The cybersecurity sector is a fortress of opportunity in the digital age, with global spending projected to surpass $400 billion by 2030. Yet, for investors, the challenge lies in identifying companies that can navigate this high-stakes landscape. cyan AG (ETR:CYR), a once-struggling player, has embarked on a dramatic turnaround. After a five-year freefall—marked by an 88% share price decline and 39% annual revenue contraction—the company’s recent strategic and operational shifts have sparked renewed interest. But can these changes justify a long-term investment in a sector where innovation and execution are paramount?
A Strategic Rebirth: From BSS/OSS to Cybersecurity Focus
In 2024, cyan AG executed a pivotal pivot by selling its BSS/OSS (Business Support Systems/Operations Support Systems) segment, a move that allowed it to focus exclusively on cybersecurity. This realignment addressed a critical weakness: a fragmented business model that diluted resources. The proceeds from the sale were reinvested into core cybersecurity R&D and market expansion. The results? A 50% surge in consolidated operating sales to €7.1 million in 2024, alongside a 70% improvement in EBITDA (from -€4.5 million to -€1.5 million).
The company’s customer base expanded by 86% in 2024, driven by recurring revenue from both new and existing clients. This shift to a subscription-based model—a hallmark of modern cybersecurity—has stabilized cash flows. Notably, partnerships with telecom giants like Orange Spain and Orange Belgium have enabled cyan to scale its solutions rapidly, integrating them into both business and consumer offerings.
Product Innovation and Market Diversification
cyan AG’s cyan Guard 360, launched in 2025, is a game-changer for small and medium-sized enterprises (SMEs), a segment often underserved in cybersecurity. Priced as a “first line of defense,” the product complements existing antivirus solutions, addressing SMEs’ limited budgets and technical resources. This move taps into a $12 billion global SME cybersecurity market, which is expected to grow at a 15% CAGR through 2030.
Beyond telecom, cyan is diversifying into insurance and Latin America. Pilot projects with wefox and Allianz Partners are testing how cybersecurity solutions can mitigate risk for insurers, while partnerships with Claro Chile and a Mexican MVNO open new revenue streams in emerging markets. These efforts align with broader industry trends: 68% of cybersecurity spending in 2025 is expected to come from sectors outside IT, including finance and healthcare.
Operational Efficiency and Leadership Continuity
Operational restructuring has been equally transformative. cyan reduced its subsidiaries from 16 to five, slashing overheads and streamlining decision-making. CEO Thomas Kicker’s leadership—credited with steering the company through this transition—will step down in July 2025, but CTO and founder Markus Cserna will temporarily assume operational control. This ensures continuity during the CEO search, led by a top-tier headhunter.
The company’s 2025 guidance—€8.4–9.2 million in revenue and a target EBITDA break-even—reflects confidence in its model. With a 93% year-over-year increase in end customers in Q1 2025, cyan is demonstrating that its growth is not just theoretical.
Risks and Realities
Despite these strides, risks persist. The cybersecurity sector is hyper-competitive, with giants like Cisco and Palo Alto Networks dominating enterprise markets. cyan’s focus on SMEs and telecom partnerships is a smart niche, but it must defend against price wars and commoditization. Additionally, the CEO transition, while managed, could disrupt momentum if the successor lacks Kicker’s strategic vision.
Investment Thesis: A Calculated Bet
For long-term investors, cyan AG presents a compelling case. Its strategic alignment with cybersecurity’s growth drivers—AI-driven threat detection, SME demand, and telecom integration—positions it to capitalize on a $400 billion market. The company’s operational improvements (50% revenue growth, 86% customer base expansion) suggest it has overcome its historical inefficiencies.
However, caution is warranted. The path to EBITDA breakeven remains unproven, and execution risks in new markets (e.g., Latin America) could test management. Investors should monitor Q3 2025 results for signs of sustained profitability and track the CEO succession process.
Final Verdict
cyan AG’s turnaround is no longer speculative—it’s operational. By refocusing on cybersecurity, innovating for SMEs, and expanding globally, the company has addressed its historical weaknesses. While the road to profitability is steep, the sector’s tailwinds and cyan’s disciplined execution make it a high-conviction long-term play for investors willing to tolerate near-term volatility.
Investment Recommendation: Buy for long-term growth, with a stop-loss at €1.20 (30% below current price) to mitigate downside risk.
