Allot (NASDAQ:ALLT) Posts Quarterly Earnings Results

Allot (NASDAQ:ALLT) issued its quarterly earnings results on Wednesday. The communications equipment provider reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.03, FiscalAI reports. The firm had revenue of $27.74 million for the quarter, compared to analysts’ expectations of $27.45 million. Allot had a return on equity of 7.38% and a net margin of 5.68%.

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 Stock Up 3.4%

Shares of ALLT stock traded up $0.27 during trading on Thursday, hitting $7.96. The company had a trading volume of 233,947 shares, compared to its average volume of 432,383. The stock’s 50-day moving average is $7.84 and its two-hundred day moving average is $7.86. The stock has a market capitalization of $387.50 million, a price-to-earnings ratio of 61.27 and a beta of 1.48. Allot has a 52 week low of $6.12 and a 52 week high of $11.92.

Insider Activity at Allot

In other news, insider Mark Shteiman sold 6,000 shares of Allot stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $7.58, for a total transaction of $45,480.00. Following the completion of the sale, the insider directly owned 214,000 shares of the company’s stock, valued at approximately $1,622,120. The trade was a 2.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Boaz Grossman sold 5,000 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $7.37, for a total transaction of $36,850.00. Following the completion of the transaction, the senior vice president owned 192,000 shares of the company’s stock, valued at $1,415,040. This trade represents a 2.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 76,667 shares of company stock worth $597,095. Corporate insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Allot

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

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

Wall Street Analysts Forecast Growth

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

About Allot

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.