Allot Ltd. Reports Strong Q4 2025 Financial Outcomes with Record Profitability
Allot Ltd. Reports Robust Financial Results for Q4 2025
On February 25, 2026, Allot Ltd. (NASDAQ: ALLT) announced its financial results for the fourth quarter and the entire year of 2025, revealing an impressive growth trajectory. The company, renowned for its advanced Security-as-a-Service (SECaaS) and network intelligence solutions, reported significant year-over-year increases across key financial metrics.
Q4 2025 Financial Highlights
Allot's revenues for the fourth quarter came in at $28.4 million, illustrating a 14% jump from $24.9 million in Q4 2024. The company's SECaaS annual recurring revenue (ARR) surged to $30.8 million, reflecting a remarkable 69% increase year-over-year. Notably, Allot achieved a GAAP operating profit of $2.6 million, a substantial rise compared to the $0.3 million recorded in the same quarter of the previous year.
Additionally, Allot reported a non-GAAP operating profit of $3.6 million, marking a 101% increase over the $1.8 million profit in Q4 2024. The company also generated a robust positive operating cash flow of $8.1 million, nearly double that of the previous year, accompanied by a total cash reserve of $88 million with no debt.
Full Year 2025 Performance
In terms of full-year performance, Allot reported annual revenues of $102 million, representing an 11% increase compared to the previous year's $92.2 million. The company transformed a prior loss of $6 million into a GAAP operating profit of $3.6 million for 2025. The non-GAAP operating profit also exhibited significant growth, rising to $8.9 million from just $0.6 million in 2024. Allot's operating cash flow for 2025 amounted to $17.8 million, highlighting a consistent positive cash generation trend.
CEO Eyal Harari expressed confidence in the company's trajectory, stating, "We are very pleased with our turnaround and continued strong improvements throughout 2025. The growth was primarily fueled by our cybersecurity solutions, which resonated well with our customers amidst increasing demand for dependable security measures."
Strategic Outlook for 2026
Looking forward, Allot aims to accelerate revenue growth, projecting an expected range of $113 to $117 million for 2026. Harari emphasized the company's commitment to its cybersecurity-first strategy, designed to integrate security and network intelligence into cohesive solutions. As cybersecurity threats evolve alongside advancing technologies, Allot is poised to leverage its innovative solutions to meet rising market demands effectively.
In light of Allot's strong performance in 2025 and the positive outlook for the coming year, stakeholders can expect a continued emphasis on innovative cybersecurity solutions that integrate seamlessly with existing network architectures. The company's growth strategy reflects both a solid operational foundation and a proactive response to an ever-changing digital landscape, cementing its position as a leader in the industry. Investors and customers alike are encouraged to monitor Allot's progress as it navigates towards 2026 and beyond, with substantial improvements in both profitability and service offerings anticipated as key themes for future performance.
In conclusion, Allot's financial achievements in Q4 2025 not only exhibit substantial growth but also set a strong precedent for future advancements, positioning the company well within the competitive cybersecurity market landscape.