Allot (NASDAQ:ALLT) Announces Earnings Results

Allot (NASDAQ:ALLT) released its quarterly earnings data on Wednesday. The communications equipment provider reported $0.06 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.01), Zacks reports. The company had revenue of $28.40 million during the quarter, compared to analysts’ expectations of $27.90 million. Allot had a return on equity of 4.54% and a net margin of 1.06%.

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

• Allot closed 2025 with accelerated growth — total revenue of $102 million (up 11% YoY) and Q4 revenue of $28.4 million, driven largely by strong SECaaS adoption.
• Cybersecurity as a Service is scaling rapidly: SECaaS ARR was $30.8 million (up 69% YoY) and SECaaS revenue in Q4 was $8.1 million (up 70% YoY), supporting management’s view that recurring revenue will continue to drive predictability.
• Profitability and liquidity strengthened materially — 2025 non-GAAP operating income and net income improved significantly, operating cash flow was $17.8 million for the year, and the company ended with $88 million in cash and no debt.
• Product momentum and multi-year visibility: new SECaaS offerings (Off-Net, Firewall-as-a-Service, DDoS, identity) plus recent multi‑million-dollar Smart deals create an expanded pipeline and backlog expected to contribute to 2026–2027 revenue.
• Management flagged near-term headwinds: supply‑chain cost pressure from AI data‑center demand (memory/servers), a weaker U.S. dollar versus the Israeli shekel, and planned increases in sales & marketing and R&D, with gross‑margin guidance around ~70%.

Allot Stock Performance

NASDAQ ALLT opened at $6.91 on Thursday. The business has a fifty day moving average price of $10.04 and a 200 day moving average price of $9.51. The company has a market cap of $334.79 million, a P/E ratio of 230.33 and a beta of 1.57. Allot has a one year low of $4.37 and a one year high of $11.92.

More Allot News

Here are the key news stories impacting Allot this week:

• Positive Sentiment: Q4 beat — Allot reported $0.08 EPS, topping the $0.07 consensus and improving vs prior-year EPS, showing near-term profitability strength. Allot Communications (ALLT) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Strong SECaaS momentum — Management highlighted rapid SECaaS ARR growth (report notes 69% YoY ARR growth for 2025 and prior quarterly ARR strength), which is shifting revenues toward recurring, higher‑margin streams. Allot Announces Fourth Quarter 2025 Financial Results
• Neutral Sentiment: Revenue guidance set — Management guided FY‑2026 revenue to roughly $113–$117M, modestly around consensus; this implies growth acceleration but is a fairly narrow range. Allot Announces Fourth Quarter 2025 Financial Results
• Neutral Sentiment: Earnings call and slides available — Management commentary and the slide deck may provide more color on customer wins, CAC, and margin cadence; investors will parse details for sustainability of ARR trends. Allot Ltd. (ALLT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Missed clarity on FY‑2026 EPS — The company did not provide clear FY‑2026 EPS guidance in the release (EPS guidance field was blank in the update), leaving earnings visibility limited while some analysts expect negative FY EPS. This uncertainty can prompt sell‑side caution. Allot Announces Fourth Quarter 2025 Financial Results
• Negative Sentiment: High valuation and heavy intraday selling — The stock has a high P/E and today’s volume is markedly above average, which, combined with profit‑taking after recent gains, likely contributed to the share price decline. (Background data: market cap and P/E reported in market summaries.)
• Neutral Sentiment: Short interest reporting appears inconsistent — Recent short‑interest notices show anomalous/zero values and NaN changes; unclear impact until cleaner data is available.

Institutional Investors Weigh In On Allot

A number of large investors have recently modified their holdings of ALLT. Quarry LP acquired a new position in Allot during the third quarter worth about $37,000. Kestra Advisory Services LLC purchased a new position in Allot in the 4th quarter worth approximately $62,000. State of Wyoming acquired a new position in shares of Allot during the 4th quarter worth approximately $66,000. Wells Fargo & Company MN grew its position in shares of Allot by 200.0% in the fourth quarter. Wells Fargo & Company MN now owns 9,000 shares of the communications equipment provider’s stock valued at $88,000 after purchasing an additional 6,000 shares in the last quarter. Finally, Invesco Ltd. acquired a new stake in shares of Allot in the fourth quarter valued at approximately $112,000. Hedge funds and other institutional investors own 51.50% of the company’s stock.

Analysts Set New Price Targets

ALLT has been the topic of several analyst reports. TD Cowen set a $11.00 price target on shares of Allot in a research report on Wednesday. Cantor Fitzgerald restated an “overweight” rating on shares of Allot in a research note on Thursday, February 19th. Northland Securities set a $18.00 price target on Allot in a research report on Tuesday, January 6th. Needham & Company LLC restated a “buy” rating and issued a $12.50 price objective on shares of Allot in a research report on Tuesday, January 20th. Finally, Zacks Research lowered Allot from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.13.

Allot Company Profile

Allot Ltd. is a provider of network intelligence and security solutions designed for service providers and enterprises worldwide. The company delivers software and cloud-based services that enable customers to gain real-time visibility into network traffic, enforce security policies and optimize bandwidth usage. Its platforms support a wide range of applications, from DDoS protection and threat prevention to subscriber experience management and network analytics.

Allot’s product portfolio includes managed solutions for mobile and fixed-line operators, as well as cloud-native services that can be deployed across private, public and hybrid environments.