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

Allot (NASDAQ:ALLT) released its earnings results on Wednesday. The communications equipment provider reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.01, FiscalAI reports. The company had revenue of $28.39 million during the quarter, compared to analyst estimates of $27.90 million. Allot had a return on equity of 4.54% and a net margin of 1.06%.

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 Stock Down 21.6%

Allot stock traded down $2.12 during midday trading on Wednesday, reaching $7.70. The stock had a trading volume of 1,103,172 shares, compared to its average volume of 376,066. The firm has a market capitalization of $372.85 million, a PE ratio of 256.50 and a beta of 1.57. Allot has a 12 month low of $4.37 and a 12 month high of $11.92. The firm’s 50-day moving average price is $10.07 and its 200 day moving average price is $9.53.

Institutional Trading of Allot

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

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on ALLT shares. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Allot in a research report on Thursday, February 19th. Northland Securities set a $18.00 price target on shares of Allot in a research report on Tuesday, January 6th. Citigroup reaffirmed an “outperform” rating on shares of Allot in a research report on Tuesday, January 6th. Zacks Research cut shares of Allot from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 19th. Finally, Needham & Company LLC reissued a “buy” rating and set a $12.50 target price on shares of Allot in a research report on Tuesday, January 20th. 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. According to data from MarketBeat, the company currently 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.