Allot (NASDAQ:ALLT) Issues Quarterly Earnings Results

Allot (NASDAQ:ALLT) issued its 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. Allot had a net margin of 1.06% and a return on equity of 4.54%. The company had revenue of $28.39 million during the quarter, compared to analyst estimates of $27.90 million.

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 Trading Down 27.0%

ALLT traded down $2.65 during trading on Wednesday, hitting $7.16. The stock had a trading volume of 1,991,735 shares, compared to its average volume of 412,895. The firm has a market cap of $346.92 million, a PE ratio of 238.20 and a beta of 1.57. Allot has a 12 month low of $4.37 and a 12 month high of $11.92. The company has a 50 day simple moving average of $10.07 and a 200-day simple moving average of $9.53.

Hedge Funds Weigh In On Allot

A number of institutional investors have recently made changes to their positions in the business. Kanen Wealth Management LLC grew its holdings in Allot by 1.7% in the 3rd quarter. Kanen Wealth Management LLC now owns 4,606,003 shares of the communications equipment provider’s stock valued at $48,624,000 after buying an additional 78,180 shares during the last quarter. QVT Financial LP lifted its holdings 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 worth $36,598,000 after buying an additional 817,938 shares during the last quarter. Renaissance Technologies LLC boosted its position in shares of Allot by 10.5% in 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 acquiring an additional 106,740 shares during the period. Millennium Management LLC grew its stake in shares of Allot by 239.4% in the third quarter. Millennium Management LLC now owns 753,393 shares of the communications equipment provider’s stock worth $7,971,000 after acquiring an additional 531,412 shares during the last quarter. Finally, Boothbay Fund Management LLC acquired a new position in Allot during the 2nd quarter valued at $3,164,000. 51.50% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have commented on ALLT. Zacks Research downgraded Allot from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 19th. Northland Securities set a $18.00 price target on Allot in a research note on Tuesday, January 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Allot in a research report on Wednesday, January 21st. Citigroup reiterated an “outperform” rating on shares of Allot in a research note on Tuesday, January 6th. Finally, Needham & Company LLC restated a “buy” rating and set a $12.50 price target on shares of Allot in a report on Tuesday, January 20th. Five research 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. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $14.63.

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.