Allot (ALLT) Q2 2025 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth to $24.1 million in Q2 2025, driven by strong SECaaS performance, which now represents 27% of total revenue.

• SECaaS ARR rose 73% year-over-year to $25.2 million, reflecting significant traction in security offerings and major new customer wins.

• Transitioned to non-GAAP profitability with $1.2 million operating profit and $1.5 million net income, compared to losses last year.

• Major contract wins with Verizon Business, Play (Poland), Más Móvil (Panama), and a landmark multi-year deal with a Tier 1 EMEA telco expanded the customer base and addressable market.

• Raised full-year 2025 revenue guidance to $98–102 million and increased SECaaS ARR growth expectations to 55–60%.

Financial highlights

• Q2 2025 revenue: $24.1 million, up from $22.2 million in Q2 2024.

• SECaaS revenue reached $6.4 million, up 73% year-over-year, comprising 27% of total revenue.

• Non-GAAP gross margin improved to 73.4% from 70.6% a year ago; GAAP gross margin at 72.1%.

• Non-GAAP operating income was $1.2 million, reversing a $1 million loss last year; non-GAAP net profit was $1.5 million ($0.03 per diluted share), compared to a $0.8 million loss ($0.02 per share) last year.

• Operating cash flow was $4.4 million, up from $1.2 million year-over-year.

• Ended Q2 with $72 million in cash and no debt after repaying convertible notes.

Outlook and guidance

• Full-year 2025 revenue guidance set at $98–102 million, reflecting confidence in continued growth.

• SECaaS ARR growth expected at 55–60% year-over-year for 2025.

• Strong backlog and pipeline support continued growth and improved visibility.