Hod Hasharon, Israel, Nov. 03, 2025 (GLOBE NEWSWIRE) -- 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, announced today that it will host a conference call to discuss its third quarter 2025 results on Thursday, November 20, 2025 at 9:00AM ET (2:00PM UK, 4:00PM Israel). The unaudited financial results of the quarter will be published prior to the commencement ...

Allot Ltd. (NASDAQ:ALLT) is one of the small-cap tech stocks hedge funds were buying in Q2. On October 23, 2025, Needham & Company initiated coverage of Allot with a Buy rating and a $12.50 price target. In its note, Needham highlighted Allot’s strategic positioning in the network intelligence and security space, citing growth potential driven by its focus on a “security-first approach.” Allot Wins Analyst Support as Security-First Strategy Draws Fresh Optimism The firm pointed to Allot’s multi-service ...

Allot Ltd. (NASDAQ:ALLT) is one of the hot tech stocks to buy according to Wall Street analysts. On October 20, TD Cowen initiated coverage of Allot Ltd. with a Buy rating and $13 price target.  TD Cowen believes that the company is well-positioned to sustain double-digit profitable growth in the coming years, primarily due to strong tailwinds in the cybersecurity market. TD Cowen Initiates Allot Ltd. (ALLT) with Buy Rating, $13 PT on Cybersecurity Market Tailwinds A major factor in this growth is Allot’ ...

Summary of Allot Ltd. Conference Call (October 21, 2025) Company Overview - **Company Name**: Allot Ltd. - **Industry**: Network Intelligence and Cybersecurity - **Established**: Over two decades ago - **Focus**: Managing Internet traffic and providing network intelligence solutions [1] Core Business and Strategy - **Current Business Model**: Transitioning from a cost center to a profit center by leveraging relationships with communication service providers (CSPs) [4] - **Main Product Lines**: - **Network Intelligence**: 75% of business, includes cybersecurity engines and network management solutions [6] - **Cybersecurity-as-a-Service (SECaaS)**: 25% of business, targeting lower market segments and small businesses [6][5] - **Growth Engine**: SECaaS reported 73% year-over-year growth in Q2, aiming for $30 million Annual Recurring Revenue (ARR) from this line [5] Market Dynamics - **Target Market**: Focus on small businesses and consumers who lack adequate cybersecurity solutions [3] - **Competitive Landscape**: Major competitors include Palo Alto, Wiz, Fortinet, and Check Point, primarily targeting large enterprises [2] - **Market Opportunity**: Identified a significant untapped market in lower segments, with potential for high attach rates (15% to 50%) among carrier customers [16] Financial Performance - **Revenue Guidance**: Expected to reach $100 million this year, with an 8% growth forecast [6][11] - **Recurring Revenue**: Approximately 60% of business is recurring, contributing to stable cash flow [7] - **Profitability**: Achieved break-even last year, now generating positive cash flow and non-GAAP operating profit [8] Recent Developments - **New Partnerships**: Engaging with around two dozen carriers globally, expanding market reach [18] - **Recent Wins**: Secured multimillion-dollar contracts, including a significant networking deal announced in July [22] - **Innovative Solutions**: Launched new cybersecurity engine, OffNetSecure, to enhance service offerings [20] Future Outlook - **Growth Projections**: Anticipating 60% growth in SECaaS, contributing to overall revenue increase [17] - **Sales Cycle**: Typically 36 to 48 months to achieve significant penetration in new carrier partnerships [18] - **Investment in Innovation**: Continual development of new products and capabilities to stay ahead in the market [20] Additional Insights - **Consumer Market Strategy**: Currently leveraging CSPs for market access rather than direct-to-consumer sales, with potential exploration in the future [27] - **Bundling Opportunities**: CSPs can bundle Allot's services with their offerings, enhancing sales potential [29] Conclusion Allot Ltd. is strategically positioned to capitalize on the growing demand for cybersecurity solutions in the lower market segments, leveraging its unique relationships with CSPs and innovative technology to drive significant growth and profitability in the coming years [4][5][11]

Core Insights - Allot Ltd. will present at the LD Micro Main Event XIX in San Diego, California, from October 19-21, 2025, showcasing its innovative Security-as-a-Service and network intelligence solutions [1][2]. Company Overview - Allot Ltd. is a leading provider of converged cybersecurity solutions and network intelligence for service providers and enterprises globally, enhancing customer value [5]. - The company's solutions are deployed by over 500 mobile, fixed, and cloud service providers, as well as over 1000 enterprises, with its security-as-a-service solution used by millions of subscribers worldwide [5]. Event Details - CEO Eyal Harari will present to investors on October 21 at 3 PM PT and will be available for one-on-one meetings during the conference [2]. - Interested investors can register for the presentation online via LD Micro's webcasting site [2].

