Allot (NASDAQ:ALLT) Posts Quarterly Earnings Results

Allot (NASDAQ:ALLT) issued its earnings results on Wednesday. The communications equipment provider reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.01, FiscalAI reports. The business had revenue of $28.39 million during the quarter, compared to analysts’ expectations of $27.90 million. Allot had a return on equity of 4.54% and a net margin of 1.06%.

Here are the key takeaways from Allot’s conference call:

• Allot closed 2025 with accelerated growth — total revenue of $102 million (up 11% YoY) and Q4 revenue of $28.4 million, driven largely by strong SECaaS adoption.
• Cybersecurity as a Service is scaling rapidly: SECaaS ARR was $30.8 million (up 69% YoY) and SECaaS revenue in Q4 was $8.1 million (up 70% YoY), supporting management’s view that recurring revenue will continue to drive predictability.
• Profitability and liquidity strengthened materially — 2025 non-GAAP operating income and net income improved significantly, operating cash flow was $17.8 million for the year, and the company ended with $88 million in cash and no debt.
• Product momentum and multi-year visibility: new SECaaS offerings (Off-Net, Firewall-as-a-Service, DDoS, identity) plus recent multi?million-dollar Smart deals create an expanded pipeline and backlog expected to contribute to 2026–2027 revenue.
• Management flagged near-term headwinds: supply?chain cost pressure from AI data?center demand (memory/servers), a weaker U.S. dollar versus the Israeli shekel, and planned increases in sales & marketing and R&D, with gross?margin guidance around ~70%.

Allot Stock Performance

Shares of Allot stock traded down $2.12 on Wednesday, hitting $7.70. The company had a trading volume of 1,103,172 shares, compared to its average volume of 376,066. The stock has a market capitalization of $372.85 million, a price-to-earnings ratio of 256.50 and a beta of 1.57. Allot has a 1 year low of $4.37 and a 1 year high of $11.92. The stock has a 50 day moving average of $10.07 and a 200-day moving average of $9.53.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on ALLT shares. Northland Securities set a $18.00 target price on Allot in a report on Tuesday, January 6th. Needham & Company LLC reiterated a “buy” rating and set a $12.50 target price on shares of Allot in a research report on Tuesday, January 20th. Zacks Research cut shares of Allot from a “strong-buy” rating to a “hold” rating in a report on Monday, January 19th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Allot in a report on Thursday, February 19th. Finally, Citigroup restated an “outperform” rating on shares of Allot in a research note on Tuesday, January 6th. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Allot presently has a consensus rating of “Moderate Buy” and a consensus target price of $14.63.

Institutional Investors Weigh In On Allot

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kanen Wealth Management LLC boosted its holdings in Allot by 1.7% during the 3rd quarter. Kanen Wealth Management LLC now owns 4,606,003 shares of the communications equipment provider’s stock worth $48,624,000 after acquiring an additional 78,180 shares during the last quarter. QVT Financial LP lifted its position in shares of Allot by 22.2% during the second quarter. QVT Financial LP now owns 4,505,793 shares of the communications equipment provider’s stock valued at $36,598,000 after purchasing an additional 817,938 shares in the last quarter. Renaissance Technologies LLC lifted its position in shares of Allot by 10.5% during the fourth quarter. Renaissance Technologies LLC now owns 1,119,939 shares of the communications equipment provider’s stock valued at $11,009,000 after purchasing an additional 106,740 shares in the last quarter. Millennium Management LLC boosted its holdings in Allot by 239.4% during the third quarter. Millennium Management LLC now owns 753,393 shares of the communications equipment provider’s stock worth $7,971,000 after purchasing an additional 531,412 shares during the last quarter. Finally, Boothbay Fund Management LLC bought a new stake in Allot in the 2nd quarter worth about $3,164,000. 51.50% of the stock is owned by hedge funds and other institutional investors.

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.