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Press ReleasesAllot Announces Second Quarter 2025 Financial Results

Allot Announces Second Quarter 2025 Financial Results

Exceptionally strong 73% year-over-year growth in SECaaS ARR; raising full year guidance

HOD HASHARON, Israel, Aug. 14, 2025 /PRNewswire/ — Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the second quarter 2025.

Allot Logo

Financial Highlights for the Second Quarter of 2025

  • Revenues of $24.1 million, up 9% year-over-year with SECaaS representing 27% of overall revenue;
  • June 2025 SECaaS ARR* of $25.2 million, up 73% year-over-year;
  • GAAP operating loss of $0.4 million versus $3.4 million operating loss last year;
  • Non-GAAP operating profit of $1.2 million versus an operating loss of $1.0 million in Q2 2024;
  • Strong positive operating cash flow of $4.4 million, compared to $1.2 million in Q2 2024;

Management Comment

Eyal Harari, CEO of Allot, commented, “We are very pleased with our strong Q2 financial results, which benefitted from exceptional SECaaS performance. SECaaS ARR was up 73% year-over-year, and SECaaS revenue exceeded 25% of our overall revenue. This strong SECaaS performance drove our overall company revenue growth to 9% year-over-year and supported our improvement in profitability.”

Continued Mr. Harari, “Our recent agreements illustrate the growing traction of our cyber-security offering. Verizon Business’s new mobile offering, which includes our SECaaS service, is gaining significant traction among end-customers and is already contributing meaningfully to our strong SECaaS revenue growth.

“As we announced in July, we won a landmark deal valued in the tens of millions of dollars with a tier-1 EMEA telecom operator. The multi-year agreement is one of Allot’s largest ever customer wins to-date and is particularly strategic as it demonstrates the value of our unique technological advantages and core expertise for major telco players in two key areas: cyber security and network intelligence.”

Concluded Mr. Harari, “In light of our accelerated SECaaS growth, improved visibility, and high level of backlog, we are introducing full year 2025 revenue guidance of $98-102 million, positioning us for a year of profitable growth. Furthermore, we are increasing our 2025 SECaaS ARR year-over-year growth expectations to a range of 55-60%.” 

Second Quarter 2025 Financial Results Summary

Total revenues for the second quarter of 2025 were $24.1 million, a 9% increase year-over-year compared with $22.2 million in the second quarter of 2024.

Gross profit on a GAAP basis for the second quarter of 2025 was $17.3 million (gross margin of 72.1%), a 14% increase compared with $15.2 million (gross margin of 68.5%) in the second quarter of 2024.   

Gross profit on a non-GAAP basis for the second quarter of 2025 was $17.6 million (gross margin of 73.4%), a 13% increase compared with $15.7 million (gross margin of 70.6%) in the second quarter of 2024.   

Operating loss on a GAAP basis for the second quarter of 2025 was $0.4 million, compared with an operating loss of $3.4 million in the second quarter of 2024.

Operating income on a non-GAAP basis for the second quarter of 2025 was $1.2 million, compared with an operating loss of $1.0 million in the second quarter of 2024.   

Net loss on a GAAP basis for the second quarter of 2025 was $1.7 million, or $0.04 per share, an improvement compared to the net loss of $3.4 million, or $0.09 per share, in the second quarter of 2024.

Net income on a non-GAAP basis for the second quarter of 2025 was $1.5 million, or $0.03 profit per diluted share, compared to the non-GAAP net loss of $0.8 million, or $0.02 loss per basic share, in the second quarter of 2024.

Operating cash flow generated in the quarter was $4.4 million.    

Net cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2025, totaled $72 million, an increase of $13 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of June 30, 2025, the company has no debt.

During the quarter, Allot closed a public offering of $46 million, out of which $40 million in gross proceeds were received during the second quarter and an additional $6 million in gross proceeds were received following the close of the quarter. The Company used the net proceeds to repay $31.4 million in convertible debt and the balance for general corporate purposes.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its second quarter 2025 earnings results today, August 14, 2025 at 9:00 am ET, 4:00 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: http://investors.allot.com/index.cfm 

About Allot

Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.

