Raising 2026 revenue guidance to $115--$118 million
HOD HASHARON, Israel, Aug. 12, 2026 /PRNewswire/ -- Allot Ltd. $(ALLT)$ (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 second quarter of 2026.
Financial Highlights for the Second Quarter of 2026
-- Strong revenue growth to $27.7 million, up 15% year-over-year;
-- Security-as-a-Service (SECaaS) revenues of $9.4 million, increasing 47%
year-over-year;
-- June 2026 SECaaS ARR* of $36.1 million, up 44% year-over-year;
-- GAAP operating income of $1.1 million, compared with a GAAP operating
loss of $0.4 million in the second quarter of 2025;
-- Non-GAAP operating income of $2.7 million, a significant increase
compared with $1.2 million in the second quarter of 2025;
-- Operating cash flow of $8.5 million, more than double compared with $4.0
million in the second quarter of 2025;
-- On June 23, 2026, the Board of Directors approved a share repurchase
program of up to $40 million.
Management Comment
Eyal Harari, CEO of Allot, commented, "We are excited to report our fourth consecutive quarter of double-digit growth. I am particularly encouraged by the revenue strength of the North American region this quarter, as I believe that this region has many opportunities to provide us with sustainable long-term growth."
Mr. Harari added, "Following our solid execution and visibility for the remainder of the year, we are raising our 2026 revenue guidance to between $115 million and $118 million, with continued improvement in profitability. We expect our SECaaS revenue growth for 2026 to be 40% or more. We see many growth opportunities ahead of us and with over $100 million in cash, we believe we are well positioned to capitalize on these opportunities while maximizing shareholder value."
Mr. Harari concluded, "At the end of the second quarter, our Board of Directors approved a $40 million share repurchase program, reflecting our confidence in Allot's strategy and financial strength."
Second Quarter 2026 Financial Results Summary
Total revenues for the second quarter of 2026 were $27.7 million, a 15% increase year-over-year compared with $24.1 million in the second quarter of 2025.
Gross profit on a GAAP basis for the second quarter of 2026 was $19.8 million (gross margin of 71.3%), a 14% increase compared with $17.3 million (gross margin of 72.1%) in the second quarter of 2025.
Gross profit on a non-GAAP basis for the second quarter of 2026 was $19.9 million (gross margin of 71.8%), a 13% increase compared with $17.6 million (gross margin of 73.4%) in the second quarter of 2025.
Operating income on a GAAP basis for the second quarter of 2026 was $1.1 million (operating margin of 4.0%), compared with an operating loss of $0.4 million in the second quarter of 2025.
Operating income on a non-GAAP basis for the second quarter of 2026 was $2.7 million (operating margin of 9.9%), compared with $1.2 million (operating margin of 5.0%) in the second quarter of 2025.
Net income on a GAAP basis for the second quarter of 2026 was $2.6 million, or $0.05 per diluted share, compared with a net loss of $1.7 million, or $0.04 per diluted share, in the second quarter of 2025.
Net income on a non-GAAP basis for the second quarter of 2026 was $4.6 million, or $0.09 per diluted share, compared with $1.5 million, or $0.03 per diluted share, in the second quarter of 2025.
Operating cash flow generated in the quarter was $8.5 million, compared with $4.0 million in the second quarter of 2025.
Cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2026, totaled $107 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 second quarter 2026 earnings results today, August 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 June 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 revenue, profitability growth, long-term growth opportunities, our ability to execute our strategy, 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: Public Relations Contact:
EK Global Investor Relations Seth Greenberg, Allot Ltd.
