Cato Networks Nears $500 Million Annual Revenue Amid Growth and IPO Plans

Cato Networks, an Israeli cybersecurity firm founded in 2015 by Shlomo Kramer and Guri Shatz, has reported reaching an annual revenue run rate of $415 million, reflecting a 42% growth rate. The company, which develops a cloud-based secure access platform (SASE), accelerated its growth in the second quarter by signing several major contracts. Despite recent setbacks such as shelving plans to expand its office space and delaying its anticipated Wall Street IPO, Cato remains focused on growth and investor engagement. The company has raised $1.1 billion to date, with a valuation close to $5 billion from its last funding round a year ago.

Cato employs around 1,800 people, about half based in Israel, following its $350 million acquisition of AIM Security in September 2025. The firm has increased its workforce from approximately 1,400 employees a year ago and currently has over 250 open positions, including 100 in Israel. While profitability has not yet been achieved, the company is approaching the $500 million revenue milestone with strong double-digit growth, which supports future IPO discussions. Chief Strategist Eyal Weber-Tzvik confirmed that IPO planning continues and will happen eventually, although no prospectus has been filed yet. Rumors of an acquisition by cybersecurity giant CrowdStrike were firmly denied by CEO Shlomo Kramer.

Recently, Cato canceled its plan to move into a larger office in Tel Aviv’s Beit HaIkarim building and instead expanded within its current Landmark Tower location to maintain flexibility amid changing market conditions. Weber-Tzvik emphasized that this decision is unrelated to currency fluctuations or AI developments. He highlighted cybersecurity as one of the three essential pillars for the AI revolution, alongside energy and computing power.

Cato’s AI-driven security solution, launched in March and enhanced by the AIM acquisition, integrates management of various agent types into a unified platform. Its AI engine monitors interactions with AI tools, enforces security policies, and offers advanced detection and customization options, significantly reducing the time organizations have to respond to new vulnerabilities. In the second quarter, Cato cut its Time-to-Protect against new CVE vulnerabilities to just 45 minutes, a major improvement over traditional protection methods that can take weeks. This rapid response is enabled by combining agent threat research with Cato’s unique cloud architecture to defend against attacks at machine speed.