For more information, visit www.allot.com

Performance Metrics

* SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of June 2025 and multiplied by 12.

GAAP to Non-GAAP Reconciliation:

The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-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 is provided in the accompanying Table 2. 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, which 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 receivables, 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 fourth 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 filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These 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.

Investor Relations Contact:

Public Relations Contact:

EK Global Investor Relations

Seth Greenberg, Allot Ltd

Ehud Helft

+972 54 922 2294

+1 212 378 8040

sgreenberg@allot.com

allot@ekgir.com


 

TABLE  – 1

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)











Three Months Ended



Six Months Ended


June 30,



June 30,


2025


2024



2025


2024


(Unaudited)



(Unaudited)










Revenues

$            24,051


$          22,164



$          47,201


$          44,054

Cost of revenues

6,721


6,989



13,823


13,781

Gross profit  

17,330


15,175



33,378


30,273










Operating expenses:









Research and development costs, net

7,261


7,326



13,252


14,475

Sales and marketing

7,261


7,911



14,599


15,701

General and administrative

3,215


3,304



6,643


6,206

Total operating expenses

17,737


18,541



34,494


36,382

Operating loss

(407)


(3,366)



(1,116)


(6,109)

Loss from extinguishment

(1,410)




(1,410)


Other income

100




100


Financial income, net

359


489



1,033


1,029

Loss before income tax expenses

(1,358)


(2,877)



(1,393)


(5,080)










Income tax expenses

332


479



628


786

Net loss

$            (1,690)


$          (3,356)



$          (2,021)


$           (5,866)










 Basic net loss per share

$              (0.04)


$            (0.09)



$            (0.05)


$             (0.16)



















 Diluted net loss per share

$              (0.04)


$            (0.09)



$            (0.05)


$             (0.16)










Weighted average number of shares used in

computing basic net loss per share

4,01,40,875


3,87,12,407



3,99,44,413


3,85,62,065










Weighted average number of shares used in

computing diluted net loss per share

4,01,40,875


3,87,12,407



3,99,44,413


3,85,62,065

 

TABLE  – 2

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)












Three Months Ended


Six Months Ended



June 30,


June 30,



2025


2024


2025


2024



(Unaudited)


(Unaudited)

GAAP cost of revenues

$          6,721


$          6,989


$       13,823


$       13,781

 Share-based compensation (1) 

(160)


(324)


(254)


(478)

 Amortization of intangible assets (2) 

(152)


(152)


(305)


(304)

Non-GAAP cost of revenues

$          6,409


$          6,513


$       13,264


$       12,999










 GAAP gross profit 

$        17,330


$        15,175


$       33,378


$       30,273

 Gross profit adjustments 

312


476


559


782

 Non-GAAP gross profit 

$        17,642


$        15,651


$       33,937


$       31,055










 GAAP operating expenses 

$        17,737


$        18,541


$       34,494


$       36,382

 Share-based compensation (1) 

(1,289)


(1,863)


(2,176)


(3,069)

 Non-GAAP operating expenses 

$        16,448


$        16,678


$       32,318


$       33,313










 GAAP Loss from extinguishment 

$         (1,410)


$               –


$       (1,410)


$              –

 Loss from extinguishment 

1,410



1,410


 Non-GAAP Loss from extinguishment 

$               –


$               –


$              –


$              –










 GAAP financial and other income 

$             359


$            489


$         1,033


$         1,029

 Exchange rate differences* 

104


110


43


204

 Non-GAAP Financial and other income 

$             463


$            599


$         1,076


$         1,233










 GAAP taxes on income 

$             332


$            479


$            628


$            786

 Changes in tax related items 

(25)


(133)


(70)


(177)

 Non-GAAP taxes on income 

$             307


$            346


$            558


$            609










 GAAP Net profit (Loss) 

$         (1,690)


$        (3,356)


$       (2,021)


$       (5,866)

 Share-based compensation (1) 