Company Overview - Allot Ltd. (NASDAQ: ALLT) is identified as a unique and attractive investment opportunity in the cybersecurity industry, particularly following its impressive turnaround post-2022 [1]. Investment Thesis - The company is positioned to consistently outperform the broader market due to its robust, consistent, and predictable cash flows, which facilitate accurate valuation and sensitivity analysis [1]. Market Context - The analysis emphasizes the importance of macroeconomic developments, suggesting that these factors can significantly influence market cycles and affect valuation discounts or premiums [1]. Analyst Engagement - The company aims to provide actionable investment ideas and engage in discussions within the investment community, catering to both novice and seasoned investors [1].

Group 1 - The bullish thesis on Allot Ltd. has strengthened following its Q2 2025 results, indicating a successful transformation to Security as a Service (SECaaS) [1] - The company's performance reflects a significant shift in its business model towards providing security solutions [1]

Financial Data and Key Metrics Changes - The company reported revenue of $24.1 million for Q2 2025, representing a 9% year-over-year increase [22] - The CCaaS (Cybersecurity as a Service) ARR (Annual Recurring Revenue) was $6.4 million, up 73% year-over-year, comprising 27% of total revenue [22] - Non-GAAP gross margin improved to 73.4% from 70.6% in the same quarter last year [23] - Non-GAAP operating income was $1.2 million compared to a loss of $1 million in Q2 2024 [24] - Positive operating cash flow of $4.4 million was reported, with cash and equivalents totaling $72 million as of June 30, 2025 [25] Business Line Data and Key Metrics Changes - The CCaaS segment is highlighted as the primary growth engine, with significant contributions from new customer acquisitions and upselling existing services [5][7] - The successful launch of Verizon's MyDisPlan contributed positively to the CCaaS growth, indicating strong market traction [6][8] Market Data and Key Metrics Changes - The company is seeing strong momentum in the cybersecurity services market, particularly among major telecom operators [7] - New contracts with telecom operators in Poland and Panama indicate expanding market presence and service adoption [9][10] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth through its cybersecurity as a service strategy, aiming to increase the number of telecom partners and expand service offerings [10][12] - The launch of the SG Terra 3 platform is expected to enhance service delivery and customer engagement [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, citing improved visibility and a strong backlog of opportunities [20] - The company anticipates a strong year-end CCaaS ARR growth of 55% to 60% for 2025 [19] Other Important Information - A follow-on equity offering raised $46 million, which was used to repay convertible notes and strengthen the balance sheet, leaving the company with no debt [24][25] - The company expects overall revenues for 2025 to be between $98 million and $102 million, positioning itself for profitable growth [19] Q&A Session Summary Question: What has been driving the strong ARR growth metrics? - The strong ARR growth is attributed to new customer acquisitions, increased adoption of existing services, and upselling new applications [29] Question: What has been driving the improved gross margin performance? - Improved gross margin is due to a favorable revenue mix, particularly from software expansion deals [31] Question: Can you provide more color on the MyBiz opportunity? - The MyBiz plan is expected to ramp up over the next two to three years, with high attach rates due to its default inclusion in the service [33][35] Question: Can you discuss the large European telecom deal? - The deal involves network intelligence and cybersecurity solutions, expected to generate revenue primarily in 2026 and 2027 [37][39] Question: Are there any macro impacts on sales cycles? - There are no significant macro impacts observed, and the demand is driven by the new Terra 3 platform [63]

