Allot (ALLT) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenues of $23.2 million, up 6% year-over-year, with strong growth in Security as a Service (CCaaS/SECaaS) revenues and ARR, driven by a security-first strategy and robust telco partnerships.

• CCaaS/SECaaS contributed 22% of total revenue, with ARR up 55% year-over-year to $21.2 million.

• Non-GAAP operating profit reached $0.4 million, reversing a $1.2 million loss in Q1 2024; non-GAAP net income was $0.8 million ($0.02/share).

• Signed several multi-million dollar Smart and Tera III product agreements, expanding the future growth pipeline.

• Significant expansion of partnership with Verizon Business, now covering over 30 million mobile subscribers, and continued progress with Vodafone and other major telcos.

Financial highlights

• Q1 2025 revenue was $23.2 million, up 6% year-over-year; CCaaS/SECaaS revenue reached $5.1 million, up 49% year-over-year.

• Non-GAAP gross margin remained strong at 70.4%; GAAP gross margin at 69.3%.

• Non-GAAP operating income was $0.4 million; non-GAAP net income was $0.8 million ($0.02/share); GAAP net loss narrowed to $0.3 million ($0.01/share).

• Positive operating cash flow of $1.7 million; cash and equivalents, short-term deposits, and investments totaled $60.7 million as of March 31, 2025.

• SECaaS quarterly revenue increased sequentially from $3.4 million in Q1 2024 to $5.1 million in Q1 2025.

Outlook and guidance

• Management expects full-year 2025 CCaaS/SECaaS revenue and ARR growth of around 50% or more year-over-year, with continued profitable growth and gross margin expected to remain around 70%.

• Employee headcount projected to rise gradually toward 500 by year-end.