Revenue increased by 16%, while SECaaS ARR grew by 41% year-on-year.

Hodha Salon, Israel, November 12th / PRNewswire / -- Allot Ltd. (Nasdaq ticker: ALLT) (Tel Aviv Stock Exchange ticker: ALLT) announced its unaudited financial results for the third quarter of 2026 today. Allot is a global leader in providing innovative security as a service (SaaS) and network intelligence solutions for communication service providers and enterprises.

Financial Highlights of the Third Quarter of 2026

• Revenues grew strongly to $30.6 million, a year-on-year increase of 16%;
• Security as a Service ( SECaaS ) generated revenue of $9.9 million, a year-on-year increase of 37%;
• In September 2026, SECaaS ARR amounted to $38.8 million, a year-on-year increase of 41%;
• GAAP had operating revenue of $2.8 million, while in the third quarter of 2025 it was $2.2 million;
• Non-GAAP had operating revenue of $3.9 million, while in the third quarter of 2025 it was $3.7 million;
• Operating cash flow amounted to 7.4 million US dollars, representing an 85% increase from 4 million US dollars in the third quarter of 2025.

Management Commentary

Allot CEO Eyal Harari stated: "This quarter reflects our continued outstanding execution capabilities and also demonstrates the strength of our business model. Allot has now become a sustainably profitable company, and we continue to expand our profitability while growing our business. We have delivered a strong third-quarter report card, featuring double-digit revenue growth, improved profitability, and solid cash generation. The growth was driven by SECaaS and SMART solutions, both of which have seen double-digit year-over-year revenue increases. The growth in SMART products comes from our higher backlog of orders, which are being converted into revenue, and this is related to the important orders we have secured recently."

Harari added, " SECaaS ARR continued to grow strongly at a year-on-year rate of 41%, further expanding our base of recurring revenue and enhancing our visibility for the coming quarters. We are also constantly innovating to find new ways to protect consumers, and the recently launched Allot IOT security are examples of this. As threat actors use AI to target individuals and businesses on a large scale, it has become even more crucial for service providers to offer a layer of protection to end-users, which in turn supports the demand for cybersecurity solutions."

Harari concluded by stating: "Given the current momentum, we are raising the mid-range revenue guidance for 2026 and narrowing the range to between $116 million and $118 million. We also expect that the growth rate of SECaaS revenue in 2026 will exceed 40%."

2026 Third Quarter Financial Results Summary

In the third quarter of 2026, total revenue amounted to 30.6 million US dollars, representing a 16% increase from 26.4 million US dollars in the third quarter of 2025.

In the third quarter of 2026, GAAP achieved gross profit of $21.9 million at a gross margin of 71.6%; in the third quarter of 2025, it was $18.9 million with a gross margin of 71.4%.

In the third quarter of 2026, the non-GAAP gross profit margin was 22 million US dollars, with a gross profit margin of 71.9%; in the third quarter of 2025, it was 19.1 million US dollars, with a gross profit margin of 72.2%.

In the third quarter of 2026, GAAP achieved operating revenue of $2.8 million with an operating profit margin of 9.2%; in the third quarter of 2025, it was $2.2 million with an operating profit margin of 8.1%.

In the third quarter of 2026, the non-GAAP口径 operating revenue was $3.9 million, with an operating profit margin of 12.9%; in the third quarter of 2025, it was $3.7 million, with an operating profit margin of 14.0%.

In the third quarter of 2026, GAAP reported a net profit of $3.4 million, with an earnings per share after dilution of $0.07; in the third quarter of 2025, it was $2.8 million, with an earnings per share after dilution also of $0.07.

In the third quarter of 2026, the non-GAAP net profit was $4.7 million, with a diluted earnings per share of $0.09; in the third quarter of 2025, it was $4.6 million, with a diluted earnings per share of $0.10.

The operating cash flow for this quarter was $7.4 million, compared to $4 million in the third quarter of 2025.

As of September 30, 2026, cash and cash equivalents, bank deposits, restricted deposits, and investments totaled 112 million US dollars, compared to 88 million US dollars as of December 31, 2025.