1,449


2,187


2,430


3,547

 Amortization of intangible assets (2) 

152


152


305


304

 Loss from extinguishment 


1,410



1,410


 Exchange rate differences* 

104


110


43


204

 Changes in tax related items 


25


133


70


177

 Non-GAAP Net income (loss) 

$          1,450


$           (774)


$         2,237


$       (1,634)










 GAAP Loss per share (diluted) 

$           (0.04)


$          (0.09)


$         (0.05)


$         (0.16)

 Share-based compensation 

0.03


0.06


0.06


0.10

 Amortization of intangible assets 

0.01


0.01


0.01


0.01

 Loss from extinguishment 

0.03



0.03


 Non-GAAP Net income (Loss) per share (diluted) 

$            0.03


$          (0.02)


$           0.05


$         (0.05)


















Weighted average number of shares used in

computing GAAP diluted net income (loss) per share

4,01,40,875


3,87,12,407


3,99,44,413


3,85,62,065



















Weighted average number of shares used in

computing non-GAAP diluted net income (loss) per share

4,37,94,580


3,87,12,407


4,37,50,663


3,85,62,065










* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and

liabilities in non-dollar denominated currencies. 














TABLE  – 2 cont.

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)












Three Months Ended


Six Months Ended



June 30,


June 30,



2025


2024


2025


2024



(Unaudited)


(Unaudited)










(1) Share-based compensation:









Cost of revenues

$             160


$            324


$            254


$            478


Research and development costs, net

380


787


622


1,285


Sales and marketing

466


792


771


1,235


General and administrative

443


284


783


549



$          1,449


$          2,187


$         2,430


$         3,547










 (2) Amortization of intangible assets 









Cost of revenues

$             152


$            152


$            305


$            304


Sales and marketing










$             152


$            152


$            305


$            304

 

TABLE  – 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)













June 30,


December 31,



2025


2024



(Unaudited)


(Audited)




ASSETS





CURRENT ASSETS:





Cash and cash equivalents


$                   26,943


$               16,142

Restricted deposit


501


904

Short-term bank deposits


11,050


15,250

Available-for-sale marketable securities


11,518


26,470

Trade receivables, net (net of allowance for credit losses

of $22,392 and $25,306 on June 30, 2025 and December 31,

2024 , respectively)


20,135


16,482

Other receivables and prepaid expenses


8,641


6,317

Inventories


8,505


8,611

Total current assets


87,293


90,176






NON-CURRENT ASSETS:





Severance pay fund


$                        243


$                    464

Restricted deposit


329


279

Available-for-sale marketable securities


21,672


Operating lease right-of-use assets


6,091


6,741

Other assets 


552


2,151

Property and equipment, net


6,039


7,692

Intangible assets, net



305

Goodwill


31,833


31,833

Total non-current assets


66,759


49,465






Total assets


$                1,54,052


$            1,39,641






LIABILITIES AND SHAREHOLDERS’ EQUITY





CURRENT LIABILITIES:





Trade payables


$                        924


$                   946

Employees and payroll accruals


8,780


8,208

Deferred revenues


20,647


17,054

Short-term operating lease liabilities


484


562

Other payables and accrued expenses


10,996


9,200

Total current liabilities


41,831


35,970






LONG-TERM LIABILITIES:





Deferred revenues


6,079


7,136

Long-term operating lease liabilities


5,611


5,807

Accrued severance pay


814


946

Convertible debt



39,973

Total long-term liabilities


12,504


53,862






SHAREHOLDERS’ EQUITY


99,717


49,809






Total liabilities and shareholders’ equity


$               1,54,052


$          1,39,641

 

 

TABLE  – 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2025


2024


2025


2024


(Unaudited)


(Unaudited)









Cash flows from operating activities:
















Net loss

$        (1,690)


$      (3,356)


$        (2,021)


$          (5,866)

Adjustments to reconcile net loss to net cash used in operating activities:








