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Allot Announces Fourth Quarter 2025 Financial Results

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Allot (NASDAQ: ALLT) reported strong FY2025 results with revenues of $102.0M (up 11% YoY), GAAP net income $3.7M and SECaaS ARR of $30.8M in Dec 2025 (up 69% YoY). Cash totaled $88M with no debt. Management guided 2026 revenue to $113–$117M and expects continued SECaaS ARR growth and profitability improvement.

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Positive

  • SECaaS ARR +69% YoY to $30.8M (Dec 2025)
  • Revenue +11% YoY to $102.0M in 2025
  • GAAP net income turned positive to $3.7M in 2025
  • Operating cash flow $17.8M for 2025 and $8.1M in Q4
  • Total cash position of $88M and no debt

Negative

  • Weighted average diluted shares increased ~13% to 46.18M, implying dilution
  • GAAP operating margin remained modest at 3.5% for 2025

News Market Reaction – ALLT

-29.56% 10.0x vol
61 alerts
-29.56% News Effect
-27.8% Trough in 4 hr 47 min
-$188M Valuation Impact
$448M Market Cap
10.0x Rel. Volume

On the day this news was published, ALLT declined 29.56%, reflecting a significant negative market reaction. Argus tracked a trough of -27.8% from its starting point during tracking. Our momentum scanner triggered 61 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $188M from the company's valuation, bringing the market cap to $448M at that time. Trading volume was exceptionally heavy at 10.0x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 revenue: $28.4M 2025 revenue: $102.0M SECaaS ARR: $30.8M +5 more
8 metrics
Q4 2025 revenue $28.4M Fourth quarter 2025 revenue, up 14% year-over-year
2025 revenue $102.0M Full-year 2025 revenue, up 11% versus $92.2M in 2024
SECaaS ARR $30.8M December 2025 SECaaS ARR, 69% year-over-year growth
2025 GAAP net income $3.7M Full-year 2025 GAAP net income vs $5.9M loss in 2024
2025 non-GAAP net income $10.9M Full-year 2025 non-GAAP net income vs $1.6M in 2024
2025 operating cash flow $17.8M Full-year 2025 operating cash flow generated
Total cash $88M Cash, deposits and investments as of December 31, 2025; no debt
2026 revenue guidance $113–117M Company guidance for 2026 revenue range

Market Reality Check

Price: $6.91 Vol: Volume 495,909 is 1.49x t...
normal vol
$6.91 Last Close
Volume Volume 495,909 is 1.49x the 20-day average of 333,771, indicating elevated interest ahead of results. normal
Technical Price 9.81 is trading above the 200-day MA at 9.14, but remains 17.7% below the 52-week high of 11.92 and 124.49% above the 52-week low of 4.37.

Peers on Argus

Momentum data flags ALLT moving opposite to 2 peers in the scanner, while broade...
2 Up

Momentum data flags ALLT moving opposite to 2 peers in the scanner, while broader peers show mixed moves: GRRR +5.81%, ARQQ +7.40%, TLS +0.52%, BAND -0.43%, XNET +4.51%. This points to a stock-specific reaction rather than a sector-wide move.

Previous Earnings Reports

5 past events · Latest: Nov 20 (Positive)
Same Type Pattern 5 events
Date Event Sentiment Move Catalyst
Nov 20 Earnings results Positive +1.5% Q3 2025 beat with 14% revenue growth and strong SECaaS ARR expansion.
Aug 14 Earnings & capital raise Positive -9.1% Strong Q2 2025 SECaaS growth and raised guidance alongside $46M equity offering.
May 12 Earnings results Positive +24.1% Q1 2025 profitable growth with 6% revenue increase and 54% ARR rise.
Feb 25 Earnings results Positive +16.9% Q4 2024 marked turnaround to growth, profitability and stronger SECaaS metrics.
Nov 19 Earnings results Positive +8.0% Q3 2024 showed improving revenue, first non-GAAP profit and strong SECaaS growth.
Pattern Detected

Earnings releases have generally triggered positive price reactions, with 4 of the last 5 earnings events trading higher the next day despite one notable selloff following strong Q2 2025 results and an equity offering.

