Cato Networks' ARR surges past USD $350m amid SASE boom
Cato Networks reported annual recurring revenue (ARR) of more than USD $350 million for 2025, a 43% year-on-year increase. The secure access service edge (SASE) vendor now serves more than 4,000 enterprise customers worldwide.
The results point to sustained spending on consolidated cloud networking and security products, as large organisations rework wide-area networks and remote access while applications and users spread across public cloud, branch locations, and hybrid environments.
Cato sells a single cloud-delivered platform that combines network connectivity and security controls. The approach sits within the SASE category, which has become a focal point for suppliers spanning SD-WAN, secure web gateway, cloud firewall, and zero-trust network access markets.
Market growth projections remain strong. Gartner estimates the SASE market will grow at a 26% compound annual growth rate over five years, reaching USD $28.5 billion by 2028.
Cato framed the milestone as evidence of demand from large multinationals, including Fortune 500 and Forbes Global 2000 organisations.
Co-founder and CEO Shlomo Kramer linked the company's growth to platform consolidation and security requirements.
"Cato's mission is to fundamentally simplify and modernize enterprise networking and security, and our growth is a direct reflection of that vision. Surpassing $350 million in annual recurring revenue is a significant milestone that underscores the strong demand from Fortune 500 and Forbes Global 2000 enterprises for the Cato SASE Platform, and the trust our customers place in us to securely connect their businesses."
Deal and funding
Over the past year, Cato has paired product expansion with corporate activity, including the acquisition of Aim Security. Cato described Aim Security as focused on AI security, with customers among large global enterprises.
Funding has also featured prominently. Cato raised USD $409 million in Series G funding across an initial round and an extension, valuing the company at more than USD $4.8 billion. Total funding has exceeded USD $1 billion.
The acquisition and fundraising come as security suppliers address new use cases tied to generative AI. Many enterprises are tightening controls around employee use of third-party AI services and testing internal deployments, increasing focus on data governance, access controls, and monitoring across cloud services.
Management changes
Cato has made senior hires across sales, channel, and marketing as it scales. Karl Soderlund joined as Global Channel Chief in 2025 and leads the partner organisation.
Regional sales leadership has also been strengthened with Nicolas Warnier as Vice President of Sales, EMEA, and Marcus Guerriero as Vice President of Sales, Americas. Cato said all three executives have backgrounds in cybersecurity vendors.
In January 2026, Jaime Romero was appointed Chief Marketing Officer to lead global marketing as the company continues to scale.
Partner push
Channel activity is a key part of go-to-market for many SASE suppliers, particularly in markets where customers expect implementation services and network integration support. Cato introduced the Cato Networks Channel First Partner Program as an evolution of its global partner programme.
Cato also cited a multi-year partnership with the BWT Alpine Formula One Team. Technology suppliers often use such deals to boost brand visibility and support customer engagement with global audiences.
Product positioning
As it competes with larger networking and security incumbents and other SASE specialists, Cato has sought third-party validation. It said it was named a Leader in the 2025 Gartner Magic Quadrant for SASE Platforms for a second consecutive year. It also cited recognition in the 2025 GigaOm Radar Report for SASE, inclusion in the 2025 Forbes Cloud 100, and placement in the 2026 Fortune Cyber 60.
The company said more than 4,000 enterprises use the Cato SASE Platform, positioning it for the "digital and AI era" as security teams seek consistent controls across users, devices, sites, and cloud services.
European expansion
Cato is also investing in research and development. It said its R&D centre in Prague will triple in size over the next year, pointing to continued hiring in engineering and product development.
With ARR growth and additional capital, Cato is likely to face higher expectations for continued scale, broader product coverage, and execution across regions, as enterprise customers push for simpler procurement and more predictable operating models.