Cybersecurity IPOs 2025 & 2026: Deep Analysis of Upcoming Cyber Security Stocks
— Strategy of Security, Nov‑2024 source
Summary of source: Strategy of Security notes that a backlog of venture‑backed cyber firms remains private, setting the stage for a packed IPO calendar once market conditions improve. (31 words)
[h2]Why Cybersecurity IPOs Matter in 2025–2026[/h2]
Cyber threats keep escalating, forcing enterprises and governments to raise security budgets. Gartner expects global cybersecurity spend to grow at a 13% CAGR, topping US$300 billion by 2027. With public markets gradually reopening after 2022–2023 volatility, investors are hunting for pure‑play cyber exposure.
Key Drivers
- Digital transformation & cloud migration
- Heightened regulatory pressure (e.g., EU NIS2, U.S. SEC cyber‑disclosure rules)
- AI‑powered attacks requiring new defensive tooling
- Private‑market valuations reaching maturity (>US$1 billion) among late‑stage unicorns
[h2]Methodology[/h2]
We screened late‑stage private cyber companies (Series D or later, >US$500 million valuation) that hired CFOs, filed confidentially, or publicly hinted at going public. We cross‑checked Crunchbase, PitchBook, and press releases up to 31 May 2025.
[h2]IPO Candidates for 2025[/h2]
1. Wiz
- Cloud security platform; valuation: ~US$12 billion (Series C, Feb 2025)
- ARR: ~US$450 million, >200% YoY growth
- Competitive edge: agentless scanning across AWS, Azure, GCP
- Risks: intense competition (Palo Alto, CrowdStrike)
2. Snyk
- Developer‑first security; valuation: US$13 billion
- ARR: ~US$250 million; strong partnerships with AWS & Atlassian
- Catalyst: hired former Datadog CFO in Jan 2025
3. Arctic Wolf
- Managed detection & response (MDR); valuation: US$4.3 billion
- Filed confidential S‑1 in Q1 2025 (Reuters report)
4. Tanium
- Endpoint management & security; valuation: US$9 billion
- Profitable since 2023; exploring dual‑listing in U.S. & U.K.
5. Lacework
- Cloud workload protection; valuation: US$8.3 billion
- Rebooted leadership and cost structure in 2024; eyeing H2 2025 window
6. Illumio
- Zero Trust segmentation; valuation: US$2.9 billion
- Signed mega‑deal with U.S. federal agency in 2024, boosting backlog
7. Claroty
- OT & IoT security; valuation: US$2.5 billion
- Beneficiary of critical‑infrastructure mandates, especially in EU
[h2]Watchlist for 2026[/h2]
1. Netskope
- SASE & cloud security; valuation: US$14 billion
- IPO timing pushed to 2026 to digest 2024 acquisitions
2. Cybereason
- Extended detection & response (XDR); valuation: ~US$3 billion
- Restructured balance sheet with SoftBank support; needs additional growth runway
3. Aqua Security
- Cloud‑native application protection; valuation: US$1.5 billion
- Projected ARR: US$150 million by 2025 year‑end; CFO hire in April 2025
4. Orca Security
- Side‑scanning cloud security; valuation: US$1.8 billion
- Likely to follow Wiz once market appetite proven
5. Dragos
- Industrial cyber defense; valuation: US$2.6 billion
- Regulatory catalysts: U.S. TSA pipeline directives, EU NIS2
6. Nozomi Networks
- OT visibility & security; valuation: US$1 billion
- Strong growth in energy & manufacturing verticals
[h2]Valuation Multiples Snapshot[/h2]
| Company | Est. ARR (2025E) | Private Valuation | Implied EV/ARR |
|---------|-----------------|-------------------|----------------|
| Wiz | US$450M | US$12B | 26.7x |
| Snyk | US$250M | US$13B | 52.0x |
| Arctic Wolf | US$500M | US$4.3B | 8.6x |
| Tanium | US$800M | US$9B | 11.3x |
| Netskope | US$500M | US$14B | 28.0x |
[h2]Macro & Market Outlook[/h2]
- Fed rate‑cut cycle expected to begin Q4 2025, lowering discount rates.
- Rubrik’s successful 2024 debut (+38% first‑day pop) signals renewed demand.
- Cybersecurity ETFs (CIBR, HACK) up >20% YTD, outperforming NASDAQ.
[h2]Risks to Monitor[/h2]
- Valuation compression if growth slows below 30%.
- Geopolitical tensions impacting supply chains and government budgets.
- Potential consolidation: strategic buyers (Palo Alto Networks, Microsoft) may acquire targets pre‑IPO.
[h2]Conclusion[/h2]
The 2025–2026 window could deliver the richest slate of cybersecurity IPOs since 2021. Investors should track S‑1 filings, growth metrics, and lock‑up expirations to position ahead of the curve.
Further Reading
- Strategy of Security: Cybersecurity’s 2025 IPO Pipeline
- Reuters: Arctic Wolf files confidential IPO paperwork
- Crunchbase: Wiz Company Profile
- PitchBook: Cybersecurity IPO Outlook
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Do your own research or consult a licensed professional before investing.