Allot (NASDAQ:ALLT) Releases Earnings Results, Beats Expectations By $0.03 EPS

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

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 Price Performance

Allot stock traded up $0.27 during mid-day trading on Thursday, reaching $7.96. The stock had a trading volume of 233,947 shares, compared to its average volume of 432,383. Allot has a one year low of $6.12 and a one year high of $11.92. The company has a 50-day moving average price of $7.84 and a two-hundred day moving average price of $7.86. The company has a market capitalization of $387.50 million, a price-to-earnings ratio of 61.27 and a beta of 1.48.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Northland Securities set a $17.00 price objective on Allot in a research report on Thursday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Allot in a research note on Friday, June 26th. Cantor Fitzgerald reissued an “overweight” rating and issued a $15.00 price target on shares of Allot in a report on Wednesday, May 13th. Needham & Company LLC upped their price objective on shares of Allot from $8.50 to $10.50 and gave the company a “buy” rating in a research note on Wednesday, May 13th. Finally, Wall Street Zen upgraded shares of Allot from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Five equities 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. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $13.38.

Allot announced that its Board of Directors has approved a share repurchase program on Tuesday, June 23rd that authorizes the company to repurchase $40.00 million in outstanding shares. This repurchase authorization authorizes the communications equipment provider to purchase up to 11.7% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In related news, SVP Boaz Grossman sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $7.37, for a total value of $36,850.00. Following the transaction, the senior vice president directly owned 192,000 shares of the company’s stock, valued at approximately $1,415,040. This represents a 2.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Noam Lelah sold 21,000 shares of the business’s stock in a transaction on 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 owned 176,250 shares of the company’s stock, valued at $1,494,600. This represents a 10.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 76,667 shares of company stock valued at $597,095 over the last ninety days. 3.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. JPMorgan Chase & Co. purchased a new position in Allot during the second quarter valued at $2,225,000. Russell Investments Group Ltd. purchased a new position in shares of Allot during the 2nd quarter valued at about $350,000. Arrowstreet Capital Limited Partnership purchased a new position in shares of Allot during the 2nd quarter valued at about $156,000. Walleye Capital LLC bought a new position in shares of Allot during the 2nd quarter valued at approximately $256,000. Finally, Marshall Wace LLP bought a new position in shares of Allot during the 2nd quarter valued at approximately $2,320,000. Institutional investors own 51.50% of the company’s stock.

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.