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Allot
(NASDAQ:ALLT)
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Rating:67Neutral
Price Target:
$8.50
▲(11.55% Upside)
Action:Downgraded
Date:08/17/26
The score is driven primarily by improved fundamentals—profitability and strong free cash flow alongside a currently de-risked balance sheet. The earnings call adds support via upbeat SECaaS momentum and capital return (buyback), but the overall score is held back by modest TTM revenue growth, a relatively high P/E with no dividend support, and mostly neutral-to-soft technical momentum (below the 200-day average with slightly negative MACD).
Positive Factors
SECaaS Growth and Recurring Revenue
SECaaS revenue grew 47% YoY and ARR 44%, while recurring revenue reached 67% of Q2 sales. This shifts Allot toward subscription-like, operator-distributed cybersecurity revenue, improving visibility and creating a durable growth engine as adoption expands.
Negative Factors
Limited Company-Wide Growth History
TTM revenue growth is only 3.5%, and the company previously posted losses and negative cash flow in 2021–2024. This uneven record makes the turnaround less proven and means sustained expansion depends on converting fast SECaaS growth into broader company-wide growth.
Read all positive and negative factors
Positive Factors
Negative Factors
SECaaS Growth and Recurring Revenue
SECaaS revenue grew 47% YoY and ARR 44%, while recurring revenue reached 67% of Q2 sales. This shifts Allot toward subscription-like, operator-distributed cybersecurity revenue, improving visibility and creating a durable growth engine as adoption expands.
Read all positive factors
Allot (ALLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$374.26M
Dividend YieldN/A
Average Volume (3M)383.14K
Price to Earnings (P/E)36.4
Beta (1Y)1.65
Revenue Growth14.28%
EPS GrowthN/A
CountryUS
Employees362
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.22
Shares Outstanding48,923,100
10 Day Avg. Volume272,265
30 Day Avg. Volume383,139
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)3.82
Price to Sales (P/S)4.25
P/FCF Ratio27.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.38Price Target Upside75.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.33
Revenue Forecast (FY)$116.17M
Allot Business Overview & Revenue Model
Company Description
Allot Ltd., an Israeli company established in 1996 and headquartered in Hod Hasharon, delivers intelligent networking and robust security solutions to markets worldwide. The firm's primary objective is to safeguard and personalize digital experien...
How the Company Makes Money
Allot makes money primarily by selling software, subscriptions, and related services to communications service providers (CSPs). Key revenue streams typically include: (1) Network intelligence and control solutions sold to CSPs—this can include li...
Allot Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial momentum: solid revenue growth (15% YoY), rapid SECaaS expansion (47% YoY revenue growth; 44% ARR growth), improved profitability and cash generation, a strong cash balance and a $40M buyback authorization. Key risks and negatives are mostly timing and mix-related: modest gross margin compression due to product mix, quarterly lumpiness from large Tera III product deals, increased operating spend (including one-time items), some regional sequential softness, dependency on partners for SECaaS onboarding, and ambiguous messaging around the guidance update. Overall, the positive growth, recurring-revenue mix and cash/earnings improvements materially outweigh the operational timing and mix risks discussed on the call.Positive Updates
Revenue Growth and Quarterly Momentum
Total revenue of $27.7M in Q2 2026, up 15% year-over-year; fourth consecutive quarter of double-digit YoY growth and acceleration versus recent quarters.
Negative Updates
Gross Margin Compression
Non-GAAP gross margin of 71.8% in Q2 versus 73.4% in Q2 last year (down 1.6 percentage points), primarily attributed to product mix. Company expects ~70% gross margin for full year 2026 and quarter-to-quarter variance based on product mix.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Quarterly Momentum
Total revenue of $27.7M in Q2 2026, up 15% year-over-year; fourth consecutive quarter of double-digit YoY growth and acceleration versus recent quarters.
