Allot Announces Third Quarter 2026 Financial Results
Allot Announces Third Quarter 2026 Financial Results
PR Newswire
HOD HASHARON, Israel, Nov. 12, 2026
Revenue growth of 16% and SECaaS ARR increases 41% year-over-year
HOD HASHARON, Israel, Nov. 12, 2026 /PRNewswire/ -- 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 2026.
Financial Highlights for the Third Quarter of 2026
- Strong revenue growth to $30.6 million, up 16% year-over-year;
- Security-as-a-Service (SECaaS) revenues of $9.9 million, increasing 37% year-over-year;
- September 2026 SECaaS ARR* of $38.8 million, up 41% year-over-year;
- GAAP operating income of $2.8 million, compared with $2.2 million in the third quarter of 2025;
- Non-GAAP operating income of $3.9 million compared with $3.7 million in the third quarter of 2025;
- Operating cash flow of $7.4 million, up 85% compared with $4.0 million in the third quarter of 2025.
Management Comment
Eyal Harari, CEO of Allot, commented, " This quarter demonstrated continued excellent execution and showed the strength of our business model. Allot is now a sustainably profitable company, and we continue to expand our profitability as we grow our business. We delivered a strong third quarter, combining double-digit revenue growth with improved profitability and robust cash generation. Growth was driven by both SECaaS and SMART solutions, that are both now showing double-digit year-over-year revenue increases. The SMART product growth follows our high level of backlog which we are converting into revenue, following our recent significant wins."
Mr. Harari added, "SECaaS ARR continues to grow strongly at 41% year-over-year, further building our recurring revenue base and our visibility into the quarters ahead. We continue to innovate to find new ways to protect consumers, as demonstrated with our recent launch of Allot IOT security. As threat actors use AI to target individuals and businesses at-scale, it is becoming more critical for service providers to provide a layer of protection for their end-customers, supporting demand for cyber-security solutions."
Mr. Harari concluded, "Given the momentum, we are raising the midpoint of our guidance for 2026 and narrowing the range to between $116 million and $118 million. We also expect SECaaS revenue growth for 2026, to be above 40%."
Third Quarter 2026 Financial Results Summary
Total revenues for the third quarter of 2026 were $30.6 million, a 16% increase year-over-year compared with $26.4 million in the third quarter of 2025.
Gross profit on a GAAP basis for the third quarter of 2026 was $21.9 million (gross margin of 71.6%), a 16% increase compared with $18.9 million (gross margin of 71.4%) in the third quarter of 2025.
Gross profit on a non-GAAP basis for the third quarter of 2026 was $22.0 million (gross margin of 71.9%), a 15% increase compared with $19.1 million (gross margin of 72.2%) in the third quarter of 2025.
Operating income on a GAAP basis for the third quarter of 2026 was $2.8 million (operating margin of 9.2%), a 31% increase compared with $2.2 million (operating margin of 8.1%) in the third quarter of 2025.
Operating income on a non-GAAP basis for the third quarter of 2026 was $3.9 million (operating margin of 12.9%), a 6% increase compared with $3.7 million (operating margin of 14.0%) in the third quarter of 2025.
Net income on a GAAP basis for the third quarter of 2026 was $3.4 million, or $0.07 per diluted share, compared with $2.8 million, or $0.07 per diluted share, in the third quarter of 2025.
Net income on a non-GAAP basis for the third quarter of 2026 was $4.7 million, or $0.09 per diluted share, compared with $4.6 million, or $0.10 per diluted share, in the third quarter of 2025.
Operating cash flow generated in the quarter was $7.4 million, compared with $4.0 million in the third quarter of 2025.
Cash and cash equivalents, bank deposits, restricted deposits and investments as of September 30, 2026, totaled $112 million, compared with $88 million as of December 31, 2025.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss its third quarter 2026 earnings results today, November 12, 2026, at 8:30 am ET, 1:30 pm UK, 3:30 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
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/
About Allot
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 1,000 enterprises. Allot's 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
Performance Metrics
* SECaaS ARR – measures the current annual recurring SECaaS revenues, calculated as estimated SECaaS revenues for the month of September 2026, multiplied by 12.
