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    Allot Announces Fourth Quarter 2025 Financial Results

    2/25/26 6:30:00 AM ET
    $ALLT
    Computer Communications Equipment
    Telecommunications
    Get the next $ALLT alert in real time by email

    69% YoY SECaaS ARR growth in 2025, with strong revenue growth and record profitability

    Guiding for revenue growth acceleration to $113-$117 million in 2026

    HOD HASHARON, Israel, Feb. 25, 2026 /PRNewswire/ -- Allot Ltd. (NASDAQ:ALLT) (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the fourth quarter and full year of 2025.

     

    Allot Logo

     

    Financial Highlights for the Fourth Quarter of 2025

    • Revenues of $28.4 million, up 14% year over year;
    • December 2025 SECaaS ARR* of $30.8 million, up 69% year-over-year;
    • GAAP operating profit of $2.6 million, compared with $0.3 million in Q4 2024;
    • Non-GAAP operating profit of $3.6 million, a 101% increase compared with $1.8 million in Q4 2024;
    • Strong positive operating cash flow of $8.1 million, 99% increase year-over-year;
    • $88 million of total cash**, and no debt;

    Financial Highlights for 2025

    • Revenues of $102.0 million, up 11% year over year;
    • GAAP operating profit of $3.6 million; compared with a loss of $6.0 million in 2024
    • Non-GAAP operating profit of $8.9 million, a significant improvement compared with $0.6 million in 2024;
    • Strong positive operating cash flow of $17.8 million;

    Management Comment

    Eyal Harari, CEO of Allot, commented, "We are very pleased with our turnaround and continued strong improvements throughout 2025. For the year, we drove double-digit revenue growth, our highest profit in over a decade, and strong operating cash flow. Our growth was primarily driven by continued excellent performance from our cybersecurity solutions."

    Mr. Harari continued, "We are advancing strongly with our cybersecurity-first strategy and developing products that bring together cybersecurity and network intelligence into a single, integrated solution. As the global AI transformation continues to accelerate, AI-driven threats and new attack surface are increasing the demand for our always-on, zero-effort security embedded in the network. Allot's advantages are resonating with customers, clearly differentiating us in the market and driving meaningful growth."

    Concluded Mr. Harari, "Given the continued growth in our cybersecurity business, strong visibility, and a solid backlog, our momentum is set to continue. In 2026, we expect SECaaS to deliver robust double-digit ARR growth and guiding for revenues to grow to between $113 and $117 million, with continued profitability improvements."

    Fourth Quarter 2025 Financial Results Summary

    Total revenues for the fourth quarter of 2025 were $28.4 million, a 14% increase year-over-year compared with $24.9 million in the fourth quarter of 2024.

    Gross profit on a GAAP basis for the fourth quarter of 2025 was $20.3 million (gross margin of 71.5%), a 19% increase compared with $17.1 million (gross margin of 68.5%) in the fourth quarter of 2024. 

    Gross profit on a non-GAAP basis for the fourth quarter of 2025 was $20.4 million (gross margin of 71.9%), an 18% increase compared with $17.4 million (gross margin of 69.7%) in the fourth quarter of 2024.

    Operating income on a GAAP basis for the fourth quarter of 2025 was $2.6 million (operating margin of 9.1%), compared with $0.3 million (operating margin of 1.3%) in the fourth quarter of 2024.

    Operating income on a non-GAAP basis for the fourth quarter of 2025 was $3.6 million (operating margin of 12.7%), compared with an operating income of $1.8 million (operating margin of 7.2%) in the fourth quarter of 2024. 

    Net income on a GAAP basis for the fourth quarter of 2025 was $2.9 million, or $0.06 per diluted share, compared with $0.2 million, or $0.01 per diluted share, in the fourth quarter of 2024.

    Net income on a non-GAAP basis for the fourth quarter of 2025 was $4.1 million, or income of $0.08 per diluted share, compared to the non-GAAP net income of $2.0 million, or income of $0.05 per diluted share, in the fourth quarter of 2024.

    Operating cash flow generated in the quarter was $8.1 million.

    Full Year 2025 Financial Results Summary

    Total revenues for 2025 were $102.0 million, an 11% increase compared to $92.2 million in 2024.

