

Speaker #3: Why I am on-prem matters. So, we operate on-prem, and of course we operate in the cloud through our partners, where we provide the technology that our partners use to do cloud scrubbing.

Carl Herberger: Why on-prem matters. We operate in on-prem and of course, we operate in the cloud through our partners, where we provide the technology that our partners use to do cloud scrubbing. On-prem has become a huge piece of the way that DDoS and cyber resiliency happens. On-prem means on-premises, and on-premises means that it is nested close to your technology. On-prem could mean that it is in your Amazon instance. On-prem could mean that it is in your data center that is in a different country. On-prem could mean that it is in your data center in your country. On-prem is meaningful for the reasons that we suggested. It helps with legislation, sometimes settles legislation. It helps with control. It helps with sovereignty. It helps with being able to manage costs in a business.

Speaker #3: On-prem has become a huge piece of the way that DDoS and cyber resiliency happens. On-prem means on-premises, and on-premises means that it's nested close to your technology.

Speaker #3: On-prem could mean that it's in your Amazon instance. On-prem could mean that it's in your data center that's in a different country.

Speaker #3: On-prem could mean that it's in your data center in your country. But on-prem is meaningful for the reasons that we suggested—it helps with legislation.

Speaker #3: Sometimes it settles legislation. It helps with control, it helps with sovereignty, and it helps with being able to manage costs in the business. Our on-prem software solutions are more readily asked for and more readily adopted today than at any other point in cyber resiliency history.

Carl Herberger: Our on-prem software solutions are more readily asked for and more readily adopted today than at any other point in cyber resiliency history. What people are realizing is that the filtration needs to happen close to the source of the problem. Next slide. Why are we winning and why are our competitors falling short? Essentially, we have left often in both the automation stack as well as the technology stack on performance. Our solution is largely hands-free, largely completely automatic, completely moving towards AI-enabled, AI-executed solution sets. This provides for tremendous relief of the administrative burden that most of our competitors have actually levied upon their customers. In addition, I mentioned the performance and our capability to remove latency from networks, and we provide, as systemic part of our business, integrations into many of the world's common vendors. We go to market with Akamai.

Speaker #3: What people are realizing is that the filtration needs to happen close to the source of the problem.

Speaker #1: Next slide.

Speaker #3: So, why are we winning and why are our competitors falling short? Essentially, we have leapt often in both the automation stack as well as the technology stack on performance.

Speaker #3: So our solution is largely hands-free. Largely completely automatic. Completely moving towards AI enabled AI AI executed solution sets. So this provides for tremendous relief of the administrative burden that most of our competitors have actually levied upon their customers.

Speaker #3: In addition, I mentioned the performance and our capability to remove latency from networks. We also provide, as a systemic part of our business, integrations into many of the world's common vendors.

Speaker #3: We go to market with Akamai. If you have an Akamai solution, which most of the world does, that means choosing Corero will make your Akamai solution better.

Carl Herberger: If you have an Akamai solution, which most of the world does, that means that choosing Corero will make your Akamai solution better. If you have a Juniper or HPE solution set, if you choose Corero with that solution set, there's no other vendor that can make that cyber resiliency of that solution better. If you're with GTT Communications, one of the top tier 1 companies in the world, if you have that solution, we will make it cyber resilient better than any other leader to choose Corero in the marketplace. Next slide. Our portfolio, I mentioned, has been growing. 2 and a half, 3 years ago, we were essentially a single-product company. Today, we've extended the product portfolio for a number of different reasons. One is to allow us to be more viable in large company RFPs and solution sets where more complexity is required and more solutions are required.

Speaker #3: If you have a Juniper or HPE solution set, if you choose Corero with that solution set, there's no other vendor that can make the cyber resiliency of that solution better.

Speaker #3: If you're with GTT, one of the top-tier, Tier 1 companies in the world, if you have that solution, we will make it cyber resilient—better than any other.

Speaker #3: To choose Corero in the marketplace.

Speaker #1: Next slide.

Speaker #3: Our portfolio, as I mentioned, has been growing. Two and a half to three years ago, we were essentially a single-product company. Today, we've extended the product portfolio for a number of different reasons.

Speaker #3: One is to allow us to be more viable in large company RFPs and solution sets, where more complexity is required and more solutions are needed.

Carl Herberger: One is to allow us to be more viable in large company RFPs and solution sets where more complexity is required and more solutions are required.

Speaker #3: And this is among one of the reasons why we're now winning very large Tier One enterprise and Tier One service provider accounts. In addition, the product portfolio is rounding out, essentially closing parity gaps that we had with competitors, and now we believe that we have unique capabilities and strong, standing differentiation with everybody in the marketplace.

Carl Herberger: This is among one of the reasons why we're now winning very large tier 1 enterprise and tier 1 service provider accounts. In addition, the product portfolio is rounding out essentially parity gaps that we had with competitors, and now we believe that we have unique capabilities and strong standing differentiation with everybody in the marketplace. Third, we open up brand new markets for these new products that we're selling that allows us to have more routes to revenue. What you see in here is the different kinds of solutions that we're bringing to market, from traffic observability, to API protections, to performance monitoring, to Zero Trust.

Speaker #3: Third, we open up brand new markets for these new products that we're selling, which allows us to have more routes to revenue. What you see here are the different kinds of solutions that we're bringing to market, from traffic protection to performance monitoring to zero trust.

Speaker #3: And it's not just us saying this—and this is something we are quite proud of—but it's really reflective of the journey that the whole company has made.

