Allot (NASDAQ:ALLT) Announces Quarterly Earnings Results

Allot (NASDAQ:ALLT) announced its quarterly earnings data on Wednesday. The communications equipment provider reported $0.09 EPS for the quarter, beating the consensus estimate of $0.06 by $0.03, FiscalAI reports. The business had revenue of $27.74 million during the quarter, compared to analysts’ expectations of $27.45 million. Allot had a net margin of 5.68% and a return on equity of 7.38%.

Here are the key takeaways from Allot’s conference call:

• Revenue and guidance increased: Q2 revenue rose 15% year over year to $27.7 million, and full-year 2026 revenue guidance was raised to $115 million–$118 million from $113 million–$117 million.
• Security-as-a-Service remained the primary growth engine, with revenue up 47% to $9.4 million, ARR up 44% to $36.1 million, and recurring revenue comprising 67% of total quarterly revenue. Management expects SECaaS revenue growth of at least 40% for the full year.
• North America delivered a significant acceleration, contributing 31% of quarterly revenue versus 17% a year earlier, supported by strong Tera III and Allot Smart product sales, a healthy backlog, and continued SECaaS demand.
• Profitability and cash generation improved materially: non-GAAP operating margin increased to 9.9% from 5.0% a year ago, operating cash flow more than doubled to $8.5 million, and the company ended the quarter with $107 million in cash and no debt.
• Non-GAAP gross margin declined to 71.8% from 73.4% because of product mix, although management maintained its approximately 70% full-year margin expectation; regional revenue may continue to fluctuate based on the timing of large product deals.

Allot Trading Up 3.2%

Shares of Allot stock traded up $0.25 during trading hours on Thursday, reaching $7.95. The stock had a trading volume of 238,163 shares, compared to its average volume of 432,475. The stock’s 50 day moving average is $7.84 and its 200 day moving average is $7.86. Allot has a twelve month low of $6.12 and a twelve month high of $11.92. The firm has a market capitalization of $386.67 million, a PE ratio of 60.94 and a beta of 1.48.

Allot declared that its Board of Directors has authorized a share repurchase program on Tuesday, June 23rd that permits the company to repurchase $40.00 million in shares. This repurchase authorization permits the communications equipment provider to buy up to 11.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages recently issued reports on ALLT. Northland Securities set a $17.00 target price on shares of Allot in a report on Thursday. Needham & Company LLC increased their price target on Allot from $8.50 to $10.50 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $15.00 price target on shares of Allot in a research report on Wednesday, May 13th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Allot in a research note on Friday, June 26th. Finally, Wall Street Zen raised Allot from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.38.

Insiders Place Their Bets

In related news, CEO Eyal David Harari sold 29,111 shares of Allot stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $7.64, for a total value of $222,408.04. Following the completion of the transaction, the chief executive officer owned 1,099,118 shares in the company, valued at $8,397,261.52. The trade was a 2.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Noam Lelah sold 21,000 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $8.48, for a total value of $178,080.00. Following the completion of the transaction, the senior vice president directly owned 176,250 shares of the company’s stock, valued at $1,494,600. The trade was a 10.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 76,667 shares of company stock valued at $597,095 over the last quarter. Insiders own 3.40% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ALLT. QVT Financial LP lifted its holdings in Allot by 22.2% during the second quarter. QVT Financial LP now owns 4,505,793 shares of the communications equipment provider’s stock valued at $36,598,000 after purchasing an additional 817,938 shares in the last quarter. Millennium Management LLC increased its stake in shares of Allot by 239.4% during the third quarter. Millennium Management LLC now owns 753,393 shares of the communications equipment provider’s stock worth $7,971,000 after purchasing an additional 531,412 shares in the last quarter. Boothbay Fund Management LLC purchased a new stake in shares of Allot during the second quarter worth about $3,164,000. Marshall Wace LLP acquired a new position in shares of Allot during the 2nd quarter worth about $2,320,000. Finally, JPMorgan Chase & Co. acquired a new position in shares of Allot during the 2nd quarter worth about $2,225,000. 51.50% of the stock is owned by institutional investors and hedge funds.

About Allot

Allot Ltd. is a provider of network intelligence and security solutions designed for service providers and enterprises worldwide. The company delivers software and cloud-based services that enable customers to gain real-time visibility into network traffic, enforce security policies and optimize bandwidth usage. Its platforms support a wide range of applications, from DDoS protection and threat prevention to subscriber experience management and network analytics.

Allot’s product portfolio includes managed solutions for mobile and fixed-line operators, as well as cloud-native services that can be deployed across private, public and hybrid environments.