Allot Announces Third Quarter 2025 Financial Results

60% YoY SECaaS ARR growth with robust profitability; raising full year guidance

HOD HASHARON, Israel, Nov. 20, 2025 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the third quarter of 2025.

Financial Highlights for the Third Quarter of 2025

Management Comment

Eyal Harari, CEO of Allot, commented, "We reported a return to double-digit year-over-year revenue growth of 14% and our operations generated the highest profitability in over a decade. The growth was driven by excellent performance from both our cyber security solutions and our network intelligence offerings."

Mr. Harari continued, "We are advancing strongly on our cyber-security first strategy, and we are progressing well with our key customers. Helping our customers achieve their business goals is a key to driving our profitable growth."

Concluded Mr. Harari, "Given the continued accelerated SECaaS growth, our solid visibility, and high level of backlog, we expect that our SECaaS ARR year-over-year growth will surpass 60%. We are raising our full year 2025 revenue guidance to between $100-103 million."

Third Quarter 2025 Financial Results Summary

Total revenues for the third quarter of 2025 were $26.4 million, a 14% increase year-over-year compared with $23.2 million in the third quarter of 2024.

Gross profit on a GAAP basis for the third quarter of 2025 was $18.9 million (gross margin of 71.4%), a 15% increase compared with $16.4 million (gross margin of 70.4%) in the third quarter of 2024.

Gross profit on a non-GAAP basis for the third quarter of 2025 was $19.1 million (gross margin of 72.2%), a 14% increase compared with $16.7 million (gross margin of 71.7%) in the third quarter of 2024.

Operating income on a GAAP basis for the third quarter of 2025 was $2.2 million, compared with an operating loss of $0.2 million in the third quarter of 2024.

Operating income on a non-GAAP basis for the third quarter of 2025 was $3.7 million, compared with an operating income of $1.1 million in the third quarter of 2024.

Net income on a GAAP basis for the third quarter of 2025 was $2.8 million, or income of $0.07 per diluted share, an improvement compared to the net loss of $0.2 million, or loss of $0.01 per basic share, in the third quarter of 2024.

Net income on a non-GAAP basis for the third quarter of 2025 was $4.6 million, or income of $0.1 per diluted share, compared to the non-GAAP net income of $1.3 million, or income of $0.03 per diluted share, in the third quarter of 2024.

Operating cash flow generated in the quarter was $4.0 million.

Net cash and cash equivalents, bank deposits, restricted deposits and investments as of September 30, 2025, total $81 million, an increase of $22 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of September 30, 2025, the company has no debt.

Conference Call & Webcast :

The Allot management team will host a conference call to discuss its third quarter 2025 earnings results today, November 20, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers' customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.

For more information, visit www.allot.com

Performance Metrics

* SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of September 2025 and multiplied by 12.

** Total cash - net cash and cash equivalents, bank deposits, restricted deposits and investments.

GAAP to Non-GAAP Reconciliation :

The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.

Safe Harbor Statement

This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:

EK Global Investor Relations

Ehud Helft

+1 212 378 8040

allot@ekgir.com

Public Relations Contact:

Seth Greenberg, Allot Ltd.

+972 54 922 2294

sgreenberg@allot.com

TABLE - 1

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(Unaudited)

Revenues

$ 26,405

$ 23,235

$ 73,606

$ 67,289

Cost of revenues

7,539

6,871

21,362

$ 20,652

Gross profit

18,866

16,364

52,244

$ 46,637

Operating expenses:

Research and development costs, net

5,489

5,922

18,741

20,397

Sales and marketing

8,148

7,699

22,747

23,400

General and administrative

3,079

2,960

9,722

9,166

Total operating expenses

16,716

16,581

51,210

52,963

Operating income (loss)

2,150

(217)

1,034

(6,326)

Loss from extinguishment

(1,410)

Other income

100

Gain on sales of securities

193

Financial income, net

676

513

1,709

1,542

Income (loss) before income tax benefit

3,019

296

1,626

(4,784)

Income tax expenses

195

540

823

1,326

Net income (loss)

$ 2,824

$ (244)

$ 803

$ (6,110)

Basic net income (loss) per share

$ 0.07

$ (0.01)

$ 0.02

$ (0.17)

Diluted net income (loss) per share

$ 0.07

$ (0.01)

$ 0.02

$ (0.17)

Weighted average number of shares used in

computing basic net income (loss) per share

41,487,057

39,202,550

42,580,555

38,777,119

Weighted average number of shares used in

computing diluted net income (loss) per share

43,253,509

39,202,550

44,909,810

38,777,119

TABLE - 2

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(Unaudited)

