Allot Ltd. reported third‑quarter 2025 results that surpassed analyst expectations, with revenue climbing 14% year‑over‑year to $26.4 million and non‑GAAP earnings per share reaching $0.10, a 150% beat on the consensus estimate of $0.04. Net income rose to $4.6 million, while operating cash flow reached $4.0 million and the company’s cash and cash equivalents stood at $81 million, with no debt on the balance sheet.
Revenue growth was driven primarily by the company’s Security‑as‑a‑Service (SECaaS) segment, which recorded a 60% year‑over‑year increase in annual recurring revenue. The network‑intelligence business also contributed to the top‑line expansion, and the Smart product line maintained steady demand, helping to offset any softness in legacy product sales.
Margin expansion was evident as non‑GAAP operating income surged to $3.7 million from $1.1 million a year earlier, reflecting disciplined cost management and a favorable mix shift toward higher‑margin SECaaS contracts. Net income of $4.6 million, compared with GAAP net income of $2.8 million, underscores the impact of non‑GAAP adjustments and the company’s ability to convert revenue growth into profitability.
Management raised its full‑year 2025 revenue outlook to $100–$103 million, up from the prior guidance of $95–$98 million. The increase signals confidence in sustained demand for SECaaS and a growing backlog, while the company emphasized its focus on expanding the SECaaS portfolio and maintaining a strong cash position.
CEO Eyal Harari highlighted the turnaround, stating, “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.” He added that the company is “exceptionally well‑positioned for the year ahead” and expects SECaaS ARR growth to surpass 60% year‑over‑year.
Investors reacted positively to the results, with the EPS beat and revenue upside reinforcing confidence in Allot’s cybersecurity‑first strategy. The strong SECaaS momentum, combined with the raised guidance, positioned the company favorably for continued growth in the coming quarters.
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