Company Overview - Allot Ltd. is a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises [3] - The company offers converged cybersecurity solutions and network intelligence offerings, enhancing value for its customers' customers through various services [3] - Allot's solutions are deployed globally, serving over 500 mobile, fixed, and cloud service providers, as well as over 1000 enterprises [3] Upcoming Event - Allot's CEO, Eyal Harari, will represent the company at the 38th Annual Roth Conference in Laguna Niguel, CA, on March 23-24, 2026 [1] - Mr. Harari will engage in one-on-one meetings with institutional investors during the conference [2]

Key Takeaways Allot posted Q4 EPS of 8 cents on $28.4M revenues, both above estimates and up Y/Y.Allot's SECaaS revenues jumped 68.8% year over year, making up 28% of total sales.ALLT guides 2026 revenues of $113-$117M, with the consensus estimate for EPS pegged at 28 cents.Allot Ltd. (ALLT) reported better-than-expected fourth-quarter 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.Allot’s fourth-quarter non-GAAP earnings of 8 cents per share surpassed the Zacks Conse ...

Allot Communications (ALLT) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +23.08%. A quarter ago, it was expected that this internet protocol services company would post earnings of $0.04 per share when it actually produced earnings of $0.1, delivering a surprise of +150%.Over the l ...

Financial Performance - Non-GAAP operating income more than doubled to $3.6 million in Q4 from $1.8 million in the prior-year quarter, with full-year non-GAAP operating income rising to $8.9 million from $0.6 million in 2024 [1] - Non-GAAP net income was $4.1 million, or $0.08 per diluted share, in Q4, and $10.9 million, or $0.23 per diluted share, for the full year [1] - Q4 revenue was reported at $28.4 million, up 14% year-over-year, while full-year revenue rose 11% to $102 million, marking a return to double-digit growth [5] Gross Margin and Operating Expenses - Q4 non-GAAP gross margin was 71.9%, up from 69.7% a year earlier, with full-year 2025 gross margin at 72% compared to 70.6% in 2024 [2] - Non-GAAP operating expenses were $16.8 million in Q4 versus $15.6 million a year earlier, with full-year operating expenses remaining flat at $64.5 million [2] Recurring Revenue and SECaaS Growth - SECaaS annual recurring revenue (ARR) reached $30.8 million as of December 2025, up 69% year-over-year, representing 62% of total revenue for the full year and 28% in Q4 [3] - SECaaS revenue was $8.1 million in Q4, up 70% year-over-year, and totaled $26.8 million for the full year, representing 26% of total revenue [4] Cash Flow and Balance Sheet - The company generated $8.1 million in positive operating cash flow in Q4 and $17.8 million for the full year, with cash, bank deposits, and investments rising to $88 million at year-end 2025 from $59 million at the end of 2024 [6] - The company ended 2025 with no debt and 490 full-time employees [6] Growth Strategy and Market Position - Management highlighted strong adoption of SECaaS offerings with CSPs and outlined a growth strategy focused on embedded, network-based protection for consumers and SMBs [6] - The company plans to expand its product capabilities, including new offerings aimed at SMBs and partnerships with CSPs to increase subscriber adoption [9] 2026 Outlook and AI Integration - For 2026, management guided to revenue of $113 million to $117 million, expecting continued double-digit growth and strong SECaaS ARR growth [13] - The company plans to launch additional AI-enabled capabilities in 2026, focusing on identity protection and fraud prevention [16]

Allot (NasdaqGS:ALLT) Q4 2025 Earnings call February 25, 2026 09:00 AM ET Company ParticipantsEyal Harari - CEOKenny Green - Co-Founder and DirectorLiat Nahum - CFOMatt Calitri - VP of Equity ResearchRory Wallace - Founder and Chief Investment OfficerConference Call ParticipantsJonathan Ho - Research AnalystJonathan Ruykhaver - Senior Research AnalystNehal Chokshi - Senior Research AnalystShaul Eyal - Managing Director and Senior AnalystKenny GreenGood day to all of you, welcome to Allot conference call to ...

Allot (NasdaqGS:ALLT) Q4 2025 Earnings call February 25, 2026 09:00 AM ET Company ParticipantsEyal Harari - CEOKenny Green - Co-Founder and DirectorLiat Nahum - CFOMatt Calitri - VP of Equity ResearchRory Wallace - Founder and Chief Investment OfficerConference Call ParticipantsJonathan Ho - Research AnalystJonathan Ruykhaver - Senior Research AnalystNehal Chokshi - Senior Research AnalystShaul Eyal - Managing Director and Senior AnalystKenny GreenGood day to all of you, welcome to Allot conference call to ...

