Allot (NASDAQ: ALLT) Q1 2026 returns to profit as cash flow surges
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Allot Ltd. reported a strong first quarter of 2026, showing both growth and a turnaround to profitability. Revenue reached $26.4 million, up 14% from $23.2 million a year earlier, driven mainly by its cybersecurity and Security‑as‑a‑Service offerings.
GAAP gross profit rose to $18.7 million with a 70.9% margin, and the company moved from an operating loss to a $1.5 million operating profit. GAAP net income was $1.9 million, or $0.04 per diluted share, compared with a small loss last year. Operating cash flow improved sharply to $10.6 million, and cash, deposits and investments totaled $98 million as of March 31, 2026.
Security‑as‑a‑Service revenue grew to $8.7 million, with recurring revenue reaching 67% of total revenue, which management highlights as a key growth engine. Allot reaffirmed its 2026 revenue guidance of $113 million to $117 million and now expects 40% or more SECaaS revenue growth for the year.
Positive
- Return to profitability with stronger margins: Allot moved from a GAAP net loss of $0.3 million in Q1 2025 to GAAP net income of $1.9 million in Q1 2026, alongside gross margin expansion to 70.9% and non-GAAP operating margin rising to 9.9%.
- Rapid growth in recurring and SECaaS revenues: Q1 2026 revenue grew 14% year-over-year to $26.4 million, SECaaS revenue reached $8.7 million, recurring revenue accounted for 67% of total revenue, and SECaaS ARR climbed to $33.7 million, supporting more predictable revenue streams.
- Significantly stronger cash generation and liquidity: Operating cash flow increased to $10.6 million from $1.7 million a year earlier, and cash, deposits, restricted deposits and investments rose to $98 million as of March 31, 2026, providing a solid financial cushion.
- Reaffirmed guidance with confident SECaaS outlook: Management reaffirmed 2026 revenue guidance of $113 million to $117 million and indicated visibility for 40% or more SECaaS revenue growth in 2026, underscoring confidence in the cybersecurity-led growth strategy.
Negative
- None.
Insights
Allot posts double-digit growth, returns to profit, and boosts cash generation.
Allot delivered 14% year-over-year revenue growth to $26.4M in Q1 2026, with GAAP gross margin improving to 70.9%. The business shifted from a small loss to GAAP net income of $1.9M, reflecting better scale in its cybersecurity-led model.
Security-as-a-Service is central, with SECaaS revenue at $8.7M and recurring revenue representing 67% of total revenue. SECaaS ARR reached $33.7M as of March 2026, indicating a growing base of subscription-like revenues that can smooth volatility versus one-time product sales.
Cash generation was particularly notable: operating cash flow jumped to $10.6M, and total cash, deposits and investments reached $98M as of March 31, 2026. Management reaffirmed full-year 2026 revenue guidance of $113M–$117M and now expects at least 40% SECaaS revenue growth, signaling confidence in continued expansion of its recurring cybersecurity business.
Key Figures
Q1 2026 Revenue: $26.4 million
Q1 2026 GAAP Net Income: $1.9 million
Q1 2026 Operating Cash Flow: $10.6 million
+5 more
8 metrics
Q1 2026 Revenue
$26.4 million
Total revenues for the first quarter of 2026, up 14% YoY
Q1 2026 GAAP Net Income
$1.9 million
Net income for the first quarter of 2026, vs. $0.3M loss in 2025
Q1 2026 Operating Cash Flow
$10.6 million
Operating cash flow generated in Q1 2026 vs. $1.7M in Q1 2025
Cash and Investments
$98 million
Cash, deposits, restricted deposits and investments as of March 31, 2026
SECaaS Revenue Q1 2026
$8.7 million
Security-as-a-Service revenues for Q1 2026
SECaaS ARR
$33.7 million
Security-as-a-Service annual recurring revenue as of March 2026
Recurring Revenue Share
67%
Recurring revenue as a percentage of total revenue in Q1 2026
2026 Revenue Guidance
$113–$117 million
Full-year 2026 revenue guidance reaffirmed by management
Key Terms
Security-as-a-Service (SECaaS), annual recurring revenue (ARR), non-GAAP gross profit, deferred revenues, +2 more
6 terms
Security-as-a-Service (SECaaS) financial
"a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions"
A subscription model where cybersecurity tools and monitoring are provided and managed by an outside vendor rather than built in-house. Think of it like hiring a neighborhood security company to patrol and lock doors for multiple buildings instead of each building hiring and training its own guards. For investors, it means customers often pay steady, recurring fees and avoid large upfront costs, which can make revenue more predictable, reduce capital spending needs, and shift operational risk to the service provider.