Depreciation, amortization and impairment

1,073


1,359


2,419


2,776

Share-based compensation

1,449


2,187


2,430


3,547

Capital loss 



255


Loss from extinguishment

1,410



1,410


Other income

(100)



(100)


Changes in operating assets and liabilities:








Decrease (Increase)  in accrued severance pay, net

93


(107)


89


(165)

Decrease in other assets, other receivables and prepaid expenses

196


955


1,619


1,672

Decrease  in accrued interest and amortization of premium on available-for sale marketable securities

(521)


(405)


(862)


(777)

Decrease in operating leases liability

(60)


(159)


(203)


(618)

Decrease in operating lease right-of-use asset

275


622


579


1,174

Increase in trade receivables

(901)


(2,789)


(3,653)


(2,980)

Decrease (Increase) in inventories

(312)


2,101


106


2,268

Increase (Decrease) in trade payables

(97)


278


(22)


16

Increase (Decrease) in employees and payroll accruals

2,785


(649)


573


(4,135)

Increase in deferred revenues

273


595


2,536


1,965

Increase (Decrease) in other payables and accrued expenses

511


542


914


(12)

Net cash provided by (used in) operating activities

4,384


1,174


6,069


(1,135)









Cash flows from investing activities:
















Decrease (Increase) in restricted deposit

50


(1)


353


703

Investment in short-term bank deposits

(7,050)


(3,800)


(15,750)


(3,800)

Withdrawal of short-term bank deposits

12,700



19,950


10,000

Purchase of property and equipment

(408)


(957)


(689)


(1,386)

Investment in marketable securities

(26,458)


(10,477)


(55,434)


(34,752)

Proceeds from redemption or sale of marketable securities

27,283


7,225


49,683


32,060

Proceeds from sale of patent

100



100


Net cash provided by (used in) investing activities

6,217


(8,010)


(1,787)


2,825









Cash flows from financing activities:
















Issuance of share capital

37,691



37,691


Proceeds from exercise of stock options


1


238


1

Redemption of convertible debt

(31,410)



(31,410)


Net cash provided by financing activities

6,281


1


6,519


1

















Increase (Decrease) in cash and cash equivalents

16,882


(6,835)


10,801


1,691

Cash, cash equivalents at the beginning of the period

10,061


22,718


16,142


14,192









Cash, cash equivalents at the end of the period

$        26,943


$     15,883


$        26,943


$          15,883









Non-cash activities:








ROU asset and lease liability decrease, due to lease termination



(71)


Redemption of convertible debt

(10,000)



(10,000)


 

Other financial metrics (Unaudited)







U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares












Q2-25


FY 2024


FY 2023


Revenues geographic breakdown








Americas


4.2

17 %

14.2

15 %

16.6

18 %


EMEA


15.8

66 %

54.0

59 %

56.1

60 %


Asia Pacific


4.1

17 %

24.0

26 %

20.5

22 %




24.1

100 %

92.2

100 %

93.2

100 %










Revenues breakdown by type








Products


7.6

31 %

30.1

33 %

37.6

40 %


Professional Services

1.6

7 %

8.3

9 %

6.1

7 %


SECaaS (Security as a Service)

6.4

27 %

16.5

18 %

10.6

11 %


Support & Maintenance

8.5

35 %

37.3

40 %

38.9

42 %




24.1

100 %

92.2

100 %

93.2

100 %










Top 10 customers as a %  of  revenues

55 %


43 %


47 %











Non-GAAP Weighted average number of basic shares  (in millions)

40.1


38.9


37.9

















Non-GAAP weighted average number of fully diluted shares  (in millions)

43.8


42.3


40.3






















SECaaS (Security as a Service) revenues– U.S. dollars in millions (Unaudited)














Q2-2025:

6.4








Q1-2025:

5.1








Q4-2024:

4.8








Q3-2024:

4.7








Q2-2024:

3.7

















SECaaS ARR* – U.S. dollars in millions (Unaudited)
















Jun. 2025:

25.2








Dec. 2024:

18.2








Dec. 2023:

12.7








Dec. 2022:

9.2


























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