0001365767 2025-01-01 2025-06-30 0001365767 2025-04-01 2025-06-30 0001365767 2024-04-01 2024-06-30 0001365767 2024-01-01 2024-06-30 0001365767 2025-03-31 0001365767 2024-03-31 0001365767 2024-12-31 0001365767 2023-12-31 0001365767 2025-06-30 0001365767 2024-06-30 xbrli:shares iso4217:USD iso4217:USDxbrli:shares
Exhibit 99.1
 
image0.jpg
 
Allot Announces Second Quarter 2025 Financial Results
 
Exceptionally strong 73% year-over-year growth in SECaaS ARR; raising full year guidance
 
Hod Hasharon, Israel – August 14, 2025 - Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the second quarter 2025.
 
Financial Highlights for the Second Quarter of 2025
 
 •
Revenues of $24.1 million, up 9% year over year with SECaaS representing 27% of overall revenue;
 
 •
June 2025 SECaaS ARR* of $25.2 million, up 73% year-over-year;
 
 •
GAAP operating loss of $0.4 million versus $3.4 million operating loss last year;
 
 •
Non-GAAP operating profit of $1.2 million versus an operating loss of $1.0 million in Q2 2024;
 
 •
Strong positive operating cash flow of $4.4 million, compared to $1.2 million in Q2 2024;
 
Management Comment
 
Eyal Harari, CEO of Allot, commented, “We are very pleased with our strong Q2 financial results, which benefitted from exceptional SECaaS performance. SECaaS ARR was up 73% year-over-year, and SECaaS revenue exceeded 25% of our overall revenue. This strong SECaaS performance drove our overall company revenue growth to 9% year-over-year and supported our improvement in profitability. ”
 
Continued Mr. Harari, “Our recent agreements illustrate the growing traction of our cyber-security offering. Verizon Business’s new mobile offering, which includes our SECaaS service, is gaining significant traction among end-customers and is already contributing meaningfully to our strong SECaaS revenue growth.
 
“As we announced in July, we won a landmark deal valued in the tens of millions of dollars with a tier-1 EMEA telecom operator. The multi-year agreement is one of Allot’s largest ever customer wins to-date and is particularly strategic as it demonstrates the value of our unique technological advantages and core expertise for major telco players in two key areas: cyber security and network intelligence.”
 
Concluded Mr. Harari, “In light of our accelerated SECaaS growth, improved visibility, and high level of backlog, we are introducing full year 2025 revenue guidance of $98-102 million, positioning us for a year of profitable growth. Furthermore, we are increasing our 2025 SECaaS ARR year-over-year growth expectations to a range of 55-60%.”
 
Second Quarter 2025 Financial Results Summary
 
Total revenues for the second quarter of 2025 were $24.1 million, a 9% increase year-over-year compared with $22.2 million in the second quarter of 2024.
 
Gross profit on a GAAP basis for the second quarter of 2025 was $17.3 million (gross margin of 72.1 %), a 14% increase compared with $15.2 million (gross margin of 68.5%) in the second quarter of 2024.
 
Gross profit on a non-GAAP basis for the second quarter of 2025 was $17.6 million (gross margin of 73.4%), an 13% increase compared with $15.7 million (gross margin of 70.6%) in the second quarter of 2024.
 
Operating loss on a GAAP basis for the second quarter of 2025 was $0.4 million, compared with an operating loss of $3.4 million in the second quarter of 2024.
 
Operating income on a non-GAAP basis for the second quarter of 2025 was $1.2 million, compared with an operating loss of $1.0 million in the second quarter of 2024.
 
Net loss on a GAAP basis for the second quarter of 2025 was $1.7 million, or $0.04 per share, an improvement compared to the net loss of $3.4 million, or $0.09 per share, in the second quarter of 2024.
 
Net income on a non-GAAP basis for the second quarter of 2025 was $1.5 million, or $0.03 profit per diluted share, compared to the non-GAAP net loss of $0.8 million, or $0.02 loss per basic share, in the second quarter of 2024.
 
