Allot(US:ALLT)2026-03-26 13:00Financial Performance - Total revenues for 2025 were $102 million, with product revenues at $31 million (3% increase) and service revenues at $71 million (14% increase) compared to 2024[241][242]. - Gross profit margin improved from 69.1% in 2024 to 71.1% in 2025, driven by a decrease in total cost of revenues[245]. - Non-GAAP net income improved to $10.9 million in 2025 from a loss of $53.3 million in 2023, reflecting better operational performance[256]. Expenses - Research and development expenses decreased by $1.6 million, or 6%, to $24.5 million in 2025, representing 25.4% of total revenues[246]. - Sales and marketing expenses slightly decreased to $30.8 million in 2025 from $30.9 million in 2024[247]. - General and administrative expenses increased by $0.9 million, or 7%, to $13.6 million in 2025, but as a percentage of revenues, it decreased to 13.4%[248]. - Operating expenses decreased to $69 million in 2025 from $70 million in 2024, with over 75% attributed to salary expenses[270]. - Inventory net write-off expenses totaled $(0.3) million in 2025, a significant decrease from $3 million in 2024[287]. Cash Flow and Working Capital - As of December 31, 2025, the company had $17.1 million in cash and cash equivalents and $48.7 million in available-for-sale marketable securities, with total working capital of $77.8 million[258]. - Net cash provided by operating activities in 2025 was $17.8 million, consisting of a net income of $3.7 million and an increase of $6.4 million in deferred revenues[260]. - Net cash used in investing activities in 2025 was $28.5 million, primarily due to an investment in available-for-sale marketable securities of $113.7 million[262]. - Net cash provided by financing activities in 2025 was $11.1 million, mainly from the issuance of ordinary shares amounting to $42.3 million[264]. - The company plans to utilize existing cash balances to meet anticipated cash needs for at least the next twelve months, with potential for additional equity or debt financing for future opportunities[259]. Growth and Development - SECaaS revenues reached $26.8 million in 2025, up from $16.5 million in 2024, indicating strong growth in recurring revenue streams[251]. - Capital expenditures were $2.3 million in 2025, with ongoing investments expected to support business growth[267]. - The company had 28 issued U.S. patents as of December 31, 2025, with ongoing evaluations for patent protection[274]. - The company received non-royalty bearing grants from the Israel Innovation Authority and the Spain Tax Authority during 2023, 2024, and 2025, contributing to R&D initiatives[276][277]. Other Financial Information - Financial income increased to $2.6 million in 2025 from $1.9 million in 2024, attributed to higher interest income[249]. - As of December 31, 2025, the company had fixed future minimum lease payments of $5.7 million related to office and car leases[269]. - No impairment losses were recorded during the years 2025 and 2024, with the carrying value of the reporting unit determined to be lower than its fair value[289].