Teleconference and online live broadcast

The Allot management team will hold a teleconference today, on November 12, 2026, at 8:30 AM Eastern Time (USA), 1:30 PM British Time, and 3:30 PM Israeli Time, to discuss the third-quarter performance for 2026. To attend the teleconference, please call the following number:

USA: 1-888-668-9141; UK: 0-800-917-5108; Israel: +972-3-918-0644

Live webcast of the teleconference and the post-conference archive can be accessed at the Allot website: https :// investors.allot.com /

About Allot

Allot Ltd. (Nasdaq: ALLT, Tel Aviv Stock Exchange: ALLT) is a leading provider of integrated cybersecurity solutions and network intelligence products for global service providers and enterprises. Allot enhances the value for its customers through its solutions, which have been deployed worldwide for network-native cybersecurity services, network and application analytics, traffic control, and shaping, among other applications. Allot's multi-business platform has been deployed by over 500 mobile, fixed-line, and cloud service providers, as well as more than 1,000 enterprises. Allot's industry-leading network-native security as a service solutions are used by millions of subscription users worldwide.

For more information, please visit: www.allot.com

Performance indicators

* SECaaS ARR —— Measures the recurring SECaaS income for the current year, calculated by multiplying the estimated SECaaS income for September 2026 by 12.

GAAP Reconciliation with Non-GAAP

The company disclosed non-GAAP financial indicators and made adjustments to the GAAP results, removing items that management deemed did not reflect the company's ongoing operational performance. Non-GAAP gross profit is defined as the gross profit from GAAP, after excluding share-based payment expenses, amortization of intangible assets, and acquisition-related costs. Non-GAAP operating revenue is defined as the operating revenue from GAAP, mainly after excluding share-based payment expenses, amortization of intangible assets, and acquisition-related costs. Non-GAAP net profit is defined as the net profit from GAAP, mainly after excluding share-based payment expenses, amortization of intangible assets, settlement losses, acquisition-related and other one-time expenses, financial income or expenses related to exchange rate differences, as well as changes in tax-related items.

These non-GAAP indicators should be referred to in conjunction with the corresponding GAAP indicators, and should not replace the latter. For the complete reconciliation between non-GAAP results and the results of GAAP versus non-GAAP, please see below. The company provides these non-GAAP financial indicators because it believes they better reflect the company's core business, and management also uses these indicators internally to assess the company's ongoing operational performance. Therefore, the company believes that these indicators help investors better understand the company's operational performance.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Any statements in this press release that do not relate to historical facts should be considered forward-looking statements, including but not limited to statements regarding our expected financial and operating results, such as revenue guidance, revenue, growth, demand for our solutions, our ability to execute our strategies, our ability to convert backlogs into revenue, product innovation, capital allocation, stock repurchase plans, maximizing shareholder value, and future opportunities. These statements also include words such as “expected,” “intended,” “planned,” “believes,” “anticipates,” “predicts,” “estimates,” “may,” “should,” “expects,” and similar expressions that indicate future or forward-looking nature. Such forward-looking statements reflect the current judgment and expectations of the company’s management. Such statements involve various known and unknown risks and uncertainties, and there is a possibility that the company’s future results, performance, or achievements may differ significantly from those described in the forward-looking statements.Important factors that may lead to or contribute to such differences include: risks related to accounts receivable, including the company's ability to collect accounts receivable on a quarterly basis and assess their recoverability; whether the company can achieve its financial guidelines and projections; whether the company can successfully compete with other companies that offer competing technologies; loss of one or more important customers; mergers and strategic alliances of competitors; government regulation; timing of completion of key project milestones that affect revenue recognition; decreased demand for key value-added services; whether the company can keep up with technological advancements and add new features and value-added services; managing long sales cycles; operational risks associated with large projects; the company's dependence on third-party channel partners, which contribute a significant portion of the company's revenue; as well as other factors discussed under the "Risk Factors" heading in the company's 20-F annual report for the fiscal year 2025, which has been submitted to the U.S. Securities and Exchange Commission. These factors may be updated from time to time in documents subsequently submitted by the company to SEC, and can be viewed on the SEC website at www.sec.gov. Therefore, forward-looking statements should not be regarded as predictions of future events. In addition, these forward-looking statements are only as of the date of this press release, and the company assumes no obligation to update or revise them due to new information, future events, or other reasons.

Investor Relations Contact:

EK Global Investor Relations

Public Relations Contact:

Seth Greenberg, Allot Ltd.