Allot Announces Second Quarter 2026 Financial Results

Allot Announces Second Quarter 2026 Financial Results Raising 2026 revenue guidance to $115–$118 million

HOD HASHARON, Israel, Aug. 12, 2026 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the second quarter of 2026.

Financial Highlights for the Second Quarter of 2026

Management Comment

Eyal Harari, CEO of Allot, commented, "We are excited to report our fourth consecutive quarter of double-digit growth. I am particularly encouraged by the revenue strength of the North American region this quarter, as I believe that this region has many opportunities to provide us with sustainable long-term growth."

Mr. Harari added, "Following our solid execution and visibility for the remainder of the year, we are raising our 2026 revenue guidance to between $115 million and $118 million, with continued improvement in profitability. We expect our SECaaS revenue growth for 2026 to be 40% or more. We see many growth opportunities ahead of us and with over $100 million in cash, we believe we are well positioned to capitalize on these opportunities while maximizing shareholder value."

Mr. Harari concluded, "At the end of the second quarter, our Board of Directors approved a $40 million share repurchase program, reflecting our confidence in Allot's strategy and financial strength."

Second Quarter 2026 Financial Results Summary

Total revenues for the second quarter of 2026 were $27.7 million, a 15% increase year-over-year compared with $24.1 million in the second quarter of 2025.

Gross profit on a GAAP basis for the second quarter of 2026 was $19.8 million (gross margin of 71.3%), a 14% increase compared with $17.3 million (gross margin of 72.1%) in the second quarter of 2025.

Gross profit on a non-GAAP basis for the second quarter of 2026 was $19.9 million (gross margin of 71.8%), a 13% increase compared with $17.6 million (gross margin of 73.4%) in the second quarter of 2025.

Operating income on a GAAP basis for the second quarter of 2026 was $1.1 million (operating margin of 4.0%), compared with an operating loss of $0.4 million in the second quarter of 2025.

Operating income on a non-GAAP basis for the second quarter of 2026 was $2.7 million (operating margin of 9.9%), compared with $1.2 million (operating margin of 5.0%) in the second quarter of 2025.

Net income on a GAAP basis for the second quarter of 2026 was $2.6 million, or $0.05 per diluted share, compared with a net loss of $1.7 million, or $0.04 per diluted share, in the second quarter of 2025.

Net income on a non-GAAP basis for the second quarter of 2026 was $4.6 million, or $0.09 per diluted share, compared with $1.5 million, or $0.03 per diluted share, in the second quarter of 2025.

Operating cash flow generated in the quarter was $8.5 million, compared with $4.0 million in the second quarter of 2025.

Cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2026, totaled $107 million, compared with $88 million as of December 31, 2025.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its second quarter 2026 earnings results today, August 12, 2026, at 8:30 am ET, 1:30 pm UK, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers' customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1,000 enterprises. Allot's industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.

For more information, visit www.allot.com

Performance Metrics

* SECaaS ARR – measures the current annual recurring SECaaS revenues, calculated as estimated SECaaS revenues for the month of June 2026, multiplied by 12.

GAAP to Non-GAAP Reconciliation:

The Company presents non–GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company's ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP operating income is defined as GAAP operating income excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, loss from extinguishment, acquisition–related and other non–recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-related items.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are presented below. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including revenue, profitability growth, long-term growth opportunities, our ability to execute our strategy, capital allocation, share repurchase programs, maximizing shareholder value, and future opportunities, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivable, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:

EK Global Investor Relations

Ehud Helft

+1 212 378 8040

[email protected]

Public Relations Contact:

Seth Greenberg, Allot Ltd.

+972 54 922 2294

[email protected]

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

June 30,

December 31,

2026

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 13,759

$ 17,107

Restricted deposit

3,637

3,573

Short-term bank deposits

31,100

15,100

Available-for-sale marketable securities

57,345

48,663

Trade receivables, net (net of allowance for credit losses of

$9,148 and $9,611 on June 30, 2026, and December 31, 2025,

respectively)

25,170

17,451

Other receivables and prepaid expenses

9,403

9,906

Inventories

17,497

13,180

Total current assets

157,911

124,980

NON-CURRENT ASSETS:

