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]

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]

Core Insights - Allot Inc. (ALLT) is set to report its fourth-quarter 2025 results on February 25, with expected revenues of $27.93 million, reflecting a 12.2% year-over-year growth and non-GAAP earnings of 7 cents per share, indicating a 40% increase from the previous year [1][2]. Financial Performance - The consensus estimate for Allot's fourth-quarter 2025 revenues is $27.93 million, which implies a growth of 12.2% from the year-ago figure [1]. - The non-GAAP earnings estimate for the fourth quarter has remained stable at 7 cents per share over the past 60 days, representing a 40% increase from the same quarter last year [1][2]. - In the third quarter of 2025, Allot reported earnings per share of 10 cents, surpassing the Zacks Consensus Estimate of 4 cents [2]. Earnings Expectations - Allot currently has an Earnings ESP of 0.00% and holds a Zacks Rank 3, indicating a neutral outlook for earnings performance [3][4]. Business Growth Factors - Allot's performance in the fourth quarter is expected to benefit from significant growth in its Cybersecurity-as-a-Service (SECaaS) business, which saw a 60% year-over-year increase in Annual Recurring Revenue (ARR) in Q3 2025 [5][6]. - SECaaS accounted for approximately 28% of Allot's total revenues in Q3, with expectations to rise to 30% in the near future, enhancing revenue predictability [6][8]. - The growth in SECaaS is driven by increased adoption from telecom partners and new end users, with existing customers also expanding their service usage [7][8]. Market Performance - Allot's shares have increased by 50.8% over the past year, outperforming the Zacks Computer and Technology Sector, which grew by 22.3% [9]. - The stock has outperformed major competitors, including Check Point Software, Fortinet, and Palo Alto Networks, which have seen declines in their stock prices over the same period [9]. Valuation Metrics - Allot is currently trading at a forward price-to-sales (P/S) ratio of 4.21X, which is lower than the sector average of 6.41X, indicating a potentially attractive valuation for investors [13][16]. - Compared to its peers, Allot's P/S multiple is also lower, enhancing its appeal for long-term investors [16]. Strategic Considerations - The rapid scaling of Allot's SECaaS business across telecom customers is a key driver of revenue growth, with expectations that continued user adoption will support future performance [17]. - However, the company faces significant competition from established players in the network traffic management and cybersecurity sectors, which could impact its market position [18][21].

Core Insights - CrowdStrike (CRWD) and Allot Inc. (ALLT) are leading companies in the cybersecurity sector, focusing on protecting organizations from cyberattacks [1][2] - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2031, driven by increasing complex cyber threats [2] Group 1: CrowdStrike Overview - CrowdStrike specializes in endpoint protection and extended detection and response through its Falcon platform, which is a cloud-native security solution [4] - The Falcon platform offers 29 cloud modules under a subscription model, with subscription sales increasing from 72% in fiscal 2017 to 95% in fiscal 2025 [5] - In Q3 of fiscal 2026, CrowdStrike's annual recurring revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing over 200% year over year [6] - However, CrowdStrike's revenue growth has decelerated, with expectations of 21-22% growth for fiscal 2026, down from 29% in fiscal 2025 [7][10] Group 2: Allot Overview - Allot provides network-based cybersecurity and network intelligence solutions, primarily for telecom operators and service providers [8] - The company's Cybersecurity-as-a-Service (SECaaS) business saw a 60% year-over-year increase in ARR in Q3 of 2025, driven by higher adoption from telecom partners [8][12] - SECaaS accounted for approximately 28% of Allot's total revenues in Q3, with expectations to reach closer to 30% [9] - Allot's total revenues for 2025 are now projected to be between $100-$103 million, up from previous guidance, reflecting strong demand and user adoption [12] Group 3: Financial Performance and Valuation - CrowdStrike's expected earnings for fiscal 2026 are $3.72 per share, indicating a year-over-year decline of 5.4% [13] - In contrast, Allot's projected earnings for 2026 are 28 cents per share, reflecting a 24.3% increase year over year [15] - Over the past six months, Allot's shares have increased by 38%, while CrowdStrike's shares have decreased by 2% [17] - Allot trades at a forward sales multiple of 4.23X, significantly lower than CrowdStrike's 18.37X, indicating a more attractive valuation for investors [21]

