60% YoY SECaaS ARR growth with robust profitability; raising full year guidance
HOD HASHARON, Israel, Nov. 20, 2025 /PRNewswire/ -- Allot Ltd. $(ALLT)$ (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the third quarter of 2025.
Financial Highlights for the Third Quarter of 2025
-- Revenues of $26.4 million, up 14% year over year with SECaaS representing
28% of overall revenue;
-- September 2025 SECaaS ARR* of $27.6 million, up 60% year-over-year;
-- GAAP operating income of $2.2 million versus loss of $0.2 million in Q3
2024;
-- Non-GAAP operating income of $3.7 million, compared with $1.1 million in
Q3 2024;
-- Strong positive operating cash flow of $4.0 million and quarter-end total
cash** of $81 million;
Management Comment
Eyal Harari, CEO of Allot, commented, "We reported a return to double-digit year-over-year revenue growth of 14% and our operations generated the highest profitability in over a decade. The growth was driven by excellent performance from both our cyber security solutions and our network intelligence offerings."
Mr. Harari continued, "We are advancing strongly on our cyber-security first strategy, and we are progressing well with our key customers. Helping our customers achieve their business goals is a key to driving our profitable growth."
Concluded Mr. Harari, "Given the continued accelerated SECaaS growth, our solid visibility, and high level of backlog, we expect that our SECaaS ARR year-over-year growth will surpass 60%. We are raising our full year 2025 revenue guidance to between $100-103 million."
Third Quarter 2025 Financial Results Summary
Total revenues for the third quarter of 2025 were $26.4 million, a 14% increase year-over-year compared with $23.2 million in the third quarter of 2024.
Gross profit on a GAAP basis for the third quarter of 2025 was $18.9 million (gross margin of 71.4%), a 15% increase compared with $16.4 million (gross margin of 70.4%) in the third quarter of 2024.
Gross profit on a non-GAAP basis for the third quarter of 2025 was $19.1 million (gross margin of 72.2%), a 14% increase compared with $16.7 million (gross margin of 71.7%) in the third quarter of 2024.
Operating income on a GAAP basis for the third quarter of 2025 was $2.2 million, compared with an operating loss of $0.2 million in the third quarter of 2024.
Operating income on a non-GAAP basis for the third quarter of 2025 was $3.7 million, compared with an operating income of $1.1 million in the third quarter of 2024.
Net income on a GAAP basis for the third quarter of 2025 was $2.8 million, or income of $0.07 per diluted share, an improvement compared to the net loss of $0.2 million, or loss of $0.01 per basic share, in the third quarter of 2024.
Net income on a non-GAAP basis for the third quarter of 2025 was $4.6 million, or income of $0.1 per diluted share, compared to the non-GAAP net income of $1.3 million, or income of $0.03 per diluted share, in the third quarter of 2024.
Operating cash flow generated in the quarter was $4.0 million.
Net cash and cash equivalents, bank deposits, restricted deposits and investments as of September 30, 2025, total $81 million, an increase of $22 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of September 30, 2025, the company has no debt.
Conference Call & Webcast :
The Allot management team will host a conference call to discuss its third quarter 2025 earnings results today, November 20, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:
US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm
About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers' customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.
For more information, visit www.allot.com
Performance Metrics
* SECaaS ARR -- measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of September 2025 and multiplied by 12.
** Total cash - net cash and cash equivalents, bank deposits, restricted deposits and investments.
GAAP to Non-GAAP Reconciliation :
The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.
Safe Harbor Statement
This release 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 such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact: Public Relations Contact:
EK Global Investor Relations Seth Greenberg, Allot Ltd.