Carl Herberger: It's not just us saying this, and this is something we are quite proud about, but it's really reflective of the journey that the whole company has made, that each year, this QKS Group actually measures everybody in our space about how competitive are they, how are they doing with their product portfolio, what is exactly happening and resonating in the marketplace. It's who seems to have the best movement. For a second year in a row, we were selected as the innovator in the space, and for a second year in a row as an absolute leader in the space. What you'll find is some of those vendors that they have in this list that they show as independent vendors, those vendors rely on Corero technology themselves. We're actually multiply represented in the leadership segment here.

Speaker #3: Each year, those QKS groups actually measure everybody in our space—how competitive are they? How are they doing with their product portfolio?

Speaker #3: What is exactly happening and resonating in the marketplace? It's who seems to have the best movement. And for the second year in a row, we were selected as the innovator in the space.

Speaker #3: And for a second year in a row, as an absolute leader in the space. And what you'll find is some of those vendors that they have in this list, that they show as independent vendors—those vendors rely on Corero technology themselves.

Speaker #3: So we're actually multiply represented in the leadership segments here.

Speaker #1: Okay, so I won't go over the actual H1 numbers, because I think we've touched on them before, but this slide gives you a view of the trend in previous H1 year performances.

Chris Goulden: Okay, I won't go over the actual H1 numbers because I think we've touched on them before, but this slide gives you a view of the trends, previous H1 year performances. I guess to touch on some of these items, you see the strong revenue growth, obviously, and the strong year-over-year ARR growth. ARR growth since the end of 2025 was fairly modest. We exited 2025 at $23.9 million. We had that really strong surge in ARR growth through 2025. In the first half of this year, we haven't seen that same level of growth, and that's for a number of reasons. I think the first one I'd say is timing. The deals that we announced post-period end, they came shortly after the period end, in all truth, and in a different time, they might have ended up being H1.

Speaker #1: And I guess to touch on some of these items, you see the strong revenue growth, obviously, and the strong year-over-year ARR growth.

Speaker #1: ARR growth since the end of twenty twenty-five was fairly modest. So we exited twenty twenty-five at twenty-three point nine million. We had that really strong surge in ARR growth through through twenty twenty-five.

Speaker #1: In the first half of this year, we haven't seen that same level of growth, and that's for a number of reasons. I think the first one I'd say is timing.

Speaker #1: So, the deals that we are now supposed to period end—they came shortly after the period end, in all truth. And, you know, in a different time, they might have ended up being H1.

Speaker #1: You know these these deals are actually to be truthful secured earlier but with tier ones it takes longer to get the paperwork done. So timing could have moved the ARR of those deals in in into the period in a in a previous year.

Chris Goulden: These deals are actually, to be truthful, secured earlier, but with Tier 1s, it takes longer to get the paperwork done. Timing could have moved the ARR of those deals into the period in a previous year. The other thing is even when we saw this change in mix in 2025, we've always said that we are not going to drive the commercial model for our customers. As a challenger brand, our aim is to acquire as many customers as we can as quickly as possible, and if they have a preference for upfront CapEx purchases, we'll sell to them on that basis. If they have a preference for OpEx for any reason, we will sell them on that basis. In the first half of this year, we did see more sentiment towards upfront CapEx purchasing. A couple of examples in that.

Speaker #1: The other thing is, even when we saw this change in mix in 2025, we've always said that we are not going to drive the commercial models for our customers.

Speaker #1: We are, you know, as a challenger brand, our aim is to acquire as many customers as we can as quickly as possible.

Speaker #1: And if they have a preference for upfront CapEx purchases, we'll sell to them on that basis. If they have a preference for OpEx for any reason, we will sell to them on that basis.

Speaker #1: In the first half of this year, we did see more sentiment towards upfront capex purchasing. So, a couple of examples in that—you know, our SNTD kind of commercial off-the-shelf model, which is essentially where customers bring their own hardware and employ our software on top.

Chris Goulden: Our COTS kind of commercial off-the-shelf model, which is essentially where customers bring their own hardware and employ our software on top. That's a relatively new product to us and was incredibly successful in the first half of the year. Now, I have a feeling that with customers not needing to purchase Corero hardware, that reduced contract cost to them has brought some customers into the realms of having sufficient cash and budget to pay upfront when they get in. They might have bought on a subscription basis previously. Also we announced a big deal in LATAM, a $1.1 million deal in LATAM. Every deal we've done in LATAM to date has been on a subscription basis. But again, with this enhanced product portfolio and moving into a kind of higher tier operator space, this customer actually bought on a CapEx basis, which we might not have expected.

Speaker #1: That's a relatively new product to us and it was incredibly successful in the first half of the year. Now, I have a feeling that with customers not needing to bring their own—sorry, not needing to purchase Corero hardware—that reduced contract cost to them has brought some customers into the realms of having sufficient cash and budget to pay upfront, when maybe they might have bought on a subscription basis previously.

Speaker #1: And also, we announced a big deal in LATAM at one point—a $1 million deal in LATAM. Every deal we've done in LATAM to date has been on a subscription basis.

Speaker #1: But again, with this enhanced product portfolio moving into a kind of higher-tier operator space, this customer actually bought on a capex basis, which we might not have expected.

Speaker #1: I do expect that by the end of the year, we'll return back to our kind of typical trend on ARR, and I've got that on the next slide to show you as well.

