Cato Networks surpassed $350 million in annual recurring revenue in 2025 as more businesses adopted its tools in the age of artificial intelligence, the cybersecurity startup announced Tuesday.

CEO Shlomo Kramer told CNBC in an interview that the cloud-based network security provider is benefiting from the AI transformation and has an “aggressive plan” to gain market share in 2026.

“We are gaining some scale and becoming a more significant player in [the networking security] market,” said Kramer, who co-founded Israeli cybersecurity firm Check Point Software

and was an early investor in Palo Alto Networks

The milestone reflects 43% year-over-year growth and comes just a few months after Cato said it had topped $300 million in ARR. The metric is used by software companies to track revenue over 12 months.