Ehud Helft +972 54 922 2294
+1 212 378 8040 sgreenberg@allot.com
allot@ekgir.com
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30, December 31,
2026 2025
------------------------------ ------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $ 13,759 $ 17,107
Restricted deposit 3,637 3,573
Short-term bank
deposits 31,100 15,100
Available-for-sale
marketable
securities 57,345 48,663
Trade receivables,
net (net of
allowance for
credit losses of
$9,148 and $9,611
on June 30, 2026,
and December 31,
2025,
respectively) 25,170 17,451
Other receivables
and prepaid
expenses 9,403 9,906
Inventories 17,497 13,180
Total current assets 157,911 124,980
------------------------------ ------------------------------
NON-CURRENT ASSETS:
Severance pay fund $ 333 $ 295
Restricted deposit 666 3,327
Operating lease
right-of-use
assets 6,547 5,518
Other assets 957 732
Property and
equipment, net 5,319 6,014
Goodwill 31,833 31,833
Total non-current
assets 45,655 47,719
------------------------------ ------------------------------
Total assets $ 203,566 $ 172,699
============================== ==============================
LIABILITIES AND
SHAREHOLDERS'
EQUITY
CURRENT
LIABILITIES:
Trade payables $ 1,418 $ 938
Employees and
payroll accruals 8,782 9,254
Deferred revenues 45,613 24,700
Short-term operating
lease liabilities 1,588 348
Other payables and
accrued expenses 12,530 11,919
Total current
liabilities 69,931 47,159
------------------------------ ------------------------------
LONG-TERM
LIABILITIES:
Deferred revenues $ 8,334 $ 5,912
Long-term operating
lease liabilities 5,331 5,392
Accrued severance
pay 645 886
Total long-term
liabilities 14,310 12,190
------------------------------ ------------------------------
SHAREHOLDERS' EQUITY 119,325 113,350
------------------------------ ------------------------------
Total liabilities
and shareholders'
equity $ 203,566 $ 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 Six Months Ended
June 30, June 30,
------------------------------------------ ------------------------------------------
2026 2025 2026 2025
-------------------- -------------------- -------------------- --------------------
Revenues $ 27,737 $ 24,051 $ 54,162 $ 47,201
Cost of
revenues 7,968 6,721 15,652 13,823
Gross profit 19,769 17,330 38,510 33,378
-------------------- -------------------- -------------------- --------------------
Operating
expenses:
Research and
development
costs, net 6,991 7,261 13,273 13,252
Sales and
marketing 8,042 7,261 15,865 14,599
General and
administrative 3,637 3,215 6,745 6,643
-------------------- -------------------- -------------------- --------------------
Total operating
expenses 18,670 17,737 35,883 34,494
Operating
income (loss) 1,099 (407) 2,627 (1,116)
Loss from
extinguishment - (1,410) - (1,410)
Other income - 100 - 100
Financial
income, net 1,975 359 2,760 1,033
Income (loss)
before tax 3,074 (1,358) 5,387 (1,393)
Income tax
expenses 501 332 872 628
Net income
(loss) $ 2,573 $ (1,690) $ 4,515 $ (2,021)
==================== ==================== ==================== ====================
Income (loss)
per share
Basic $ 0.05 $ (0.04) $ 0.09 $ (0.05)
-------------------- -------------------- -------------------- --------------------
Diluted $ 0.05 $ (0.04) $ 0.09 $ (0.05)
-------------------- -------------------- -------------------- --------------------
Weighted
average shares
outstanding
Basic 49,151,073 40,140,875 48,965,108 39,944,413
-------------------- -------------------- -------------------- --------------------
Diluted 49,832,577 40,140,875 49,864,006 39,944,413
-------------------- -------------------- -------------------- --------------------
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- ------------------------------
2026 2025 2026 2025
-------------- --------------- -------------- --------------
Cash flows from
operating
activities:
---------------
Net income
(loss) $ 2,573 $ (1,690) $ 4,515 $ (2,021)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
-------------------------------
Depreciation
and
amortization 686 1,073 1,345 2,419
Share-based
compensation 1,643 1,449 2,737 2,430
Capital loss - - - 255
Loss from
extinguishment - 1,410 - 1,410
Other income - (100) - (100)
Amortization of
premium,
discount and
accrued
interest on
marketable
securities (211) (521) (445) (862)
Financial
income from
lease
modification (1,158) - (1,158) -
Loss (gain) on
foreign
exchange on
cash and cash
equivalents 12 (399) 32 (409)
Changes in
operating
assets and
liabilities:
---------------
(Decrease)
increase in
accrued
severance pay,
net (250) 93 (279) 89
Decrease
(increase) in
other assets,
other
receivables
and prepaid
expenses 501 196 (933) 1,619
Decrease
(increase) in
operating
leases
liability 449 (60) 581 (203)
Increase in
operating
lease
right-of- use
asset 446 275 727 579
Increase in
trade
receivables (4,626) (901) (7,719) (3,653)
(Increase)
decrease in
inventories (1,741) (312) (4,317) 106
Increase
(decrease) in
trade
payables (22) (97) 480 (22)
Increase
(decrease) in
employees and
payroll
accruals 875 2,785 (472) 573
Increase in
deferred
revenues 8,367 273 23,335 2,536
Increase
(decrease) in
other payables
and accrued
expenses 922 511 612 914
Net cash
provided by
operating
activities 8,466 3,985 19,041 5,660
-------------- --------------- -------------- --------------
Cash flows from
investing
activities:
---------------
(Increase)
decrease in
restricted
deposit (403) 50 2,597 353