Severance pay fund

$ 333

$ 295

Restricted deposit

666

3,327

Operating lease right-of-use assets

6,547

5,518

Other assets

957

732

Property and equipment, net

5,319

6,014

Goodwill

31,833

Total non-current assets

45,655

47,719

Total assets

$ 203,566

$ 172,699

LIABILITIES AND

SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

$ 1,418

$ 938

Employees and payroll accruals

8,782

9,254

Deferred revenues

45,613

24,700

Short-term operating lease liabilities

1,588

348

Other payables and accrued expenses

12,530

11,919

Total current liabilities

69,931

47,159

LONG-TERM LIABILITIES:

Deferred revenues

$ 8,334

$ 5,912

Long-term operating lease liabilities

5,331

5,392

Accrued severance pay

645

886

Total long-term liabilities

14,310

12,190

SHAREHOLDERS' EQUITY

119,325

113,350

Total liabilities and shareholders' equity

$ 203,566

$ 172,699

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues

$ 27,737

$ 24,051

$ 54,162

$ 47,201

Cost of revenues

7,968

6,721

15,652

13,823

Gross profit

19,769

17,330

38,510

33,378

Operating expenses:

Research and development costs, net

6,991

7,261

13,273

13,252

Sales and marketing

8,042

7,261

15,865

14,599

General and administrative

3,637

3,215

6,745

6,643

Total operating expenses

18,670

17,737

35,883

34,494

Operating income (loss)

1,099

(407)

2,627

(1,116)

Loss from extinguishment

(1,410)

Other income

100

Financial income, net

1,975

359

2,760

1,033

Income (loss) before tax

3,074

(1,358)

5,387

(1,393)

Income tax expenses

501

332

872

628

Net income (loss)

$ 2,573

$ (1,690)

$ 4,515

$ (2,021)

Income (loss) per share

Basic

$ 0.05

$ (0.04)

$ 0.09

$ (0.05)

Diluted

$ 0.05

$ (0.04)

$ 0.09

$ (0.05)

Weighted average shares

outstanding

Basic

49,151,073

40,140,875

48,965,108

39,944,413

Diluted

49,832,577

40,140,875

49,864,006

39,944,413

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income (loss)

$ 2,573

$ (1,690)

$ 4,515

$ (2,021)

Adjustments to reconcile net income (loss) to net

cash provided by (used in) operating activities:

Depreciation and amortization

686

1,073

1,345

2,419

Share-based compensation

1,643

1,449

2,737

2,430

Capital loss

255

Loss from extinguishment

1,410

Other income

(100)

Amortization of premium, discount

and accrued interest on marketable

securities

(211)

(521)

(445)

(862)

Financial income from lease

modification

(1,158)

Loss (gain) on foreign exchange on

cash and cash equivalents

(399)

(409)

Changes in operating assets and liabilities:

(Decrease) increase in accrued

severance pay, net

(250)

(279)

Decrease (increase) in other assets,

other receivables and prepaid

expenses

501

196

(933)

1,619

Decrease (increase) in operating

leases liability

449

(60)

581

(203)

Increase in operating lease right-of-

use asset

446

275

727

579

Increase in trade receivables

(4,626)

(901)

(7,719)

(3,653)

(Increase) decrease in inventories

(1,741)

(312)

(4,317)

106

Increase (decrease) in trade

payables

(22)

(97)

480

(22)

Increase (decrease) in employees

and payroll accruals

875

2,785

(472)

573

Increase in deferred revenues

8,367

273

23,335

2,536

Increase (decrease) in other

payables and accrued expenses

922

511

612

914

Net cash provided by operating activities

8,466

3,985

19,041

5,660

Cash flows from investing activities:

(Increase) decrease in restricted

deposit

(403)

2,597

353

Investment in short-term bank

deposits

(20,900)

(7,050)

(31,400)

(15,750)

Withdrawal of short-term bank

deposits

11,600

12,700

15,400

19,950

Purchase of property and equipment

(269)

(408)

(650)

(689)

Investment in marketable securities

(4,589)

(26,458)

(34,554)

(55,434)

Proceeds from redemption or sale of

marketable securities

6,750

27,283

26,250

49,683

Proceeds from sale of patent

100

Net cash (used in) provided by investing activities

(7,811)

6,217

(22,357)

(1,787)

Cash flows from financing activities:

Issuance of share capital

37,691

Exercise of employee stock options

238

Redemption of convertible debt

(31,410)

Net cash provided by financing

activities

6,281

6,519

Effect of exchange rate changes

on cash and cash equivalents

(12)

399

(32)

409

Increase (decrease) in cash and

cash equivalents

643

16,882

(3,348)

10,801

Cash and cash equivalents at the

beginning of the period

13,116

10,061

17,107

16,142

Cash and cash equivalents at the

end of the period

$ 13,759

$ 26,943

$ 13,759

$ 26,943

Non-cash activities:

Right-of-use assets obtained in

exchange for operating lease

liabilities

593

(71)

Redemption of convertible debt

(10,000)

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

(Unaudited)

GAAP cost of revenues

$ 7,968

$ 6,721

$ 15,652

$ 13,823

Share-based compensation

(135)

(160)

(240)

(254)

Amortization of intangible

assets

(152)

(305)

Non-GAAP cost of

revenues

$ 7,833

$ 6,409

$ 15,412

$ 13,264

GAAP gross profit

$ 19,769

$ 17,330

$ 38,510

$ 33,378

Share-based compensation

135

160

240

254

Amortization of intangible

assets

152

305

Non-GAAP gross profit

$ 19,904

$ 17,642

$ 38,750

$ 33,937

GAAP operating expenses

$ 18,670

$ 17,737

$ 35,883

$ 34,494

Share-based compensation

- Research and development

costs, net

(337)

(380)

(528)

(622)

Share-based compensation

- Sales and marketing

(766)

(466)

(1,163)

(771)

Share-based compensation

- General and administrative

(405)

(443)

(806)

(783)

Non-GAAP operating

expenses

$ 17,162

$ 16,448

$ 33,386

$ 32,318

GAAP operating Income

(Loss)

$ 1,099

$ (407)

$ 2,627

$ (1,116)

Share-based compensation

1,643

1,449

2,737

2,430

Amortization of intangible

assets

$ -

$ 152

$ -

$ 305

Non-GAAP operating

Income

$ 2,742

$ 1,194

$ 5,364

$ 1,619

GAAP Net income (Loss)

$ 2,573

$ (1,690)

$ 4,515

$ (2,021)

Share-based compensation

1,643

1,449

2,737

2,430

Amortization of intangible

assets

152

305

Loss from extinguishment

1,410

Exchange rate differences*

125

104

103

Changes in tax related

items

254

298

Non-GAAP Net income

$ 4,595

$ 1,450

$ 7,653

$ 2,237

Non-GAAP income (loss)

per share

Basic

$ 0.09

$ 0.03

$ 0.16

$ 0.05

Diluted

$ 0.09

$ 0.03

$ 0.15

$ 0.05

Weighted average shares

outstanding

Basic

49,151,073

40,140,875

48,965,108

39,944,413

Diluted

51,131,093

43,794,580

51,049,850

43,750,663

* Financial income or expenses related to exchange rate differences in connection with revaluation of assets

and liabilities in non-dollar denominated currencies.

Other financial metrics (Unaudited)

U.S. dollars in millions, except top 10 customers as a % of

revenues and number of shares

Q2-26

FY 2025

FY 2024

Revenues geographic breakdown

Americas

8.5

31 %

19.1

19 %

14.2

15 %

EMEA

13.4

48 %

63.7

62 %

54.0

59 %

Asia Pacific

5.8

21 %

19.2

19 %

24.0

26 %

27.7

100 %

102.0

100 %

92.2

100 %

Revenues breakdown by type

SECaaS (Security as a Service)

9.4

34 %

26.8

26 %

16.5

18 %

Products & Professional Services

9.1

33 %

39.3

38 %

38.4

42 %

Support & Maintenance

9.2

33 %

35.9

36 %

37.3

40 %

27.7

100 %

102.0

100 %

92.2

100 %

Top 10 customers as a % of revenues

57 %

41 %

43 %

SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)

Q2-2026

9.4

Q1-2026

8.7

Q4-2025:

8.1

Q3-2025:

7.3

Q2-2025:

6.4

SECaaS ARR* - U.S. dollars in millions (Unaudited)

Jun. 2026:

36.1

Dec. 2025:

30.8

Dec. 2024:

18.2

Dec. 2023:

12.7

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SOURCE Allot Ltd.