Core Insights - Allot Ltd. reported a strong performance in Q2 2025, with a 73% year-over-year growth in SECaaS Annual Recurring Revenue (ARR), which now constitutes over 25% of total revenue [2][3] - The company raised its full-year revenue guidance to a range of $98-102 million, reflecting confidence in continued growth driven by SECaaS [3] - Overall revenue for Q2 2025 reached $24.1 million, marking a 9% increase from $22.2 million in Q2 2024 [4][8] Financial Performance - Gross profit on a GAAP basis for Q2 2025 was $17.3 million, with a gross margin of 72.1%, up from $15.2 million and 68.5% in Q2 2024 [4] - Non-GAAP gross profit was reported at $17.6 million, with a gross margin of 73.4%, compared to $15.7 million and 70.6% in the same quarter last year [5] - The company achieved a non-GAAP operating income of $1.2 million in Q2 2025, a significant improvement from an operating loss of $1.0 million in Q2 2024 [6] Cash Flow and Debt Management - Operating cash flow for the quarter was $4.4 million, a notable increase from $1.2 million in Q2 2024 [7][8] - As of June 30, 2025, Allot had $72 million in cash and cash equivalents, an increase of $13 million from $59 million at the end of 2024, and the company reported no debt [9] Strategic Developments - Allot secured a landmark multi-year deal valued in the tens of millions with a tier-1 telecom operator in EMEA, highlighting its competitive edge in cybersecurity and network intelligence [3] - The company’s SECaaS service is gaining traction, particularly through partnerships like the one with Verizon Business, contributing significantly to revenue growth [2][3] Revenue Breakdown - In Q2 2025, SECaaS revenue was $6.4 million, representing 27% of total revenue, compared to 18% in Q2 2024 [27] - The geographic revenue breakdown showed that EMEA accounted for 66% of total revenues, while the Americas and Asia Pacific contributed 17% each [26]

[Q2 2025 Earnings Announcement](index=1&type=section&id=Q2%202025%20Earnings%20Announcement) Allot announced strong Q2 2025 financial results driven by exceptional SECaaS performance, leading to an upward revision of full-year guidance [Headline and Overview](index=1&type=section&id=Headline%20and%20Overview) Allot reported strong Q2 2025 financial results, primarily driven by outstanding SECaaS performance with a 73% year-over-year increase in SECaaS ARR, leading to an upward revision of full-year guidance - SECaaS ARR increased by **73% year-over-year**[2](index=2&type=chunk) - Overall company revenue grew by **9% year-over-year**[4](index=4&type=chunk) - SECaaS revenue constituted over **25% of total revenue**[4](index=4&type=chunk) - Full-year 2025 revenue guidance was raised to **$98-102 million**[5](index=5&type=chunk) - The 2025 SECaaS ARR year-over-year growth expectation was increased to **55-60%**[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Eyal Harari highlighted strong Q2 performance, attributing it to SECaaS growth, significant traction with Verizon Business mobile, and a multi-million dollar landmark agreement with a Tier-1 EMEA telecom operator, expressing confidence in 2025 profitability - “Exceptional SECaaS performance” drove strong Q2 financial results[4](index=4&type=chunk) - Verizon Business's new mobile offering, including Allot's SECaaS services, gained significant end-customer traction, contributing to SECaaS revenue growth[4](index=4&type=chunk) - Secured a **multi-million dollar landmark agreement** with a Tier-1 EMEA telecom operator, showcasing the company's unique technological advantages and core expertise in cybersecurity and network intelligence[5](index=5&type=chunk) [Key Financial Highlights (Q2 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q2%202025%29) Allot reported Q2 2025 revenue of **$24.1 million**, a 9% year-over-year increase, with SECaaS comprising 27% of total revenue and SECaaS ARR reaching **$25.2 million**, up 73% year-over-year, alongside significant improvements in GAAP and non-GAAP operating results and strong operating cash flow | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :-------- | :-------- | :--------- | | Revenue (million USD) | 24.1 | 22.2 | +9% | | SECaaS as % of Total Revenue | 27% | N/A | N/A | | SECaaS ARR (June 2025, million USD) | 25.2 | N/A | +73% | | GAAP Operating Loss (million USD) | (0.4) | (3.4) | Improved | | Non-GAAP Operating Income (Loss) (million USD) | 1.2 | (1.0) | Improved | | Operating Cash Flow (million USD) | 4.4 | 1.2 | +267% | [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section provides a detailed overview of Allot's Q2 2025 financial results, including revenue, profitability, cash flow, and financing activities [Second Quarter 2025 Financial Results Summary](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Summary) Allot's Q2 2025 GAAP revenue grew 9% to **$24.1 million**, with GAAP gross profit increasing 14% to **$17.3 million** (72.1% margin) and non-GAAP gross profit up 13% to **$17.6 million** (73.4% margin), significantly reducing GAAP operating loss and achieving non-GAAP operating income | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | YoY Change | | :-------------------------- | :------------- | :------------- | :--------- | | Total Revenue (million