GAAP cost of revenues

$ 7,539

$ 6,871

$ 21,362

$ 20,652

Share-based compensation (1)

(211)

(153)

(465)

(631)

Amortization of intangible assets (2)

(152)

(305)

(456)

Non-GAAP cost of revenues

$ 7,328

$ 6,566

$ 20,592

$ 19,565

GAAP gross profit

$ 18,866

$ 16,364

$ 52,244

$ 46,637

Gross profit adjustments

211

305

770

1,087

Non-GAAP gross profit

$ 19,077

$ 16,669

$ 53,014

$ 47,724

GAAP operating expenses

$ 16,716

$ 16,581

$ 51,210

$ 52,963

Share-based compensation (1)

(1,348)

(1,016)

(3,524)

(4,085)

Non-GAAP operating expenses

$ 15,368

$ 15,565

$ 47,686

$ 48,878

GAAP Loss from extinguishment

$ -

$ (1,410)

$ -

Loss from extinguishment

1,410

Non-GAAP Loss from extinguishment

$ -

GAAP financial income

$ 676

$ 513

$ 1,709

$ 1,542

Exchange rate differences*

116

139

159

343

Non-GAAP Financial income

$ 792

$ 652

$ 1,868

$ 1,885

GAAP taxes on income

$ 195

$ 540

$ 823

$ 1,326

Changes in tax related items

(80)

(45)

(150)

(222)

Non-GAAP taxes on income

$ 115

$ 495

$ 673

$ 1,104

GAAP Net income (Loss)

$ 2,824

$ (244)

$ 803

$ (6,110)

Share-based compensation (1)

1,559

1,169

3,989

4,716

Amortization of intangible assets (2)

152

305

456

Loss from extinguishment

1,410

Exchange rate differences*

116

139

159

343

Changes in tax related items

150

222

Non-GAAP Net income (loss)

$ 4,579

$ 1,261

$ 6,816

$ (373)

GAAP Net income (loss) per share (diluted)

$ 0.07

$ (0.01)

$ 0.02

$ (0.17)

Share-based compensation

0.03

0.09

0.13

Amortization of intangible assets

0.01

0.02

Loss from extinguishment

0.03

Non-GAAP Net income (Loss) per share (diluted)

$ 0.10

$ 0.03

$ 0.15

$ (0.02)

Weighted average number of shares used in

41,487,057

39,202,550

42,580,555

38,777,119

computing GAAP diluted net income (loss) per share

Weighted average number of shares used in

44,592,351

42,421,818

46,409,437

38,777,119

computing non-GAAP diluted net income (loss) per share

* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and

liabilities in non-dollar denominated currencies.

TABLE - 2 cont.

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(Unaudited)

(1) Share-based compensation:

Cost of revenues

$ 211

$ 153

$ 465

$ 631

Research and development costs, net

400

402

1,022

1,687

Sales and marketing

466

310

1,237

1,545

General and administrative

482

304

1,265

853

$ 1,559

$ 1,169

$ 3,989

$ 4,716

(2) Amortization of intangible assets

Cost of revenues

$ -

$ 152

$ 305

$ 456

Sales and marketing

$ -

$ 152

$ 305

$ 456

TABLE - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

December 31,

2025

2024

(Unaudited)

(Audited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 24,232

$ 16,142

Restricted deposit

501

904

Short-term bank deposits

16,800

15,250

Available-for-sale marketable securities

38,827

26,470

Trade receivables, net (net of allowance for credit losses of $15,215 and $25,306

on September 30, 2025 and December 31, 2024 , respectively)

20,814

16,482

Other receivables and prepaid expenses

12,134

6,317

Inventories

14,208

8,611

Total current assets

127,516

90,176

NON-CURRENT ASSETS:

Severance pay fund

$ 248

$ 464

Restricted deposit

329

279

Operating lease right-of-use assets

5,787

6,741

Other assets

701

2,151

Property and equipment, net

5,304

7,692

Intangible assets, net

305

Goodwill

31,833

Total non-current assets

44,202

49,465

Total assets

$ 171,718

$ 139,641

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

$ 7,198

$ 946

Employees and payroll accruals

9,625

8,208

Deferred revenues

21,736

17,054

Short-term operating lease liabilities

1,081

562

Other payables and accrued expenses

11,106

9,200

Total current liabilities

50,746

35,970

LONG-TERM LIABILITIES:

