AlgoSec posts record 2025 growth on hybrid cloud demand

AlgoSec reported 37% year-on-year new business growth in 2025 and a gross dollar retention rate above 90%, as enterprises increased spending on tools that map and manage application connectivity across hybrid and multi-cloud environments.

The cybersecurity vendor also reported strong year-on-year annual recurring revenue growth, calling 2025 its best year to date. It has remained cash-flow positive and debt-free since its founding in 2004.

As enterprises add cloud services while keeping on-premises infrastructure, the number of network security policies and connectivity paths has grown. That complexity is pushing many organisations to focus on application flows rather than individual devices, according to AlgoSec.

Hybrid complexity

AlgoSec cited findings from its 2025 State of Network Security Report, based on responses from more than 500 cloud and network security professionals worldwide. The survey found that multi-cloud setups are now common, with Microsoft Azure the most widely used cloud platform among respondents.

The report also found that automating application connectivity has become a leading priority for reducing risk and avoiding outages as environments expand. Security teams are facing a growing workload from application changes, new cloud networking constructs and frequent policy updates, all of which can introduce misconfigurations.

Against that backdrop, AlgoSec reported adoption among large, distributed enterprises in 2025. New customers listed included Volkswagen Group UK, Vodacom Business, NTT DATA Spain, Gainwell Technologies LLC - Texas, and Lamborghini.

The company also highlighted third-party review scores, including 4.5 out of 5 ratings on G2 and Gartner Peer Insights, recognition in Gartner's Voice of the Customer report, and a #1 ranking on PeerSpot. Separately, it cited a 4.5 out of 5 rating on Glassdoor.

Horizon platform

In 2025, AlgoSec released AlgoSec Horizon, which it describes as an application-centric security management and automation platform for hybrid networks.

According to the company, the platform provides a single view across multi-cloud and data centre environments. It is positioned to help security teams evaluate risk in the context of business needs while managing policy at scale.

AlgoSec said Horizon uses AI-driven visibility and risk-mitigation features, automatically discovering applications and mapping connectivity dependencies across environments. It also said the software reduces operational friction, limits misconfigurations and supports faster application delivery.

The company reported early adoption after the release, saying more than 100 customers implemented Horizon within a few months of launch.

Vendors in this segment have placed greater emphasis on application connectivity as organisations adopt microservices, container platforms and managed cloud services. These architectures can increase east-west traffic and introduce frequent changes in network paths, which can be difficult to reconcile with traditional perimeter-focused models.

In tightly regulated sectors, teams often need evidence that connectivity changes are reviewed and controlled. This has increased interest in automating policy changes and risk analysis, particularly in environments spanning multiple cloud platforms and on-premises networks.

AlgoSec also pointed to industry awards, including the 2025 SC Award for Best Security Company from SC Media at RSAC, a Global InfoSec Award from Cyber Defence Magazine for Best Service as a Cybersecurity Company, and Trailblazer recognition in Network Security and Management from Cyber Defence Magazine's Top InfoSec Innovator Awards.

Yuval Baron, CEO and co-founder, linked the results to the operational pressures on security teams managing expanding environments.

"Today's security teams are managing unprecedented levels of application and infrastructure complexity," said Yuval Baron, CEO and Co-Founder, AlgoSec. "2025 has been our best year ever. In just a few months, over 100 customers have implemented the AlgoSec Horizon platform. This rapid adoption highlights enterprises' strategic need for a single platform to secure their hybrid estate, often spanning multiple cloud platforms and data centers. At the same time, organizations must accelerate application connectivity to speed delivery. Together, these capabilities are essential for driving growth and innovation in the AI era."

AlgoSec expects demand to remain tied to ongoing hybrid deployments and broader multi-cloud adoption, with application connectivity management remaining a key focus for security teams.