Allot(US:ALLT) ZACKS·2026-01-13 15:41Core Insights - Allot Ltd. (ALLT) shares have increased by 20.6% over the past six months, outperforming the Zacks Internet-Software industry's decline of 7.5% and surpassing peers like Cisco Systems, F5, and Palo Alto Networks [1][9] - The strong performance is attributed to the rapid growth of Allot's Cybersecurity-as-a-Service (SECaaS) business, which is becoming a significant revenue driver [5][8] Financial Performance - In Q3 2025, Allot reported net sales of $26.4 million, a 14% year-over-year increase, exceeding the Zacks Consensus Estimate of $26 million [6] - Non-GAAP earnings per share (EPS) rose to 10 cents, compared to 3 cents in the same quarter last year, beating the consensus estimate by 150% [6] Revenue Guidance - Allot has raised its 2025 revenue guidance to a range of $100-$103 million, up from the previous estimate of $98-$102 million [7] - The company also increased its SECaaS annual recurring revenue (ARR) growth forecast to over 60% year-over-year, up from the prior guidance of 55-60% [7] SECaaS Business Growth - SECaaS ARR grew approximately 60% year-over-year in Q3 2025, driven by increased adoption from telecom partners and more end users subscribing to security services [8][10] - SECaaS accounted for around 28% of Allot's total revenues in Q3, with expectations to rise to nearly 30% if current trends persist [10] Market Position and Valuation - Allot's stock trades at a lower price-to-sales (P/S) ratio of 4.54X compared to the industry average of 4.71X, making it appealing for long-term investors [9][17] - Compared to peers, Allot's P/S multiple is lower than Cisco Systems (4.74X), F5 (4.93X), and Palo Alto Networks (11.82X), enhancing its attractiveness [17] Investment Recommendation - The strong growth in SECaaS, rising recurring income, and reasonable valuation position Allot as an attractive buy for investors seeking exposure to cybersecurity growth [18]