Allot Communications Stock Earnings Reports

Allot reported a strong start to 2026 with Q1 revenue of $26.4M, up 14% year-over-year, driven primarily by rapid growth in its Security-as-a-Service (SECaaS) business. SECaaS revenue was $8.7M in the quarter (≈33% of revenue) and SECaaS ARR was $33.7M, up ~59% YoY. Recurring revenue now represents 67% of total revenue. Non-GAAP gross margin improved to 71.3% and non-GAAP operating income widened to $2.6M (9.9% margin). The company generated record operating cash flow of $10.6M in the quarter and ended with about $98M cash and no debt. Management reiterated full-year 2026 revenue guidance (noting confidence toward the high end) and expressed increased visibility to deliver 40%+ SECaaS revenue growth in 2026. Allot is increasing investments in R&D and sales & marketing to accelerate SECaaS adoption, expand product capabilities (including AI-enabled security, network firewall, DDoS and identity protection), and continue executing large multi‑year Smart (Tera III) projects. Key investor takeaways: strong recurring revenue mix and improving profitability, sizable and accelerating SECaaS growth as the primary growth engine, robust cash position with no debt, continued investment in product and go-to-market to sustain high‑teens company revenue growth (management expects mid‑teens overall growth) and 40%+ SECaaS growth for the year. Note: there are some inconsistent phrasing on full-year revenue ranges in the prepared remarks; investors should reference the formal press release for definitive guidance figures.