annual recurring revenue (ARR) financial
"SECaaS ARR – measures the current annual recurring SECaaS revenues"
Annual Recurring Revenue (ARR) is the predictable amount of money a company expects to earn in a year from its ongoing services or subscriptions. It helps businesses understand their steady income stream, much like knowing how much rent they can count on each year, which is important for planning and growth.
non-GAAP gross profit financial
"Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses"
Non-GAAP gross profit is a way companies measure how much money they make from selling their products or services, excluding some expenses that are usually included in standard calculations. It matters because it can give a clearer picture of the company's core earning ability, helping investors understand its performance without certain accounting adjustments.
deferred revenues financial
"Deferred revenues 38,085 ... Deferred revenues 7,495"
Deferred revenues are cash a company has received up front for goods or services it has not yet delivered; the company records this as a promise to fulfill an obligation later rather than as current earned sales. Investors care because deferred revenues show how much future work a firm must complete before that cash counts as profit, similar to buying a prepaid subscription or gift card that the seller still needs to honor.
forward-looking statements regulatory
"This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2026
Commission File Number: 001-33129
ALLOT LTD.
(Translation of registrant’s name into English)
22 Hanagar Street
Neve Ne'eman Industrial Zone B
Hod-Hasharon 45240
Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes ☐ No ☒
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
EXPLANATORY NOTE
On May 12, 2026, Allot Ltd. issued a press release announcing the First Quarter 2026 Financial Results.
A copy of the press release entitled “Allot Announces First Quarter 2026 Financial Results” is attached to this Form 6-K as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
Allot Ltd.
By: /s/ Liat Nahum
Liat Nahum
Chief Financial Officer
|
Date: May 12th, 2026
EXHIBIT INDEX
The following exhibit has been filed as part of this Form 6-K:
|
Exhibit Number
99.1
|
Description
Allot Announces First Quarter 2026 Financial Results
|
Exhibit 99.1
Allot First Quarter 2026 Results: Revenue Growth
Accelerates to 14% YoY with Increased Margins
Recurring Revenue Reaches 67% of Total Revenue
Hod Hasharon, Israel – May 12, 2026 - 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 first quarter of 2026.
Financial Highlights for the First Quarter of 2026
| • |
Revenues of $26.4 million, up 14% year-over-year;
|
| • |
Security as a Service (SECaaS) revenues of $8.7 million, increasing 71% year-over-year;
|
| • |
March 2026 SECaaS ARR* of $33.7 million, up 59% year-over-year;
|
| • |
GAAP operating income of $1.5 million, compared with an operating loss of $0.7 million in the first quarter of 2025;
|
| • |
Non-GAAP operating income of $2.6 million, compared with $0.4 million in the first quarter of 2025;
|
| • |
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 14% year-over-year, marking our third
consecutive quarter of double-digit revenue growth. Our success was driven by a robust expansion in our cybersecurity business, resulting in meaningful improvements in margins and profit, as well as record operating cash flow.”
Mr. Harari continued, “Our cybersecurity segment remains the primary engine of growth and drove Recurring Revenues** to over 67% of total revenue in the
quarter. Strong organic growth in SECaaS revenues and ARR reflects increasing adoption of telco-provided cybersecurity services powered by Allot and provides us with strong visibility into continued double-digit growth for the full year.”
Concluded Mr. Harari, “Looking ahead, we reaffirm our 2026 revenue guidance of $113 million to $117 million, with continued profitability improvements throughout the year.
Following a strong first quarter we feel increasingly confident toward the upper end of that range and furthermore, we now have the strong visibility ahead to predict 40% or more SECaaS revenue growth in 2026.”
First Quarter 2026 Financial Results Summary
Total revenues for the first quarter of 2026 were $26.4 million, a 14% increase year-over-year compared with $23.2 million in the first quarter of 2025.
Gross profit on a GAAP basis for the first quarter of 2026 was $18.7 million (gross margin of 70.9%), a 17% increase compared with $16.0 million (gross margin
of 69.3%) in the first quarter of 2025.
Gross profit on a non-GAAP basis for the first quarter of 2026 was $18.8 million (gross margin of 71.3%), a 16% increase compared with $16.3 million (gross
margin of 70.4%) in the first quarter of 2025.
Operating income on a GAAP basis for the first quarter of 2026 was $1.5 million (operating margin of 5.8%), compared with an operating loss of $0.7 million in
the first quarter of 2025.
Operating income on a non-GAAP basis for the first quarter of 2026 was $2.6 million (operating margin of 9.9%), compared with $0.4 million (operating margin of
1.8%) in the first quarter of 2025.