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter with revenue of $28.4 million, up 14% year-over-year, and total revenue for 2025 reached $102 million, an 11% increase from $92.2 million in 2024 [17][4] - Cybersecurity-as-a-Service (CCaaS) revenue was $8.1 million in the fourth quarter, up 70% year-over-year, and comprised 28% of total revenue for the quarter [17][4] - Annual recurring revenue (ARR) for CCaaS was $30.8 million as of December 2025, reflecting a 69% year-over-year increase [17][4] - Non-GAAP operating income for Q4 was $3.6 million, a 101% increase compared to $1.8 million in Q4 2024, and for the full year, it was $8.9 million compared to $0.6 million in 2024 [19][20] - The company ended 2025 with over $88 million in cash and no debt, providing strategic flexibility for growth initiatives [5][20] Business Line Data and Key Metrics Changes - Recurring revenue increased to 28% of total revenue in Q4 and represented 62% of total revenue for the full year, enhancing revenue visibility [5][17] - The CCaaS offering is the primary growth driver, with significant traction and a strong pipeline of new business opportunities [6][15] Market Data and Key Metrics Changes - The company is focused on expanding its partnerships with Communication Service Providers (CSPs) and telcos to enhance its market reach [6][7] - The partnership with Compax Venture allows for the introduction of cybersecurity services to MVNO customers, expanding the addressable market [6][7] Company Strategy and Development Direction - The company aims to be a cybersecurity-first organization, integrating cybersecurity and network intelligence to enhance its service offerings [5][6] - The strategy includes expanding the CCaaS model and introducing new products like Off-Net solutions to increase average revenue per user (ARPU) [8][11] - The company plans to evolve its offerings to provide comprehensive protection for consumers and SMBs, addressing underserved markets [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting continued double-digit revenue growth in 2026, with total revenue projected between $113 million and $117 million [15][23] - The company anticipates strong demand for its cybersecurity services, driven by increasing awareness of cybersecurity threats [48][72] - Management acknowledged potential cost pressures from supply chain constraints but remains confident in maintaining a gross margin around 70% [21][23] Other Important Information - The company is actively investing in marketing and sales to strengthen its go-to-market capabilities and support new product launches [14][23] - Participation in major industry events like Mobile World Congress and RSA Conference is planned to showcase new products and drive customer engagement [14][15] Q&A Session Summary Question: What drove the strength in the CCaaS business this quarter? - Management noted strong adoption rates for security services launched with customers, contributing to increased ARR and revenue [26] Question: Can you elaborate on the MVNO opportunity? - Management highlighted that targeting MVNOs with cybersecurity offerings could differentiate their services and potentially unlock significant new revenue streams [30][32] Question: Is the wording around CCaaS ARR expectations more positive than a year ago? - Management confirmed strong demand for solutions and visibility into growth, indicating robust expectations for CCaaS ARR [36][38] Question: What is the book-to-bill ratio in the Smart business? - Management reported a book-to-bill ratio over one, indicating strong demand and a healthy backlog for 2026 [78][79] Question: How is the company addressing AI-driven fraud attempts? - Management emphasized leveraging network visibility to identify and protect against sophisticated fraud attempts, enhancing customer security [68][69]

1 Q4 2025 Earnings Feb 25th , 2026 Allot Q4-25 Earning EYAL HARARI Chief Executive Officer LIAT NAHUM Chief Financial Officer 2 Forward Looking Statements This presentation 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 su ...

Core Insights - Allot Ltd. (ALLT) is experiencing significant growth in its Cybersecurity as a Service (SECaaS) business, which is now the primary driver of revenue growth for the company [1][10] - In Q3 2025, SECaaS annual recurring revenues (ARR) increased by 60% year-over-year, contributing approximately 28% to Allot's total revenues, up from 21% in the same quarter last year [1][10] - Management anticipates that the SECaaS revenue share will approach 30% by the end of 2025 [1] SECaaS Growth Drivers - The growth in SECaaS is primarily attributed to Tier-1 telecom customers who have recently launched the service and are adding more subscribers [2] - New subscriber additions and increasing attach rates are driving this growth, with adoption rates expected to improve over two to three years post-launch, supporting steady ARR growth [2] Strategic Partnerships - In January 2026, Allot entered a partnership with Compax Venture to utilize its NetworkSecure and OffNetSecure platforms, enabling Mobile Virtual Network Operators (MVNOs) to offer cybersecurity services [3] - This partnership expands Allot's SECaaS distribution beyond traditional mobile operators, enhancing recurring subscription revenues [3] Revenue Quality Improvement - The increased contribution from SECaaS is enhancing revenue quality, with recurring revenues rising to 63% in Q3 2025, compared to 58% in the same quarter last year [4] - The SECaaS business is becoming central to Allot's revenue model, which is expected to support growth in upcoming quarters [4] Competitive Landscape - Allot competes with established companies in the network traffic management and cybersecurity sectors, including Check Point Software (CHKP) and Palo Alto Networks (PANW) [5] - Check Point Software focuses on hybrid network security with its Quantum Firewall Software, while Palo Alto Networks has partnered with IBM to enhance quantum-safe security solutions [6][7] Stock Performance and Valuation - Allot's shares have increased by 14.1% over the past six months, contrasting with a 20.7% decline in the Zacks Internet - Software industry [8] - The company trades at a forward price-to-sales ratio of 4.53, which is lower than the industry average of 5.03 [12] - The Zacks Consensus Estimate for Allot's 2026 earnings indicates a year-over-year increase of 24.3%, with estimates revised upward by 3 cents in the past 60 days [15]

Group 1 - Allot Limited (NASDAQ:ALLT) is identified as one of the 9 small-cap software infrastructure stocks with significant upside potential, with Cantor Fitzgerald assigning an Overweight rating and a $15 price target, indicating an upside potential of over 49% [1] - The company is transitioning towards a security-centric consumer model, benefiting from the growing contribution of Security as a Service and improving financial metrics, while its valuation remains below comparable companies, suggesting room for potential upside and multiple re-rating [2] - On January 13, Allot Limited announced that Compax Venture will deploy its NetworkSecure and OffNetSecure solutions to support the launch of MVNOs, providing integrated cyber protection services, which will enhance cybersecurity and content filtering for subscribers [3] Group 2 - Allot Limited develops and sells network intelligence and security solutions for communication service providers and enterprises, offering a comprehensive suite of end-to-end security management services through its Allot Secure Management platform, including Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, Allot BusinessSecure, and Allot Secure Cloud [4]