Allot returns to profitability as SECaaS revenue surges 71%

Allot (NASDAQ:ALLT) reached a significant financial turning point in the first quarter of 2026, swinging to a GAAP profit as its transition toward a subscription-based security model gained momentum.

The Hod Hasharon, Israel-based provider of network intelligence and Security-as-a-Service (SECaaS) reported revenue of $26.4 million, a 14% increase over the same period last year.

The driving force behind the recovery was the company’s SECaaS segment, which generated $8.7 million in revenue, representing 71% year-over-year growth.

Annual Recurring Revenue (ARR) for the segment reached $33.7 million in March 2026, up 59% from a year ago.

This shift has fundamentally altered Allot's revenue mix, with recurring fees now accounting for more than 67% of total top-line results.

On the bottom line, Allot reported GAAP operating income of $1.5 million, a sharp reversal from the operating loss recorded in the first quarter of 2025.

GAAP net income for the quarter was $1.9 million, or $0.04 per diluted share.

The company’s cash position also saw a substantial boost, with operating cash flow hitting a record $10.6 million, bringing total cash, deposits, and investments to $98 million.

Management reaffirmed its full-year 2026 revenue guidance of $113 million to $117 million.

Furthermore, the company indicated it has clear visibility to achieve at least 40% growth in SECaaS revenue for the remainder of the year, supported by an expanding footprint with global Tier-1 operators who are increasingly bundling Allot’s cybersecurity solutions with consumer and business mobile plans.