Operating cash flow generated in the quarter was $4.4 million.  
 
Net cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2025, totaled $72 million, an increase of $13 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of June 30, 2025, the company has no debt.
 
During the quarter, Allot closed a public offering of $46 million, out of which $40 million in gross proceeds were received during the second quarter and an additional $6 million in gross proceeds were received following the close of the quarter. The Company used the net proceeds to repay $31.4 million in convertible debt and the balance for general corporate purposes.
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss its second quarter 2025 earnings results today, August 14, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:
 
US:  1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644
 
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm
 
About Allot
 
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.
 
For more information, visit www.allot.com
 
Performance Metrics
 
* SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of June 2025 and multiplied by 12.
 
GAAP to Non-GAAP Reconciliation:
 
The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.
 
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.
 
Safe Harbor Statement
 
This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
 
Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com
 
TABLE  - 1
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
 
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(Unaudited)
    
(Unaudited)
  
                         
Revenues
  
$
24,051
    
$
22,164
    
$
47,201
    
$
44,054
  
Cost of revenues
    
6,721
      
6,989
      
13,823
      
13,781
  
Gross profit
    
17,330
      
15,175
      
33,378
      
30,273
  
                                 
Operating expenses:
                                
Research and development costs, net
    
7,261
      
7,326
      
13,252
      
14,475
  
Sales and marketing
    
7,261
      
7,911
      
14,599
      
15,701
  
General and administrative
    
3,215
      
3,304
      
6,643
      
6,206
  
Total operating expenses
    
17,737
      
18,541
      
34,494
      
36,382
  
Operating loss
    
(407
)
    
(3,366
)
    
(1,116
)
    
(6,109
)
Loss from extinguishment
    
(1,410
)
    
-
      
(1,410
)
    
-
  
Other income
    
100
      
-
      
100
      
-
  
Financial income, net
    
359
      
489
      
1,033
      
1,029
  
Loss before income tax expenses
    
(1,358
)
    
(2,877
)
    
(1,393
)
    
(5,080
)
                                 
Income tax expenses
    
332
      
479
      
628
      
786
  
Net loss
  
$
(1,690
)
  
$
(3,356
)
  
$
(2,021
)
  
$
(5,866
)
                                 
 Basic net loss per share
  
$
(0.04
)
  
$
(0.09
)
  
$
(0.05
)
  
$
(0.16
)
                                 
 Diluted net loss per share
  
$
(0.04
)
  
$
(0.09
)
  
$
(0.05
)
  
$
(0.16
)
                                 
Weighted average number of shares used in computing basic net loss per share
    
40,140,875
      
38,712,407
      
39,944,413
      
38,562,065
  
                                 
Weighted average number of shares used in computing diluted net loss per share
    
40,140,875
      
38,712,407
      
39,944,413
      
38,562,065
  

 

TABLE  - 2
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)

 

  
Three Months Ended
  
Six Months Ended
 
  
June 30,
  
June 30,
 
  
2025
  
2024
  
2025
  
2024
 
  
(Unaudited)
  
(Unaudited)
 
GAAP cost of revenues
 
$
6,721
  
$
6,989
  
$
13,823
  
$
13,781
 
 Share-based compensation (1)
  
(160
)
  
(324
)
  
(254
)
  
(478
)
 Amortization of intangible assets (2)
  
(152
)
  
(152
)
  
(305
)
  
(304
)
Non-GAAP cost of revenues
 
$
6,409
  
$
6,513
  
$
13,264
  
$
12,999
 
                 
 GAAP gross profit
 
$
17,330
  
$
15,175
  
$
33,378
  
$
30,273
 
 Gross profit adjustments
  
312
   
476
   
559
   
782
 
 Non-GAAP gross profit
 
$
17,642
  
$
15,651
  
$
33,937
  
$
31,055
 
                 
 GAAP operating expenses
 
$
17,737
  
$
18,541
  
$
34,494
  
$
36,382
 
 Share-based compensation (1)
  