Chris Goulden: I do expect that by the end of the year, we'll return back to our kind of typical trend on ARR, and I've got that on the next slide to show you as well. Gross margin being 93%. I mentioned this COTS commercial off-the-shelf product. No hardware on a deal Corero being software only. There's lower cost of goods sold in a deal like that for us. That largely has driven an increase or uplift on the gross margin in the period. I do expect that gross margin to return to the 90%, 91% for the second half of the year. Cash. Yes, relative to last year and relative to coming out of 2025, cash has reduced. We exited 2025 with about $4 million of cash. This is us still kind of transitioning through that change in mix we saw in 2025.

Speaker #1: Gross margin being 93%. I mentioned this SNTD commercial off-the-shelf product, so no hardware on a deal for us, being software only.

Speaker #1: But if there's a lower cost of goods sold in a deal like that for us, that largely is driven by an increase or uplift on the gross margin in the period.

Speaker #1: I do expect that gross margin to return to the 90 to 91 percent range for the second half of the year. Cash—so yes, relative to last year and relative to last, coming out of 2025, cash has reduced.

Speaker #1: We we exited twenty twenty-five with about four million dollars of cash. The this is a still kind of transitioning through that that change in mix we saw in twenty twenty-five.

Speaker #1: You know, moving away from the upfront CapEx purchases and the upfront cash that we get from those deals to those OpEx subscription models—through 2025, we're coming through the kind of back half of that.

Chris Goulden: Moving away from the upfront CapEx purchases and the upfront cash that we get from those deals to those OpEx subscription models through 2025. We are coming through the kind of back half of that. I do expect as we go through the second half of 2026 that we will start to generate cash again, and moving forward, we will be cash generative. Quickly on this slide then, I mentioned ARR, and the modest increase since the end of 2025. The chart on the right-hand side shows how ARR has been trending over the previous years. I do anticipate H1 just being a bit of a timing blip, and that we will return to a similar trend as we exit 2026. Geography. Carl mentioned that we have been expanding market beyond the typical US and UK markets.

Speaker #1: And I do expect as we go through the second half of 2026 that we will start to generate cash again. And moving forward, we will be cash generative.

Speaker #1: Quickly on this slide, then. I mentioned ARR and the modest increase since the end of 2025. The chart on the right-hand side shows how ARR has been trending over the previous years.

Speaker #1: I do anticipate H1 just being a bit of a timing blip, and that we will return to a similar trend as we exit 2026.

Speaker #1: Geography. You know, Carl mentioned that we've been expanding the market beyond the typical US and UK markets. For those who've been following Corero over the years, that America's number was upwards of 80% over two years ago.

Chris Goulden: For those who have been following Corero over the years, that Americas number was upwards of 80% nearly two years ago. Expanding into the Middle East and into APAC has moved that number down and increased the share to the rest of the world. I guess within the Americas number as well, the share of LATAM has been increasing significantly over the past two years.

Speaker #1: Expanding kind of into the Middle East and into APAC has moved that number down and increased the share for the rest of the world.

Speaker #1: And I guess within the Americas' number as well, the share of LATAM has been increasing significantly over the past two years.

Speaker #3: Outlook: Essentially, I think you can tell by the numbers that we feel quite strong about the way H2 has started. Of course, H1 has already been published, and we feel strong about that too.

Carl Herberger: Outlook. Essentially, I think you can tell by the numbers that we feel quite strong about the way that H2 has started. Of course, H1 has already been published, and we feel strong about that too, and it has been driven by significant customer wins obviously. These customer wins didn't happen overnight, early in the half. Obviously, we saw these in the pipeline, and we knew that these were proving themselves and positioning themselves for a second half win. We feel good about the enhanced pipeline that we have in 2026, which has led to moving our estimates above what the Street has consensually provided, and we are looking to have our extended product portfolio continue to sell and contribute to the business overall.

Speaker #3: And it's been driven by significant customer wins, obviously. These customer wins didn't happen overnight. Early in the half, obviously, we saw these in the pipeline.

Speaker #3: And we knew that these were improving themselves and positioning themselves for a second half when we feel good about the enhanced pipeline that we have in 2026, which has led to moving our estimates above what the Street has consensusly provided.

Speaker #3: And we're looking to have our extended product portfolio continue to sell and contribute to the business overall. Our ARR growth, as was mentioned, is continuing to shift, and we believe that ARR growth in the second half will be a very large portion of our business.

Carl Herberger: Our ARR growth, as Louise mentioned, is continuing to shift, and we believe that ARR growth in the second half will be a very large portion of our business. Of course, the mix of our products and how our customer chooses to buy at the end, we are always subject to the way that they think about those things. So we are looking to exceed the market expectations for revenue and also for EBITDA, as we mentioned, and remain focused on Corero's status as an effective and also affordable solution provider combating any problem associated with cyber resiliency. This is the business we are in. This cyber resilient piece, when you think about AI, when you think about the ability for having few AI agents running much of the world's infrastructure. ChatGPT, as an example, can't go down. You can't have Claude go down. You can't even have it be disrupted.

Speaker #3: Of course, the mix of our products and how our customer chooses to buy, in the end, we're always subject to the way that they think about those things.

Speaker #3: So we're looking to exceed market expectations for revenue and also for EBITDA, as we mentioned. And we remain focused on Corero's status as an effective and affordable solution provider, combating any problems associated with cyber resiliency.

Speaker #3: This is the business we're in. This cyber-resilient piece—when you think about AI, when you think about the ability of having a few AI agents running much of the world's infrastructure.