Recent Company History

Over the last five earnings cycles, Allot reported consistent revenue growth and accelerating SECaaS ARR, moving from a Q4 2024 turnaround to sustained profitability through 2025. Revenues climbed from $92.2M in 2024 to $102.0M in 2025, while SECaaS ARR rose from $18.2M in December 2024 to $30.8M in December 2025. Past earnings often coincided with higher margins, positive cash flow, guidance raises and, in mid‑2025, a public equity raise and debt repayment. Today’s results extend that pattern of profitable growth and SECaaS expansion.

Historical Comparison

+8.3% avg move · Across the last 5 earnings releases, ALLT’s average next-day move was 8.31%, mostly positive, as rec...
earnings
+8.3%
Average Historical Move earnings

Across the last 5 earnings releases, ALLT’s average next-day move was 8.31%, mostly positive, as recurring SECaaS growth and margin gains repeatedly underpinned stronger profitability.

Earnings releases show a clear progression from Q3 2024 breakeven to full-year 2025 profitability, with revenues rising to $102.0M and SECaaS ARR climbing from $18.2M to $30.8M.

Market Pulse Summary

The stock dropped -29.6% in the session following this news. A negative reaction despite solid earni...
Analysis

The stock dropped -29.6% in the session following this news. A negative reaction despite solid earnings would contrast with most past reports, which often saw gains after SECaaS‑driven growth and margin expansion. The company moved from a $5.9M GAAP loss in 2024 to $3.7M profit in 2025, with $17.8M in operating cash flow and $88M cash. Any weakness could reflect concerns over the pace of 2026 growth toward the $113–117M target or digestion of prior equity issuance.

Key Terms

secaas, arr, gaap, non-gaap, +2 more
6 terms
secaas financial
"69% YoY SECaaS ARR growth in 2025, with strong revenue growth"
SecaaS (Security as a Service) is a cloud-based model where cybersecurity tools and monitoring are provided on a subscription basis instead of being installed and managed in-house. For investors, SecaaS matters because it shifts costs from large upfront IT purchases to recurring revenue for providers, can scale quickly for customers, and affects a company’s risk profile and operating margins—similar to hiring a remote security firm instead of building an internal guard team.
arr financial
"SECaaS ARR* of $30.8 million, up 69% year-over-year"
ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.
gaap financial
"GAAP operating profit of $2.6 million, compared with $0.3 million in Q4 2024"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
non-gaap financial
"Non-GAAP operating profit of $3.6 million, a 101% increase"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
gross margin financial
"gross margin of 71.5%, a 19% increase compared with 68.5%"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
operating margin financial
"operating margin of 9.1%, compared with 1.3% in the fourth quarter of 2024"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

AI-generated analysis. Not financial advice.

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
allot@ekgir.com 

Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com

 

 

 

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.

FAQ

What were Allot (ALLT) fourth-quarter 2025 revenues and growth?

Allot reported $28.4 million in Q4 2025 revenue, up 14% year-over-year. According to the company, Q4 revenue growth was driven by cybersecurity and SECaaS product adoption across service providers and enterprise customers.

How much did Allot (ALLT) SECaaS ARR grow in 2025 and why does it matter?

SECaaS ARR reached $30.8 million in December 2025, a 69% YoY increase. According to the company, higher ARR signals stronger recurring cybersecurity demand and improves revenue visibility and long-term monetization.

What guidance did Allot (ALLT) give for 2026 revenue on Feb 25, 2026?

Allot guided 2026 revenue to a range of $113–$117 million. According to the company, this guidance reflects expected continued SECaaS ARR growth and further improvements in profitability.

Did Allot (ALLT) report profitability for full-year 2025 and on what basis?

Yes. Allot reported GAAP net income of $3.7M for 2025 and non-GAAP net income of $10.9M. According to the company, improved gross margins and operating leverage drove the turnaround from 2024 losses.

What is Allot's (ALLT) cash and debt position as of December 31, 2025?

Allot held $88 million in cash, deposits and investments and reported no debt as of Dec 31, 2025. According to the company, cash increased by $29 million year-over-year, strengthening the balance sheet.

How did Allot's (ALLT) share count change in 2025 and what is the investor impact?

Weighted average diluted shares rose to 46.18 million for GAAP per-share calculations in 2025, up about 13%. According to the company data, higher share count can dilute EPS and is relevant when assessing per-share metrics.
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