Key Highlights

  • Allot reported second-quarter 2026 Revenue of $27.7 million, up 15% from $24.1 million a year earlier.
  • Security-as-a-service annual Recurring Revenue reached $36.1 million in June 2026, up 44% on the year.
  • Guidance was raised to 2026 revenue of $115 million to $118 million, and the board approved a repurchase programme of up to $40 million.

The latest reported position

Allot Ltd. (NASDAQ:ALLT), an Israel-based network intelligence and security software provider, last reported results on 12 August 2026, for the quarter ended 30 June. No later company announcement or confirmed date for third-quarter results has been identified.

Second-quarter results

Revenue was $27.7 million, up 15% from $24.1 million a year earlier. The company described it as a fourth consecutive quarter of double-digit growth. Gross Margin was 71.3% on a GAAP basis and 71.8% non-GAAP. On the earnings call, management said the non-GAAP margin was down from 73.4% a year earlier, attributing that to product mix.

GAAP Net Income was $2.6 million, or $0.05 per diluted share, against a loss of $1.7 million, or $0.04 per share, a year earlier. Non-GAAP net income was $4.6 million, or $0.09 per share. Operating Cash Flow was $8.5 million, compared with $4.0 million. GAAP Operating Income was $1.1 million and non-GAAP operating income was $2.7 million.

Subscription security

The part of the Business that matters most is security delivered as a subscription service, which Allot calls SECaaS. Its annual recurring revenue reached $36.1 million in June 2026, up 44% on the year, from $30.8 million in December 2025, $18.2 million in December 2024 and $12.7 million in December 2023. The release reports no total annual recurring revenue figure.

On the call, management said SECaaS revenue in the quarter was $9.4 million, up 47%, and four SECaaS deals were signed, all in Europe, the Middle East and Africa. They included an identity monitoring upsell to a European customer and a HomeSecure rollout in a new country for a global telecoms operator.

Geographically, the Americas contributed $8.5 million, or 31% of revenue. Management said this region relied partly on one major US customer, and that large deals for its Tera III product are irregular in timing.

Cash and Capital returns

Cash, bank deposits, restricted deposits and investments totalled $107 million at the end of June, up from $88 million at the end of December 2025. Cash and cash equivalents alone were $13.8 million, so most of the balance sits in deposits and investments. Management stated that the company has no debt.

On 23 June 2026 the board approved a share repurchase programme of up to $40 million. The programme is discretionary, and it is not clear how much, if any, has been used.

Guidance and what to watch

Company guidance, which is not a reported result, was raised to revenue of $115 million to $118 million for 2026, with SECaaS revenue growth of 40% or more. Management said full-year non-GAAP gross margin is expected to be about 70%.

Points to watch include whether SECaaS annual recurring revenue keeps growing near the 44% pace, whether gross margin settles around 70%, and whether the buyback is used. A one-off $1.2 million lease-modification gain in the GAAP result is a reminder to compare non-GAAP and GAAP figures.