Speaker #3: ChatGPT is an example—you can't go down. You can't have Claude go down. You can't even have it be disrupted. These kinds of solution sets need to be nested with companies like Corero, or with Corero, in order to make sure that the solution continues to prove itself out.

Carl Herberger: ChatGPT, as an example, can't go down. You can't have Claude go down. You can't even have it be disrupted.

Carl Herberger: These kinds of solution sets need to be nested with companies like Corero or with Corero in order to be able to make sure that the solution continues to prove itself out.

Speaker #3: We believe we will remain well placed to capitalize on global growth, as well as re-vendor replacement strategies as times move on. It's a very large addressable market.

Chris Goulden: We believe we will remain well-placed to capitalize on global growth, as well as vendor replacement strategies as time moves on. It's a very large addressable market, and we're a rather small provider in that space, that's looking to make ourselves more and more available to larger and larger companies out there. The number one problem we had in the past was not being known as an eligible option for the big established market share providers, and we believe that that trend now is beginning to prove itself as changing. With that, Charlie, I hand it back on over to you.

Speaker #3: And we're a rather small provider in that space that's looking to make ourselves more and more available to larger and larger companies out there.

Speaker #3: The number one problem we've had in the past was not being known as an eligible option for the big, established market-share providers.

Speaker #3: And we believe that that trend now is beginning to prove itself as changing. So with that, Charlie, I hand it back on over to you.

Speaker #1: Fantastic. Thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions, just using the Q&A tab on the right-hand corner of your screen.

Moderator: Fantastic. Thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions just using the Q&A tab on the right-hand corner of your screen. Just while the team take a few moments to review those questions submitted today, I'd like to remind you of the recording of the presentation, along with a copy of the slides and the published Q&A can be accessed via your investor dashboard. As you can see, we've had a number of questions submitted throughout today's presentation. Thank you to all the investors for submitting those. If I may just hand back to you just to click on that Q&A tab, and if you could just read out the question where appropriate to do so, and I'll pick up from you at the end.

Speaker #1: Let's just take a few moments for the team to review the questions submitted today. I'd like to remind you that a recording of the presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard.

Speaker #1: As you can see we've had a number of questions submitted throughout today's presentation. Thank you to all the investors for submitting those. If I may just hand back to you just to click on that Q&A tab and if you could just read out the question where appropriate to do so and I'll pick up from you at the end.

Speaker #3: Great. Thank you, Charlie. So I guess this first question, Chris, is for yourself. How should we think about the trade-off between upfront license revenue and recurring subscription revenue?

Jonathan Patterson: Great. Thank you, Charlie. I guess this first question, Chris, for yourself. How should we think about the trade-off between upfront license revenue and recurring subscription revenue? Is the current mix shift primarily customer driven or is it a deliberate commercial strategy?

Jonathan Paterson: Great. Thank you, Charlie. I guess this first question, Chris, for yourself. How should we think about the trade-off between upfront license revenue and recurring subscription revenue? Is the current mix shift primarily customer driven or is it a deliberate commercial strategy?

Speaker #3: Is the current mix shift primarily customer driven, or is it a deliberate commercial strategy?

Speaker #2: Yeah, good question. I touched on it earlier. Our primary position is that, as a challenger brand, we are in the customer acquisition process.

Chris Goulden: Yeah, a good question. I touched on it earlier. Our primary position is that as a challenger brand, we are in the customer acquisition process, and we will be led by customers' buying preference. Actually, giving the customer that preference is a differentiator for us. Some of our competitors only offer a subscription basis. That can be a differentiator for us in some instances. Yes, primarily I would say it is customer driven. On the flip side, when we talked about the mix last year and the kind of guidance from what we were seeing on the market was, typically the smaller providers that were the historic sweet spot for Corero, who maybe didn't have cash readily available for CapEx, were looking for subscription. We are still seeing that trend.

Speaker #2: And we will be led by customers' buying preferences. Actually, giving the customer that preference is a differentiator for us. You know, some of our competitors only offer on a subscription basis.

Speaker #2: So that that can be a differentiator for us in some instances. So yes primarily I would say it's customer driven. On the flip side you you know we we when we talked about the mix last year and the kind of guidance from what we were seeing on the market was typically the smaller providers that were the historic sweet spot for Corero who maybe didn't have cash readily available for CapEx were looking for subscription.

Speaker #2: But we are still seeing that trend. But on the back end, you know, there was a deliberate ploy to target the tier-one market through product development.

Chris Goulden: But on the back end, there was a deliberate ploy to target the tier 1 market through product development. We are now starting to sell significant deals into those tier 1 customers. They sometimes more likely have cash and have CapEx budgets available. So those customers at larger values would typically buy on a CapEx basis.

Speaker #2: We are now starting to sell significant deals into those tier-one customers. They sometimes are more likely to have cash and have CapEx budgets available. So those customers, at larger values, would typically buy on a CapEx basis.

Speaker #3: Thanks Chris. And you've seen popular today with the questions. Given the fifteen point five million dollars of revenue and approximately two point six million dollars of EBITDA generated in H1 should investors be thinking about the second half as broadly similar or is there evidence that the second half could be materially stronger?

Jonathan Patterson: Thanks, Chris. You seem popular today with the questions. Given the $15.5 million of revenue and approximately $2.6 million of EBITDA generated in H1, should investors be thinking about the H2 as broadly similar or is there evidence that the H2 could be materially stronger?