USD) | 24.1 | 22.2 | +9% | | Gross Profit (million USD) | 17.3 | 15.2 | +14% | | Gross Margin | 72.1% | 68.5% | +3.6 pp | | Operating Loss (million USD) | (0.4) | (3.4) | Improved | | Net Loss (million USD) | (1.7) | (3.4) | Improved | | Basic Net Loss Per Share (USD) | (0.04) | (0.09) | Improved | | | | | | | Metric | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Gross Profit (million USD) | 17.6 | 15.7 | +13% | | Gross Margin | 73.4% | 70.6% | +2.8 pp | | Operating Income (Loss) (million USD) | 1.2 | (1.0) | Improved | | Net Income (Loss) (million USD) | 1.5 | (0.8) | Improved | | Diluted Net Income (Loss) Per Share (USD) | 0.03 | (0.02) | Improved | [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) Allot generated **$4.4 million** in strong operating cash flow during Q2 2025, with net cash and equivalents, bank deposits, restricted deposits, and investments totaling **$72 million** as of June 30, 2025, an increase of **$13 million** from December 31, 2024, and reported no debt - Operating cash flow generated in Q2 2025 was **$4.4 million**[11](index=11&type=chunk) - As of June 30, 2025, net cash and cash equivalents, bank deposits, restricted deposits, and investments totaled **$72 million**[11](index=11&type=chunk) - The company reported **no debt** as of June 30, 2025[11](index=11&type=chunk) [Financing Activities](index=2&type=section&id=Financing%20Activities) In Q2 2025, Allot completed a **$46 million** public offering, with **$40 million** gross proceeds received during the quarter, primarily used to repay **$31.4 million** in convertible debt, with the remainder for general corporate purposes - Completed a **$46 million** public offering[12](index=12&type=chunk) - Gross proceeds of **$40 million** were received during the second quarter[12](index=12&type=chunk) - Net proceeds were used to repay **$31.4 million** of convertible debt[12](index=12&type=chunk) [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) This section provides essential company information, including conference call details, a company overview, definitions of key performance metrics, GAAP to non-GAAP reconciliation principles, a safe harbor statement, and investor contacts [Conference Call & Webcast Information](index=3&type=section&id=Conference%20Call%20%26%20Webcast%20Information) Allot's management team held a conference call on August 14, 2025, to discuss Q2 2025 earnings, with details provided for accessing the call and archived webcast - The conference call was held on **August 14, 2025, at 9:00 AM ET**[14](index=14&type=chunk) - An archived webcast is accessible at http://investors.allot.com/index.cfm[14](index=14&type=chunk) [About Allot Ltd.](index=3&type=section&id=About%20Allot%20Ltd.) Allot Ltd. is a global provider of network intelligence and security solutions for service providers and enterprises, offering network and application analytics, traffic control, and network-based security services, with its multi-service platform deployed by over 500 service providers and 1,000 enterprises - Allot Ltd. is a leading global provider of network intelligence and security solutions for service providers and enterprises[15](index=15&type=chunk) - Solutions include network and application analytics, traffic control and shaping, and network-based security services[15](index=15&type=chunk) - Its multi-service platform has been deployed by over **500 mobile, fixed, and cloud service providers** and **1,000 enterprises** worldwide[15](index=15&type=chunk) - Its industry-leading network-based Security-as-a-Service solutions are used by **millions of users globally**[15](index=15&type=chunk) [Performance Metrics Definition](index=3&type=section&id=Performance%20Metrics%20Definition) The report defines SECaaS ARR (Security-as-a-Service Annual Recurring Revenue) as a key performance indicator, calculated by multiplying estimated June 2025 revenue by 12 - SECaaS ARR measures the current annual recurring SECaaS revenue[16](index=16&type=chunk) - It is calculated by multiplying the estimated June 2025 revenue by 12[16](index=16&type=chunk) [GAAP to Non-GAAP Reconciliation Principles](index=3&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20Principles) This document explains that non-GAAP measures are provided to better illustrate Allot's core business and ongoing performance by adjusting for fair value adjustments of acquired deferred revenue, share-based compensation, amortization of acquisition-related intangible assets, deferred tax asset adjustments, and tax-related items, serving as a supplement to GAAP - Non-GAAP revenue adjusts for the impact of fair value adjustments to acquired deferred revenue related to purchase