(1,289
)
  
(1,863
)
  
(2,176
)
  
(3,069
)
 Non-GAAP operating expenses
 
$
16,448
  
$
16,678
  
$
32,318
  
$
33,313
 
                 
 GAAP Loss from extinguishment
 
$
(1,410
)
 
$
-
  
$
(1,410
)
 
$
-
 
 Loss from extinguishment
  
1,410
   
-
   
1,410
   
-
 
 Non-GAAP Loss from extinguishment
 
$
-
  
$
-
  
$
-
  
$
-
 
                 
 GAAP financial and other income
 
$
359
  
$
489
  
$
1,033
  
$
1,029
 
 Exchange rate differences*
  
104
   
110
   
43
   
204
 
 Non-GAAP Financial and other income
 
$
463
  
$
599
  
$
1,076
  
$
1,233
 
                 
 GAAP taxes on income
 
$
332
  
$
479
  
$
628
  
$
786
 
 Changes in tax related items
  
(25
)
  
(133
)
  
(70
)
  
(177
)
 Non-GAAP taxes on income
 
$
307
  
$
346
  
$
558
  
$
609
 
                 
 GAAP Net profit (Loss)
 
$
(1,690
)
 
$
(3,356
)
 
$
(2,021
)
 
$
(5,866
)
 Share-based compensation (1)
  
1,449
   
2,187
   
2,430
   
3,547
 
 Amortization of intangible assets (2)
  
152
   
152
   
305
   
304
 
 Loss from extinguishment
  
1,410
   
-
   
1,410
   
-
 
 Exchange rate differences*
  
104
   
110
   
43
   
204
 
 Changes in tax related items
  
25
   
133
   
70
   
177
 
 Non-GAAP Net income (loss)
 
$
1,450
  
$
(774
)
 
$
2,237
  
$
(1,634
)
                 
 GAAP Loss per share (diluted)
 
$
(0.04
)
 
$
(0.09
)
 
$
(0.05
)
 
$
(0.16
)
 Share-based compensation
  
0.03
   
0.06
   
0.06
   
0.10
 
 Amortization of intangible assets
  
0.01
   
0.01
   
0.01
   
0.01
 
 Loss from extinguishment
  
0.03
   
-
   
0.03
   
-
 
 Non-GAAP Net income (Loss) per share (diluted)
 
$
0.03
  
$
(0.02
)
 
$
0.05
  
$
(0.05
)
                 
Weighted average number of shares used in computing GAAP diluted net income (loss) per share
  
40,140,875
   
38,712,407
   
39,944,413
   
38,562,065
 
                 
Weighted average number of shares used in computing non-GAAP diluted net income (loss) per share
  
43,794,580
   
38,712,407
   
43,750,663
   
38,562,065
 
 
* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.
TABLE  - 2 cont.
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)
 
  
Three Months Ended
  
Six Months Ended
 
  
June 30,
  
June 30,
 
  
2025
  
2024
  
2025
  
2024
 
  
(Unaudited)
  
(Unaudited)
 
             
(1) Share-based compensation:
            
Cost of revenues
 
$
160
  
$
324
  
$
254
  
$
478
 
Research and development costs, net
  
380
   
787
   
622
   
1,285
 
Sales and marketing
  
466
   
792
   
771
   
1,235
 
General and administrative
  
443
   
284
   
783
   
549
 
  
$
1,449
  
$
2,187
  
$
2,430
  
$
3,547
 
                 
 (2) Amortization of intangible assets
                
Cost of revenues
 
$
152
  
$
152
  
$
305
  
$
304
 
Sales and marketing
 
$
152
  
$
152
  
$
305
  
$
304
 
 
TABLE  - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
June 30,
    
December 31,
  
   
2025
    
2024
  
   
(Unaudited)
    
(Audited)
  
