Allot (NASDAQ:ALLT) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Allot (NASDAQ:ALLT) issued its quarterly earnings results on Tuesday. The communications equipment provider reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01, FiscalAI reports. The firm had revenue of $26.43 million during the quarter, compared to analysts’ expectations of $26.12 million. Allot had a return on equity of 7.38% and a net margin of 5.68%.

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

• Allot reported a strong Q1 with revenue up 14% year over year to $26.4 million, marking its third consecutive quarter of double-digit growth. Management said the company is seeing continued momentum from its cybersecurity-first strategy.
• SECaaS remains the main growth driver, with revenue up 71% year over year to $8.7 million and ARR up 59% to $33.7 million. SECaaS now represents 33% of total revenue and management expects 40%+ SECaaS revenue growth in 2026.
• Profitability improved meaningfully, with non-GAAP operating margin rising to 9.9% from 1.8% a year ago and non-GAAP net income increasing to $3.1 million. Management emphasized operating leverage as recurring revenue scales.
• Allot generated a record $10.6 million of operating cash flow in the quarter and ended with $98 million in cash and no debt. The company said some cash strength came from milestone-related prepayments on SMART projects, with related revenue expected to flow through later in the year.
• Management reaffirmed full-year 2026 revenue guidance of $113 million to $117 million and said it is increasingly confident toward the upper end of the range. It also reiterated plans to keep investing in R&D and sales and marketing while maintaining gross margins around 70%.

Allot Stock Performance

Shares of Allot stock opened at $7.13 on Monday. The firm has a 50-day moving average of $7.03 and a 200-day moving average of $8.68. Allot has a 52-week low of $6.12 and a 52-week high of $11.92. The stock has a market cap of $346.84 million, a PE ratio of 54.85 and a beta of 1.46.

Analyst Ratings Changes

A number of research analysts recently weighed in on ALLT shares. Cantor Fitzgerald reissued an “overweight” rating and set a $15.00 target price on shares of Allot in a report on Wednesday, May 13th. Needham & Company LLC lifted their price objective on shares of Allot from $8.50 to $10.50 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Allot in a report on Wednesday, January 21st. Zacks Research lowered shares of Allot from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. Finally, Wall Street Zen upgraded shares of Allot from a “hold” rating to a “buy” rating in a research note on Saturday. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Allot presently has a consensus rating of “Moderate Buy” and an average target price of $13.62.

Institutional Trading of Allot

Several hedge funds and other institutional investors have recently bought and sold shares of ALLT. Russell Investments Group Ltd. grew its position in shares of Allot by 99.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 81,746 shares of the communications equipment provider’s stock worth $865,000 after purchasing an additional 40,763 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Allot by 8.2% in the third quarter. JPMorgan Chase & Co. now owns 281,505 shares of the communications equipment provider’s stock valued at $2,978,000 after buying an additional 21,242 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of Allot by 56.6% in the second quarter. Osaic Holdings Inc. now owns 38,567 shares of the communications equipment provider’s stock valued at $330,000 after buying an additional 13,934 shares during the period. Engineers Gate Manager LP boosted its stake in shares of Allot by 61.5% in the second quarter. Engineers Gate Manager LP now owns 62,010 shares of the communications equipment provider’s stock valued at $530,000 after buying an additional 23,614 shares during the period. Finally, Boothbay Fund Management LLC acquired a new stake in Allot during the second quarter worth approximately $3,164,000. Institutional investors and hedge funds own 51.50% of the company’s stock.

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.