Allot (NASDAQ:ALLT) Issues Earnings Results

Key Points

• Allot reported quarterly EPS of $0.09, matching analyst expectations, while revenue of $30.59 million topped the $30.03 million consensus estimate.
• Revenue increased 16% year over year; SECaaS revenue rose 37% and ARR grew 41% to $38.8 million. Allot narrowed its 2026 revenue outlook to $116 million–$118 million and expects SECaaS growth above 40%.
• The company generated $7.4 million in quarterly operating cash flow and ended September with $112 million in cash, deposits and investments and no debt. Shares fell 10.9% on Thursday.

Allot (NASDAQ:ALLT - Get Free Report) released its quarterly earnings data on Thursday. The communications equipment provider reported $0.09 earnings per share for the quarter, meeting the consensus estimate of $0.09, FiscalAI reports. Allot had a return on equity of 9.64% and a net margin of 9.40%. The company had revenue of $30.59 million for the quarter, compared to analyst estimates of $30.03 million.

Here are the key takeaways from Allot's conference call:

• Growth continued across both business lines: Revenue rose 16% year over year, while SECaaS revenue increased 37% and ARR grew 41% to $38.8 million. Recurring revenue represented 64% of total revenue.
• Allot narrowed its 2026 revenue outlook to $116 million–$118 million, the upper end of its prior range, and expects SECaaS revenue growth above 40%. The outlook implies continued double-digit year-over-year revenue growth in Q4.
• The company reported $7.4 million in operating cash flow for the quarter and ended September with $112 million in cash, deposits, and investments and no debt. It also began executing its $40 million share-repurchase program, buying back $1.6 million of shares during the quarter.
• Management cited SMART customer expansion orders, a new SECaaS carrier win in Southeast Asia, and a broad pipeline, while saying existing customers are adding subscribers and services. It expects these deployments and expansions to support growth into 2027, though new carrier wins take time to contribute revenue.
• Non-GAAP operating expenses rose to $18 million from $15.4 million a year earlier, partly due to planned R&D and sales investments and one-time prior-period costs. Operating margin was 12.9%, down from 14% in the year-ago quarter.

Allot Stock Down 10.9%

ALLT traded down $0.98 during trading on Thursday, hitting $7.99. The company's stock had a trading volume of 611,321 shares, compared to its average volume of 432,637. The firm's 50 day moving average price is $8.44 and its two-hundred day moving average price is $7.97. Allot has a 12 month low of $6.12 and a 12 month high of $11.92. The stock has a market capitalization of $393.93 million, a price-to-earnings ratio of 36.37 and a beta of 1.51.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ALLT. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Allot in a research note on Tuesday, September 22nd. Northland Securities set a $17.00 price target on Allot in a research report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Allot has a consensus rating of "Moderate Buy" and a consensus price target of $13.38.

Insiders Place Their Bets

In other news, insider Gili Groner sold 26,666 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $7.86, for a total transaction of $209,594.76. Following the sale, the insider owned 59,467 shares in the company, valued at approximately $467,410.62. This represents a 30.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Boaz Grossman sold 6,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $7.45, for a total value of $44,700.00. Following the sale, the senior vice president owned 186,000 shares in the company, valued at $1,385,700. The trade was a 3.12% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 66,144 shares of company stock valued at $548,205. 3.40% of the stock is currently owned by corporate insiders.

About Allot

Allot Ltd. develops network intelligence, optimization and cybersecurity solutions for communications service providers, enterprises and public-sector organizations. Its software and platforms help customers manage network traffic, monitor service performance and protect users and networks from online threats. Its offerings include network traffic management and analytics, as well as security services such as protection against distributed denial-of-service attacks and threats delivered through domain name system (DNS) traffic.

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