Allot Reports Record Growth in Q2 2025 Financial Results
Exceptionally strong 73% year-over-year growth in SECaaS ARR; raising full year guidance
Allot Ltd. (NASDAQ: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the second quarter of 2025.
Financial Highlights for Q2 2025
Revenues and Performance
- Revenues totaled $24.1 million, reflecting a 9% increase year-over-year, with SECaaS comprising 27% of overall revenue.
- SECaaS ARR for June 2025 reached $25.2 million, marking a remarkable 73% growth from the prior year.
- GAAP operating loss was $0.4 million, a significant improvement from a loss of $3.4 million in Q2 2024.
- Non-GAAP operating profit stood at $1.2 million, a turnaround from a loss of $1.0 million in Q2 2024.
- Produced strong positive operating cash flow of $4.4 million compared to $1.2 million in Q2 2024.
Management Comments on the Results
Eyal Harari, CEO of Allot, commented, "We are very pleased with our robust Q2 financial results, which benefited from exceptional SECaaS performance. Our SECaaS ARR rose 73% year-over-year, signaling significant demand for our cybersecurity solutions. Such impressive performance not only supported our overall revenue growth but also enhanced our profitability."
Mr. Harari continued, "The traction we see with Verizon Business and our unique cybersecurity offerings underline our competitive edge in the market. Our recent contract with a major telecom operator in EMEA amplifies our strategic positioning as a leader in network intelligence and security. We are optimistic about the year's profitable growth ahead, backed by our increasing SECaaS ARR expectations, now scaled to a growth forecast of 55-60%."
Q2 2025 Financial Results Overview
Total Revenues: $24.1 million, a notable 9% increase from $22.2 million in Q2 2024.
Gross Profit: GAAP gross profit was $17.3 million with a margin of 72.1%, and non-GAAP gross profit reached $17.6 million at a 73.4% margin, both showing commendable growth compared to the previous year's figures.
Operating Loss: The GAAP operating loss decreased to $0.4 million from last year's $3.4 million. In contrast, the non-GAAP operating income increased to $1.2 million.
Cash Flow and Financial Health: The operating cash flow generated in the quarter was $4.4 million. By June 30, 2025, Allot's cash and equivalents totaled $72 million, up from $59 million at year-end 2024, with an absence of debt.
About Allot Ltd.
Allot Ltd. (NASDAQ: ALLT) is committed to providing state-of-the-art network intelligence and security solutions that enhance value for service providers and enterprises around the globe. Our innovative platforms are utilized by over 500 service providers and over 1,000 enterprises worldwide, optimizing application analytics, traffic management, and comprehensive security services.
To learn more, visit our official site.
Frequently Asked Questions
What were the total revenues for Allot in Q2 2025?
Total revenues reached $24.1 million, reflecting a 9% increase year-over-year.
How much did SECaaS ARR grow?
SECaaS ARR grew by an impressive 73% year-over-year, totaling $25.2 million.
What is Allot's guidance for 2025?
Allot has projected full-year revenue guidance of $98-102 million, with SECaaS ARR expected to grow by 55-60% year-over-year.
Who is the CEO of Allot?
Eyal Harari is the CEO of Allot and has expressed satisfaction with the company's growth in cybersecurity offerings.
What is the significance of Allot's recent contract with a telecom operator?
The contract is noted as a strategic win and showcases the capability of Allot's solutions to meet the high demands of industry leaders, enhancing its market presence.