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 operating income 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, loss from extinguishment, 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 our revenue guidance, revenue, growth, demand for our solutions, our ability to execute our strategy, our ability to convert backlog into revenue, our product innovation, capital allocation, share repurchase programs, maximizing shareholder value, and future opportunities, 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 receivable, 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.
Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com
ALLOT LTD. | ||||
AND ITS SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(U.S. dollars in thousands) | ||||
September 30, | December 31, | |||
2026 | 2025 | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 29,650 | $ 17,107 | ||
Restricted deposit | 4,243 | 3,573 | ||
Short-term bank deposits | 24,500 | 15,100 | ||
Available-for-sale marketable securities | 52,355 | 48,663 | ||
Trade receivables, net (net of allowance for credit losses of $9,095 and | 28,974 | 17,451 | ||
Other receivables and prepaid expenses | 6,845 | 9,906 | ||
Inventories | 17,011 | 13,180 | ||
Total current assets | 163,578 | 124,980 | ||
NON-CURRENT ASSETS: | ||||
Severance pay fund | $ 324 | $ 295 | ||
Restricted deposit | 908 | 3,327 | ||
Operating lease right-of-use assets | 6,143 | 5,518 | ||
Other assets | 835 | 732 | ||
Property and equipment, net | 4,978 | 6,014 | ||
Goodwill | 31,833 | 31,833 | ||
Total non-current assets | 45,021 | 47,719 | ||
Total assets | $ 208,599 | $ 172,699 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ 2,776 | $ 938 | ||
Employees and payroll accruals | 11,433 | 9,254 | ||
Deferred revenues | 42,980 | 24,700 | ||
Short-term operating lease liabilities | 1,622 | 348 | ||
Other payables and accrued expenses | 14,806 | 11,919 | ||
Total current liabilities | 73,617 | 47,159 | ||
LONG-TERM LIABILITIES: | ||||
Deferred revenues | $ 9,004 | $ 5,912 | ||
Long-term operating lease liabilities | 4,463 | 5,392 | ||
Accrued severance pay | 672 | 886 | ||
Total long-term liabilities | 14,139 | 12,190 | ||
SHAREHOLDERS' EQUITY | 120,843 | 113,350 | ||
Total liabilities and shareholders' equity | $ 208,599 | $ 172,699 | ||
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, | ||||||||
2026 | 2025 | 2026 | 2025 | ||||||
Revenues | $ 30,588 | $ 26,405 | $ 84,750 | $ 73,606 | |||||
Cost of revenues | 8,690 | 7,539 | 24,342 | 21,362 | |||||
Gross profit | 21,898 | 18,866 | 60,408 | 52,244 | |||||
Operating expenses: | |||||||||
Research and development | 6,351 | 5,489 | 19,624 | 18,741 | |||||
Sales and marketing | 8,580 | 8,148 | 24,445 | 22,747 | |||||
General and administrative | 4,153 | 3,079 | 10,898 | 9,722 | |||||
Total operating expenses | 19,084 | 16,716 | 54,967 | 51,210 | |||||
Operating income | 2,814 | 2,150 | 5,441 | 1,034 | |||||
Loss from extinguishment | - | - | - | (1,410) | |||||
Other income | - | - | - | 100 | |||||
Financial income, net | 1,091 | 869 | 3,851 | 1,902 | |||||
Income before tax | 3,905 | 3,019 | 9,292 | 1,626 | |||||
Income tax expenses | 486 | 195 | 1,358 | 823 | |||||
Net income | $ 3,419 | $ 2,824 | $ 7,934 | $ 803 | |||||
Income per share | |||||||||
Basic | $ 0.07 | $ 0.07 | $ 0.16 | $ 0.02 | |||||
