Allot Ltd. Reports Impressive First Quarter 2025 Financial Results with Significant Growth in Security Services

Allot Announces First Quarter 2025 Financial Results



HOD HASHARON, Israel, May 12, 2025
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a prominent provider of innovative network intelligence and security solutions, recently unveiled its unaudited financial outcomes for the first quarter of 2025. The company has demonstrated robust growth, particularly in the realm of Security as a Service (SECaaS).

Financial Highlights


1. Quarterly Revenues: Allot recorded revenues of $23.2 million for the first quarter, reflecting a 6% increase compared to $21.9 million in the same period last year.
2. SECaaS Growth: SECaaS revenues surged by 49% year-over-year, reaching $5.1 million.
3. Annual Recurring Revenue (ARR) for SECaaS reached $21.2 million, representing a remarkable 54% increase from the previous year.
4. Profitability: The company achieved a non-GAAP operating profit of $0.4 million in contrast to an operating loss of $1.2 million experienced in the first quarter of 2024.
5. Positive Cash Flow: Allot also reported positive operating cash flow of $1.7 million during the quarter.

Management Insights


Eyal Harari, CEO of Allot, expressed satisfaction with the company’s performance, emphasizing the year-over-year growth across essential metrics. He mentioned that Allot has secured multiple multi-million dollar agreements with new clients for its Smart product, and there is heightened interest in their Tera III product from major tier-1 customers, poised to enhance future growth potential.

Mr. Harari highlighted the triumph of the SECaaS offering, stating, “Recent contracts underscore the success of our security business, and we are well-positioned to further escalate our recurring revenue stream.” Additionally, he noted Verizon Business’s recent launch of a mobile plan that integrates Allot’s SECaaS service, underlining Verizon's commitment to customer cybersecurity.

Looking ahead, he anticipated that the full year of 2025 would yield profitable growth, projecting SECaaS revenue and ARR to increase at an impressive rate of around 50% or more.

Detailed Financial Overview


During the first quarter of 2025, the financial performance indicates tremendous resilience:
  • - GAAP Gross Profit: Reached $16.0 million (69.3% gross margin), marking a 6% increase from the previous year's $15.1 million (69% gross margin).
  • - Operating Loss: The GAAP operating loss narrowed to $0.7 million from $2.7 million in the first quarter of 2024.
  • - Net Loss: Registered a net loss of $0.3 million, or $0.01 per share, an improvement from a net loss of $2.5 million, or $0.07 per share, recorded a year earlier.
  • - Cash Reserves: As of March 31, 2025, Allot’s cash reserves and equivalents totaled $60.7 million, up by $2 million from $58.8 million at the end of the previous year.

Future Prospects


Allot's commitment to innovation and strategic growth paints a bright future for the company. With a robust demand for security solutions and continuous development of new service offerings, Allot is well-equipped to maintain its upward trajectory. The ongoing rise in cybersecurity threats enhances the appeal and necessity of Allot's services across various sectors.

The management will host a conference call to delve further into its Q1 2025 earnings results, showcasing the company’s strategic direction and commitment to delivering market-leading solutions. Investors and interested parties can join the call on May 12, 2025, at 9:00 AM ET.

For more information about Allot and its offerings, please visit www.allot.com.

Topics Business Technology)

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