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Corero PLC on Wednesday predicted that it will likely miss full-year market expectations after slower orders and weaker consumer confidence in the first half of 2025. The London-based firm provides distributed denial-of-service protection, or DDP, a form of cybersecurity. It expects to swing to a loss before interest, tax, depreciation and amortisation of $1.4 million in the first half from $700,000 in earnings a year before. For the full year, Corero expects between a breakeven result and an Ebitda loss of $1.5 million, compared to profit of $2.5 million in 2024. This is well below company-cited consensus of positive Ebitda of £4.0 million. Corero shares were down 38% to 9.20 pence on Wednesday afternoon in London. The stock is down 53% over the past 12 months. Half-year revenue is estimated at $10.9 million, down from $12.2 million the previous year. For all of 2025, revenue is estimated between $24.0 million and $25.5 million, compared to $24.6 million the year before and below the £28.8 million market consensus estimate provided by Corero. Order intake declined in the six months that ended June 30 to $12.5 million from $14.2 million, but rose 13% to $7.8 million in the second-quarter. Corero pointed to slower-than-expected trading in its Alliance Partner division, alongside macro-economic weakness and consumer hesitancy, influenced by US tariffs. The second-quarter rebound in part reflected two contracts for Corero’s CORE platform, or Observability & Resiliency Ecosystem. The deals are worth a combined $1.8 million over their lifespan. Corero said it had lowered revenue guidance partly due to the adoption of an alternative sales model. The firm noted a shift away from upfront capital expenditure license sales to DDP-as-a-service, which is expected to continue in the second-half. ‘Whilst this trend has had an impact on the quantum of revenue and Ebitda recognised in the current financial year, more contracted revenue will now flow through the length of the contract, typically three years,’ Corero said. The company suggested moving towards DDPaaS had lifted annual recurring revenue by about 25%. ARR was $21.6 million in the first half of 2025, up 26% from $17.2 million a year before. ‘In addition, this transition improves long-term revenue visibility and supports higher retention rates across the group’s global customer base.’ Corero’s cash balance was $3.1 million at June 30, down from £7.9 million on-year. As of Wednesday, the firm is debt-free, but is in talks to secure an overdraft facility to cover what it described as ‘the shift in revenue mix’. ‘Our growing pipeline, including alliance partner opportunities, underpins our confidence in the second half of 2025,’ added Chief Executive Carl Herberger. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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