Diluted | $ 0.07 | $ 0.07 | $ 0.16 | $ 0.02 | |||||
Weighted average shares | |||||||||
Basic | 49,276,707 | 41,487,057 | 49,070,116 | 42,580,555 | |||||
Diluted | 49,806,002 | 43,253,509 | 49,845,813 | 44,909,810 | |||||
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, | |||||
2026 | 2025 | 2026 | 2025 | |||
Cash flows from operating activities: | ||||||
Net income | $ 3,419 | $ 2,824 | $ 7,934 | $ 803 | ||
Adjustments to reconcile net income to net cash | ||||||
Depreciation and amortization | 588 | 835 | 1,933 | 3,254 | ||
Share-based compensation | 1,123 | 1,559 | 3,860 | 3,989 | ||
Capital loss | 113 | - | 113 | 255 | ||
Loss from extinguishment | - | - | - | 1,410 | ||
Other income | - | - | - | (100) | ||
Amortization of premium, discount and accrued | 162 | (237) | (283) | (1,099) | ||
Financial income from lease modification | - | - | (1,158) | - | ||
Loss (gain) on foreign exchange on cash and | 68 | (44) | 99 | (454) | ||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in accrued severance pay, net | 36 | 28 | (243) | 117 | ||
Decrease (increase) in other assets, other | 1,443 | (3,817) | 510 | (2,198) | ||
(Increase) decrease in operating leases liability | (834) | 190 | (253) | (13) | ||
Increase in operating lease right-of-use asset | 404 | 292 | 1,131 | 871 | ||
Increase in trade receivables | (3,804) | (679) | (11,523) | (4,332) | ||
Decrease (increase) in inventories | 486 | (5,703) | (3,831) | (5,597) | ||
Increase in trade payables | 1,358 | 6,274 | 1,838 | 6,252 | ||
Increase (decrease) in employees and | 2,651 | 844 | 2,179 | 1,417 | ||
(Decrease) increase in deferred revenues | (1,963) | 420 | 21,372 | 2,956 | ||
Increase in other payables and accrued expenses | 2,125 | 1,211 | 2,737 | 2,126 | ||
Net cash provided by operating activities | 7,375 | 3,997 | 26,415 | 9,657 | ||
Cash flows from investing activities: | ||||||
(Increase) decrease in restricted deposit | (848) | - | 1,749 | 353 | ||
Investment in short-term bank deposits | (13,000) | (16,800) | (44,400) | (32,550) | ||
Withdrawal of short-term bank deposits | 19,600 | 11,050 | 35,000 | 31,000 | ||
Purchase of property and equipment | (360) | (100) | (1,010) | (789) | ||
Investment in marketable securities | (30,844) | (44,213) | (65,398) | (99,647) | ||
Proceeds from redemption or sale of | 35,660 | 38,694 | 61,910 | 88,377 | ||
Proceeds from sale of patent | - | - | - | 100 | ||
Net cash provided by (used in) | 10,208 | (11,369) | (12,149) | (13,156) | ||
Cash flows from financing activities: | ||||||
Issuance of share capital | - | 4,617 | - | 42,308 | ||
Purchase of treasury stocks | (1,624) | (1,624) | ||||
Exercise of employee stock options | - | - | - | 238 | ||
Redemption of convertible debt | - | - | - | (31,410) | ||
Net cash (used in) provided by | (1,624) | 4,617 | (1,624) | 11,136 | ||
Effect of exchange rate changes on cash and | (68) | 44 | (99) | 454 | ||
Increase (decrease) in cash and | 15,891 | (2,711) | 12,543 | 8,090 | ||
Cash and cash equivalents at the beginning | 13,759 | 26,943 | 17,107 | 16,142 | ||
Cash and cash equivalents at the end | $ 29,650 | $ 24,232 | $ 29,650 | $ 24,232 | ||
Non-cash activities: | ||||||
Right-of-use assets obtained in exchange for | - | (12) | 593 | (83) | ||
Redemption of convertible debt | - | - | - | (10,000) |
