Allot (NASDAQ:ALLT) Issues Earnings Results, Beats Expectations By $0.03 EPS

Allot (NASDAQ:ALLT) released its quarterly earnings results on Wednesday. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.03, FiscalAI reports. Allot had a net margin of 9.40% and a return on equity of 9.78%. The firm had revenue of $27.74 million for the quarter, compared to the consensus estimate of $27.45 million.

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

• Revenue and guidance increased: Q2 revenue rose 15% year over year to $27.7 million, and full-year 2026 revenue guidance was raised to $115 million–$118 million from $113 million–$117 million.
• Security-as-a-Service remained the primary growth engine, with revenue up 47% to $9.4 million, ARR up 44% to $36.1 million, and recurring revenue comprising 67% of total quarterly revenue. Management expects SECaaS revenue growth of at least 40% for the full year.
• North America delivered a significant acceleration, contributing 31% of quarterly revenue versus 17% a year earlier, supported by strong Tera III and Allot Smart product sales, a healthy backlog, and continued SECaaS demand.
• Profitability and cash generation improved materially: non-GAAP operating margin increased to 9.9% from 5.0% a year ago, operating cash flow more than doubled to $8.5 million, and the company ended the quarter with $107 million in cash and no debt.
• Non-GAAP gross margin declined to 71.8% from 73.4% because of product mix, although management maintained its approximately 70% full-year margin expectation; regional revenue may continue to fluctuate based on the timing of large product deals.

Allot Price Performance

ALLT stock traded down $0.18 on Friday, reaching $7.75. The company’s stock had a trading volume of 54,394 shares, compared to its average volume of 430,051. The company has a market capitalization of $377.04 million, a P/E ratio of 35.25 and a beta of 1.48. The firm has a fifty day moving average of $7.84 and a two-hundred day moving average of $7.84. Allot has a 52 week low of $6.12 and a 52 week high of $11.92.

Insider Activity at Allot

In other Allot news, SVP Boaz Grossman sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $7.37, for a total value of $36,850.00. Following the completion of the sale, the senior vice president directly owned 192,000 shares in the company, valued at $1,415,040. This represents a 2.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Eyal David Harari sold 29,111 shares of the firm’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $7.64, for a total value of $222,408.04. Following the transaction, the chief executive officer directly owned 1,099,118 shares of the company’s stock, valued at $8,397,261.52. This represents a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 76,667 shares of company stock valued at $597,095 over the last quarter. Corporate insiders own 3.40% of the company’s stock.

Institutional Trading of Allot

Hedge funds and other institutional investors have recently made changes to their positions in the business. JPMorgan Chase & Co. bought a new position in shares of Allot in the second quarter valued at $2,225,000. Russell Investments Group Ltd. purchased a new stake in shares of Allot during the second quarter valued at $350,000. Arrowstreet Capital Limited Partnership acquired a new position in shares of Allot in the 2nd quarter valued at $156,000. Walleye Capital LLC acquired a new stake in Allot during the 2nd quarter worth about $256,000. Finally, Marshall Wace LLP purchased a new stake in Allot during the second quarter valued at about $2,320,000. 51.50% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

ALLT has been the topic of several analyst reports. Wall Street Zen upgraded Allot from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Northland Securities set a $17.00 price objective on shares of Allot in a research note on Thursday. Cantor Fitzgerald reissued an “overweight” rating and issued a $15.00 target price on shares of Allot in a research report on Wednesday, May 13th. Needham & Company LLC increased their target price on Allot from $8.50 to $10.50 and gave the stock a “buy” rating in a report on Wednesday, May 13th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Allot in a report on Friday, June 26th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Allot presently has an average rating of “Moderate Buy” and a consensus target price of $13.38.

Allot declared that its board has approved a stock repurchase program on Tuesday, June 23rd that permits the company to repurchase $40.00 million in shares. This repurchase authorization permits the communications equipment provider to reacquire up to 11.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Allot Company Profile

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.