Israeli cybersecurity company Cato Networks reports that it has crossed the $415 million mark in annual recurring revenue (ARR). The company said that this represented growth of 42% compared with the previous year. This latest figure continues the trend the company reported in February, when ARR was $350 million after 43% annual growth.
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This means that in five months, Cato has added more than $60 million to its ARR, while maintaining an annual growth rate above 40%.
According to sources, the figures reinforce market estimates that Cato is approaching a stage where it could consider a Wall Street IPO. In recent years, following the correction in the tech market, US investors tend to give the highest multiples to companies that manage to report significant revenue and continued rapid growth.
According to Cato, the main growth engine continues to be enterprise customers. During the second quarter, Cato signed several multi-million dollar contracts with Fortune 500 and Global 2000 companies in the fields of industrial, robotics, communications and data analytics. The company currently serves more than 4,800 customers worldwide.
Cato cofounder and CEO Shlomo Kramer said, “Surpassing $415 million in ARR validates what we are seeing across the market. Enterprises need security, resilience, and agility that legacy architectures were never built to deliver. AI is increasing both the speed of business and complexity of risk. Cato’s continued growth reflects customers choosing a cloud-native platform for their AI-driven future.”
In parallel with the business growth, the company continues to expand its activities in the field of AI security. Cato reported high demand for the Cato AI Security solution, which was launched after the acquisition of Aim Security, as well as new capabilities for managing and securing AI agents. The company also said that it has been able able to shorten the time to provide protection against new security vulnerabilities to just 45 minutes.
In the past, it was reported that Cato was looking for a buyer, which was later denied by the company.
Published by Globes, Israel business news – en.globes.co.il – on July 27, 2026.
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