Allot (ALLT) Q3 2025 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q3 2025, reaching $26.4 million, marking the first double-digit growth in several years.

• Reported highest operating profitability in over a decade, with non-GAAP operating income of $3.7 million and GAAP operating income of $2.2 million.

• Non-GAAP net income was $4.6 million ($0.10 per diluted share), up from $1.3 million ($0.03 per share) in Q3 2024.

• Cybersecurity/SECaaS annual recurring revenue (ARR) grew 60% year-over-year, reaching $27.6 million and comprising 28% of total revenue.

• Ended the quarter with $81 million in cash and no debt, reflecting a strong financial position.

Financial highlights

• Q3 2025 revenue: $26.4 million, up 14% year-over-year.

• SECaaS/CCAs revenue: $7.3 million, up 60% year-over-year, representing 28% of total revenue.

• Non-GAAP gross margin: 72.2%, up from 71.7% in Q3 2024; GAAP gross margin: 71.4%.

• Non-GAAP net income: $4.6 million ($0.10 per diluted share), up from $1.3 million ($0.03 per share) in Q3 2024.

• Cash, deposits, and investments totaled $81 million as of September 30, 2025, with positive operating cash flow for the third consecutive quarter.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $100–$103 million, citing strong SECaaS/CCAs growth and high backlog.

• SECaaS/CCAs ARR growth expected to surpass 60% year-over-year.

• Anticipate SECaaS/CCAs revenue to approach 30% of total business by year-end if current trends continue.