Allot's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Allot Ltd. ALLT reported better-than-expected fourth-quarter 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

Allot’s fourth-quarter non-GAAP earnings of 8 cents per share surpassed the Zacks Consensus Estimate by 14.3%. The company reported earnings of 5 cents per share in the year-ago period.

ALLT’s fourth-quarter 2025 revenues of $28.4 million surpassed the Zacks Consensus Estimate by 1.7%. The top line increased 14% from the year-ago quarter’s revenues of $24.9 million.

Allot’s Q4 Results in Details

Segment-wise, Allot’s revenues from Security as a Service (SECaaS) were $8.1 million, which contributed 28% to its top line, reflecting an increase of 68.8% from the year-ago quarter.

Allot Ltd. Price, Consensus and EPS Surprise

Allot Ltd. price-consensus-eps-surprise-chart | Allot Ltd. Quote

Allot’s Product sales were $8.4 million (30% of the top line), up 71.4% from the prior-year quarter.

Allot’s revenues from Professional Services were $2.9 million, which contributed 10% to its top line, reflecting an increase of 3.6% from the year-ago quarter.

Allot’s revenues from Support & Maintenance sales were $9 million (32% of the top line), down 28% from the prior-year quarter.

Allot’s non-GAAP gross profit increased 18% year over year to $20.4 million, while the gross margin expanded 220 bps to 71.9%.

The non-GAAP operating income was $3.6 million, up from the year-ago quarter’s $1.8 million. The non-GAAP operating margin expanded 550 bps to 12.7%.

Allot’s Balance Sheet Details

As of Dec. 31, 2025, cash and cash equivalents, bank deposits and investment balances were $88 million, up from $81 million as of Sept. 30, 2025.

Allot generated $8.1 million in operating cash flow during the fourth quarter of 2025. In 2025, ALLT generated $17.8 million in operating cash flow.

Allot Initiates 2026 Guidance

For 2026, Allot expects revenues to be in the range of $113-$117 million. The Zacks Consensus Estimate for the same is pegged at $115.21 million, indicating year-over-year growth of 13.3%.

The consensus mark for 2026 is pegged at earnings per share of 28 cents, revised upward by 3 cents over the past 60 days, suggesting a year-over-year increase of 24.3%.

Zacks Rank & Stocks to Consider

Allot currently carries a Zacks Rank #3 (Hold).

Lam Research LRCX, Applied Materials AMAT and Amphenol APH are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Lam Research, Applied Materials and Amphenol carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings is pegged at $5.26 per share, revised upward by 8.5% over the past 30 days and suggests a year-over-year increase of 27.1%. Lam Research shares have soared 229.1% over the past year.

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings has moved upward by 8 cents over the past seven days to $10.96 per share, calling for an increase of 16.4% year over year. Applied Materials shares have climbed 153.5% in trailing 12 months.

The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised upward to $4.32 per share from $4.30 over the past 30 days. Amphenol shares have surged 137.4% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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