Allot Ltd. Returns to Profitability, Reports Strong SECaaS Growth and Strengthens Balance Sheet in 2025 Annual Report
ALLT sits 47% above its 52-week low of $4.37.
Summary
Allot Ltd. achieved net profitability in 2025, driven by strong SECaaS growth and a strengthened balance sheet through a capital raise and full convertible debt extinguishment.
Key Events · Earnings and Guidance · ALLT
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Return to Net Profitability
The company reported a net income of $3.7 million for the fiscal year ended December 31, 2025, a significant turnaround from a net loss of $5.9 million in 2024, marking its first profit in ten years.
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Strong SECaaS Growth
SECaaS revenue increased by 62% to $26.8 million in 2025, now representing 26% of total revenues, with SECaaS Annual Recurring Revenue (ARR) growing 69% to $30.8 million.
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Overall Revenue Increase
Total revenues for 2025 rose 11% to $102 million, up from $92.195 million in 2024.
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Balance Sheet Strengthened by Capital Raise and Debt Extinguishment
Allot Ltd. completed a private placement, issuing 5 million ordinary shares at $8 per share, generating $37.691 million in net proceeds. Concurrently, $31.41 million of convertible debt was repaid, and the remaining $8.59 million was converted into 1.25 million ordinary shares, fully extinguishing the convertible debt.
Analysis · ALLT · Technology
Allot Ltd. has reported a significant financial turnaround in its 2025 annual report, achieving a net income of $3.7 million, a substantial improvement from a $5.9 million net loss in 2024. This marks a return to profitability after a decade of losses, driven by an 11% increase in total revenues to $102 million. A key highlight is the robust growth in the strategic Security-as-a-Service (SECaaS) segment, with revenues surging 62% to $26.8 million and Annual Recurring Revenue (ARR) increasing by 69% to $30.8 million. The company also significantly strengthened its balance sheet by fully extinguishing $40 million in convertible debt through a combination of repayment and conversion into shares, alongside a private placement that generated $37.691 million in net proceeds. This capital infusion and debt reduction provide crucial financial flexibility and support the company's strategic shift to a 'cyber security-first' focus. While the report details various operational and geopolitical risks, the overall financial performance and strategic advancements present a strong positive signal for the company's future trajectory.
At the time of this filing, ALLT was trading at $6.41 on NASDAQ in the Technology sector, with a market capitalization of approximately $321.2M. The 52-week trading range was $4.37 to $11.92. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.