Allot First Quarter 2026 Results: Revenue Growth Accelerates to 14% YoY with Increased Margins
Rhea-AI Summary
Allot (NASDAQ: ALLT) reported unaudited Q1 2026 revenue of $26.4 million, up 14% year-over-year, with SECaaS revenue of $8.7 million, up 71%. March 2026 SECaaS ARR reached $33.7 million, a 59% increase.
GAAP operating income was $1.5 million (vs. a loss in Q1 2025) and GAAP net income was $1.9 million, or $0.04 per diluted share. Operating cash flow hit a record $10.6 million, while cash, deposits and investments totaled $98 million. Recurring revenue exceeded 67% of total revenue. Allot reaffirmed 2026 revenue guidance of $113–$117 million and indicated visibility to at least 40% SECaaS revenue growth in 2026.
Positive
- Total revenue grew 14% year-over-year to $26.4 million
- SECaaS revenue rose 71% year-over-year to $8.7 million
- SECaaS ARR increased 59% year-over-year to $33.7 million
- Recurring revenue exceeded 67% of total quarterly revenue
- GAAP operating margin reached 5.8% versus a prior-year loss
- Operating cash flow increased to $10.6 million from $1.7 million
- Cash, deposits and investments grew to $98 million from $88 million
- 2026 revenue guidance of $113–$117 million reaffirmed
Negative
- None.
News Market Reaction – ALLT
In the May 12 session, ALLT gained 6.62%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.1% during that session. Argus tracked a trough of -10.1% from its starting point during tracking. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | FY25 earnings | Positive | -29.6% | Full-year 2025 return to profitability and 11% revenue growth with 2026 guidance. |
| Nov 20 | Q3 2025 earnings | Positive | +1.5% | Q3 2025 revenue up 14% YoY, strong SECaaS ARR and raised 2025 guidance. |
| Aug 14 | Q2 2025 earnings | Positive | -9.1% | Strong SECaaS growth, major tier-1 EMEA deal, guidance raised and equity offering. |
| May 12 | Q1 2025 earnings | Positive | +24.1% | Q1 2025 profitable growth with SECaaS up 49% YoY and higher ARR. |
| Feb 25 | Q4 2024 earnings | Positive | +16.9% | Q4 2024 inflection to revenue growth and profitability with SECaaS acceleration. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases are generally positive fundamentally, but price reactions have been mixed with both strong rallies and sharp selloffs.
Over the past year, Allot’s earnings events have highlighted a turnaround to growth and profitability. Q4 2024 marked renewed growth and SECaaS acceleration. Through 2025, quarterly updates showed rising SECaaS ARR, improving margins, and higher operating cash flow. FY 2025 results on Feb 25, 2026 confirmed a full-year return to profitability with $102.0M revenue and $3.7M GAAP net income. Today’s Q1 2026 report, with double-digit revenue growth and higher margins, extends that trend and reaffirms $113–117M 2026 revenue guidance.
Key Terms
security-as-a-service technical
secaas arr financial
gaap financial
non-gaap financial
available-for-sale marketable securities financial
rsus financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Recurring Revenue Reaches
HOD HASHARON,
Financial Highlights for the First Quarter of 2026
- Revenues of
, up$26.4 million 14% year-over-year; - Security as a Service (SECaaS) revenues of
, increasing$8.7 million 71% year-over-year; - March 2026 SECaaS ARR* of
, up$33.7 million 59% year-over-year; - GAAP operating income of
, compared with an operating loss of$1.5 million in the first quarter of 2025;$0.7 million - Non-GAAP operating income of
, compared with$2.6 million in the first quarter of 2025;$0.4 million - Record operating cash flow of
.$10.6 million
Management Comment
Eyal Harari, CEO of Allot, commented, "We are pleased to report a strong start to 2026, with revenues increasing
Mr. Harari continued, "Our cybersecurity segment remains the primary engine of growth and drove Recurring Revenues** to over
Concluded Mr. Harari, "Looking ahead, we reaffirm our 2026 revenue guidance of
First Quarter 2026 Financial Results Summary
Total revenues for the first quarter of 2026 were
Gross profit on a GAAP basis for the first quarter of 2026 was
Gross profit on a non-GAAP basis for the first quarter of 2026 was
Operating income on a GAAP basis for the first quarter of 2026 was
Operating income on a non-GAAP basis for the first quarter of 2026 was
Net income on a GAAP basis for the first quarter of 2026 was
Net income on a non-GAAP basis for the first quarter of 2026 was
Operating cash flow generated in the quarter was
Cash and cash equivalents, bank deposits, restricted deposits and investments as of March 31, 2026, totaled
Conference Call & Webcast:
The Allot management team will host a conference call to discuss its first quarter 2026 earnings results today, May 12, 2026 at 8:00 am ET, 3:00 pm
US: 1-888-668-9141,
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/
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 March 2026 and multiplied by 12.
** Recuring Revenues - measures the current recurring support & maintenance revenues, plus the current SECaaS recuring revenues.