Ehud Helft +972 54 922 2294
+1 212 378 8040 sgreenberg@allot.com
allot@ekgir.com
TABLE - 1
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------- --------------------------------------
2025 2024 2025 2024
------------------- ------------------ ----------------- -------------------
(Unaudited) (Unaudited)
--------------------------------------- --------------------------------------
Revenues $ 26,405 $ 23,235 $ 73,606 $ 67,289
Cost of
revenues 7,539 6,871 21,362 $ 20,652
Gross profit 18,866 16,364 52,244 $ 46,637
------------------- ------------------ ----------------- -------------------
Operating
expenses:
Research and
development
costs, net 5,489 5,922 18,741 20,397
Sales and
marketing 8,148 7,699 22,747 23,400
General and
administrative 3,079 2,960 9,722 9,166
------------------- ------------------ ----------------- -------------------
Total operating
expenses 16,716 16,581 51,210 52,963
Operating
income (loss) 2,150 (217) 1,034 (6,326)
Loss from
extinguishment - - (1,410) -
Other income - - 100 -
Gain on sales
of securities 193 - 193 -
Financial
income, net 676 513 1,709 1,542
Income (loss)
before income
tax benefit 3,019 296 1,626 (4,784)
Income tax
expenses 195 540 823 1,326
Net income
(loss) $ 2,824 $ (244) $ 803 $ (6,110)
=================== ================== ================= ===================
Basic net
income (loss)
per share $ 0.07 $ (0.01) $ 0.02 $ (0.17)
=================== ================== ================= ===================
Diluted net
income (loss)
per share $ 0.07 $ (0.01) $ 0.02 $ (0.17)
=================== ================== ================= ===================
Weighted
average number
of shares used
in
computing basic
net income
(loss) per
share 41,487,057 39,202,550 42,580,555 38,777,119
=================== ================== ================= ===================
Weighted
average number
of shares used
in
computing
diluted net
income (loss)
per share 43,253,509 39,202,550 44,909,810 38,777,119
=================== ================== ================= ===================
TABLE - 2
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------- --------------------------------
2025 2024 2025 2024
---------------- ---------------- --------------- ---------------
(Unaudited) (Unaudited)
---------------------------------- --------------------------------
GAAP cost of
revenues $ 7,539 $ 6,871 $ 21,362 $ 20,652
Share-based
compensation
(1) (211) (153) (465) (631)
Amortization of
intangible
assets (2) - (152) (305) (456)
Non-GAAP cost of
revenues $ 7,328 $ 6,566 $ 20,592 $ 19,565
---------------- ---------------- --------------- ---------------
GAAP gross
profit $ 18,866 $ 16,364 $ 52,244 $ 46,637
Gross profit
adjustments 211 305 770 1,087
Non-GAAP gross
profit $ 19,077 $ 16,669 $ 53,014 $ 47,724
---------------- ---------------- --------------- ---------------
GAAP operating
expenses $ 16,716 $ 16,581 $ 51,210 $ 52,963
Share-based
compensation
(1) (1,348) (1,016) (3,524) (4,085)
Non-GAAP
operating
expenses $ 15,368 $ 15,565 $ 47,686 $ 48,878
---------------- ---------------- --------------- ---------------
GAAP Loss from
extinguishment $ - $ - $ (1,410) $ -
Loss from
extinguishment - - 1,410 -
Non-GAAP Loss
from
extinguishment $ - $ - $ - $ -
---------------- ---------------- --------------- ---------------
GAAP financial
income $ 676 $ 513 $ 1,709 $ 1,542
Exchange rate
differences* 116 139 159 343
Non-GAAP
Financial
income $ 792 $ 652 $ 1,868 $ 1,885
---------------- ---------------- --------------- ---------------
GAAP taxes on
income $ 195 $ 540 $ 823 $ 1,326
Changes in tax
related items (80) (45) (150) (222)
Non-GAAP taxes
on income $ 115 $ 495 $ 673 $ 1,104
================ ================ =============== ===============
GAAP Net income
(Loss) $ 2,824 $ (244) $ 803 $ (6,110)
Share-based
compensation
(1) 1,559 1,169 3,989 4,716
Amortization of
intangible
assets (2) - 152 305 456
Loss from
extinguishment - - 1,410 -
Exchange rate
differences* 116 139 159 343
Changes in tax
related items 80 45 150 222
Non-GAAP Net
income (loss) $ 4,579 $ 1,261 $ 6,816 $ (373)
================ ================ =============== ===============
GAAP Net income
(loss) per
share
(diluted) $ 0.07 $ (0.01) $ 0.02 $ (0.17)
Share-based
compensation 0.03 0.03 0.09 0.13
Amortization of
intangible
assets - 0.01 0.01 0.02
Loss from
extinguishment - - 0.03 -
Non-GAAP Net
income (Loss)
per share
(diluted) $ 0.10 $ 0.03 $ 0.15 $ (0.02)
================ ================ =============== ===============
- - - -
-
Weighted average
number of shares
used in 41,487,057 39,202,550 42,580,555 38,777,119
================ ================ =============== ===============
computing GAAP
diluted net
income (loss) per
share
Weighted average
number of shares
used in 44,592,351 42,421,818 46,409,437 38,777,119
================ ================ =============== ===============
computing
non-GAAP diluted
net income
(loss) per
share
* Financial income or expenses related to exchange rate differences in connection with
revaluation of assets and
liabilities in non-dollar denominated currencies.
