Allot Announces Third Quarter 2025 Financial Results

 

60% YoY SECaaS ARR growth with robust profitability; raising full year guidance

 

Hod Hasharon, Israel – November 20, 2025 - Allot Ltd. (NASDAQ: 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.

 

 

 

 

 

 

 

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.“

 

 

 

 

 

 

 

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.

 

 

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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

 

 

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.

 

 

 

* 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.

 

 

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								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 computing GAAP diluted 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 non-GAAP diluted net income (loss) per share			44,592,351				42,421,818				46,409,437				38,777,119

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
		$	-			$	152			$	305			$	456

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)

		Septermber 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