Allot Ltd. (ALLT): Financial results for Q2 2026
Allot Ltd. (ALLT) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Allot Announces Second Quarter 2026 Financial Results Raising 2026 revenue guidance to $115–$118 million Hod Hasharon, Israel – August 12, 2026 – Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise are likely to trigger buying pressure, while the share repurchase program signals confidence from management.
Market read
First‑time earnings release with upgraded guidance for a small‑cap cyber‑security player; relevant for traders focused on earnings catalysts and sector momentum.
What to watch
Execution risk on scaling SECaaS ARR and the impact of the $40 M buyback on cash reserves.
Allot Announces Second Quarter 2026 Financial Results Raising 2026 revenue guidance to $115–$118 million
Revenue grew 15% year-over-year, SECaaS revenue grew 47%, GAAP and non-GAAP operating results turned profitable, operating cash flow more than doubled, and management raised 2026 revenue guidance to $115–$118 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $27.7 million | – | 15% |
| SECaaS revenuesother | $9.4 million | – | 47% |
| SECaaS ARRother | $36.1 million | – | 44% |
| GAAP gross profitGAAP | $19.8 million | – | 14% |
| GAAP gross marginGAAP | 71.3% | – | – |
| Non-GAAP gross profitnon-GAAP | $19.9 million | – | 13% |
| Non-GAAP gross marginnon-GAAP | 71.8% | – | – |
| GAAP cost of revenuesGAAP | $7,968 | – | – |
| GAAP research and development costs, netGAAP | $6,991 | – | – |
| GAAP sales and marketingGAAP | $8,042 | – | – |
| GAAP general and administrativeGAAP | $3,637 | – | – |
| GAAP total operating expensesGAAP | $18,670 | – | – |
| Non-GAAP operating expensesnon-GAAP | $17,162 | – | – |
| GAAP operating income (loss)GAAP | $1.1 million | – | – |
| GAAP operating marginGAAP | 4.0% | – | – |
| Non-GAAP operating incomenon-GAAP | $2.7 million | – | – |
| Non-GAAP operating marginnon-GAAP | 9.9% | – | – |
| Financial income, netGAAP | $1,975 | – | – |
| Income tax expensesGAAP | $501 | – | – |
| GAAP net income (loss)GAAP | $2.6 million | – | – |
| GAAP diluted income (loss) per shareGAAP | $0.05 per diluted share | – | – |
| GAAP basic income (loss) per shareGAAP | $0.05 | – | – |
| Non-GAAP net incomenon-GAAP | $4.6 million | – | – |
| Non-GAAP diluted income per sharenon-GAAP | $0.09 per diluted share | – | – |
| Non-GAAP basic income per sharenon-GAAP | $0.09 | – | – |
| Operating cash flowGAAP | $8.5 million | – | – |
| Six-month revenuesGAAP | $54,162 | – | – |
| Six-month GAAP gross profitGAAP | $38,510 | – | – |
| Six-month GAAP operating income (loss)GAAP | $2,627 | – | – |
| Six-month non-GAAP operating incomenon-GAAP | $5,364 | – | – |
| Six-month GAAP net income (loss)GAAP | $4,515 | – | – |
| Six-month non-GAAP net incomenon-GAAP | $7,653 | – | – |
| Six-month net cash provided by operating activitiesGAAP | $19,041 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas revenueManagement cited revenue strength in the North American region. | $8.5 million | – | – |
| EMEA revenueNot provided. | $13.4 million | – | – |
| Asia Pacific revenueNot provided. | $5.8 million | – | – |
| SECaaS (Security as a Service) revenueSECaaS represented 34% of Q2-26 revenues. | $9.4 million | – | 47% |
| Products & Professional Services revenueProducts & Professional Services represented 33% of Q2-26 revenues. | $9.1 million | – | – |
| Support & Maintenance revenueSupport & Maintenance represented 33% of Q2-26 revenues. | $9.2 million | – | – |
2026 outlook
- Revenue$115–$118 million
- NoteSECaaS revenue growth for 2026 to be 40% or more
- Notecontinued improvement in profitability
Capital returns
- On June 23, 2026, the Board of Directors approved a share repurchase program of up to $40 million.
- At the end of the second quarter, the Board of Directors approved a $40 million share repurchase program.
What drove it
- Total revenue increased 15% year-over-year to $27.7 million.
- SECaaS revenue increased 47% year-over-year to $9.4 million and accounted for 34% of Q2-26 revenue.
- June 2026 SECaaS ARR was $36.1 million, up 44% year-over-year.
- Americas revenue was $8.5 million, representing 31% of Q2-26 revenue.
- GAAP operating income was $1.1 million, compared with a GAAP operating loss of $0.4 million in the second quarter of 2025.
- Operating cash flow was $8.5 million, compared with $4.0 million in the second quarter of 2025.
Concerns
- GAAP gross margin was 71.3%, compared with 72.1% in the second quarter of 2025.
- Non-GAAP gross margin was 71.8%, compared with 73.4% in the second quarter of 2025.
- Top 10 customers represented 57% of Q2-26 revenues, compared with 41% in FY 2025 and 43% in FY 2024.
- Trade receivables, net were $25,170 as of June 30, 2026, compared with $17,451 as of December 31, 2025.
