Oct 28, 2026 earnings call — Record revenue and AI security product momentum
Record revenue reached $84.4 million, up 12% year-over-year.
Revenue $0.1B (est $0.1B) · EPS $0.28 (est $0.29)
Key quotes
"Last quarter, we introduced Xploit Shield, which provides payload runtime protection for new exploits discovered with traditional tools or by frontier models."
"According to our first half 2026 global threat analysis report, web DDoS attacks increased 110% year over year, while malicious web and API activity more than doubled."
"With less than one-third of the end-of-sale install base refreshed to date and a strong pipeline ahead, we see meaningful opportunity from this cycle over the next several quarters."
Analyst Q&A 3
AI security impact and timing
Q (Joe Gallo · Jefferies): The analyst asked where customers are in using AI and which products benefit most now. He also asked when the new AI security products will start helping growth—this quarter or next year.
A: Management said AI affects multiple areas. They see AI-driven vulnerability discovery driving demand for WAF, API and Xploit Shield, and AI Protect is building pipeline and is a 2027 opportunity. They noted AI is already increasing revenues for WAF, API and DDoS, and Guy said they are not guiding next year but ARR is currently double digit and past quarters were mostly double digit.
"I do think it is a 2027 opportunity, but we are definitely seeing a rise there." — Roy Zisapel (CEO)
Sales spend and scrubbing centers
Q (George Notter · Wolfe): The analyst asked whether past sales and marketing investments are paying off and how the selling organization is being run. He also asked for an update on mitigation capacity, POPs, and scrubbing-center investments.
A: They said the sales and marketing investments have delivered good returns and improved efficiency, so sales and marketing expense as a percent of revenue has declined. They plan to continue investing in Xploit Shield, AI Protect and API security, and see traction with MSSP and OEM partners. On capacity, they are opening POPs (not offices), announced Bangkok recently, will add more centers like Indonesia, and said they executed a plan to increase mitigation capacity while keeping CapEx very efficient; Guy noted free cash flow was $12.4 million and CapEx rose from $1.9 million to $3.1 million year-over-year.
"I think we just announced Bangkok a couple of weeks ago, and we continue to build every quarter more centers." — Roy Zisapel (CEO)
AI sales motion and competitors
Q (Jeffrey Hopson · Needham): The analyst asked if selling AI products is a different sales effort or just extra conversations, and whether competitors are the same or include many new AI entrants.
A: They said it depends on the AI use case. For shortening time from vulnerability discovery to protection, the sales conversation and customer persona are similar to existing AppSec sales. For agentic AI protection, the field is new and fragmented with many startups and some large players, while AI SOC automation is mostly an upsell to existing customers.
"If we're talking on some of the agentic AI protection, and I've mentioned, for example, MCP protection or AI agent protection, this is a new field today in security." — Roy Zisapel (CEO)