Core Insights - Allot Ltd. (ALLT) shares have increased by 15.2% over the past three months, significantly outperforming the Zacks Computer and Technology Sector, which saw a mere 0.5% appreciation [1] - The stock has outperformed competitors such as Check Point Software (CHKP), Fortinet (FTNT), and Palo Alto Networks (PANW), with Fortinet gaining 4.1%, while CHKP and PANW lost 10.6% and 20.4%, respectively [1] SECaaS Growth - Allot's SECaaS (Security as a Service) business is becoming the primary growth driver, with annual recurring revenue (ARR) increasing by 60% year-over-year in Q3 2025 [5] - SECaaS accounted for approximately 28% of Allot's total revenues in Q3, with expectations to rise to 30% if current trends persist [6] - The increase in SECaaS revenue is attributed to higher adoption rates from telecom partners and an increase in end users signing up for security services [5][6] Revenue and Guidance - Allot raised its revenue guidance for 2025 to a range of $100-$103 million, up from the previous estimate of $98-$102 million [8] - The company also expects SECaaS ARR growth to exceed 60% year-over-year, an increase from the prior guidance of 55-60% [9] - The Zacks Consensus Estimate for 2026 indicates a revenue growth of 13.3% [9] Valuation Metrics - Allot's stock is currently trading at a forward price-to-sales (P/S) ratio of 4.27X, which is lower than the sector average of 6.54X and its peers, including CHKP (6.85X), FTNT (8.4X), and PANW (10.27X) [11][15] - This valuation discount may appeal to long-term investors despite the competitive landscape [15] Competitive Landscape - Allot faces significant competition from established players in the network traffic management and security sectors, including Check Point Software, Fortinet, and Palo Alto Networks [16] - Competitors are continuously innovating their offerings, which could impact Allot's market position [16][20][19] Conclusion - Allot is experiencing robust growth in its SECaaS business, leading to increased revenues and improved earnings visibility [21] - The rising interest in new cybersecurity offerings presents opportunities for upselling to existing customers, enhancing the company's growth prospects [21]

Core Insights - Palo Alto Networks (PANW) and Allot Ltd. (ALLT) are significant players in the network security sector, with PANW focusing on next-generation firewalls and cloud security, while ALLT specializes in network intelligence for service providers and enterprises [1][2] Industry Trends - The network security market is projected to grow at a CAGR of 11.47% from 2025 to 2030, driven by increasing complex cyberattacks such as credential theft and social engineering [2] Company Analysis: Palo Alto Networks (PANW) - PANW is recognized as a cybersecurity leader, providing comprehensive solutions for network and cloud security, with a strong customer base and innovative products [4][5] - In Q1 of fiscal 2026, PANW's Secure Access Service Edge (SASE) segment saw a 34% year-over-year increase in Annual Recurring Revenues (ARR), driven by demand for streamlined security tools [6] - However, PANW's revenue growth has slowed to the mid-teen percentage range, with a forecast of 14-15% growth for the full fiscal year 2026, down from mid-20s in fiscal 2023 [7] Company Analysis: Allot Ltd. (ALLT) - ALLT is experiencing robust growth in its Cybersecurity-as-a-Service (SECaaS) business, with ARR increasing approximately 60% year-over-year in Q3 2025 [8][12] - SECaaS accounted for about 28% of ALLT's total revenues in Q3, with expectations to rise to 30%, indicating a shift towards more predictable subscription-based revenues [9] - ALLT's sales and non-GAAP EPS grew 14% and 233.3% year-over-year in Q3 2025, prompting an upward revision of revenue guidance for the year [12] Comparative Valuation and Performance - Over the past six months, ALLT shares have increased by 33.8%, while PANW shares have decreased by 6.1% [18] - ALLT is trading at a forward sales multiple of 4.37X, significantly lower than PANW's 11.71X, making ALLT more attractive for value-seeking investors [19] - Analysts are increasingly bullish on ALLT, reflected in the positive earnings estimate revisions compared to PANW [13][16] Conclusion - The analysis suggests a preference for ALLT over PANW due to its strong growth in SECaaS, improving revenue quality, and more favorable valuation metrics [22][23]

Core 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]

Core Viewpoint - Allot Ltd. partners with Compax Venture to launch the first MVNO offering advanced cybersecurity services through Allot NetworkSecure and OffNetSecure, enhancing the value proposition for brand communities and their subscribers [1][3]. Group 1: Partnership and Services - Compax Venture, part of the Compax group, will implement MVNO services that include Allot's cybersecurity solutions, providing comprehensive protection for subscribers [2][3]. - The partnership aims to increase the value proposition for brand communities by integrating advanced cybersecurity services, ensuring a secure digital experience for members [3]. Group 2: Cybersecurity Solutions - Allot's NetworkSecure offers a clientless, zero-touch cybersecurity service that protects against threats such as malware, viruses, phishing, and ransomware, while also providing content filtering [3]. - OffNetSecure extends cybersecurity protection to subscribers when they are not connected to the provider's network, allowing service providers to maintain communication with subscribers in previously unmonitored areas [4]. Group 3: Market Impact - The integration of Allot's network-based security is expected to create a sustainable recurring revenue stream for Compax Venture, driving growth and enhancing customer loyalty [3]. - Allot's solutions are already deployed by over 500 service providers and 1000 enterprises globally, indicating a strong market presence and demand for their cybersecurity services [5].