- Inventories were $17,497 as of June 30, 2026, compared with $13,180 as of December 31, 2025.
What to watch
- Execution against 2026 revenue guidance of $115–$118 million.
- Management's expectation for SECaaS revenue growth for 2026 of 40% or more.
- Continued improvement in profitability, as stated in the 2026 outlook.
- Deployment of the share repurchase program of up to $40 million.
- The concentration of 57% of Q2-26 revenues among the top 10 customers.
Balance sheet and cash flow
- 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.
- Cash and cash equivalents were $13,759 as of June 30, 2026, compared with $17,107 as of December 31, 2025.
- Restricted deposit was $3,637 as of June 30, 2026, compared with $3,573 as of December 31, 2025.
- Short-term bank deposits were $31,100 as of June 30, 2026, compared with $15,100 as of December 31, 2025.
- Available-for-sale marketable securities were $57,345 as of June 30, 2026, compared with $48,663 as of December 31, 2025.
- Net cash provided by operating activities was $8,466 for the three months ended June 30, 2026, compared with $3,985 for the three months ended June 30, 2025.
- Net cash used in investing activities was $(7,811) for the three months ended June 30, 2026, compared with net cash provided by investing activities of $6,217 for the three months ended June 30, 2025.
- Cash and cash equivalents at the end of the period were $13,759, compared with $26,943 for the three months ended June 30, 2025.
- Deferred revenues were $45,613 current and $8,334 long-term as of June 30, 2026, compared with $24,700 current and $5,912 long-term as of December 31, 2025.
Analysis
Allot reported a stronger second quarter, with total revenue rising 15% year-over-year to $27.7 million. The principal growth metric was SECaaS revenue, which increased 47% year-over-year to $9.4 million and represented 34% of Q2-26 revenue. SECaaS ARR reached $36.1 million in June 2026, up 44% year-over-year. Management also highlighted North American strength, while the Americas accounted for $8.5 million, or 31%, of quarterly revenue.
Profitability improved materially. GAAP operating income was $1.1 million, compared with a GAAP operating loss of $0.4 million in the second quarter of 2025, while non-GAAP operating income increased to $2.7 million from $1.2 million. GAAP net income 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. Non-GAAP net income rose to $4.6 million, or $0.09 per diluted share, from $1.5 million, or $0.03 per diluted share.
The gross-margin trend warrants attention. GAAP gross margin was 71.3%, compared with 72.1% a year earlier, and non-GAAP gross margin was 71.8%, compared with 73.4%. Operating expenses were $18,670 on a GAAP basis, compared with $17,737 in the prior-year quarter. The quarter nevertheless produced positive operating leverage, reflected in the movement to GAAP operating income and a non-GAAP operating margin of 9.9% from 5.0%.
Cash generation strengthened. Operating cash flow 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 totaled $107 million as of June 30, 2026, versus $88 million as of December 31, 2025. Deferred revenues increased to $45,613 current and $8,334 long-term, while trade receivables and inventories also increased from year-end levels.
Management raised 2026 revenue guidance to $115–$118 million and expects SECaaS revenue growth for 2026 of 40% or more, alongside continued improvement in profitability. The Board approved a share repurchase program of up to $40 million on June 23, 2026. Key items to monitor are delivery against the raised outlook, maintenance of SECaaS growth, gross-margin performance, and customer concentration, as the top 10 customers represented 57% of Q2-26 revenue.
Management, verbatim
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.
Eyal Harari, CEO of Allot
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.
Eyal Harari, CEO of Allot
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.
Eyal Harari, CEO of Allot
Not in the filing
stated, not guessed- Prior-quarter total revenue, gross profit, gross margin, operating income, net income, EPS, operating cash flow and free cash flow were not reported for Q2 2026.
- Free cash flow was not reported.
- Debt balance as of June 30, 2026 was not reported.
- Dividend amount and dividend declaration were not reported.
- Share repurchases executed during Q2 2026 were not reported.
- Prior 2026 guidance was not provided, so comparison with prior guidance cannot be made.
- Quantified guidance for gross margin, operating expenses, tax rate, EPS and operating cash flow was not provided.
- Year-over-year and quarter-over-quarter changes for geographic revenue, Products & Professional Services revenue, and Support & Maintenance revenue were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Allot Ltd., a Nasdaq‑listed provider of security‑as‑a‑service solutions, filed a Form 6‑K with its Q2 2026 earnings, marking the first public disclosure of these numbers.
Ticker impact
Allot Ltd. reported Q2 2026 results with revenue up 15% YoY and raised full‑year guidance to $115‑$118 million.
Potential price rally of 5‑10% over the next few trading days as investors price in higher revenue outlook and buyback.
The company posted GAAP operating income and raised guidance, both material new data that were not previously public.
Market effects
Positive signal for the cybersecurity and network‑intelligence sector, potentially lifting peers.
Supports Israeli tech export outlook and may boost regional tech indices.
Limited to investors tracking small‑cap security‑as‑a‑service stocks.
Counterpoint
The guidance raise may already be priced in; the modest revenue base could limit upside if macro demand softens.
Key entities
- CompanyAllot Ltd.
NASDAQ‑listed cybersecurity firm reporting Q2 2026 results.
- ExecutiveEyal Harari
CEO of Allot Ltd., provided commentary on results and guidance.
