Cato Networks hits $350 million revenue run rate amid IPO uncertainty
Despite 43% growth, AI-driven disruption and falling cyber valuations cloud Wall Street ambitions.
Shlomo Kramer’s cybersecurity company Cato Networks has revealed that it reached an annual revenue run rate of $350 million in 2025, representing 43% growth compared to 2024.
While the growth is impressive, it remains unclear whether it will be sufficient to support Cato’s long-term ambition of going public on Wall Street. Market conditions have shifted, particularly amid growing concerns that AI-driven solutions could disrupt large parts of the software and cybersecurity sectors.
Cato develops Secure Access Service Edge (SASE) solutions that enable organizations to securely connect distributed users and sites over cloud infrastructure. The company began working with investment banks on a potential IPO in 2024, but those plans were later postponed.
In the summer of 2025, Cato instead raised $409 million in private funding at a valuation of approximately $5 billion. However, given current Nasdaq revenue multiples, especially following a recent sell-off in cybersecurity stocks, it is unlikely the company would command a similar valuation in a public offering today.
The sector was shaken last weekend after AI company Anthropic unveiled “Claude Code Security,” a solution designed to integrate cybersecurity protections directly into cloud-based development environments. The announcement triggered a sharp drop in cybersecurity stocks, including industry leaders Palo Alto Networks, CrowdStrike, and Zscaler. These companies are now trading at revenue multiples of roughly 10-12x.
Cato, which is not yet profitable, emphasizes that its growth rate significantly exceeds that of the broader SASE market. According to research firm Gartner, the SASE market is projected to grow at a compound annual rate of 26% over five years, reaching $28.5 billion by 2028.
Cato currently serves more than 4,000 organizations worldwide. In September 2025, it expanded its AI capabilities through the $350 million acquisition of Israeli startup Aim Security.
Founded in 2015 by Shlomo Kramer, co-founder of Check Point and Imperva, along with Gur Shatz (who later left the company), Cato has raised approximately $1 billion to date. Its investors include Lightspeed Venture Partners, ION Crossover Partners, and Vitruvian Partners.