TABLE - 2 cont.
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------- --------------------------------
2025 2024 2025 2024
---------------- --------------- --------------- ---------------
(Unaudited) (Unaudited)
--------------------------------- --------------------------------
(1) Share-based
compensation:
Cost of
revenues $ 211 $ 153 $ 465 $ 631
Research and
development
costs, net 400 402 1,022 1,687
Sales and
marketing 466 310 1,237 1,545
General and
administrative 482 304 1,265 853
$ 1,559 $ 1,169 $ 3,989 $ 4,716
---------------- --------------- --------------- ---------------
(2)
Amortization of
intangible
assets
Cost of
revenues $ - $ 152 $ 305 $ 456
Sales and
marketing
$ - $ 152 $ 305 $ 456
---------------- --------------- --------------- ---------------
TABLE - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
September 30, December 31,
2025 2024
--------------------------- ------------------------
(Unaudited) (Audited)
--------------------------- ------------------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $ 24,232 $ 16,142
Restricted deposit 501 904
Short-term bank
deposits 16,800 15,250
Available-for-sale
marketable
securities 38,827 26,470
Trade receivables,
net (net of
allowance for
credit losses of
$15,215 and $25,306
on September 30,
2025 and December
31, 2024 ,
respectively) 20,814 16,482
Other receivables
and prepaid
expenses 12,134 6,317
Inventories 14,208 8,611
Total current assets 127,516 90,176
--------------------------- ------------------------
NON-CURRENT ASSETS:
Severance pay fund $ 248 $ 464
Restricted deposit 329 279
Operating lease
right-of-use
assets 5,787 6,741
Other assets 701 2,151
Property and
equipment, net 5,304 7,692
Intangible assets,
net - 305
Goodwill 31,833 31,833
Total non-current
assets 44,202 49,465
--------------------------- ------------------------
Total assets $ 171,718 $ 139,641
=========================== ========================
LIABILITIES AND
SHAREHOLDERS'
EQUITY
CURRENT
LIABILITIES:
Trade payables $ 7,198 $ 946
Employees and
payroll accruals 9,625 8,208
Deferred revenues 21,736 17,054
Short-term operating
lease liabilities 1,081 562
Other payables and
accrued expenses 11,106 9,200
Total current
liabilities 50,746 35,970
--------------------------- ------------------------
LONG-TERM
LIABILITIES:
Deferred revenues 5,410 7,136
Long-term operating
lease liabilities 5,192 5,807
Accrued severance
pay 847 946
Convertible debt - 39,973
Total long-term
liabilities 11,449 53,862
--------------------------- ------------------------
SHAREHOLDERS' EQUITY 109,523 49,809
--------------------------- ------------------------
Total liabilities
and shareholders'
equity $ 171,718 $ 139,641
=========================== ========================
TABLE - 4
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ----------------------------------
2025 2024 2025 2024
--------------- ------------- --------------- -----------------
(Unaudited) (Unaudited)
------------------------------ ----------------------------------
Cash flows from
operating
activities:
Net income
(loss) $ 2,824 $ (244) $ 803 $ (6,110)
Adjustments to
reconcile net
loss to net
cash used in
operating
activities:
Depreciation
and
amortization 835 1,299 3,254 4,075
Share-based
compensation 1,559 1,169 3,989 4,716
Capital loss - - 255 -
Loss from
extinguishment - - 1,410 -
Other income - - (100) -
Gain on sales
of securities (193) - (193) -
Changes in
operating
assets and
liabilities:
Decrease
(Increase) in
accrued
severance pay,
net 28 10 117 (155)
Decrease
(Increase) in
