Allot (ALLT) Q3 2025 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q3 2025, reaching $26.4 million, with Security-as-a-Service (SECaaS/CCAs) accounting for 28% of total revenue.

• SECaaS/CCAs annual recurring revenue (ARR) grew 60% year-over-year to $27.6 million in September 2025.

• Returned to record operating profitability, with GAAP operating income of $2.2 million and net income of $2.8 million, compared to losses in Q3 2024.

• Non-GAAP net income was $4.6 million, or $0.10 per diluted share, up from $1.3 million, or $0.03 per share, in Q3 2024.

• Ended the quarter with over $80 million in cash and no debt, reinforcing a strong financial position.

Financial highlights

• Q3 2025 revenue: $26.4 million, up 14% year-over-year.

• SECaaS/CCAs revenue: $7.3 million, up 60% year-over-year, representing 28% of total revenue.

• Recurring revenue reached 63% of total revenue, up from 58% in Q3 2024.

• Non-GAAP operating income: $3.7 million (vs. $1.1 million in Q3 2024); non-GAAP net income: $4.6 million, or $0.10 per diluted share (vs. $1.3 million, or $0.03 per share, last year).

• Cash and equivalents totaled $81 million at quarter-end, up from $59 million at year-end 2024; no debt outstanding.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $100–$103 million.

• SECaaS/CCAs ARR growth expected to surpass 60% year-over-year.

• Strong backlog and pipeline provide solid visibility heading into 2026.