    Gross profit on a GAAP basis for 2025 was $72.6 million (gross margin of 71.1%), a 14% increase compared with $63.7 million (gross margin of 69.1%) in 2024.

    Gross profit on a non-GAAP basis for 2025 was $73.4 million (gross margin of 72.0%), a 13% year-over-year growth compared with $65.1 million (gross margin of 70.6%) in 2024.

    Operating income on a GAAP basis for 2025 was $3.6 million (operating margin of 3.5%), compared with a loss of $6.0 million in 2024.

    Operating income on a non-GAAP basis for 2025 was $8.9 million (operating margin of 8.8%), compared with an operating income of $0.6 million (operating margin of 0.7%) in 2024.

    Net income on a GAAP basis for 2025 was $3.7 million, or $0.08 per diluted share, compared with a net loss of $5.9 million, or $0.15 per basic share, in 2024.

    Net income on a non-GAAP basis for 2025 was $10.9 million, or $0.23 income per diluted share, compared with $1.6 million, or $0.04 per diluted share in 2024.

    Operating cash flow generated in 2025 was $17.8 million.

    Cash and cash equivalents, bank deposits, restricted deposits and investments as of December 31, 2025, totaled $88 million, an increase of $29 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of December 31, 2025, the company has no debt.

    Conference Call & Webcast:

    The Allot management team will host a conference call to discuss its fourth quarter and full year 2025 earnings results today, February 25, 2026 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:

    US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644

    A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm 

    About Allot

    Allot Ltd. (NASDAQ:ALLT) (TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers' customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.

    For more information, visit www.allot.com 

    Performance Metrics

    * SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of December 2025 and multiplied by 12.

    ** Total cash - cash and cash equivalents, bank deposits, restricted deposits and investments.

    GAAP to Non-GAAP Reconciliation:

    The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.

    These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.

    Safe Harbor Statement

    This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

    Logo: https://mma.prnewswire.com/media/703889/Allot_Logo.jpg

    Investor Relations Contact:

    EK Global Investor Relations

    Ehud Helft

    +1 212 378 8040

    [email protected] 

    Public Relations Contact:

    Seth Greenberg, Allot Ltd.

    +972 54 922 2294

    [email protected]

     

     

     

    TABLE  - 1

    ALLOT LTD.

    AND ITS SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (U.S. dollars in thousands, except share and per share data)





















    Three Months Ended





    Year Ended 



    December 31,





    December 31,



    2025



    2024





    2025



    2024



    (Unaudited)





    (Unaudited)



    (Audited)



















    Revenues

    $            28,387



    $          24,906





    $        101,993



    $           92,195

    Cost of revenues

    8,079



    7,853





    29,441



    $           28,505

    Gross profit  

    20,308



    17,053





    72,552



    $           63,690



















    Operating expenses:

















    Research and development costs, net

    5,755



    5,715





    24,496



    26,112

    Sales and marketing

    8,072



    7,508





    30,819



    30,908

    General and administrative

    3,911



    3,518





    13,633



    12,684

    Total operating expenses

    17,738



    16,741





    68,948



    69,704

    Operating income (loss)

    2,570



    312





    3,604



    (6,014)

    Loss from extinguishment

    -



    -





    (1,410)



    -

    Other income

    -



    -





    100



    -

    Gain on sales of securities

    -



    -





    193



    -

    Financial income, net

    742



    368





    2,451



    1,910

    Income (loss) before income tax benefit

    3,312



    680





    4,938



    (4,104)



















    Income tax expenses

    410



    439





    1,233



    1,765

    Net income (loss)

    $              2,902



    $               241





    $            3,705



    $           (5,869)



















     Basic net income (loss) per share

    $                0.06



    $              0.01





    $              0.08



    $             (0.15)





































     Diluted net income (loss) per share

    $                0.06



    $              0.01





    $              0.08



    $             (0.15)



















    Weighted average number of shares used in 

















    computing basic net income (loss) per share

    48,528,584



    39,379,254





    44,070,008



    38,928,475



















    Weighted average number of shares used in 

















    computing diluted net income (loss) per share

    49,853,533



    41,772,402





    46,184,989



    38,928,475















     

     

     



    TABLE  - 2



    ALLOT LTD.



