Allot Announces Second Quarter 2026 Financial Results

Raising 2026 revenue guidance to $115–$118 million

HOD HASHARON, Israel, Aug. 12, 2026 /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 second quarter of 2026.

Financial Highlights for the Second Quarter of 2026

• Strong revenue growth to $27.7 million, up 15% year-over-year;
• Security-as-a-Service (SECaaS) revenues of $9.4 million, increasing 47% year-over-year;
• June 2026 SECaaS ARR* of $36.1 million, up 44% year-over-year;
• GAAP operating income of $1.1 million, compared with a GAAP operating loss of $0.4 million in the second quarter of 2025;
• Non-GAAP operating income of $2.7 million, a significant increase compared with $1.2 million in the second quarter of 2025;
• Operating cash flow of $8.5 million, more than double compared with $4.0 million in the second quarter of 2025;
• On June 23, 2026, the Board of Directors approved a share repurchase program of up to $40 million.

Management Comment

Eyal Harari, CEO of Allot, commented, "We are excited to report our fourth consecutive quarter of double-digit growth. I am particularly encouraged by the revenue strength of the North American region this quarter, as I believe that this region has many opportunities to provide us with sustainable long-term growth."

Mr. Harari added, "Following our solid execution and visibility for the remainder of the year, we are raising our 2026 revenue guidance to between $115 million and $118 million, with continued improvement in profitability. We expect our SECaaS revenue growth for 2026 to be 40% or more. We see many growth opportunities ahead of us and with over $100 million in cash, we believe we are well positioned to capitalize on these opportunities while maximizing shareholder value."

Mr. Harari concluded, "At the end of the second quarter, our Board of Directors approved a $40 million share repurchase program, reflecting our confidence in Allot's strategy and financial strength."

Second Quarter 2026 Financial Results Summary

Total revenues for the second quarter of 2026 were $27.7 million, a 15% increase year-over-year compared with $24.1 million in the second quarter of 2025.

Gross profit on a GAAP basis for the second quarter of 2026 was $19.8 million (gross margin of 71.3%), a 14% increase compared with $17.3 million (gross margin of 72.1%) in the second quarter of 2025.

Gross profit on a non-GAAP basis for the second quarter of 2026 was $19.9 million (gross margin of 71.8%), a 13% increase compared with $17.6 million (gross margin of 73.4%) in the second quarter of 2025.

Operating income on a GAAP basis for the second quarter of 2026 was $1.1 million (operating margin of 4.0%), compared with an operating loss of $0.4 million in the second quarter of 2025.

Operating income on a non-GAAP basis for the second quarter of 2026 was $2.7 million (operating margin of 9.9%), compared with $1.2 million (operating margin of 5.0%) in the second quarter of 2025.

Net income on a GAAP basis for the second quarter of 2026 was $2.6 million, or $0.05 per diluted share, compared with a net loss of $1.7 million, or $0.04 per diluted share, in the second quarter of 2025.

Net income on a non-GAAP basis for the second quarter of 2026 was $4.6 million, or $0.09 per diluted share, compared with $1.5 million, or $0.03 per diluted share, in the second quarter of 2025.

Operating cash flow generated in the quarter was $8.5 million, compared with $4.0 million in the second quarter of 2025.

Cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2026, totaled $107 million, compared with $88 million as of December 31, 2025.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its second quarter 2026 earnings results today, August 12, 2026, at 8:30 am ET, 1:30 pm UK, 3:30 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: https://investors.allot.com/

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 1,000 enterprises. Allot's 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, calculated as estimated SECaaS revenues for the month of June 2026, multiplied by 12.

GAAP to Non-GAAP Reconciliation:

The Company presents non–GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company's ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP operating income is defined as GAAP operating income excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, loss from extinguishment, acquisition–related and other non–recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-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 are presented below. 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 within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including revenue, profitability growth, long-term growth opportunities, our ability to execute our strategy, capital allocation, share repurchase programs, maximizing shareholder value, and future opportunities, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements 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 receivable, 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 third 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 for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the 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.

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SOURCE Allot Ltd.