Read all positive updates
Company Guidance
Allot raised and narrowed its full‑year 2026 revenue guidance to $115–$118 million and reiterated it expects Security‑as‑a‑Service (SECaaS) revenue growth of 40%+ for the year, gross margin around 70% (Q2 non‑GAAP gross margin was 71.8%), and continued profitability improvement while running operating expenses at a similar run‑rate to Q2 (Q2 non‑GAAP opex $17.2M, opex ~62% of revenue); Q2 results that underpin the guidance included revenue of $27.7M (up 15% YoY), SECaaS revenue $9.4M (up 47% YoY) comprising 34% of revenue, SECaaS ARR $36.1M (up 44% YoY), 67% of revenue recurring, non‑GAAP operating income $2.7M (9.9% margin), non‑GAAP net income $4.6M ($0.09/sh) and GAAP net income $2.6M ($0.05/sh), strong operating cash flow of $8.5M, cash and equivalents of $107M with no debt, growing deferred revenue (including a $7.5M Q/Q increase) that supports visibility into 2H‑2026/2027, and a Board‑approved up to $40M share repurchase program.Allot Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 108.95M | 101.99M | 92.19M | 93.15M | 122.74M | 145.60M |
| Gross Profit | 77.68M | 72.55M | 63.69M | 52.69M | 82.91M | 101.05M |
| EBITDA | 14.01M | 9.06M | 2.12M | -55.13M | -22.75M | -7.54M |
| Net Income | 10.24M | 3.71M | -5.87M | -62.80M | -32.03M | -15.04M |
Balance Sheet | ||||||
| Total Assets | 203.57M | 172.70M | 139.64M | 138.16M | 212.95M | 203.41M |
| Cash, Cash Equivalents and Short-Term Investments | 102.20M | 84.44M | 57.86M | 53.05M | 85.35M | 83.97M |
| Total Debt | 6.92M | 5.74M | 46.34M | 41.93M | 44.70M | 8.25M |
| Total Liabilities | 84.24M | 59.35M | 89.83M | 88.40M | 110.98M | 77.41M |
| Stockholders Equity | 119.33M | 113.35M | 49.81M | 49.76M | 101.97M | 126.01M |
Cash Flow | ||||||
| Free Cash Flow | 28.96M | 15.50M | 2.71M | -32.23M | -38.21M | -16.01M |
| Operating Cash Flow | 31.22M | 17.79M | 4.83M | -29.74M | -32.56M | -8.37M |
| Investing Cash Flow | -49.10M | -28.53M | -2.88M | 31.63M | -6.51M | -6.32M |
| Financing Cash Flow | 4.62M | 11.14M | 1.00K | 0.00 | 39.66M | 2.81M |
Allot Technical Analysis
Positive
7.62
Price Trends
7.90
Positive
7.66
Positive
8.30
Negative
Market Momentum
-0.05
Negative
53.58
Neutral
51.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Positive. The current price of 7.62 is below the 20-day moving average (MA) of 7.75, below the 50-day MA of 7.90, and below the 200-day MA of 8.30, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLT.
Allot Risk Analysis
Allot disclosed 44 risk factors in its most recent earnings report. Allot reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allot Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $374.26M | 36.39 | 8.95% | ― | 14.28% | ― | |
67 Neutral | $1.51B | -661.35 | <0.01% | ― | 9.25% | ― | |
64 Neutral | $927.26M | -44.82 | -24.09% | ― | 13.85% | 61.09% | |
63 Neutral | $425.02M | -9.10 | -23.59% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $295.54M | -9.02 | -45.15% | ― | 171.79% | 62.11% | |
48 Neutral | $139.49M | -0.57 | -233.42% | ― | 328.63% | -819.20% |
* Technology Sector Average
ALLT
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Allot Corporate Events
Allot Lifts 2026 Guidance After Strong Q2 and $40 Million Buyback Approval
Aug 12, 2026
On August 12, 2026, Allot reported unaudited second-quarter 2026 results showing revenue of $27.7 million, up 15% year-on-year, and SECaaS revenue of $9.4 million, up 47%, with SECaaS ARR reaching $36.1 million, a 44% increase. The company swung t...
Allot Launches $40 Million Share Buyback to Signal Confidence in Growth
Jun 23, 2026
On June 23, 2026, Allot Ltd. announced that its board has authorized a share repurchase program of up to $40 million of its ordinary shares, to be executed on Nasdaq and the Tel Aviv Stock Exchange or via privately negotiated transactions. The pro...
Allot Board Member Cynthia L. Paul Resigns After Guiding Growth and Transformation
Jun 15, 2026
On June 15, 2026, Allot Ltd. announced that board member Cynthia L. Paul resigned from the company’s Board of Directors, effective the same day, citing the demands of her other business responsibilities. Paul, who had served on the board sin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.