Allot First Quarter 2026 Results: Revenue Growth

Accelerates to 14% YoY with Increased Margins

 

Recurring Revenue Reaches 67% of Total Revenue

 

Hod Hasharon, Israel – May 12, 2026 - 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 first quarter of 2026.

 

 

 

Eyal Harari, CEO of Allot, commented, “We are pleased to report a strong start to 2026, with revenues increasing 14% year-over-year, marking our third consecutive quarter of double-digit revenue growth. Our success was driven by a robust expansion in our cybersecurity business, resulting in meaningful improvements in margins and profit, as well as record operating cash flow.”

 

Mr. Harari continued, “Our cybersecurity segment remains the primary engine of growth and drove Recurring Revenues** to over 67% of total revenue in the quarter. Strong organic growth in SECaaS revenues and ARR reflects increasing adoption of telco-provided cybersecurity services powered by Allot and provides us with strong visibility into continued double-digit growth for the full year.”

 

 

 

Total revenues for the first quarter of 2026 were $26.4 million, a 14% increase year-over-year compared with $23.2 million in the first quarter of 2025.

 

Gross profit on a GAAP basis for the first quarter of 2026 was $18.7 million (gross margin of 70.9%), a 17% increase compared with $16.0 million (gross margin of 69.3%) in the first quarter of 2025.

 

Gross profit on a non-GAAP basis for the first quarter of 2026 was $18.8 million (gross margin of 71.3%), a 16% increase compared with $16.3 million (gross margin of 70.4%) in the first quarter of 2025.

 

Operating income on a GAAP basis for the first quarter of 2026 was $1.5 million (operating margin of 5.8%), compared with an operating loss of $0.7 million in the first quarter of 2025.

 

Operating income on a non-GAAP basis for the first quarter of 2026 was $2.6 million (operating margin of 9.9%), compared with $0.4 million (operating margin of 1.8%) in the first quarter of 2025.

 

Net income on a GAAP basis for the first quarter of 2026 was $1.9 million, or $0.04 per diluted share, compared with a net loss of $0.3 million, or $0.01 loss per basic share, in the first quarter of 2025.

 

Net income on a non-GAAP basis for the first quarter of 2026 was $3.1 million, or $0.06 income per diluted share, compared with $0.8 million, or $0.02 per diluted share, in the first quarter of 2025.

 

 

Cash and cash equivalents, bank deposits, restricted deposits and investments as of March 31, 2026, totaled $98 million, compared with $88 million as of December 31, 2025.

 

# # #

 

Conference Call & Webcast:

 

 

US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0699

 

 

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

 

 

* SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of March 2026 and multiplied by 12.

 

** Recuring Revenues - measures the current recurring support & maintenance revenues, plus the current SECaaS recuring revenues.

 

GAAP to Non-GAAP Reconciliation:

 

The Company presents non‑GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company’s ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition‑related expenses. Non-GAAP operating income is defined as GAAP net operating excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition‑related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, acquisition‑related and other non‑recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-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 are presented below. 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 within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including, revenue, recurring revenue, SECaaS revenues and profitability growth, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements 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 third 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 for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the 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.

 

 

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,
		2026				2025
Revenues		$	26,425			$	23,150
Cost of revenues			7,684				7,103
Gross profit			18,741				16,047
Operating expenses:
Research and development costs, net			6,282				5,991
Sales and marketing			7,823				7,338
General and administrative			3,108				3,427
Total operating expenses			17,213				16,756
Operating income (loss)			1,528				(709	)
Financial income, net			785				673
Income (loss) before tax			2,313				(36	)
Income tax expenses			370				296
Net income (loss)		$	1,943			$	(332	)
Income (loss) per share
Basic		$	0.04			$	(0.01	)
Diluted		$	0.04			$	(0.01	)
Weighted average shares outstanding
Basic			48,777,078				39,620,521
Diluted			49,893,370				39,620,521

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

		Three Months Ended
		March 31,
		2026				2025
Cash flows from operating activities:
Net income (loss)		$	1,943			$	(332	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			659				1,346
Share-based compensation			1,094				981
Capital loss			-				255
Loss (Gain) of foreign exchange on cash and cash equivalents			20				(10	)
Changes in operating assets and liabilities:
Decrease in accrued severance pay, net			(29	)			(4	)
(Increase) Decrease in other assets, other receivables and prepaid expenses			(1,434	)			1,424
Increase  in accrued interest and amortization of premium on available-for sale marketable securities			(234	)			(341	)
Decrease (Increase) in operating leases liability			132				(143	)
Decrease in operating lease right-of-use asset			281				304
Increase in trade receivables			(3,093	)			(2,752	)
(Increase) Decrease in inventories			(2,576	)			418
Increase in trade payables			502				75
Decrease in employees and payroll accruals			(1,347	)			(2,212	)
Increase in deferred revenues			14,968				2,263
(Increase) Decrease in other payables and accrued expenses			(311	)			403
Net cash provided by operating activities		$	10,575			$	1,675
Cash flows from investing activities:
Decrease in restricted deposit		$	3,000			$	303
Investment in short-term bank deposits			(10,500	)			(8,700	)
Withdrawal of short-term bank deposits			3,800				7,250
Purchase of property and equipment			(381	)			(281	)
Investment in marketable securities			(29,965	)			(28,976	)
Proceeds from redemption or sale of marketable securities			19,500				22,400
Net cash used in investing activities		$	(14,546	)		$	(8,004	)
Cash flows from financing activities:
Proceeds from exercise of stock options		$	-			$	238
Net cash provided by financing activities		$	-			$	238
Effect of exchange rate changes on cash and cash equivalents			(20	)			10
Increase (Decrease) in cash and cash equivalents			(3,991	)			(6,081	)
Cash, cash equivalents at the beginning of the period			17,107				16,142
Cash, cash equivalents at the end of the period		$	13,116			$	10,061
Non-cash activities:
ROU asset and lease liability decrease, due to lease termination		$	-			$	(71	)

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,
		2026				2025
		(Unaudited)
GAAP cost of revenues		$	7,684			$	7,103
Share-based compensation			(105	)			(94	)
Amortization of intangible assets			-				(152	)
Non-GAAP cost of revenues		$	7,579			$	6,857
GAAP gross profit		$	18,741			$	16,047
Share-based compensation			105				94
Amortization of intangible assets							152
Non-GAAP gross profit		$	18,846			$	16,293
GAAP operating expenses		$	17,213			$	16,756
Share-based compensation  - Research and development costs, net			(191	)			(242	)
Share-based compensation - Sales and marketing			(397	)			(305	)
Share-based compensation - General and administrative			(401	)			(340	)
Non-GAAP operating expenses		$	16,224			$	15,869
GAAP operating Income (Loss)		$	1,528			$	(709	)
Share-based compensation			1,094				1,039
Amortization of intangible assets							94
Non-GAAP operating Income		$	2,622			$	424
GAAP Net income (Loss)		$	1,943			$	(332	)
Share-based compensation			1,094				981
Amortization of intangible assets			-				152
Exchange rate differences*			(22	)			(61	)
Changes in tax related items			43				45
Non-GAAP Net income		$	3,058			$	785
Non-GAAP income (loss) per share
Basic		$	0.06			$	0.02
Diluted		$	0.06			$	0.02
Weighted average shares outstanding
Basic			48,777,078				39,620,521
Diluted			50,966,541				42,880,655