Jonathan Paterson: Thanks, Chris. You seem popular today with the questions. Given the $15.5 million of revenue and approximately $2.6 million of EBITDA generated in H1, should investors be thinking about the H2 as broadly similar or is there evidence that the H2 could be materially stronger?

Speaker #2: Yeah. So historically from a sales bookings perspective we run on a roughly forty five fifty five split between H1 and H2. And from a bookings perspective we we anticipate the same split happening in twenty twenty-six.

Chris Goulden: Yeah. Historically from a sales bookings perspective, we run on a roughly 45/55 split between H1 and H2. From a bookings perspective, we anticipate the same split happening in 2026. I guess the two caveats I would give to that based on H1 results is we did see a higher CapEx mix in H1 than we maybe anticipated. That might not necessarily repeat in H2. Secondly, I mentioned gross margins earlier being high at 93%. Again, we had a higher mix of software only deals in H1, which generated a higher gross margin. Again, I don't anticipate H2 following that exact same trend. So from an in year revenue recognition perspective and a gross margin perspective, we might.

Speaker #2: I guess the two caveats I would give to that, based on H1 results, are that we did see a higher CapEx mix in H1 than we maybe anticipated.

Speaker #2: That that might not necessarily repeats in H2. And secondly I mentioned gross margins earlier being high at ninety three percent. Again we had a higher mix of software only deals in H1 which you know generated a higher gross margin.

Speaker #2: Again, I don't anticipate H2 following that exact same trend. So, for me, from a in-year revenue recognition perspective and a gross margin perspective, we might—

Speaker #3: And staying with you, Chris, will you pay tax in 2026? Is there any guidance you can provide on the tax rate we should expect in 2026 and 2027?

Jonathan Patterson: Staying with you, Chris, will you pay tax in 2026? Is there any guidance you can provide on tax rate we should expect in 2026 and 2027?

Jonathan Paterson: Staying with you, Chris, will you pay tax in 2026? Is there any guidance you can provide on tax rate we should expect in 2026 and 2027?

Speaker #2: Yeah, not in an exact position to comment on the tax position at this point, but I guess what I would say is, you know, historically, Corero has not been in a net profit position.

Chris Goulden: Yeah, I am not in an exact position to comment on tax position at this point. But I guess what I would say is, historically Corero has not been in a net profit position, so naturally has brought forward tax losses. The extent of those applicable will obviously be applied to future net profits. But I am not in an exact position to comment on the tax position at this point.

Speaker #2: So, naturally, it has brought forward tax losses. The extent of those applicable will obviously be applied to future net profits. But I'm not in an exact position to comment on the tax position at this point.

Speaker #3: Staying with the theme, the transition to subscription revenues has affected cash conversion. At what point do you expect the strong EBITDA growth to translate into sustained free cash flow?

Jonathan Patterson: Staying with the theme. The transition to subscription revenues has affected cash conversion. At what point do you expect the strong EBITDA growth to translate into sustained free cash flow? Should we expect H2 cash generation to be materially better than H1?

Jonathan Paterson: Staying with the theme. The transition to subscription revenues has affected cash conversion. At what point do you expect the strong EBITDA growth to translate into sustained free cash flow? Should we expect H2 cash generation to be materially better than H1?

Speaker #3: And should we expect second-half cash generation to be materially better than the first half?

Speaker #2: Yeah. Our cash flow forecast definitely suggests that we will be generative in the second half of the year. I don't expect that beyond that point, given where we are.

Chris Goulden: Yeah. Our cash flow forecast definitely suggests that we will be generative in the H2 of the year. I would expect beyond that point, given where we are with the ARR position that we are in, the recurring revenue and the recurring cash flow that comes with that. Some of the deals have transitioned from CapEx to subscription last year. Again, regular cash payments with them. We are targeting ARR growth to exceed OpEx growth and cost growth. We are not too far away from that. So essentially any incremental deal from that point should be cash generative as well as EBITDA generative.

Speaker #2: With the ARR position that we're in, the recurring revenue and the recurring cash flow that comes with that, some of the deals have transitioned from CapEx to subscription last year.

Speaker #2: Again, regular cash payments with them. You know, with ARR, we are targeting ARR growth—ARR growth to exceed OpEx growth and cost growth. We're not too far away from that.

Speaker #2: So essentially, any incremental deals from that point should be cash generative as well as EBITDA generative.

Speaker #3: Can you comment on the capitalized development spend? Is $2 million per quarter to continue, or should we expect this to rise meaningfully over the course of the second half of 2026 and then on into 2027?

Jonathan Patterson: Can you comment on the capitalized development spend? Is GBP 2 million per six month run rate to continue or should we expect this to rise meaningfully over the course of H2 2026 and then on into 2027?

Jonathan Paterson: Can you comment on the capitalized development spend? Is GBP 2 million per six month run rate to continue or should we expect this to rise meaningfully over the course of H2 2026 and then on into 2027?

Speaker #2: Yeah. I mean, I can't say whether it'll materially move from $2 million or not. What I would say is, development costs as a dollar value have increased over the past couple of years.

Chris Goulden: Yeah, I can't say whether it will materially move from GBP 2 million or not. What I would say is Development costs as a dollar value have increased over the past couple of years because of this development push for additional product capability, but we're seeing that as a return on revenue. We do see further opportunities for further product enhancement because it's driven by customer need and it's driven by commercial opportunities. What I would say is, I would expect dollar value to increase. I would expect that dollar value as a percentage of sales to decrease, and any increase in capitalized development spend is purely going to be driven from the commercial need to deliver additional product that has sales and commercial opportunity attached to it.

