Key Highlights

● Second-quarter Revenue was $27.7 million, up 15% year on year.

● SECaaS revenue rose 47% to $9.4 million, with annual Recurring Revenue of $36.1 million.

● Operating Cash Flow was $8.5 million, and cash and investments totalled $107 million.

● The 2026 revenue guidance was raised to $115 million to $118 million.

The latest verified development

Allot Ltd. (NASDAQ:ALLT), an Israeli provider of network security and intelligence software for communications service providers, last reported results on 12 August 2026 for the quarter ended 30 June. The second-quarter report and its raised full-year revenue outlook are the company's latest developments. Chief executive Eyal Harari said the company was excited to report its fourth consecutive quarter of double-digit growth.

Second-quarter results

Revenue was $27.7 million, up 15% year on year. Security as a service, which Allot calls SECaaS, contributed $9.4 million, up 47%, or about 34% of revenue. SECaaS annual recurring revenue reached $36.1 million in June 2026, up 44%.

Margins and profit improved. Gross Margin was 71.3% on a GAAP basis and 71.8% non-GAAP. GAAP Operating Income was $1.1 million, a 4.0% margin, compared with a loss in the second quarter of 2025, and non-GAAP operating income was $2.7 million, a 9.9% margin. Diluted Earnings per Share were $0.05 on a GAAP basis and $0.09 non-GAAP.

The gap between GAAP and non-GAAP operating income was $1.6 million.

Cash generation and Capital return

Operating cash flow was $8.5 million, more than double the prior-year quarter. Cash and investments totalled $107 million at 30 June 2026.

On 23 June 2026 the board approved a share repurchase programme of up to $40 million.

Raised 2026 guidance and the SECaaS outlook

Allot raised its 2026 revenue guidance to a range of $115 million to $118 million and said it expects SECaaS growth of 40% or more for the year. The midpoint is $116.5 million, whereas annualising the second quarter alone gives about $110.8 million, so the guide implies some growth in later quarters. The expectations depend on customer Demand and contract timing.

The first quarter of 2026, according to the headline of the company's earlier release, showed revenue growth accelerating to 14%. The second quarter extended that pace to 15%, although a single quarter does not establish a trend.

The raised range rests chiefly on SECaaS holding growth near 40% while the improved operating margins carry through the shift in mix.