Allot (NASDAQ:ALLT) Announces Quarterly Earnings Results

Allot (NASDAQ:ALLT) announced 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. Allot had a net margin of 5.68% and a return on equity of 7.51%. The firm had revenue of $26.43 million during the quarter, compared to the consensus estimate of $26.12 million.

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 Trading Up 0.8%

Shares of ALLT stock traded up $0.06 during mid-day trading on Thursday, reaching $7.54. The stock had a trading volume of 345,614 shares, compared to its average volume of 461,964. The stock’s 50-day moving average price is $7.02 and its two-hundred day moving average price is $8.72. Allot has a 52-week low of $6.12 and a 52-week high of $11.92. The firm has a market capitalization of $366.97 million, a PE ratio of 58.00 and a beta of 1.46.

Institutional Investors Weigh In On Allot

Large investors have recently modified their holdings of the stock. Quarry LP bought a new stake in shares of Allot during the 3rd quarter valued at about $37,000. Kestra Advisory Services LLC bought a new stake in shares of Allot during the 4th quarter valued at about $62,000. State of Wyoming bought a new stake in shares of Allot during the 4th quarter valued at about $66,000. Wells Fargo & Company MN boosted its stake in shares of Allot by 200.0% during the 4th quarter. Wells Fargo & Company MN now owns 9,000 shares of the communications equipment provider’s stock valued at $88,000 after purchasing an additional 6,000 shares in the last quarter. Finally, Invesco Ltd. bought a new stake in shares of Allot during the 4th quarter valued at about $112,000. Institutional investors own 51.50% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ALLT. Cantor Fitzgerald restated an “overweight” rating and set a $15.00 price objective on shares of Allot in a research report on Wednesday. Needham & Company LLC raised their price objective on shares of Allot from $8.50 to $10.50 and gave the company a “buy” rating in a research report on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of Allot in a research report on Wednesday, January 21st. Wall Street Zen cut shares of Allot from a “buy” rating to a “hold” rating in a research report on Sunday, May 3rd. Finally, Zacks Research cut shares of Allot from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. Five analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Allot presently has an average rating of “Moderate Buy” and a consensus target price of $13.63.

About Allot

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.