Speaker #2: Because of this development push for additional product capability, we're seeing that as a return on revenue. We do see further opportunities for further product enhancement because it's driven by customer need and it's driven by commercial opportunities.

Speaker #2: So, what I would say is, I would expect dollar value to increase. I would expect that dollar value as a percentage of sales to decrease, and any increase in capitalized development spend is purely going to be driven from the commercial need to deliver additional product that has sales and commercial opportunity attached to it.

Speaker #3: In terms of the revenue contribution from the new product suite—Traffic Availability, API performance monitoring, and Zero Trust—how do you expect this to evolve in the next couple of years?

Carl Herberger: In terms of the revenue contribution from the new product suite, traffic observability, API, performance monitoring, Zero Trust, how do you expect this to evolve in the next couple of years? Yeah. Carl can answer that for you. This is an exciting piece of the business and the business portfolio. There are two broad ways to answer this question. On the first part, that ever increasingly, when companies buy DDoS, they buy all those things at once. They buy performance monitoring and Zero Trust, and they buy observability. You find ever increasingly, the requirements will suggest that they want it all in order to be a cyber resiliency company. So on the one hand, it will increase our base business and our base deals because it's an integrative solution set deal, not an individually alone sold solution set. So that's one piece of it.

Jonathan Paterson: In terms of the revenue contribution from the new product suite, traffic observability, API, performance monitoring, Zero Trust, how do you expect this to evolve in the next couple of years?

Speaker #2: Yeah.

Chris Goulden: Yeah. Carl can answer that for you.

Speaker #3: Carl perhaps one for you.

Speaker #2: Yeah.

Speaker #4: So there's this is a an exciting piece of the business and the business portfolio. There are two broad ways to answer this question. On the on the first part that ever increasingly when companies buy PDoS they buy all those things at once.

Carl Herberger: This is an exciting piece of the business and the business portfolio. There are two broad ways to answer this question. On the first part, that ever increasingly, when companies buy DDoS, they buy all those things at once. They buy performance monitoring and Zero Trust, and they buy observability. You find ever increasingly, the requirements will suggest that they want it all in order to be a cyber resiliency company. So on the one hand, it will increase our base business and our base deals because it's an integrative solution set deal, not an individually alone sold solution set. So that's one piece of it.

Speaker #4: They buy performance monitoring and zero trust, and they buy observability. You find, ever increasingly, the requirements will suggest that they want it all in order to be a cyber-resilient company.

Speaker #4: So, on the one hand, it will increase our base business and our base deals because it's an integrative solution set deal, not an individually sold solution set.

Speaker #4: So that's one piece of it. What you find is, I would say, about one out of every two deals that we do has some sort of element of one of these new product portfolios embedded in the solution set.

Chris Goulden: What you find is, I would say about one out of every two deals that we do have some sort of element of one of these new product portfolios in it, embedded in the solution set. Second, we sell, like we mentioned with the web application deal in the H1, we will sell these solutions alone and unafraid, up against different competitors often that compete alone with just those solution sets. So the revenue component will be twofold. The first is increased deals and conversion of deals, increased deal sizes as a result of the increased requirement, and increased ability to actually service RFPs that have these requirements so we're not boxed out of them.

Carl Herberger: What you find is, I would say about one out of every two deals that we do have some sort of element of one of these new product portfolios in it, embedded in the solution set. Second, we sell, like we mentioned with the web application deal in the H1, we will sell these solutions alone and unafraid, up against different competitors often that compete alone with just those solution sets. So the revenue component will be twofold. The first is increased deals and conversion of deals, increased deal sizes as a result of the increased requirement, and increased ability to actually service RFPs that have these requirements so we're not boxed out of them.

Speaker #4: Seconds, we sell, like we mentioned with the web application deal in the first half; we will sell these solutions alone and unafraid, up against different competitors, often that compete alone with just those solution sets.

Speaker #4: So, the revenue component will be twofold. The first is increased deals and conversion on deals, increased deal sizes as a result of the increased requirement, and increased ability to actually service RFPs that have these requirements, so we're not boxed out of them.

Speaker #4: The second revenue component is this 'alone and unafraid' piece, where the solutions are being asked to be provided independently, and that we have the ability to actually provide a product for them that's independent of DDoS.

Chris Goulden: The second revenue component is this alone and unafraid piece where the solutions are being asked to be provided independently, and then we have the ability to actually provide a product for them that is independent of DDoS, which is a new solution, new portfolio for us over the last couple of years. The overall revenue size, I would suggest, is somewhere in the neighborhood, plus or minus 5% to 10% of our business and growing fast. I guess it is not always necessarily that the dollar value of these product SKUs. Being able to service customers with these product SKUs allows us to win larger DDoS deals because we have these additional capabilities with them. My point being, the actual dollar value of these products might not necessarily reflect their ability to win more and bigger DDoS deals. You just kind of further evidence on that.

Carl Herberger: The second revenue component is this alone and unafraid piece where the solutions are being asked to be provided independently, and then we have the ability to actually provide a product for them that is independent of DDoS, which is a new solution, new portfolio for us over the last couple of years. The overall revenue size, I would suggest, is somewhere in the neighborhood, plus or minus 5% to 10% of our business and growing fast.

Speaker #4: This is a new solution, a new portfolio for us over the last couple of years. The overall revenue size, I would suggest, is somewhere in the neighborhood of plus or minus five to ten percent of our business, and growing fast.