    AND ITS SUBSIDIARIES



    RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS



    (U.S. dollars in thousands, except per share data)



























    Three Months Ended



    Year Ended







    December 31,



    December 31,







    2025



    2024



    2025



    2024







    (Unaudited)



    (Unaudited)



    GAAP cost of revenues

    $           8,079



    $          7,853



    $       29,441



    $       28,505



     Share-based compensation (1) 

    (99)



    (148)



    (564)



    (779)



     Amortization of intangible assets (2) 

    -



    (152)



    (305)



    (608)



    Non-GAAP cost of revenues

    $           7,980



    $          7,553



    $       28,572



    $       27,118























     GAAP gross profit 

    $        20,308



    $        17,053



    $       72,552



    $       63,690



     Gross profit adjustments 

    99



    300



    869



    1,387



     Non-GAAP gross profit 

    $        20,407



    $        17,353



    $       73,421



    $       65,077























     GAAP operating expenses 

    $        17,738



    $        16,741



    $       68,948



    $       69,704



     Share-based compensation (1) 

    (929)



    (1,176)



    (4,453)



    (5,261)



     Non-GAAP operating expenses 

    $        16,809



    $        15,565



    $       64,495



    $       64,443























     GAAP Loss from extinguishment 

    $                 -



    $                -



    $       (1,410)



    $                -



     Loss from extinguishment 

    -



    -



    1,410



    -



     Non-GAAP Loss from extinguishment 

    $                 -



    $                -



    $                -



    $                -























     GAAP financial income 

    $              742



    $             368



    $         2,451



    $         1,910



     Exchange rate differences* 

    (40)



    159



    119



    502



     Non-GAAP Financial income 

    $              702



    $             527



    $         2,570



    $         2,412























     GAAP taxes on income 

    $              410



    $             439



    $         1,233



    $         1,765



     Changes in tax related items 

    (225)



    (130)



    (375)



    (352)



     Non-GAAP taxes on income 

    $              185



    $             309



    $            858



    $         1,413























     GAAP Net income (Loss) 

    $           2,902



    $             241



    $         3,705



    $       (5,869)



     Share-based compensation (1) 

    1,028



    1,324



    5,018



    6,040



     Amortization of intangible assets (2) 

    -



    152



    305



    608



     Loss from extinguishment 



    -



    -



    1,410



    -



     Exchange rate differences* 

    (40)



    159



    119



    502



     Changes in tax related items 



    225



    130



    375



    352



     Non-GAAP Net income  

    $           4,115



    $          2,006



    $       10,931



    $         1,633























     GAAP Net income (loss) per share (diluted) 

    $             0.06



    $            0.01



    $           0.08



    $         (0.15)



     Share-based compensation 

    0.02



    0.03



    0.11



    0.16



     Amortization of intangible assets 

    -



    -



    0.01



    0.02



     Loss from extinguishment 

    -



    -



    0.03



    -



     Exchange rate differences* 

    -



    0.01



    -



    0.01



     Non-GAAP Net income per share (diluted) 

    $             0.08



    $            0.05



    $           0.23



    $           0.04







    -



    -



    -



    -















    -







    Weighted average number of shares used in 

    48,528,584



    39,379,254



    44,070,008



    38,928,475



    computing GAAP diluted net income per share

























































    Weighted average number of shares used in 

    50,913,796



    42,560,457



    47,181,673



    42,289,637



    computing non-GAAP diluted net income per share





































    * Financial income or expenses related to exchange rate differences in connection

    with revaluation of assets and liabilities in non-dollar denominated currencies. 



























     

     

     



    TABLE  - 2 cont.



    ALLOT LTD.



    AND ITS SUBSIDIARIES



    RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS



    (U.S. dollars in thousands, except per share data)



























    Three Months Ended



    Year Ended







    December 31,



    December 31,







    2025



    2024



    2025



    2024







    (Unaudited)



    (Unaudited)























    (1) Share-based compensation:



















    Cost of revenues

    $                99



    $             148



    $            564



    $            779





    Research and development costs, net

    190



    301



    1,213



    1,988





    Sales and marketing

    334



    310



    1,571



    1,855





    General and administrative

    405



    565



    1,670



    1,418







    $           1,028



    $          1,324



    $         5,018



    $         6,040























     (2) Amortization of intangible assets 



















    Cost of revenues

    $                 -



    $             152



    $            305



    $            608





    Sales and marketing





















    $                 -



    $             152



    $            305



    $            608





















     

     

     

    TABLE  - 3

    ALLOT LTD.