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, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
GAAP cost of revenues | $ 8,690 | $ 7,539 | $ 24,342 | $ 21,362 | ||||
Share-based compensation | (80) | (211) | (320) | (465) | ||||
Amortization of intangible assets | - | - | - | (305) | ||||
Non-GAAP cost of revenues | $ 8,610 | $ 7,328 | $ 24,022 | $ 20,592 | ||||
GAAP gross profit | $ 21,898 | $ 18,866 | $ 60,408 | $ 52,244 | ||||
Share-based compensation | 80 | 211 | 320 | 465 | ||||
Amortization of intangible assets | - | - | - | 305 | ||||
Non-GAAP gross profit | $ 21,978 | $ 19,077 | $ 60,728 | $ 53,014 | ||||
GAAP operating expenses | $ 19,084 | $ 16,716 | $ 54,967 | $ 51,210 | ||||
Share-based compensation - Research and development costs, net | (203) | (400) | (731) | (1,022) | ||||
Share-based compensation - Sales and marketing | (427) | (466) | (1,590) | (1,237) | ||||
Share-based compensation - General and administrative | (413) | (482) | (1,219) | (1,265) | ||||
Non-GAAP operating expenses | $ 18,041 | $ 15,368 | $ 51,427 | $ 47,686 | ||||
GAAP operating Income | $ 2,814 | $ 2,150 | $ 5,441 | $ 1,034 | ||||
Share-based compensation | 1,123 | 1,559 | 3,860 | 3,989 | ||||
Amortization of intangible assets | $ - | $ - | $ - | $ 305 | ||||
Non-GAAP operating Income | $ 3,937 | $ 3,709 | $ 9,301 | $ 5,328 | ||||
GAAP Net income | $ 3,419 | $ 2,824 | $ 7,934 | $ 803 | ||||
Share-based compensation | 1,123 | 1,559 | 3,860 | 3,989 | ||||
Amortization of intangible assets | - | - | - | 305 | ||||
Loss from extinguishment | - | - | - | 1,410 | ||||
Exchange rate differences* | (189) | 116 | (86) | 159 | ||||
Changes in tax related items | 329 | 80 | 627 | 150 | ||||
Non-GAAP Net income | $ 4,682 | $ 4,579 | $ 12,335 | $ 6,816 | ||||
Non-GAAP income per share | ||||||||
Basic | $ 0.10 | $ 0.11 | $ 0.25 | $ 0.16 | ||||
Diluted | $ 0.09 | $ 0.10 | $ 0.24 | $ 0.15 | ||||
Weighted average shares outstanding | ||||||||
Basic | 49,276,707 | 41,487,057 | 49,070,116 | 42,580,555 | ||||
Diluted | 51,204,432 | 44,592,351 | 51,102,519 | 46,409,437 | ||||
* Financial income or expenses related to exchange rate differences in connection | ||||||||
Other financial metrics (Unaudited) | ||||||||
U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares | ||||||||
Q3-26 | FY 2025 | FY 2024 | ||||||
Revenues geographic breakdown | ||||||||
Americas | 5.8 | 19 % | 19.1 | 19 % | 14.2 | 15 % | ||
EMEA | 14.8 | 48 % | 63.7 | 62 % | 54.0 | 59 % | ||
Asia Pacific | 10.0 | 33 % | 19.2 | 19 % | 24.0 | 26 % | ||
30.6 | 100 % | 102.0 | 100 % | 92.2 | 100 % | |||
Revenues breakdown by type | ||||||||
SECaaS (Security as a Service) | 9.9 | 33 % | 26.8 | 26 % | 16.5 | 18 % | ||
Products & Professional Services | 11.1 | 36 % | 39.3 | 38 % | 38.4 | 42 % | ||
Support & Maintenance | 9.6 | 31 % | 35.9 | 36 % | 37.3 | 40 % | ||
30.6 | 100 % | 102.0 | 100 % | 92.2 | 100 % | |||
Top 10 customers as a % of revenues | 57 % | 41 % | 43 % | |||||
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited) | ||||||||
Q3-2026 | 9.9 | |||||||
Q2-2026 | 9.4 | |||||||
Q1-2026 | 8.7 | |||||||
Q4-2025: | 8.1 | |||||||
Q3-2025: | 7.3 | |||||||
SECaaS ARR* - U.S. dollars in millions (Unaudited) | ||||||||
Sep. 2026 | 38.8 | |||||||
Dec. 2025: | 30.8 | |||||||
Dec. 2024: | 18.2 | |||||||
Dec. 2023: | 12.7 | |||||||
SOURCE Allot Ltd.
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