Speaker #2: And I guess it's not always necessarily about the dollar value of these product SKUs. You know, being able to service customers with these product SKUs allows us to win larger DDoS deals because we have these additional capabilities with them.

Chris Goulden: I guess it is not always necessarily that the dollar value of these product SKUs. Being able to service customers with these product SKUs allows us to win larger DDoS deals because we have these additional capabilities with them. My point being, the actual dollar value of these products might not necessarily reflect their ability to win more and bigger DDoS deals.

Speaker #2: So my point being, the actual dollar value of these products might not necessarily reflect their ability to win more and bigger DDoS deals.

Speaker #4: And you just kind of further evidence on that, in our release for the UK-based Tier 1 operator, we've mentioned in the release that that operator had requirements for Layer 7, which is application attacks, as well as encrypted attacks.

Carl Herberger: You just kind of further evidence on that.

Carl Herberger: In our release for the UK-based tier 1 operator, we mentioned in the release that that operator had requirements for Layer 7, which is application attacks, as well as encrypted attacks. So we had just improving our Layer 7 capabilities. Without those capabilities, that $3.4 million deal probably wouldn't have been available to us. Maybe sticking with that theme, what level of growth, Carl, do you anticipate in the core DDoS product? The core for us is all of those sundry products, the API, the Zero Trust, the traffic observability. That is all part of our, what we call Corero Observability and Resilience-Ecosystem. It encompasses all of that. We believe the core portfolio is vital for a fundamental change to a resilient platform. Said simply, our company is transitioning to the core. It is not going to be an add-on product.

Speaker #4: So we had just improved our layer seven capabilities, and without those capabilities, that $3.4 million deal probably wouldn't have been available to us.

Speaker #3: Maybe sticking with that theme, what level of growth, Carl, do you anticipate in the core DDoS product?

Jonathan Paterson: Maybe sticking with that theme, what level of growth, Carl, do you anticipate in the core DDoS product?

Speaker #4: Yeah, so the core for us is all of those assembly products—the API, the zero trust, the traffic observability—that's all part of what we call our observability and resilience ecosystem.

Carl Herberger: The core for us is all of those sundry products, the API, the Zero Trust, the traffic observability. That is all part of our, what we call Corero Observability and Resilience-Ecosystem. It encompasses all of that. We believe the core portfolio is vital for a fundamental change to a resilient platform. Said simply, our company is transitioning to the core. It is not going to be an add-on product.

Speaker #4: The Corero observability resilience ecosystem—it encompasses all of that. And we believe the core portfolio is vital for a fundamental change to a resilient platform.

Speaker #4: So, simply said, our company is transitioning to the core—it's not going to be an add-on product. And so, DDoS will be part of the overall portfolio.

Chris Goulden: DDoS will be part of the overall portfolio. Today, our company now, our salespeople, our engineers, our operations specialists, are all embedded with being able to be a cyber resiliency company as opposed to just a DDoS company. Then finally, Chris, when you say cash generative in H2, should investors expect positive free cash flow for the full year? Do you expect that cash generation to accelerate onto full year 2027 as the subscription revenue base matures? Okay. I guess splitting that into two then. We definitely have the potential to be free cash flow positive for the year, coming to the end of the year. I guess one of the factors that might prevent that is Q4 is a heavy period for us in terms of sales orders coming in. It is just typically the seasonality of how our customers buy.

Carl Herberger: DDoS will be part of the overall portfolio. Today, our company now, our salespeople, our engineers, our operations specialists, are all embedded with being able to be a cyber resiliency company as opposed to just a DDoS company.

Speaker #4: Today, our company—now our salespeople, our engineers, our operations specialists—are all embedded with being able to be a cyber-resilient company, as opposed to just a DDoS company.

Speaker #3: Thank you. And then finally, Chris, when you say cash generative in H2, should investors expect positive free cash flow for the full year, and do you expect that cash generation to accelerate on to full year 2027 as the subscription revenue base matures?

Jonathan Paterson: Then finally, Chris, when you say cash generative in H2, should investors expect positive free cash flow for the full year? Do you expect that cash generation to accelerate onto full year 2027 as the subscription revenue base matures?

Speaker #2: Okay. Yeah, I guess splitting that into two, then. We definitely have the potential to be free cash flow positive for the year, coming to the end of the year.

Chris Goulden: Okay. I guess splitting that into two then. We definitely have the potential to be free cash flow positive for the year, coming to the end of the year. I guess one of the factors that might prevent that is Q4 is a heavy period for us in terms of sales orders coming in. It is just typically the seasonality of how our customers buy.

Speaker #2: I guess one of the factors that might prevent that is, you know, Q4 is a heavy period for us in terms of sales orders coming in.

Speaker #2: It's just typically the seasonality of how customers buy. If you look at trends in the past, somewhere between 30 and 35 percent of our sales bookings can come in in the fourth quarter.

Chris Goulden: If you look at trends in the past, somewhere between 30% and 35% of our sales bookings can come in the Q4. If that order comes in on 1 October, the chances are that we fulfill that order, and we invoice it, and we collect the cash before the end of the year. If that order comes in on 31 December, we are not getting the cash until 2027. Clearly, management and sales leadership are very focused on those keep up deals, bringing them in as early as possible through the quarter to bring in that revenue and that cash. Second part of the question about kicking on into 2027 and accelerating cash generation. Yes, absolutely.

Speaker #2: Now, if that order comes in on the first of October, the chances are that we fulfill that order, invoice it, and collect the cash before the end of the year.