other assets,
other
receivables
and prepaid
expenses (3,817) (696) (2,198) 976
Decrease in
accrued
interest and
amortization
of premium on
available-for
sale
marketable
securities (44) (392) (906) (1,169)
Increase
(Decrease) in
operating
leases
liability 190 (481) (13) (1,099)
Decrease in
operating
lease
right-of-use
asset 292 675 871 1,849
Decrease
(Increase) in
trade
receivables (679) 438 (4,332) (2,542)
Decrease
(Increase) in
inventories (5,703) (443) (5,597) 1,825
Increase in
trade
payables 6,274 2,139 6,252 2,155
Increase
(Decrease) in
employees and
payroll
accruals 844 1,575 1,417 (2,560)
Increase
(Decrease) in
deferred
revenues 420 (3,369) 2,956 (1,404)
Increase in
other payables
and accrued
expenses 1,211 203 2,126 191
Net cash
provided by
operating
activities 4,041 1,883 10,111 748
--------------- ------------- --------------- -----------------
Cash flows from
investing
activities:
Decrease in
restricted
deposit - - 353 703
Investment in
short-term
bank deposits (16,800) (5,500) (32,550) (9,300)
Withdrawal of
short-term
bank deposits 11,050 3,800 31,000 13,800
Purchase of
property and
equipment (100) (286) (789) (1,672)
Investment in
marketable
securities (44,213) (9,532) (99,647) (44,284)
Proceeds from
redemption or
sale of
marketable
securities 38,694 21,980 88,377 54,040
Proceeds from
sale of
patent - - 100 -
Net cash
provided by
(used in)
investing
activities (11,369) 10,462 (13,156) 13,287
--------------- ------------- --------------- -----------------
Cash flows from
financing
activities:
Issuance of
share capital 4,617 - 42,308 -
Proceeds from
exercise of
stock options - -2 238 -1
Redemption of
convertible
debt - - (31,410) -
Net cash
provided by
(used in)
financing
activities 4,617 (2) 11,136 (1)
--------------- ------------- --------------- -----------------
Increase
(Decrease) in
cash and cash
equivalents (2,711) 12,343 8,090 14,034
Cash, cash
equivalents at
the beginning
of the period 26,943 15,883 16,142 14,192
Cash, cash
equivalents at
the end of the
period $ 24,232 $ 28,226 $ 24,232 $ 28,226
=============== ============= =============== =================
Non-cash
activities:
ROU asset and
lease
liability
decrease, due
to lease
termination (12) - (83) -
Redemption of
convertible
debt - - (10,000) -
Right-of-use
assets
obtained in
the exchange
for operating
lease
liabilities - 5,795 - 5,795
Other financial metrics (Unaudited)
U.S. dollars in millions, except top 10 customers as a % of revenues and
number of shares
Q3-25 FY 2024 FY 2023
Revenues geographic breakdown
Americas 8.1 31 % 14.2 15 % 16.6 18 %
EMEA 12.9 49 % 54.0 59 % 56.1 60 %
Asia Pacific 5.4 20 % 24.0 26 % 20.5 22 %
26.4 100 % 92.2 100 % 93.2 100 %
Revenues breakdown by type
Products 8.6 33 % 30.1 33 % 37.6 40 %
Professional
Services 1.1 4 % 8.3 9 % 6.1 7 %
SECaaS
(Security as a
Service) 7.3 28 % 16.5 18 % 10.6 11 %
Support &
Maintenance 9.4 35 % 37.3 40 % 38.9 42 %
26.4 100 % 92.2 100 % 93.2 100 %
Top 10 customers as a
% of revenues 60 % 43 % 47 %
Non-GAAP Weighted average
number of basic shares (in
millions) 41.5 38.9 37.9
Non-GAAP weighted average
number of fully diluted
shares (in millions) 44.6 42.3 40.3
SECaaS (Security as a Service) revenues- U.S.
dollars in millions (Unaudited)
Q3-2025: 7.3
Q2-2025: 6.4
Q1-2025: 5.1
Q4-2024: 4.8
Q3-2024: 4.7
SECaaS ARR* - U.S. dollars in
millions (Unaudited)
Sep. 2025: 27.6
Dec. 2024: 18.2
Dec. 2023: 12.7
Dec. 2022: 9.2
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SOURCE Allot Ltd.
(END) Dow Jones Newswires
November 20, 2025 06:30 ET (11:30 GMT)