GAAP to Non-GAAP Reconciliation:
The Company presents non–GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company's ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP operating income is defined as GAAP net operating excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, acquisition–related and other non–recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-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 are presented below. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and 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 within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including, revenue, recurring revenue, SECaaS revenues and profitability growth, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements 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 third 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 for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the 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.
Investor Relations Contact: EK Global Investor Relations Ehud Helft +1 212 378 8040 | Public Relations Contact: Seth Greenberg, Allot Ltd. +972 54 922 2294 |
ALLOT LTD. | ||||
AND ITS SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
( | ||||
March 31, | December 31, | |||
2026 | 2025 | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 13,116 | $ 17,107 | ||
Restricted deposit | 3,199 | 3,573 | ||
Short-term bank deposits | 21,800 | 15,100 | ||
Available-for-sale marketable securities | 59,299 | 48,663 | ||
Trade receivables, net (net of allowance for credit losses of | 20,544 | 17,451 | ||
Other receivables and prepaid expenses | 10,105 | 9,906 | ||
Inventories | 15,756 | 13,180 | ||
Total current assets | 143,819 | 124,980 | ||
NON-CURRENT ASSETS: | ||||
Severance pay fund | $ 301 | $ 295 | ||
Restricted deposit | 701 | 3,327 | ||
Operating lease right-of-use assets | 5,237 | 5,518 | ||
Other assets | 1,040 | 732 | ||
Property and equipment, net | 5,736 | 6,014 | ||
Goodwill | 31,833 | 31,833 | ||
Total non-current assets | 44,848 | 47,719 | ||
Total assets | $ 188,667 | $ 172,699 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ 1,440 | $ 938 | ||
Employees and payroll accruals | 7,907 | 9,254 | ||
Deferred revenues | 38,085 | 24,700 | ||
Short-term operating lease liabilities | 1,146 | 348 | ||
Other payables and accrued expenses | 11,669 | 11,919 | ||
Total current liabilities | 60,247 | 47,159 | ||
LONG-TERM LIABILITIES: | ||||
Deferred revenues | $ 7,495 | $ 5,912 | ||
Long-term operating lease liabilities | 4,726 | 5,392 | ||
Accrued severance pay | 863 | 886 | ||
Total long-term liabilities | 13,084 | 12,190 | ||
SHAREHOLDERS' EQUITY | 115,336 | 113,350 | ||
Total liabilities and shareholders' equity | $ 188,667 | $ 172,699 | ||
ALLOT LTD. | |||||
AND ITS SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
( | |||||
Three Months Ended | |||||
March 31, | |||||
2026 | 2025 | ||||
Revenues | $ 26,425 | $ 23,150 | |||
Cost of revenues | 7,684 | 7,103 | |||
Gross profit | 18,741 | 16,047 | |||
Operating expenses: | |||||
Research and development costs, net | 6,282 | 5,991 | |||
Sales and marketing | 7,823 | 7,338 | |||
General and administrative | 3,108 | 3,427 | |||
Total operating expenses | 17,213 | 16,756 | |||
Operating income (loss) | 1,528 | (709) | |||
Financial income, net | 785 | 673 | |||
Income (loss) before tax | 2,313 | (36) | |||
Income tax expenses | 370 | 296 | |||
Net income (loss) | $ 1,943 | $ (332) | |||
Income (loss) per share | |||||
Basic | $ 0.04 | $ (0.01) | |||
Diluted | $ 0.04 | $ (0.01) | |||
Weighted average shares outstanding | |||||
Basic | 48,777,078 | 39,620,521 | |||
Diluted | 49,893,370 | 39,620,521 | |||
ALLOT LTD. | ||||
AND ITS SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
( | ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Cash flows from operating activities: | ||||
Net income (loss) | $ 1,943 | $ (332) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Depreciation and amortization | 659 | 1,346 | ||
Share-based compensation | 1,094 | 981 | ||
Capital loss | - | 255 | ||
Loss (Gain) of foreign exchange on cash and cash equivalents | 20 | (10) | ||
Changes in operating assets and liabilities: | ||||
Decrease in accrued severance pay, net | (29) | (4) | ||
(Increase) Decrease in other assets, other receivables and prepaid expenses | (1,434) | 1,424 | ||
Increase in accrued interest and amortization of premium on available-for sale marketable securities | (234) | (341) | ||
