Allot Earnings Call Transcripts
Fiscal Year 2026
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A strategic shift to cybersecurity and recurring revenue has driven strong double-digit growth, with SECaaS now over one-third of revenue and high visibility for 2026. AI-driven threats and rising cyber awareness are fueling demand, while product innovation and regional partnerships support continued expansion.
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The company is rapidly transitioning from network intelligence to cybersecurity, with SECaaS driving strong double-digit growth and robust financial performance. AI is both a catalyst for new threats and a driver of innovation, while new partnerships and modular offerings expand market reach.
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Revenue grew 14% year-over-year with strong SECaaS momentum, now 33% of total revenue and up 71%. Record profitability and cash flow were driven by recurring revenue and Smart project milestones. 2026 guidance is reaffirmed, with SECaaS growth expected at 40% or more.
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Cybersecurity services for consumers and SMBs are driving rapid growth, with CCaaS now 30% of revenue and expected to surpass 60% YoY growth. Strong partnerships, recurring revenue, and innovation in AI-based protection underpin a strategy focused on CSP channels and expanding market reach.
Fiscal Year 2025
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Delivered double-digit revenue growth in 2025, driven by strong SECaaS adoption and recurring revenue, with robust profitability and cash flow. Guidance for 2026 anticipates continued double-digit growth, strong margins, and further expansion in cybersecurity offerings.
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Q3 2025 saw 14% revenue growth and record profitability, driven by strong CCAs and Smart product performance. CCAs ARR rose 60% year-over-year, and guidance was raised for both revenue and CCAs growth. Cash position strengthened to $81 million with no debt.
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The company has transitioned from network intelligence to a high-growth cybersecurity-as-a-service model, leveraging CSP partnerships to reach mass-market consumers and small businesses. With strong recurring revenue, high margins, and recent major contract wins, it is positioned for continued expansion and innovation.
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Q2 2025 saw 9% revenue growth and a 73% year-over-year surge in SECaaS ARR, now $25.2M. Major wins with Verizon and a Tier 1 EMEA telco, improved margins, and a debt-free balance sheet support raised 2025 guidance and strong long-term outlook.
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Q1 2025 saw 6% revenue growth and a return to profitability, led by a 49% rise in CCaaS revenue and major telco partnerships. Full-year CCaaS ARR is expected to grow around 50%, with a strong pipeline in both Smart and security segments.
Fiscal Year 2024
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Q4 and full-year 2024 saw a return to growth and profitability, driven by strong SECaaS performance and major new contracts. Gross margin rebounded to 70%, cash flow turned positive, and double-digit SECaaS growth is expected to continue in 2025.
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Q3 saw a return to profitability, with revenue up 3% year-over-year and strong SECaaS growth (up 69%). Gross margin improved to 71.7%, and positive cash flow was achieved. SECaaS ARR and revenue are expected to continue double-digit growth, driven by new telecom partnerships.
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Q2 saw positive operating cash flow, a 54% year-over-year increase in SECaaS revenue, and a 95% reduction in non-GAAP operating loss. SECaaS ARR is expected to grow 50% year-over-year, with new expansion agreements set to drive further growth.