    AND ITS SUBSIDIARIES

    CONSOLIDATED  BALANCE  SHEETS

    (U.S. dollars in thousands)

























    December 31,



    December 31,





    2025



    2024





    (Unaudited)



    (Audited)







    ASSETS









    CURRENT ASSETS:









    Cash and cash equivalents



    $                     17,107



    $                 16,142

    Restricted deposit



    3,573



    904

    Short-term bank deposits



    15,100



    15,250

    Available-for-sale marketable securities



    48,663



    26,470

    Trade receivables, net (net of allowance for credit losses of

    $9,611 and $25,306 on December 31, 2025 and December

    31, 2024 , respectively)



    17,451



    16,482

    Other receivables and prepaid expenses



    9,906



    6,317

    Inventories



    13,180



    8,611

    Total current assets



    124,980



    90,176











    NON-CURRENT ASSETS:









    Severance pay fund



    $                          295



    $                       464

    Restricted deposit



    3,327



    279

    Operating lease right-of-use assets



    5,518



    6,741

    Other assets 



    732



    2,151

    Property and equipment, net



    6,014



    7,692

    Intangible assets, net



    -



    305

    Goodwill



    31,833



    31,833

    Total non-current assets



    47,719



    49,465











    Total assets



    $                  172,699



    $               139,641











    LIABILITIES AND SHAREHOLDERS' EQUITY









    CURRENT LIABILITIES:









    Trade payables



    $                          938



    $                       946

    Employees and payroll accruals



    9,254



    8,208

    Deferred revenues



    24,700



    17,054

    Short-term operating lease liabilities



    348



    562

    Other payables and accrued expenses



    11,919



    9,200

    Total current liabilities



    47,159



    35,970











    LONG-TERM LIABILITIES:









    Deferred revenues



    5,912



    7,136

    Long-term operating lease liabilities



    5,392



    5,807

    Accrued severance pay



    886



    946

    Convertible debt



    -



    39,973

    Total long-term liabilities



    12,190



    53,862











    SHAREHOLDERS' EQUITY



    113,350



    49,809











    Total liabilities and shareholders' equity



    $                  172,699



    $               139,641











     

     

     

    TABLE  - 4

    ALLOT LTD.

    AND ITS SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS 

    (U.S. dollars in thousands)



















    Three Months Ended



    Year Ended



    December 31,



    December 31,



    2025



    2024



    2025



    2024



    (Unaudited)



    (Unaudited)



    (Audited)

















    Cash flows from operating activities:































    Net income (loss)

    $          2,902



    $          241



    $          3,705



    $          (5,869)

    Adjustments to reconcile net loss to net cash used in operating activities:















    Depreciation and amortization

    794



    2,348



    4,048



    6,424

    Share-based compensation

    1,029



    1,324



    5,018



    6,040

    Capital loss 

    -



    -



    255



    -

    Loss from extinguishment

    -



    -



    1,410



    -

    Other income

    -



    -



    (100)



    -

    Gain on sales of securities

    -



    -



    (193)



    -

    Changes in operating assets and liabilities:















    Decrease (Increase)  in accrued severance pay, net

    (8)



    (48)



    109



    (203)

    Decrease (Increase) in other assets, other receivables

    and prepaid expenses

    2,063



    (274)



    (135)



    702

    Decrease  in accrued interest and amortization of premium

    on available-for sale marketable securities

    (309)



    (223)



    (1,215)



    (1,392)

    Decrease in operating leases liability

    (533)



    (545)



    (546)



    (1,644)

    Decrease in operating lease right-of-use asset

    269



    325



    1,140



    2,174

    Decrease (Increase) in trade receivables

    3,363



    888



    (969)



    (1,654)

    Decrease (Increase) in inventories

    1,028



    1,438



    (4,569)



    3,263

    Increase in trade payables

    (6,260)



    (2,178)



    (8)



    (24)

    Increase (Decrease) in employees and payroll accruals

    (371)



    (1,798)