             
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
26,943
    
$
16,142
  
Restricted deposit
    
501
      
904
  
Short-term bank deposits
    
11,050
      
15,250
  
Available-for-sale marketable securities
    
11,518
      
26,470
  
Trade receivables, net (net of allowance for credit losses of $22,392 and $25,306 on June 30, 2025 and December 31, 2024 , respectively)
    
20,135
      
16,482
  
Other receivables and prepaid expenses
    
8,641
      
6,317
  
Inventories
    
8,505
      
8,611
  
Total current assets
    
87,293
      
90,176
  
                 
NON-CURRENT ASSETS:
                
Severance pay fund
  
$
243
    
$
464
  
Restricted deposit
    
329
      
279
  
Available-for-sale marketable securities
    
21,672
      
-
  
Operating lease right-of-use assets
    
6,091
      
6,741
  
Other assets
    
552
      
2,151
  
Property and equipment, net
    
6,039
      
7,692
  
Intangible assets, net
    
-
      
305
  
Goodwill
    
31,833
      
31,833
  
Total non-current assets
    
66,759
      
49,465
  
                 
Total assets
  
$
154,052
    
$
139,641
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
  
$
924
    
$
946
  
Employees and payroll accruals
    
8,780
      
8,208
  
Deferred revenues
    
20,647
      
17,054
  
Short-term operating lease liabilities
    
484
      
562
  
Other payables and accrued expenses
    
10,996
      
9,200
  
Total current liabilities
    
41,831
      
35,970
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
    
6,079
      
7,136
  
Long-term operating lease liabilities
    
5,611
      
5,807
  
Accrued severance pay
    
814
      
946
  
Convertible debt
    
-
      
39,973
  
Total long-term liabilities
    
12,504
      
53,862
  
                 
SHAREHOLDERS' EQUITY
    
99,717
      
49,809
  
                 
Total liabilities and shareholders' equity
  
$
154,052
    
$
139,641
  
 
TABLE  - 4
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(Unaudited)
    
(Unaudited)
  
                         
Cash flows from operating activities:
                        
                         
Net loss
  
$
(1,690
)
  
$
(3,356
)
  
$
(2,021
)
  
$
(5,866
)
Adjustments to reconcile net loss to net cash used in operating activities:
                                
Depreciation, amortization and impairment
    
1,073
      
1,359
      
2,419
      
2,776
  
Share-based compensation
    
1,449
      
2,187
      
2,430
      
3,547
  
Capital loss
    
-
      
-
      
255
      
-
  
Loss from extinguishment
    
1,410
      
-
      
1,410
      
-
  
Other income
    
(100
)
    
-
      
(100
)
    
-
  
Changes in operating assets and liabilities:
                                
Decrease (Increase)  in accrued severance pay, net
    
93
      
(107
)
    
89
      
(165
)
Decrease in other assets, other receivables and prepaid expenses
    
196
      
955
      
1,619
      
1,672
  
Decrease  in accrued interest and amortization of premium on available-for sale marketable securities
    
(521
)
    
(405
)
    
(862
)
    
(777
)
Decrease in operating leases liability
    
(60
)
    
(159
)
    
(203
)
    
(618
)
Decrease in operating lease right-of-use asset
    
275
      
622
      
579
      
1,174
  
Increase in trade receivables
    
(901
)
    
(2,789
)
    
(3,653
)
    
(2,980
)
Decrease (Increase) in inventories
    
(312
)
    
2,101
      
106
      
2,268
  
Increase (Decrease) in trade payables
    
(97
)
    
278
      
(22
)
    
16
  
Increase (Decrease) in employees and payroll accruals
    
2,785
      
(649
)
    
573
      
(4,135
)
Increase in deferred revenues
    
273
      
595
      
2,536
      
1,965
  
Increase (Decrease) in other payables and accrued expenses
    
511
      
542
      
914
      
(12
)
Net cash provided by (used in) operating activities
    
4,384
      
1,174
      
6,069
      
(1,135
)
                                 
