Allot Reports Third Quarter Financial Results
60% YoY SECaaS ARR growth alongside strong profitability; adjusting revenue forecast upward.
Allot Ltd. (NASDAQ: ALLT), a prominent provider of Security-as-a-Service (SECaaS) and network intelligence solutions, has released its financial results for the third quarter of 2025, showcasing a remarkable performance driven by enhanced cybersecurity solutions and network intelligence capabilities.
Key Financial Highlights
The company reported revenues totaling $26.4 million, representing a 14% increase from the previous year. Notably, SECaaS now accounts for 28% of the overall revenue, indicating a solid commitment to this growing sector.
As of September 2025, the SECaaS Annual Recurring Revenue (ARR) reached $27.6 million, marking a significant 60% increase compared to the previous year's figures. Allot achieved a GAAP operating income of $2.2 million, a turnaround from a loss of $0.2 million in the same quarter last year.
Allot’s non-GAAP operating income also increased to $3.7 million, surpassing the $1.1 million reported for Q3 2024. The company displayed strong positive operating cash flow of $4.0 million, with total cash reserves amounting to $81 million.
CEO Statement
Eyal Harari, CEO of Allot, expressed enthusiasm regarding the company’s performance, stating, "We are pleased to see a return to double-digit year-over-year revenue growth. Our operations produced the highest profitability we have seen in over ten years. This growth is a result of the effective deployment of our cybersecurity solutions and network intelligence offerings.”
He emphasized the importance of supporting customers in achieving their business objectives, which underpins Allot's strategy to foster profitable growth moving forward.
Mr. Harari further added, "With our SECaaS growth remaining strong, we anticipate our ARR growth rate year-over-year will exceed 60%. Therefore, we are raising our full-year revenue guidance to a range of $100-103 million.”
Financial Summary for Q3 2025
In detail, the total revenues of $26.4 million exhibited a 14% increase from $23.2 million in Q3 2024. The gross profit according to GAAP was $18.9 million, achieving a gross margin of 71.4%, an increase from a gross margin of 70.4% in the same quarter the prior year.
The non-GAAP gross profit rose to $19.1 million, reflecting a gross margin of 72.2%, which is a 14% increase from the previous year’s $16.7 million.
Allot declared net income on a GAAP basis of $2.8 million, translating to earnings of $0.07 per diluted share, improving from a net loss of $0.2 million, or loss of $0.01 per basic share, in Q3 2024. The non-GAAP net income jumped to $4.6 million, or $0.10 per diluted share, compared to a non-GAAP net gain of $1.3 million, or $0.03 per diluted share, reported in the same quarter a year ago.
Allot also reported that its cash flow for the quarter stood at $4.0 million. The total cash reserves, which include net cash and cash equivalents, bank deposits, along with other restricted deposits and investments, were recorded at $81 million. This marks an increase of $22 million against December 31, 2024, where they were valued at $59 million. Notably, the company is free from any debt.
Investor Conference Call Details
Allot’s management has scheduled a conference call to discuss the financial results for Q3 2025. This call will take place today at 9:00 am ET, 4:00 pm Israel time. Interested parties can access the call through the following numbers:
US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644
A live webcast will be available on the Allot website, with an archived version accessible post-call.
About Allot Ltd.
Allot Ltd. (NASDAQ: ALLT) specializes in delivering advanced converged cybersecurity solutions and network intelligence services for service providers and enterprises globally. Allot aims to enhance customer value through solutions deployed worldwide. They focus on providing network-native cybersecurity services as well as analytics, traffic control, and more. Over 500 service providers and 1,000 enterprises utilize Allot’s leading multi-service platforms.
To learn more about Allot, please visit www.allot.com.
Frequently Asked Questions
What are the key financial highlights for Allot in Q3 2025?
Allot reported $26.4 million in revenues, a 14% increase year-over-year, with SECaaS ARR growing by 60% to $27.6 million.
Who is the CEO of Allot, and what did they say about the results?
Eyal Harari is the CEO, and he noted a return to double-digit revenue growth and raised revenue guidance due to strong performance in cybersecurity and network intelligence.
What was Allot's operating income for Q3 2025?
The GAAP operating income was $2.2 million, a turnaround from a loss of $0.2 million in Q3 2024.
What are Allot's future revenue projections?
Allot anticipates an ARR growth rate exceeding 60% and raised its revenue forecast to between $100-103 million for the full year.
How has Allot prepared for future growth?
Allot continues to invest in cybersecurity solutions, with a focus on helping clients achieve their business outcomes, driving overall profitability.