Investment in
short-term
bank deposits (20,900) (7,050) (31,400) (15,750)
Withdrawal of
short-term
bank deposits 11,600 12,700 15,400 19,950
Purchase of
property and
equipment (269) (408) (650) (689)
Investment in
marketable
securities (4,589) (26,458) (34,554) (55,434)
Proceeds from
redemption or
sale of
marketable
securities 6,750 27,283 26,250 49,683
Proceeds from
sale of
patent - 100 - 100
Net cash (used
in) provided
by investing
activities (7,811) 6,217 (22,357) (1,787)
-------------- --------------- -------------- --------------
Cash flows from
financing
activities:
---------------
Issuance of
share capital - 37,691 - 37,691
Exercise of
employee stock
options - - - 238
Redemption of
convertible
debt - (31,410) - (31,410)
Net cash
provided by
financing
activities - 6,281 - 6,519
-------------- --------------- -------------- --------------
Effect of
exchange rate
changes on
cash and cash
equivalents (12) 399 (32) 409
Increase
(decrease) in
cash and cash
equivalents 643 16,882 (3,348) 10,801
Cash and cash
equivalents at
the beginning
of the period 13,116 10,061 17,107 16,142
Cash and cash
equivalents at
the end of the
period $ 13,759 $ 26,943 $ 13,759 $ 26,943
============== =============== ============== ==============
Non-cash
activities:
---------------
Right-of-use
assets
obtained in
exchange for
operating
lease
liabilities 593 - 593 (71)
Redemption of
convertible
debt - (10,000) - (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 Six Months Ended
June 30, June 30,
------------------------------------------ --------------------------------------
2026 2025 2026 2025
-------------------- -------------------- ------------------ ------------------
(Unaudited) (Unaudited)
------------------------------------------ --------------------------------------
GAAP cost of
revenues $ 7,968 $ 6,721 $ 15,652 $ 13,823
Share-based
compensation (135) (160) (240) (254)
Amortization of
intangible
assets - (152) - (305)
Non-GAAP cost of
revenues $ 7,833 $ 6,409 $ 15,412 $ 13,264
-------------------- -------------------- ------------------ ------------------
GAAP gross
profit $ 19,769 $ 17,330 $ 38,510 $ 33,378
Share-based
compensation 135 160 240 254
Amortization of
intangible
assets - 152 - 305
Non-GAAP gross
profit $ 19,904 $ 17,642 $ 38,750 $ 33,937
-------------------- -------------------- ------------------ ------------------
GAAP operating
expenses $ 18,670 $ 17,737 $ 35,883 $ 34,494
Share-based
compensation -
Research and
development
costs, net (337) (380) (528) (622)
Share-based
compensation -
Sales and
marketing (766) (466) (1,163) (771)
Share-based
compensation -
General and
administrative (405) (443) (806) (783)
Non-GAAP
operating
expenses $ 17,162 $ 16,448 $ 33,386 $ 32,318
-------------------- -------------------- ------------------ ------------------
GAAP operating
Income (Loss) $ 1,099 $ (407) $ 2,627 $ (1,116)
Share-based
compensation 1,643 1,449 2,737 2,430
Amortization of
intangible
assets $ - $ 152 $ - $ 305
Non-GAAP
operating
Income $ 2,742 $ 1,194 $ 5,364 $ 1,619
-------------------- -------------------- ------------------ ------------------
GAAP Net income
(Loss) $ 2,573 $ (1,690) $ 4,515 $ (2,021)
Share-based
compensation 1,643 1,449 2,737 2,430
Amortization of
intangible
assets - 152 - 305
Loss from
extinguishment - 1,410 - 1,410
Exchange rate
differences* 125 104 103 43
Changes in tax
related items 254 25 298 70
Non-GAAP Net
income $ 4,595 $ 1,450 $ 7,653 $ 2,237
==================== ==================== ================== ==================
Non-GAAP income
(loss) per
share
Basic $ 0.09 $ 0.03 $ 0.16 $ 0.05
-------------------- -------------------- ------------------ ------------------
Diluted $ 0.09 $ 0.03 $ 0.15 $ 0.05
-------------------- -------------------- ------------------ ------------------
Weighted average
shares
outstanding
Basic 49,151,073 40,140,875 48,965,108 39,944,413
-------------------- -------------------- ------------------ ------------------
Diluted 51,131,093 43,794,580 51,049,850 43,750,663
-------------------- -------------------- ------------------ ------------------
* Financial income or expenses related to exchange rate differences in connection with revaluation of
assets and liabilities in non-dollar denominated currencies.
Other financial metrics (Unaudited)
--------------------------------------------------------------------------
U.S. dollars in millions, except top 10 customers as a % of
revenues and number of shares
Q2-26 FY 2025 FY 2024
----- ------- -------
Revenues geographic
breakdown
----------------------------
Americas 8.5 31 % 19.1 19 % 14.2 15 %
EMEA 13.4 48 % 63.7 62 % 54.0 59 %
Asia Pacific 5.8 21 % 19.2 19 % 24.0 26 %
----- ----- ------- ----- ------- -----
27.7 100 % 102.0 100 % 92.2 100 %
Revenues breakdown by type
----------------------------
SECaaS (Security as a
Service) 9.4 34 % 26.8 26 % 16.5 18 %
Products & Professional
Services 9.1 33 % 39.3 38 % 38.4 42 %
Support & Maintenance 9.2 33 % 35.9 36 % 37.3 40 %
----- ------- ----- -------
27.7 100 % 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) ------------------------------------------------------------------ Q2-2026 9.4 Q1-2026 8.7 Q4-2025: 8.1 Q3-2025: 7.3 Q2-2025: 6.4 SECaaS ARR* - U.S. dollars in millions (Unaudited) ---------------------------------------------------------------- Jun. 2026: 36.1 Dec. 2025: 30.8 Dec. 2024: 18.2 Dec. 2023: 12.7
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SOURCE Allot Ltd.