accounting[17](index=17&type=chunk) - Non-GAAP net income excludes share-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustments, and tax-related items[17](index=17&type=chunk) - The company provides these non-GAAP financial measures as they better measure the company's core business, and management uses non-GAAP measures to assess the company's ongoing performance[18](index=18&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This section contains a standard safe harbor statement indicating that forward-looking statements in this press release are subject to known and unknown risks and uncertainties, listing various factors that could cause actual results to differ, and the company undertakes no obligation to update these statements - This press release contains forward-looking statements subject to known and unknown risks and uncertainties[19](index=19&type=chunk) - Significant risk factors include accounts receivable, ability to achieve financial guidance, competition, loss of key customers, government regulation, timing of key project milestones, decreased demand for value-added services, ability to keep pace with technological advancements, managing long sales cycles, operational risks associated with large projects, and reliance on third-party channel partners[19](index=19&type=chunk) - These forward-looking statements are made only as of the date of this release, and the company undertakes no obligation to update or revise them[19](index=19&type=chunk) [Investor and Public Relations Contacts](index=4&type=section&id=Investor%20and%20Public%20Relations%20Contacts) Contact information is provided for Investor Relations (EK Global Investor Relations) and Public Relations (Seth Greenberg of Allot Ltd.) - Investor Relations contact: Ehud Helft, EK Global Investor Relations, Phone: **+1 212 378 8040**, Email: allot@ekgir.com[20](index=20&type=chunk) - Public Relations contact: Seth Greenberg, Allot Ltd., Phone: **+972 54 922 2294**, Email: sgreenberg@allot.com[20](index=20&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Allot's consolidated GAAP statements of operations, reconciliation of GAAP to non-GAAP results, balance sheets, and cash flow statements for the reported periods [Consolidated Statements of Operations (GAAP)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20%28GAAP%29) The GAAP consolidated statements of operations present Allot's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, detailing key metrics including revenue, gross profit, operating expenses, operating loss, and net loss | Metric (thousand USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | 24,051 | 22,164 | 47,201 | 44,054 | | Gross Profit | 17,330 | 15,175 | 33,378 | 30,273 | | Total Operating Expenses | 17,737 | 18,541 | 34,494 | 36,382 | | Operating Loss | (407) | (3,366) | (1,116) | (6,109) | | Net Loss | (1,690) | (3,356) | (2,021) | (5,866) | | Basic Net Loss Per Share | (0.04) | (0.09) | (0.05) | (0.16) | | Diluted Net Loss Per Share | (0.04) | (0.09) | (0.05) | (0.16) | [Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Consolidated%20Statements%20of%20Operations) This table details the reconciliation of Allot's GAAP to non-GAAP financial results for the three and six months ended June 30, 2025 and 2024, with key adjustments including share-based compensation, intangible asset amortization, loss on debt extinguishment, exchange rate differences, and tax-related items, resulting in Q2 2025 non-GAAP net income of **$1.45 million** versus a Q2 2024 non-GAAP net loss of **$0.774 million** | Metric (thousand USD) | Three Months Ended June 30, 2025 (GAAP) | Adjustments | Three Months Ended June 30, 2025 (Non-GAAP) | Three Months Ended June 30, 2024 (GAAP) | Adjustments | Three Months Ended June 30, 2024 (Non-GAAP) | | :------------------------------------ | :---------------------------------- | :---------- | :----------------------------------- | :---------------------------------- | :---------- | :----------------------------------- | | Cost of Revenue | 6,721 | (312) | 6,409 | 6,989 | (476) | 6,513 | | Gross Profit | 17,330 | 312 | 17,642 | 15,175 | 476 | 15,651 | | Operating Expenses | 17,737 | (1,289) | 16,448 | 18,541 | (1,863) | 16,678 | | Loss on Debt Extinguishment | (1,410) | 1,410 | - | - | - | - | | Finance and Other Income | 359 | 104 | 463 | 489 | 110 | 599 | | Income Tax Expense | 332 | (25) | 307 | 479 | (133) | 346 | | Net Income (Loss) | (1,690) | 3,139 | 1,450 | (3,356) | 2,582 | (774) | | Loss Per Share (Diluted) | (0.04) | 0.07 | 0.03 | (0.09) | 0.07 | (0.02) | - Share-based compensation expense for Q2 2025 was **$1,449 thousand**[26](index=26&type=chunk) - Amortization of intangible assets for Q2 2025 was **$152 