Net income on a GAAP basis for the first quarter of 2026 was $1.9 million, or $0.04 per diluted share, compared with a net loss of $0.3 million, or $0.01 loss
per basic share, in the first quarter of 2025.
Net income on a non-GAAP basis for the first quarter of 2026 was $3.1 million, or $0.06 income per diluted share, compared with $0.8 million, or $0.02 per
diluted share, in the first quarter of 2025.
Operating cash flow generated in the quarter was $10.6 million compared with $1.7 million in the first quarter of 2025.
Cash and cash equivalents, bank deposits, restricted deposits and investments as of March 31, 2026, totaled $98 million, compared with $88 million as of
December 31, 2025.
# # #
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 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: +972-3-918-0699
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
allot@ekgir.com
|
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com
|
|
ALLOT LTD.
|
|
AND ITS SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(U.S. dollars in thousands)
|
|
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 $9,388 and $9,611 on March 31, 2026 and December 31, 2025 , respectively)
|
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
|
|
(U.S. dollars in thousands, except share and per share data)
|
|
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
|
|
(U.S. dollars in thousands)
|
|
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
|
|
(U.S. dollars in thousands, except per share data)
|
|
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 liabilities in non-dollar denominated currencies.
|
Other financial metrics (Unaudited)
|
||||||||||||||||||||||||
|
U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares
|
||||||||||||||||||||||||
|
Q1-26
|
FY 2025
|
FY 2024
|
||||||||||||||||||||||
|
Revenues geographic breakdown
|
||||||||||||||||||||||||
|
Americas
|
3.8
|
15
|
%
|
19.1
|
19
|
%
|
14.2
|
15
|
%
|
|||||||||||||||
|
EMEA
|
15.9
|
60
|
%
|
63.7
|
62
|
%
|
54.0
|
59
|
%
|
|||||||||||||||
|
Asia Pacific
|
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- U.S. dollars in millions (Unaudited)
|
|||||||||
|
Q1-2026
|
8.7
|
||||||||
|
Q4-2025:
|
8.1
|
||||||||
|
Q3-2025:
|
7.3
|
||||||||
|
Q2-2025:
|
6.4
|
||||||||
|
Q1-2025:
|
5.1
|
||||||||
|
SECaaS ARR* - U.S. dollars in millions (Unaudited)
|
|||||||||
|
Mar. 2026:
|
33.7
|
||||||||
|
Dec. 2025:
|
30.8
|
||||||||
|
Dec. 2024:
|
18.2
|
||||||||
|
Dec. 2023:
|
12.7
|
||||||||
FAQ
How did Allot (ALLT) perform financially in Q1 2026?
Allot delivered solid growth and returned to profit in Q1 2026. Revenue reached $26.4 million, up 14% year-over-year, while GAAP net income was $1.9 million versus a small loss last year. Gross margin improved to 70.9%, reflecting stronger operating leverage.
What drove Allot’s revenue and margin improvements in Q1 2026?
Growth was mainly driven by Allot’s cybersecurity and Security-as-a-Service business. SECaaS revenue rose to $8.7 million and recurring revenue reached 67% of total revenue. This higher mix of subscription-like revenues supported gross margin expansion to 70.9% and improved profitability.
How strong is Allot’s cash flow and balance sheet after Q1 2026?
Allot generated much stronger cash flow in Q1 2026, with operating cash flow of $10.6 million versus $1.7 million a year earlier. Cash, cash equivalents, bank deposits, restricted deposits and investments totaled $98 million as of March 31, 2026, strengthening liquidity.
What guidance did Allot (ALLT) provide for full-year 2026?
Allot reaffirmed its 2026 revenue guidance of $113 million to $117 million. Management also stated it now has visibility for 40% or more Security-as-a-Service revenue growth in 2026, highlighting expectations for continued expansion of its recurring cybersecurity revenues.
How fast is Allot’s SECaaS and recurring revenue growing?
SECaaS revenue increased to $8.7 million in Q1 2026, up from $5.1 million in Q1 2025 based on the data provided. SECaaS ARR reached $33.7 million in March 2026, and recurring revenue overall represented 67% of total revenue, indicating strong momentum in subscription-based sales.
What are the key geographic and customer concentration metrics for Allot?
In Q1 2026, EMEA generated $15.9 million or 60% of revenue, Asia Pacific $6.7 million or 25%, and Americas $3.8 million or 15%. The top 10 customers accounted for 46% of revenue, up from 41% for full-year 2025, indicating moderate customer concentration.