Allot (NASDAQ:ALLT) Releases Earnings Results, Beats Estimates By $0.01 EPS

Allot (NASDAQ:ALLT) announced its quarterly earnings results on Wednesday. The communications equipment provider reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.01, FiscalAI reports. The firm had revenue of $28.40 million for the quarter, compared to the consensus estimate of $27.90 million. Allot had a net margin of 3.63% and a return on equity of 6.84%.

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 Price Performance

Shares of Allot stock opened at $6.75 on Friday. Allot has a 1 year low of $4.37 and a 1 year high of $11.92. The firm’s 50-day moving average is $10.00 and its two-hundred day moving average is $9.49. The stock has a market cap of $327.04 million, a price-to-earnings ratio of 84.39 and a beta of 1.57.

More Allot News

Here are the key news stories impacting Allot this week:

• Positive Sentiment: Company reported strong SECaaS momentum — 69% YoY ARR growth for its security-as-a-service business and described record profitability, and it guided 2026 revenue to $113M–$117M, signaling continued top-line acceleration. Allot Announces Fourth Quarter 2025 Financial Results
• Positive Sentiment: Revenue beat/??: Q4 revenue of $28.4M topped consensus (~$27.9M) and Zacks highlights 14% Y/Y revenue growth driven by SECaaS expansion, which supports the growth story. Allot’s Q4 Earnings Surpass Expectations, Revenues Rise Y/Y
• Neutral Sentiment: Analyst action mixed — Needham cut its price target from $12.50 to $8.50 but maintained a Buy rating, leaving upside vs. the current share price but signaling reduced near-term conviction. Benzinga
• Neutral Sentiment: Short-interest reports in late February appear unreliable (entries show 0 shares / NaN changes); do not currently indicate meaningful short pressure based on available data.
• Negative Sentiment: EPS confusion/miss: company-reported EPS figures triggered mixed reads — some transcripts/reporting show a miss (reported ~$0.06 vs. ~$0.07 consensus), and the earnings call highlighted that EPS came in below some estimates, which likely weighed on sentiment. Allot Q4 2025 Earnings Call Transcript

Hedge Funds Weigh In On Allot

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Invesco Ltd. purchased a new position in Allot during the fourth quarter valued at approximately $112,000. XTX Topco Ltd grew its position in shares of Allot by 8.5% in the 4th quarter. XTX Topco Ltd now owns 34,536 shares of the communications equipment provider’s stock worth $339,000 after buying an additional 2,718 shares during the last quarter. Quadrature Capital Ltd bought a new position in shares of Allot during the 4th quarter worth approximately $133,000. Trexquant Investment LP raised its stake in shares of Allot by 10.5% during the 4th quarter. Trexquant Investment LP now owns 259,325 shares of the communications equipment provider’s stock worth $2,549,000 after acquiring an additional 24,715 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its position in Allot by 24.8% during the fourth quarter. Osaic Holdings Inc. now owns 35,557 shares of the communications equipment provider’s stock valued at $350,000 after acquiring an additional 7,072 shares during the last quarter. 51.50% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

ALLT has been the topic of several recent research reports. Needham & Company LLC decreased their price target on shares of Allot from $12.50 to $8.50 and set a “buy” rating on the stock in a research report on Thursday. Cantor Fitzgerald restated an “overweight” rating on shares of Allot in a research report on Thursday, February 19th. Citigroup restated an “outperform” rating on shares of Allot in a report on Tuesday, January 6th. Northland Securities set a $18.00 target price on shares of Allot in a research report on Tuesday, January 6th. Finally, Zacks Research downgraded Allot from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. Five equities research 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 MarketBeat, Allot presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.13.

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.