Allot Communications (ALLT)
NASDAQ:ALLT
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Allot
(NASDAQ:ALLT)
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Rating:70Outperform
Price Target:
$9.00
▲(24.14% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving financial performance (return to profitability, strong cash generation, and very low leverage) and a supportive earnings call highlighting accelerating growth and SECaaS momentum. This is tempered by a mixed technical picture and a high P/E valuation that increases execution risk if growth or margins soften.
Positive Factors
Strong cash generation & low leverage
Sustained positive operating cash flow and a large cash balance with no debt materially strengthen financial flexibility. This durable cash generation supports continued R&D and go-to-market investment, cushions execution risk, and enables opportunistic M&A or shareholder returns without relying on external financing.
Negative Factors
Dependence on CSP launch timing
Heavy reliance on CSP partners for distribution and marketing creates structural execution and timing risk. Delays or weak operator launches directly slows ARR monetization and recurring revenue recognition, making revenue cadence and growth durability contingent on third‑party go‑to‑market execution beyond Allot’s direct control.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & low leverage
Sustained positive operating cash flow and a large cash balance with no debt materially strengthen financial flexibility. This durable cash generation supports continued R&D and go-to-market investment, cushions execution risk, and enables opportunistic M&A or shareholder returns without relying on external financing.
Read all positive factors
Allot (ALLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$351.27M
Dividend YieldN/A
Average Volume (3M)517.66K
Price to Earnings (P/E)58.6
Beta (1Y)1.66
Revenue Growth12.64%
EPS GrowthN/A
CountryUS
Employees523
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.13
Shares Outstanding48,923,100
10 Day Avg. Volume471,617
30 Day Avg. Volume517,658
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 Cap0.81
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit3.79
Enterprise Value/Ebitda26.80
Forecast
1Y Price Target
$13.88Price Target Upside91.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.29
Revenue Forecast (FY)$116.09M
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
Overall the call was positive: the company reported accelerating revenue growth (14% YoY), strong and fast-growing SECaaS performance (SECaaS revenue +71% YoY; ARR +59% YoY; guidance for 40%+ SECaaS growth), improved margins and record operating cash flow, plus a healthy cash position and no debt. Offsetting factors include dependency on CSPs for service launches and timing, some one-time cash items and deferred revenue, Smart revenue timing variability, modestly higher operating investments and an inconsistency in stated full-year revenue ranges during the call. On balance, the positives — especially the rapid SECaaS adoption, improved profitability and strong cash generation — materially outweigh the risks and uncertainties discussed.Positive Updates
Revenue Growth
Total revenue of $26.4M in the quarter, up 14% year-over-year; third consecutive quarter of double-digit YoY growth, indicating accelerating top-line momentum.
Negative Updates
Conflicting Revenue Guidance in Remarks
Management commentary contained inconsistent full-year revenue ranges: CEO remarks referenced $130M–$170M while CFO later reaffirmed $113M–$117M. This inconsistency introduces clarity/credibility risk for guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $26.4M in the quarter, up 14% year-over-year; third consecutive quarter of double-digit YoY growth, indicating accelerating top-line momentum.
Read all positive updates
Company Guidance
Allot reiterated full‑year 2026 revenue guidance — the CFO reaffirmed $113–$117 million (management earlier referenced a broader $130–$170M range) and said the company is increasingly confident toward the upper end of the range; it also guided SECaaS revenue growth of 40%+ for 2026 (SECaaS ARR was $33.7M as of March 31, up 59% YoY, and Q1 SECaaS revenue was $8.7M, up 71% YoY), expects full‑year gross margin around 70% (Q1 non‑GAAP gross margin 71.3%), plans modest increases in R&D and higher sales & marketing spend while still targeting profitability improvement from operating leverage, and notes strong visibility from 67% recurring revenue after a Q1 revenue of $26.4M (+14% YoY), record operating cash flow of $10.6M, and cash of approximately $98M with no debt.Allot Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.27M | 101.99M | 92.19M | 93.15M | 122.74M | 145.60M |
| Gross Profit | 75.25M | 72.55M | 63.69M | 52.69M | 82.91M | 101.05M |
| EBITDA | 10.65M | 9.06M | 2.12M | -55.13M | -22.75M | -7.54M |
| Net Income | 5.98M | 3.71M | -5.87M | -62.80M | -32.03M | -15.04M |
Balance Sheet | ||||||
| Total Assets | 188.67M | 172.70M | 139.64M | 138.16M | 212.95M | 203.41M |
| Cash, Cash Equivalents and Short-Term Investments | 97.41M | 84.44M | 57.86M | 53.05M | 85.35M | 83.97M |
| Total Debt | 5.87M | 5.74M | 46.34M | 41.93M | 44.70M | 8.25M |
| Total Liabilities | 73.33M | 59.35M | 89.83M | 88.40M | 110.98M | 77.41M |
| Stockholders Equity | 115.34M | 113.35M | 49.81M | 49.76M | 101.97M | 126.01M |
Cash Flow | ||||||
| Free Cash Flow | 25.20M | 15.50M | 2.71M | -32.23M | -38.21M | -16.01M |
| Operating Cash Flow | 27.73M | 17.79M | 4.83M | -29.74M | -32.56M | -8.37M |
| Investing Cash Flow | -36.79M | -28.53M | -2.88M | 31.63M | -6.51M | -6.32M |
| Financing Cash Flow | 11.54M | 11.14M | 1.00K | 0.00 | 39.66M | 2.81M |
Allot Technical Analysis
Negative
7.25
Price Trends
7.44
Negative
7.74
Negative
8.73
Negative
Market Momentum
-0.10
Positive
44.89
Neutral
28.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Negative. The current price of 7.25 is below the 20-day moving average (MA) of 7.57, below the 50-day MA of 7.44, and below the 200-day MA of 8.73, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 28.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $351.27M | 58.57 | 5.46% | ― | 12.64% | ― | |
65 Neutral | $491.40M | -21.64 | -27.17% | ― | 13.32% | 61.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $459.11M | -9.86 | -26.16% | ― | ― | ― | |
55 Neutral | $1.65B | -322.15 | -1.28% | ― | 4.88% | -534.80% | |
51 Neutral | $330.71M | -12.46 | -40.48% | ― | 16.83% | 66.05% | |
42 Neutral | $90.66M | -0.51 | -144.52% | ― | 596.62% | -1642.34% |
* Technology Sector Average
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Allot Corporate Events
Allot Posts Strong Q1 2026, SECaaS Growth Lifts Margins and Cash Flow
May 12, 2026
On May 12, 2026, Israel-based Allot Ltd. reported unaudited first-quarter 2026 results showing revenue of $26.4 million, up 14% year-over-year, driven by strong growth in its Security-as-a-Service business. SECaaS revenue surged 71% to $8.7 millio...
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.