Cato Networks tops USD $415 million ARR on enterprise demand

Cato Networks has surpassed USD $415 million in annual recurring revenue, a 42% year-on-year increase.

The growth was accompanied by several multi-million-dollar contracts in the second quarter, including agreements with large companies in manufacturing, robotics, telecoms, and data analytics. Its customer base now exceeds 4,800 organisations.

The figures suggest large enterprises continue to invest in combining networking and cybersecurity tools through a single supplier. Recent wins came from Fortune 500 and Global 2000 businesses looking to replace legacy network and security systems with a single platform.

Among the deals highlighted was a Fortune 500 company with nearly 50,000 employees that deployed Cato AI Security. Another customer, a technology manufacturer with more than 150,000 employees, bought the company's SASE platform to combine connectivity, security, and compliance functions.

A robotics and automation group with more than 100,000 employees also adopted the platform to consolidate networking and security, while a service provider with nearly 10,000 employees expanded its use of the technology into its own customer base.

One customer described the operational case for reducing the number of vendors across large network estates.

"Running one of the world's largest retail networks means simplifying wherever possible. In just one year, we've connected and secured two thousand locations to a single modern SASE platform and consolidated multiple networking and security vendors onto Cato. The result is a more streamlined operation, better visibility, and a scalable foundation for the next phase of our Zero Trust journey," said Morgan Guyader, Senior Network Director, Carrefour.

AI focus

Cato has also been expanding its AI-related security products following the integration of technology from Aim Security, which it acquired earlier. Its AI Security offering now gives customers visibility and policy controls across different types of AI agents, including local, managed, and internally developed systems.

That push reflects broader concern among corporate security teams about how to monitor the growing use of AI tools inside businesses. The system can inspect prompts and responses across major agentic platforms and apply policies to those interactions.

"Because Cato sits at the top of the network, it catches every AI interaction. Every prompt. Every response. No matter how it's generated. That's exactly where AI security needs to be," said Doug Innocenti, CIO/CSO, MoonPay.

London hub

In the UK, the company has opened its first dedicated AI hub in London as it expands research and development work. The move adds to signs that cybersecurity and AI suppliers continue to invest in the British market for engineering and product development.

Cato has also joined the OpenAI Daybreak Cyber Partner Program and introduced integrations with CrowdStrike and Cyera. Those additions are intended to connect its network security platform more closely with other cybersecurity and data security tools used by enterprises.

Response times

Another product update focused on vulnerability response. In the second quarter, Cato launched full Agentic CVE Mitigation and reduced the time needed to issue protection for newly disclosed vulnerabilities to 45 minutes, compared with what it described as an industry norm of weeks.

The company attributed that result to automated threat research combined with its cloud-native architecture. Faster response times are becoming a more prominent selling point across the cybersecurity market as attackers move more quickly to exploit newly disclosed flaws.

Shlomo Kramer, Co-Founder and Chief Executive Officer of Cato Networks, said the revenue growth reflects a wider shift in enterprise buying patterns.

"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," said Kramer.