Allot (ALLT) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with double-digit revenue growth and record profitability, driven by cybersecurity-first strategy and SECaaS expansion.

• SECaaS ARR grew 69% year-over-year to $30.8 million, now representing a significant portion of total revenue.

• Focused on underserved consumer and SMB cybersecurity markets, launching new solutions and expanding partnerships, including MVNOs and major telco wins.

• Transitioned from a GAAP operating loss in 2024 to a profit in 2025, achieving the highest profit in over a decade.

Financial highlights

• Q4 2025 revenue was $28.4 million, up 14% year-over-year; full-year revenue reached $102 million, up 11% from 2024.

• SECaaS revenue in Q4 was $8.1 million, up 70% year-over-year; full-year SECaaS revenue was $26.8 million (26% of total revenue).

• Non-GAAP gross margin for Q4 was 71.9%; full-year non-GAAP gross margin was 72%.

• Q4 non-GAAP operating income was $3.6 million (12.7% margin), up 101% year-over-year; full-year non-GAAP operating income was $8.9 million.

• Q4 non-GAAP net income was $4.1 million ($0.08/share), up 105% year-over-year; full-year non-GAAP net income was $10.9 million ($0.23/share).

• Operating cash flow was $8.1 million in Q4 and $17.8 million for the year; cash and investments at year-end totaled $88 million, with no debt.

Outlook and guidance

• Forecasting 2026 revenue between $113 million and $117 million, with continued double-digit SECaaS ARR growth and profitability improvements.

• SECaaS ARR expected to maintain robust double-digit growth, outpacing total company revenue growth.

• Gross margin expected to remain around 70%, with some cost pressure from AI-driven hardware demand and currency fluctuations.

• Increased investment in sales, marketing, and R&D planned to support pipeline and product innovation.