Cash flows from investing activities:
                                
                                 
Decrease (Increase) in restricted deposit
    
50
      
(1
)
    
353
      
703
  
Investment in short-term bank deposits
    
(7,050
)
    
(3,800
)
    
(15,750
)
    
(3,800
)
Withdrawal of short-term bank deposits
    
12,700
      
-
      
19,950
      
10,000
  
Purchase of property and equipment
    
(408
)
    
(957
)
    
(689
)
    
(1,386
)
Investment in marketable securities
    
(26,458
)
    
(10,477
)
    
(55,434
)
    
(34,752
)
Proceeds from redemption or sale of marketable securities
    
27,283
      
7,225
      
49,683
      
32,060
  
Proceeds from sale of patent
    
100
      
-
      
100
      
-
  
Net cash provided by (used in) investing activities
    
6,217
      
(8,010
)
    
(1,787
)
    
2,825
  
                                 
Cash flows from financing activities:
                                
                                 
Issuance of share capital
    
37,691
      
-
      
37,691
      
-
  
Proceeds from exercise of stock options
    
-
      
1
      
238
      
1
  
Redemption of convertible debt
    
(31,410
)
    
-
      
(31,410
)
    
-
  
Net cash provided by financing activities
    
6,281
      
1
      
6,519
      
1
  
                                 
Increase (Decrease) in cash and cash equivalents
    
16,882
      
(6,835
)
    
10,801
      
1,691
  
Cash, cash equivalents at the beginning of the period
    
10,061
      
22,718
      
16,142
      
14,192
  
                                 
Cash, cash equivalents at the end of the period
  
$
26,943
    
$
15,883
    
$
26,943
    
$
15,883
  
                                 
Non-cash activities:
                                
ROU asset and lease liability decrease, due to lease termination
    
-
      
-
      
(71
)
    
-
  
Redemption of convertible debt
    
(10,000
)
    
-
      
(10,000
)
    
-
  
Other financial metrics (Unaudited)
U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares
                   
   
Q2-25
  
FY 2024
  
FY 2023
 
Revenues geographic breakdown
                   
Americas
  
4.2
   
17
%
  
14.2
   
15
%
  
16.6
   
18
%
EMEA
  
15.8
   
66
%
  
54.0
   
59
%
  
56.1
   
60
%
Asia Pacific
  
4.1
   
17
%
  
24.0
   
26
%
  
20.5
   
22
%
   
24.1
   
100
%
  
92.2
   
100
%
  
93.2
   
100
%
                         
Revenues breakdown by type
                        
Products
  
7.6
   
31
%
  
30.1
   
33
%
  
37.6
   
40
%
Professional Services
  
1.6
   
7
%
  
8.3
   
9
%
  
6.1
   
7
%
SECaaS (Security as a Service)
  
6.4
   
27
%
  
16.5
   
18
%
  
10.6
   
11
%
Support & Maintenance
  
8.5
   
35
%
  
37.3
   
40
%
  
38.9
   
42
%
   
24.1
   
100
%
  
92.2
   
100
%
  
93.2
   
100
%
                         
Top 10 customers as a %  of  revenues
  
55
%
      
43
%
      
47
%
    
                         
Non-GAAP Weighted average number of basic shares  (in millions)
  
40.1
       
38.9
       
37.9
     
                         
Non-GAAP weighted average number of fully diluted shares  (in millions)
  
43.8
       
42.3
       
40.3
     
 
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
     
Q2-2025:
  
6.4
  
Q1-2025:
  
5.1
  
Q4-2024:
  
4.8
  
Q3-2024:
  
4.7
  
Q2-2024:
  
3.7
  
      
SECaaS ARR* - U.S. dollars in millions (Unaudited)
      
Jun. 2025:
  
25.2
  
Dec. 2024:
  
18.2
  
Dec. 2023:
  
12.7
  
Dec. 2022:
  
9.2