thousand**[26](index=26&type=chunk) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Allot's consolidated balance sheets show total assets increased to **$154.05 million** as of June 30, 2025, from **$139.64 million** on December 31, 2024, driven by higher cash and marketable securities, while total liabilities significantly decreased due to convertible debt repayment, and shareholders' equity doubled to **$99.72 million** | Metric (thousand USD) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :------------------------ | :-------------------------- | :-------------------------- | :----- | | Total Current Assets | 87,293 | 90,176 | (2,883) | | Total Non-Current Assets | 66,759 | 49,465 | 17,294 | | Total Assets | 154,052 | 139,641 | 14,411 | | Total Current Liabilities | 41,831 | 35,970 | 5,861 | | Total Long-Term Liabilities | 12,504 | 53,862 | (41,358) | | Shareholders' Equity | 99,717 | 49,809 | 49,908 | - Cash and cash equivalents increased from **$16,142 thousand** on December 31, 2024, to **$26,943 thousand** on June 30, 2025[28](index=28&type=chunk) - Convertible debt decreased from **$39,973 thousand** on December 31, 2024, to **$0** on June 30, 2025[28](index=28&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Allot's cash flow statement shows significantly improved cash flow from operating activities, generating **$4.38 million** in Q2 2025, while investing activities provided **$6.22 million**, reversing a Q2 2024 outflow, and financing activities provided **$6.28 million**, primarily from equity issuance and convertible debt redemption, leading to a total **$16.88 million** increase in cash and cash equivalents for Q2 2025 | Metric (thousand USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by (Used in) Operating Activities | 4,384 | 1,174 | 6,069 | (1,135) | | Net Cash Provided by (Used in) Investing Activities | 6,217 | (8,010) | (1,787) | 2,825 | | Net Cash Provided by Financing Activities | 6,281 | 1 | 6,519 | 1 | | Increase (Decrease) in Cash and Cash Equivalents | 16,882 | (6,835) | 10,801 | 1,691 | | Cash and Cash Equivalents at End of Period | 26,943 | 15,883 | 26,943 | 15,883 | - Equity issued in Q2 2025 totaled **$37,691 thousand**[30](index=30&type=chunk) - Convertible debt redeemed in Q2 2025 amounted to **($31,410) thousand**[30](index=30&type=chunk) [Supplemental Financial Data](index=10&type=section&id=Supplemental%20Financial%20Data) This section provides additional financial data, including revenue breakdown by geography and type, detailed SECaaS performance metrics, and share information [Revenue Geographic and Type Breakdown](index=10&type=section&id=Revenue%20Geographic%20and%20Type%20Breakdown) In Q2 2025, EMEA was Allot's largest revenue contributor at **66%**, followed by Americas and APAC at **17%** each, with support and maintenance at **35%**, SECaaS at **27%**, products at **31%**, and professional services at **7%**, showing a significant increase in SECaaS revenue share from prior years | Revenue Geographic Breakdown | Q2 2025 | FY 2024 | FY 2023 | | :-------------------------- | :---- | :------ | :------ | | Americas | 17% | 15% | 18% | | EMEA | 66% | 59% | 60% | | APAC | 17% | 26% | 22% | | | | | | | Revenue Type Breakdown | Q2 2025 | FY 2024 | FY 2023 | | :------------------------ | :---- | :------ | :------ | | Products | 31% | 33% | 40% | | Professional Services | 7% | 9% | 7% | | SECaaS (Security-as-a-Service) | 27% | 18% | 11% | | Support & Maintenance | 35% | 40% | 42% | [SECaaS Performance](index=10&type=section&id=SECaaS%20Performance) Allot's SECaaS revenue showed consistent quarter-over-quarter growth, reaching **$6.4 million** in Q2 2025, up from **$3.7 million** in Q2 2024, with SECaaS ARR also demonstrating strong growth to **$25.2 million** by June 2025 | SECaaS Revenue (million USD) | | | :-------------------------------- | :-- | | Q2 2025 | 6.4 | | Q1 2025 | 5.1 | | Q4 2024 | 4.8 | | Q3 2024 | 4.7 | | Q2 2024 | 3.7 | | | | | SECaaS ARR (million USD) | | | :-------------------------- | :-- | | June 2025 | 25.2 | | December 2024 | 18.2 | | December 2023 | 12.7 | | December 2022 | 9.2 | [Share Information](index=10&type=section&id=Share%20Information) Non-GAAP weighted average basic shares outstanding for Q2 2025 were **40.1 million**, with fully diluted shares at **43.8 million** | Metric (million shares) | Q2 2025 | FY 2024 | FY 2023 | | :------------------------------------ | :---- | :------ | :------ | | Non-GAAP Weighted Average Basic Shares | 40.1 | 38.9 | 37.9 | | Non-GAAP Weighted Average Fully Diluted Shares | 43.8 | 42.3 | 40.3 | - Revenue from the **top ten customers** accounted for **55%** in Q2 2025, up from **43%** in FY 2024[31](index=31&type=chunk)