Allot Announces First Quarter 2025 Financial Results

 

Solid start to the year with profitable growth including 54% increase in SECaaS ARR YoY

 

Hod Hasharon, Israel – May 12, 2025 - Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the first quarter 2025.

 

 

 

 

 

 

 

 

Eyal Harari, CEO of Allot, commented, “We are very happy to report solid results for the quarter with renewed year-over-year growth across all key metrics. We recently signed a number of multi-million dollar agreements with new customers for our Smart product and see strong interest in our new Tera III product from tier-1 customers which is increasing our pipeline, all of which will contribute to future growth.”

 

Continued Mr. Harari, “We continue to drive strong results with our SECaaS offering. Recent agreements illustrate the success of our security business, and we are well positioned to continue growing our recurring revenue stream. We are pleased that Verizon Business recently launched a new mobile plan which includes our SECaaS service, demonstrating the importance that Verizon places on providing cybersecurity protection to their customers. ”

 

 

 

 

 

 

 

 

 

 

Net income on a non-GAAP basis for the first quarter of 2025 was $0.8 million, or $0.02 income per diluted share, an improvement compared to the non-GAAP net loss of $0.9 million, or $0.03 loss per basic share, in the first quarter of 2024.

 

 

 

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The Allot management team will host a conference call to discuss its first quarter 2025 earnings results today, May 12, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:

 

US:  1-888-642-5032, UK: 0-800-917-5108, Israel: +972-3-918-0644

 

 

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.

 

 

 

* SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of March 2025 and multiplied by 12.

 

 

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.

 

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.

 

 

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
		March 31,
		2025				2024
		(Unaudited)
Revenues		$	23,150			$	21,890
Cost of revenues			7,103				6,792
Gross profit			16,047				15,098
Operating expenses:
Research and development costs, net			5,991				7,149
Sales and marketing			7,338				7,790
General and administrative			3,427				2,902
Total operating expenses			16,756				17,841
Operating profit (loss)			(709	)			(2,743	)
Financial and other income (loss), net			673				540
Profit (Loss) before income tax benefit			(36	)			(2,203	)
Tax expenses			296				307
Net profit (Loss)			(332	)			(2,510	)
Basic net profit (loss) per share		$	(0.01	)		$	(0.07	)
Diluted net profit (loss) per share		$	(0.01	)		$	(0.07	)
Weighted average number of shares used in
computing basic net loss per share			39,620,521				38,411,724
Weighted average number of shares used in
computing diluted net loss per share			39,620,521				38,411,724

 

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
		March 31,
		2025				2024
		(Unaudited)
GAAP cost of revenues		$	7,103			$	6,792
Share-based compensation (1)			(94	)			(154	)
Amortization of intangible assets (2)			(152	)			(152	)
Non-GAAP cost of revenues		$	6,857			$	6,486
GAAP gross profit		$	16,047			$	15,098
Gross profit adjustments			246				306
Non-GAAP gross profit		$	16,293			$	15,404
GAAP operating expenses		$	16,756			$	17,841
Share-based compensation (1)			(887	)			(1,206	)
Non-GAAP operating expenses		$	15,869			$	16,635
GAAP financial and other income		$	673			$	540
Exchange rate differences*			(61	)			94
Non-GAAP Financial and other income		$	612			$	634
GAAP taxes on income		$	296			$	307
Changes in tax related items			(45	)			(44	)
Non-GAAP taxes on income		$	251			$	263
GAAP Net profit (Loss)		$	(332	)		$	(2,510	)
Share-based compensation (1)			981				1,360
Amortization of intangible assets (2)			152				152
Exchange rate differences*			(61	)			94
Changes in tax related items			45				44
Non-GAAP Net income (loss)		$	785			$	(860	)
GAAP profit (Loss) per share (diluted)		$	(0.01	)		$	(0.07	)
Share-based compensation			0.03				0.04
Amortization of intangible assets			0.00				0.00
Exchange rate differences*			0.00				0.00
Changes in tax related items			0.00				0.00
Non-GAAP Net income (loss) per share (diluted)		$	0.02			$	(0.03	)
Weighted average number of shares used in
computing GAAP diluted net income (loss) per share			39,620,521				38,411,724
Weighted average number of shares used in
computing non-GAAP diluted net income (loss) per share			42,880,655				38,411,724

* 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)

 

		March 31,				December 31,
		2025				2024
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	10,061			$	16,142
Short-term bank deposits			16,700				15,250
Restricted deposits			584				904
Available-for-sale marketable securities			33,372				26,470
Trade receivables, net (net of allowance for credit losses of $22,324 and $25,306 on March 31, 2025 and December 31, 2024 , respectively)			19,234				16,482
Other receivables and prepaid expenses			5,983				6,317
Inventories			8,193				8,611
Total current assets			94,127				90,176
LONG-TERM ASSETS:
Severance pay fund			456				464
Restricted deposit			296				279
Operating lease right-of-use assets			6,366				6,741
Other assets			564				2,151
Property and equipment, net			6,550				7,692
Intangible assets, net			153				305
Goodwill			31,833				31,833
Total non-current assets			46,218				49,465
Total assets		$	140,345			$	139,641
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	1,021			$	946
Deferred revenues			20,013				17,054
Short-term operating lease liabilities			1,062				562
Other payables and accrued expenses			15,781				17,408
Total current liabilities			37,877				35,970
LONG-TERM LIABILITIES:
Deferred revenues			6,440				7,136
Long-term operating lease liabilities			5,093				5,807
Accrued severance pay			934				946
Convertible debt			40,000				39,973
Total long-term liabilities			52,467				53,862
SHAREHOLDERS' EQUITY			50,001				49,809
Total liabilities and shareholders' equity		$	140,345			$	139,641