Decrease (Increase) in operating leases liability | 132 | (143) | ||
Decrease in operating lease right-of-use asset | 281 | 304 | ||
Increase in trade receivables | (3,093) | (2,752) | ||
(Increase) Decrease in inventories | (2,576) | 418 | ||
Increase in trade payables | 502 | 75 | ||
Decrease in employees and payroll accruals | (1,347) | (2,212) | ||
Increase in deferred revenues | 14,968 | 2,263 | ||
(Increase) Decrease in other payables and accrued expenses | (311) | 403 | ||
Net cash provided by operating activities | $ 10,575 | $ 1,675 | ||
Cash flows from investing activities: | ||||
Decrease in restricted deposit | $ 3,000 | $ 303 | ||
Investment in short-term bank deposits | (10,500) | (8,700) | ||
Withdrawal of short-term bank deposits | 3,800 | 7,250 | ||
Purchase of property and equipment | (381) | (281) | ||
Investment in marketable securities | (29,965) | (28,976) | ||
Proceeds from redemption or sale of marketable securities | 19,500 | 22,400 | ||
Net cash used in investing activities | $ (14,546) | $ (8,004) | ||
Cash flows from financing activities: | ||||
Proceeds from exercise of stock options | $ - | $ 238 | ||
Net cash provided by financing activities | $ - | $ 238 | ||
Effect of exchange rate changes on cash and cash equivalents | (20) | 10 | ||
Increase (Decrease) in cash and cash equivalents | (3,991) | (6,081) | ||
Cash, cash equivalents at the beginning of the period | 17,107 | 16,142 | ||
Cash, cash equivalents at the end of the period | $ 13,116 | $ 10,061 | ||
Non-cash activities: | ||||
ROU asset and lease liability decrease, due to lease termination | $ - | $ (71) | ||
ALLOT LTD. | |||||
AND ITS SUBSIDIARIES | |||||
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
( | |||||
Three Months Ended | |||||
March 31, | |||||
2026 | 2025 | ||||
(Unaudited) | |||||
GAAP cost of revenues | $ 7,684 | $ 7,103 | |||
Share-based compensation | (105) | (94) | |||
Amortization of intangible assets | - | (152) | |||
Non-GAAP cost of revenues | $ 7,579 | $ 6,857 | |||
GAAP gross profit | $ 18,741 | $ 16,047 | |||
Share-based compensation | 105 | 94 | |||
Amortization of intangible assets | 152 | ||||
Non-GAAP gross profit | $ 18,846 | $ 16,293 | |||
GAAP operating expenses | $ 17,213 | $ 16,756 | |||
Share-based compensation - Research and development costs, net | (191) | (242) | |||
Share-based compensation - Sales and marketing | (397) | (305) | |||
Share-based compensation - General and administrative | (401) | (340) | |||
Non-GAAP operating expenses | $ 16,224 | $ 15,869 | |||
GAAP operating Income (Loss) | $ 1,528 | $ (709) | |||
Share-based compensation | 1,094 | 1,039 | |||
Amortization of intangible assets | 94 | ||||
Non-GAAP operating Income | $ 2,622 | $ 424 | |||
GAAP Net income (Loss) | $ 1,943 | $ (332) | |||
Share-based compensation | 1,094 | 981 | |||
Amortization of intangible assets | - | 152 | |||
Exchange rate differences* | (22) | (61) | |||
Changes in tax related items | 43 | 45 | |||
Non-GAAP Net income | $ 3,058 | $ 785 | |||
Non-GAAP income (loss) per share | |||||
Basic | $ 0.06 | $ 0.02 | |||
Diluted | $ 0.06 | $ 0.02 | |||
Weighted average shares outstanding | |||||
Basic | 48,777,078 | 39,620,521 | |||
Diluted | 50,966,541 | 42,880,655 | |||
* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and | |||||
Other financial metrics (Unaudited) | ||||||||
| ||||||||
Q1-26 | FY 2025 | FY 2024 | ||||||
Revenues geographic breakdown | ||||||||
3.8 | 15 % | 19.1 | 19 % | 14.2 | 15 % | |||
EMEA | 15.9 | 60 % | 63.7 | 62 % | 54.0 | 59 % | ||
6.7 | 25 % | 19.2 | 19 % | 24.0 | 26 % | |||
26.4 | 100 % | 102.0 | 100 % | 92.2 | 100 % | |||
Revenues breakdown by type | ||||||||
SECaaS (Security as a Service) | 8.7 | 33 % | 26.8 | 26 % | 16.5 | 18 % | ||
Products & Professional Services | 8.6 | 33 % | 39.3 | 38 % | 38.4 | 42 % | ||
Support & Maintenance | 9.1 | 34 % | 35.9 | 36 % | 37.3 | 40 % | ||
26.4 | 100 % | 102.0 | 100 % | 92.2 | 100 % | |||
Top 10 customers as a % of revenues | 46 % | 41 % | 43 % | |||||
SECaaS (Security as a Service) revenues- | ||||||||||
Q1-2026 | 8.7 | |||||||||
Q4-2025: | 8.1 | |||||||||
Q3-2025: | 7.3 | |||||||||
Q2-2025: | 6.4 | |||||||||
Q1-2025: | 5.1 | |||||||||
SECaaS ARR* - | ||||||||||
Mar. 2026: | 33.7 | |||||||||
Dec. 2025: | 30.8 | |||||||||
Dec. 2024: | 18.2 | |||||||||
Dec. 2023: | 12.7 | |||||||||
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SOURCE Allot Ltd.