0001178913-26-001755
SEC filingAllot Ltd. reported $102.0 million in total revenues for FY 2025, representing an 11% increase from $92.2 million in FY 2024. The company achieved net income of $3.7 million — a reversal from the $5.9 million net loss in FY 2024 — marking its first annual profit in over a decade. Gross profit rose to $72.6 million (71.1% margin), up from $63.7 million (69.1% margin) in FY 2024. Operating income was $3.6 million, compared to an operating loss of $6.0 million in FY 2024. Key drivers included a 14% increase in service revenues ($71.0M), fueled by SECaaS growth, and disciplined cost management that reduced total operating expenses to $68.9 million despite R&D and sales investments. The company generated $17.8 million in net cash from operations and ended FY 2025 with $12.3 million in cash and cash equivalents. Forward-looking, management emphasized continued expansion of its cyber-security-first strategy, recurring revenue scaling via SECaaS, and prudent capital allocation amid macroeconomic and geopolitical risks.
Allot Ltd. delivered a strong financial turnaround in FY 2025, reporting $102.0 million in total revenues — an 11% increase over $92.2 million in FY 2024. This growth was underpinned by a $8.9 million (14%) rise in service revenues to $71.0 million, largely driven by recurring SECaaS offerings, while product revenues grew modestly by $0.9 million (3%) to $31.0 million. The company achieved net income of $3.7 million, a dramatic improvement from the $5.9 million net loss in FY 2024. Gross profit increased to $72.6 million (71.1% margin), up from $63.7 million (69.1% margin). Operating income turned positive at $3.6 million, reversing a $6.0 million operating loss in FY 2024. This profitability shift reflects successful execution of cost discipline initiatives, including workforce optimization and operational efficiency improvements. Income tax expense declined to $1.2 million from $1.8 million, contributing to the bottom-line recovery. The company’s ability to grow recurring services while stabilizing cost structure marked a pivotal inflection point after years of losses.
The filing discloses geographic revenue distribution but no formal business segment breakdown beyond product vs. service. In FY 2025, Europe contributed $44.0 million (43%), Asia & Oceania $19.2 million (19%), Middle East & Africa $19.7 million (19%), and Americas $19.1 million (19%). Service revenues — which include SECaaS, maintenance, and professional services — accounted for 69.6% of total revenue, up from 67.4% in FY 2024. SECaaS revenues specifically totaled $26.8 million in FY 2025, up from $16.5 million in FY 2024 — a 62% YoY increase — reflecting deeper penetration with existing operators and new strategic deals. Management attributes this growth to the shift toward larger, high-potential accounts with minimum revenue thresholds, enabling faster path to profitability. Product revenue growth was muted due to lower-margin hardware deals and competitive pricing pressure in network intelligence markets.
Gross margin improved to 71.1% in FY 2025 from 69.1% in FY 2024, driven by a favorable mix shift toward higher-margin services and cost efficiencies across manufacturing and support functions. Service gross margin rose to 77% (from 71%), while product gross margin declined slightly to 59% (from 64%) due to higher cost-of-sales on certain product deployments. Total operating expenses decreased to $68.9 million from $69.7 million, primarily due to a $1.6 million reduction in R&D expenses to $24.5 million, offset by a $0.9 million increase in general and administrative costs to $13.6 million. Operating margin reached 3.5%, a stark improvement from −6.5% in FY 2024. The company also recorded $2.6 million in financial income, net, further supporting profitability.
Allot generated $17.8 million in net cash from operating activities in FY 2025 — a significant improvement from $4.8 million in FY 2024 — supported by $6.4 million in deferred revenue growth and $5.0 million in share-based compensation. Investing activities used $28.5 million, mainly for $113.7 million in marketable securities purchases, partially offset by $92.9 million in redemptions and sales. Financing activities provided $11.1 million, primarily from $42.3 million in share capital issuance, partially offset by $31.4 million in convertible debt redemption. At year-end, cash and cash equivalents stood at $12.3 million, with $48.7 million in available-for-sale marketable securities and $15.1 million in short-term deposits. Working capital totaled $77.8 million, indicating solid liquidity.
Management highlighted continued focus on scaling SECaaS as the core growth engine, targeting expanded subscriber reach and deeper integration with CSPs’ go-to-market strategies. Strategic priorities include advancing AI-enhanced security capabilities, expanding cloud-native offerings, and maintaining disciplined cost control. Risks cited include foreign exchange volatility (especially ILS appreciation), geopolitical instability affecting Israeli operations, supply chain constraints for AI-related hardware components, and intensifying competition from large vendors and AI-native entrants. The company expects to fund operations through existing cash balances and anticipates sufficient liquidity for at least twelve months. No explicit revenue or earnings guidance was provided for FY 2026.