Deferred revenues

5,410

7,136

Long-term operating lease liabilities

5,192

5,807

Accrued severance pay

847

946

Convertible debt

39,973

Total long-term liabilities

11,449

53,862

SHAREHOLDERS' EQUITY

109,523

49,809

Total liabilities and shareholders' equity

$ 171,718

$ 139,641

TABLE - 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(Unaudited)

Cash flows from operating activities:

Net income (loss)

$ 2,824

$ (244)

$ 803

$ (6,110)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

835

1,299

3,254

4,075

Share-based compensation

1,559

1,169

3,989

4,716

Capital loss

255

Loss from extinguishment

1,410

Other income

(100)

Gain on sales of securities

(193)

Changes in operating assets and liabilities:

Decrease (Increase) in accrued severance pay, net

117

(155)

Decrease (Increase) in other assets, other receivables and prepaid expenses

(3,817)

(696)

(2,198)

976

Decrease in accrued interest and amortization of premium on available-for sale marketable securities

(44)

(392)

(906)

(1,169)

Increase (Decrease) in operating leases liability

190

(481)

(13)

(1,099)

Decrease in operating lease right-of-use asset

292

675

871

1,849

Decrease (Increase) in trade receivables

(679)

438

(4,332)

(2,542)

Decrease (Increase) in inventories

(5,703)

(443)

(5,597)

1,825

Increase in trade payables

6,274

2,139

6,252

2,155

Increase (Decrease) in employees and payroll accruals

844

1,575

1,417

(2,560)

Increase (Decrease) in deferred revenues

420

(3,369)

2,956

(1,404)

Increase in other payables and accrued expenses

1,211

203

2,126

191

Net cash provided by operating activities

4,041

1,883

10,111

748

Cash flows from investing activities:

Decrease in restricted deposit

353

703

Investment in short-term bank deposits

(16,800)

(5,500)

(32,550)

(9,300)

Withdrawal of short-term bank deposits

11,050

3,800

31,000

13,800

Purchase of property and equipment

(100)

(286)

(789)

(1,672)

Investment in marketable securities

(44,213)

(9,532)

(99,647)

(44,284)

Proceeds from redemption or sale of marketable securities

38,694

21,980

88,377

54,040

Proceeds from sale of patent

100

Net cash provided by (used in) investing activities

(11,369)

10,462

(13,156)

13,287

Cash flows from financing activities:

Issuance of share capital

4,617

42,308

Proceeds from exercise of stock options

-2

238

-1

Redemption of convertible debt

(31,410)

Net cash provided by (used in) financing activities

4,617

(2)

11,136

(1)

Increase (Decrease) in cash and cash equivalents

(2,711)

12,343

8,090

14,034

Cash, cash equivalents at the beginning of the period

26,943

15,883

16,142

14,192

Cash, cash equivalents at the end of the period

$ 24,232

$ 28,226

$ 24,232

$ 28,226

Non-cash activities:

ROU asset and lease liability decrease, due to lease termination

(12)

(83)

Redemption of convertible debt

(10,000)

Right-of-use assets obtained in the exchange for operating lease liabilities

5,795

Other financial metrics (Unaudited)

U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares

Q3-25

FY 2024

FY 2023

Revenues geographic breakdown

Americas

8.1

31 %

14.2

15 %

16.6

18 %

EMEA

12.9

49 %

54.0

59 %

56.1

60 %

Asia Pacific

5.4

20 %

24.0

26 %

20.5

22 %

26.4

100 %

92.2

100 %

93.2

100 %

Revenues breakdown by type

Products

8.6

33 %

30.1

33 %

37.6

40 %

Professional Services

1.1

4 %

8.3

9 %

6.1

7 %

SECaaS (Security as a Service)

7.3

28 %

16.5

18 %

10.6

11 %

Support & Maintenance

9.4

35 %

37.3

40 %

38.9

42 %

26.4

100 %

92.2

100 %

93.2

100 %

Top 10 customers as a % of revenues

60 %

43 %

47 %

Non-GAAP Weighted average number of basic shares (in millions)

41.5

38.9

37.9

Non-GAAP weighted average number of fully diluted shares (in millions)

44.6

42.3

40.3

SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)

Q3-2025:

7.3

Q2-2025:

6.4

Q1-2025:

5.1

Q4-2024:

4.8

Q3-2024:

4.7

SECaaS ARR* - U.S. dollars in millions (Unaudited)

Sep. 2025:

27.6

Dec. 2024:

18.2

Dec. 2023:

12.7

Dec. 2022:

9.2

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SOURCE Allot Ltd.