    1,046



    (4,358)

    Increase in deferred revenues

    3,466



    3,265



    6,422



    1,861

    Increase (Decrease) in other payables and accrued expenses

    813



    (684)



    2,938



    (494)

    Gain of foreign exchange on cash and cash equivalents 

    (112)



    -



    (565)



    -

















    Net cash provided by operating activities

    8,134



    4,079



    17,791



    4,826

















    Cash flows from investing activities:































    Decrease (Increase) in restricted deposit

    (6,070)



    -



    (5,717)



    703

    Investment in short-term bank deposits

    (12,800)



    (15,250)



    (45,350)



    (24,550)

    Withdrawal of short-term bank deposits

    14,500



    5,500



    45,500



    19,300

    Purchase of property and equipment

    (1,504)



    (445)



    (2,293)



    (2,117)

    Investment in marketable securities

    (14,022)



    (16,719)



    (113,669)



    (61,003)

    Proceeds from redemption or sale of marketable securities

    4,525



    10,750



    92,902



    64,790

    Proceeds from sale of patent

    -



    -



    100



    -

    Net cash used in investing activities

    (15,371)



    (16,164)



    (28,527)



    (2,877)

















    Cash flows from financing activities:































    Issuance of share capital

    -



    -



    42,308



    -

    Proceeds from exercise of stock options

    -



    1



    238



    1

    Redemption of convertible debt

    -



    -



    (31,410)



    -

    Net cash provided by  financing activities

    -



    1



    11,136



    1

















    Effect of exchange rate changes on cash and cash equivalents

    112



    -



    565



    -

















    Increase (Decrease) in cash and cash equivalents

    (7,125)



    (12,084)



    965



    1,950

    Cash, cash equivalents at the beginning of the period

    24,232



    28,226



    16,142



    14,192

















    Cash, cash equivalents at the end of the period

    $        17,107



    $     16,142



    $        17,107



    $          16,142

















    Non-cash activities:















    ROU asset and lease liability decrease, due to lease termination

    -



    -



    (83)



    -

    Redemption of convertible debt

    -



    -



    (10,000)



    -

    Right-of-use assets obtained in the exchange for operating lease liabilities

    -



    63



    -



    5,858

















































     

     

     

    Other financial metrics (Unaudited)

    U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares 















































    Q4-25



    FY 2025



    FY 2024



    Revenues geographic breakdown















    Americas



    4.2

    15 %

    19.1

    19 %

    14.2

    15 %



    EMEA



    18.2

    64 %

    63.7

    62 %

    54.0

    59 %



    Asia Pacific



    6.0

    21 %

    19.2

    19 %

    24.0

    26 %







    28.4

    100 %

    102.0

    100 %

    92.2

    100 %



















    Revenues breakdown by type















    SECaaS (Security as a Service)

    8.1

    28 %

    26.8

    26 %

    16.5

    18 %



    Products



    8.4

    30 %

    31.1

    30 %

    30.1

    33 %



    Professional Services

    2.9

    10 %

    8.2

    8 %

    8.3

    9 %



    Support & Maintenance

    9.0

    32 %

    35.9

    36 %

    37.3

    40 %







    28.4

    100 %

    102.0

    100 %

    92.2

    100 %



















    Top 10 customers as a %  of  revenues

    46 %



    41 %



    43 %





















    Non-GAAP Weighted average number of basic shares

    (in millions)

    48.5



    44.1



    38.9

































    Non-GAAP weighted average number of fully diluted shares

    (in millions)

    50.9



    47.2



    42.3







     

     

     

    SECaaS (Security as a Service) revenues - U.S. dollars in millions (Unaudited)

























    Q4-2025:

    8.1















    Q3-2025:

    7.3















    Q2-2025:

    6.4















    Q1-2025:

    5.1















    Q4-2024:

    4.8

































    SECaaS ARR* - U.S. dollars in millions (Unaudited)































    Dec. 2025:

    30.8















    Dec. 2024:

    18.2















    Dec. 2023:

    12.7















    Dec. 2022:

    9.2



















































     

     

     

    Cision View original content:https://www.prnewswire.com/news-releases/allot-announces-fourth-quarter-2025-financial-results-302696870.html

    SOURCE Allot Ltd.

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