Cyber startup Cato Networks tops revenue milestone as CEO says AI is helping business

Cato Networks has achieved a significant milestone, surpassing $350 million in annual recurring revenue (ARR) for 2025, fueled by the increasing adoption of its cybersecurity tools in the rapidly evolving landscape of artificial intelligence. In an interview with CNBC, CEO Shlomo Kramer emphasized how the company is leveraging the ongoing AI transformation, outlining an ambitious strategy to capture more market share in 2026. Kramer, who co-founded the prominent cybersecurity firm Check Point Software and was among the early investors in Palo Alto Networks, noted that Cato is scaling up its operations and establishing itself as a formidable player in the network security sector. This impressive milestone marks a 43% year-over-year growth, following closely on the heels of Cato’s previous announcement of surpassing $300 million in ARR. This key performance metric, commonly used by software companies, tracks revenue over a 12-month period. Despite recent challenges faced by public cybersecurity companies, whose stock prices have declined amid the emergence of new AI tools developed by firms like Anthropic, Cato Networks is adapting. Many cybersecurity firms are integrating AI technologies to automate processes and bolster security offerings. Cato itself has implemented AI solutions aimed at improving threat detection and protection capabilities, even acquiring the AI security startup Aim Security in September, marking its first acquisition. Kramer acknowledged that while AI presents a significant opportunity for growth, he expects a market correction as businesses adjust their valuations regarding the benefits provided by the technology. Since its inception in 2015, Cato has secured over $1 billion in funding and is gearing up for a new funding round estimated to value the company at approximately $4.8 billion. Kramer aspires for Cato to become the leading force in network security, akin to CrowdStrike in its field, though he refrained from confirming any plans for an initial public offering, stating that the company remains open to various funding avenues.