Allot (ALLT) Q1 2026 earnings summary

Executive summary

• Revenue grew 14% year-over-year to $26.4 million, marking the third consecutive quarter of double-digit growth in Q1 2026.

• Security as a Service (SECaaS) revenues surged 71% year-over-year to $8.7 million, now comprising 33% of total revenue.

• Recurring revenue accounted for 67% of total revenue, providing strong visibility into future quarters.

• SECaaS annual recurring revenue (ARR) reached $33.7 million, up 59% year-over-year.

• Operating cash flow reached a record $10.6 million for the quarter.

Financial highlights

• Quarterly revenue was $26.4 million, up from $23.2 million in Q1 2025.

• Non-GAAP gross margin improved to 71.3% from 70.4% a year ago.

• Non-GAAP operating income was $2.6 million (9.9% margin), up from $0.4 million (1.8% margin) last year.

• Non-GAAP net profit was $3.1 million ($0.06 per diluted share), up from $0.8 million ($0.02 per share) last year.

• Cash and equivalents totaled $98 million as of March 31, 2026, with no debt.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $113–$117 million, with confidence toward the upper end.

• SECaaS revenue growth of 40% or more projected for 2026.

• Gross margin expected to remain around 70% for the year.

• Continued investment in sales, marketing, and R&D anticipated, with profitability improvements expected.