Allot (ALLT) Q4 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year revenue growth in 2025, with total revenue reaching $102 million, up 11% from 2024, and record profitability driven by strong cybersecurity solutions performance.

• SECaaS ARR grew 69% year-over-year to $30.8 million in December 2025, with recurring revenue comprising over 60% of total revenue.

• Delivered highest profit and cash flow in over a decade, transitioning from a GAAP operating loss in 2024 to a profit in 2025.

• Ended 2025 with $88 million in cash and no debt, providing strategic flexibility.

• Focused on underserved consumer and SMB cybersecurity markets, launching new solutions and securing key partnerships.

Financial highlights

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

• SECaaS ARR up 69% year-over-year to $30.8 million; Q4 SECaaS revenue was $8.1 million, representing 28% of quarterly revenue.

• Full-year non-GAAP gross margin was 72%, up from 70.6% in 2024; Q4 non-GAAP gross margin was 71.9%.

• 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.

• Full-year non-GAAP net income was $10.9 million ($0.23 per diluted share), up from $1.6 million in 2024; Q4 non-GAAP net income was $4.1 million ($0.08 per share).

• Operating cash flow for 2025 was $17.8 million, with $8.1 million generated in Q4.

Outlook and guidance

• Forecasting 2026 revenue between $113 million and $117 million, representing continued double-digit 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% in 2026, despite hardware cost pressures.

• Anticipates increased sales and marketing expenses and a modest rise in R&D investment.