Speaker #2: If that order comes in on the 31st of December, we're not getting the cash until 2027. So, clearly, management and sales leadership are very focused on those key core deals, bringing them in as early as possible through the quarter to bring in that revenue and that cash.

Speaker #2: Second part of the question about kicking on into 2027 and accelerating cash generation. Yes, absolutely. I mentioned that ARR, and the cash that comes with that, is now approaching our cost base.

Chris Goulden: I mentioned that ARR and the cash that comes with that is now approaching our cost base. It is a short term goal of ours for ARR to exceed our cost base, and just by very nature then become cash generative before we add any upfront CapEx deals to that.

Speaker #2: And you know, it's a short-term goal of ours for ARR to exceed our cost base, and just by its very nature then become cash generative before we add any upfront CapEx deals to that.

Speaker #3: Great. And then, finally, a quick question about operating leverage. Are any expense items planned to grow faster than revenue?

Jonathan Patterson: Great. Then finally, a quick question about operating leverage. Are any expense items planned to grow faster than revenue?

Jonathan Paterson: Great. Then finally, a quick question about operating leverage. Are any expense items planned to grow faster than revenue?

Speaker #2: No, I wouldn't say so. We're, you know, we're in a privileged position with our growth to be able to put more roles in to further strengthen that growth potential.

Chris Goulden: No, I wouldn't say so. We're in a privileged position with our growth to be able to put more roles in to further strengthen that growth potential. Sales roles that come with quota attached to them. So I guess to some extent, if you bring in a new sales role, the cost comes in before the revenue, but obviously it comes with a quota attached to it that's built into our budget. So there's nothing specific at this moment in time that would require any OpEx in general to exceed the revenue growth rate.

Speaker #2: You know, sales roles that come with the quarter attached to them. So I guess to some extent, if you bring in a new sales role, the cost comes in before the revenue.

Speaker #2: But obviously, it comes with a quote to attach to it that's built into our budget. So there's nothing specific at this moment in time that would require any, you know, OpEx in general to exceed the revenue growth rate.

Speaker #3: Great. Thank you both. I'll hand it back to you, Charlie.

Jonathan Patterson: Great. Thank you both. I hand it back to you, Charlie.

Jonathan Paterson: Great. Thank you both. I hand it back to you, Charlie.

Speaker #1: Fantastic. Look thank you indeed for answering every single question that's come through. I'm sure it's greatly appreciated by investors. Just before redirecting investors to provide you with their feedback do particularly important to the company.

Moderator: Fantastic. Look, thank you indeed for answering every single question that has come through. I am sure it is greatly appreciated by investors. Just before redirecting investors to provide you with their feedback, they are particularly important to the company, Carl, if I may just ask you for a few closing comments, please.

Operator: Fantastic. Look, thank you indeed for answering every single question that has come through. I am sure it is greatly appreciated by investors. Just before redirecting investors to provide you with their feedback, they are particularly important to the company, Carl, if I may just ask you for a few closing comments, please.

Speaker #1: Carl, if I may, could I just ask you for a few closing comments, please?

Speaker #4: Sure. Thank you Charlie for that. So just just summarizing today's conversation what you have is presented before you is a cybersecurity company that's transitioning into a cyber resiliency company that has been exploding on product products as well as addressable market execution inclusive of moving upstream to tier one operators both in the US and the UK.

Carl Herberger: Sure. Thank you, Charlie, for that. Just summarizing today's conversation, what you have presented before you is a cybersecurity company that is transitioning into a cyber resiliency company that has been exploding on products as well as addressable market execution, inclusive of moving upstream to Tier 1 operators, both in the US and UK, some of the biggest companies in the world, as well as geographic expansion, which has been all part of the plan that we have been trying to address more and more addressable markets, as well as having the ability to be more compliant and catching trends with customers on fast moving cyber trends in neoclouds, AI, as well as sovereignty, which are all the attributes of the future protect purchases. We believe we have an ever increasingly executable team.

Speaker #4: Some of the biggest companies in the world, as well as geographic expansion, have all been part of the plan as we try to address more and more addressable markets.

Speaker #4: As well as having the ability to be more compliant and catching trends with customers on fast moving cyber cyber trends in neo clouds AI as well as sovereignty which are all the all the attributes of the future protect purchases we believe we have an ever increasingly executable team we've kept a headcount to be at or below a hundred for the last three years.

Carl Herberger: We have kept the headcount to be at or below 100 for the last three years, so we have almost doubled the size of the bookings of the business, and you can see that we are getting much more production out of the business. I thank you for your interest in the business. We believe that we have a strong future potential, and that will continue on as we move into 2027. Thank you.

Speaker #4: So we've almost doubled the size of the bookings of the business, and you can see that we're getting much more production out of the business.

Speaker #4: I thank you for your interest in the business. We believe that we have strong future potential and that we'll continue on as we move into 2027.

Speaker #4: Thank you.

Speaker #1: Fantastic, Carl, thank you. Thank you to the team for updating investors today. Can I please ask investors not to close this session? We will automatically redirect you to provide your feedback.

Moderator: Fantastic, Carl. Thank you. Thank you for the team for updating investors today. Could I please ask investors not to close this session? You should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team, Carl.

Operator: Fantastic, Carl. Thank you. Thank you for the team for updating investors today. Could I please ask investors not to close this session? You should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team, Carl.

Speaker #1: In order the team can better understand your views and expectations. There's going to take a few moments to complete and those greatly valued by the company.