Allot swings to profit as cybersecurity subscriptions fuel 11% revenue jump

Allot (NASDAQ:ALLT) today announced a sharp return to profitability for fiscal year 2025, driven by a surge in its cybersecurity subscription business.

The Hod Hasharon, Israel-based provider of network intelligence and security solutions posted total revenue of $102 million for the year, an 11% increase over 2024.

The company swung to a GAAP net income of $3.7 million, marking a decisive reversal from the losses incurred during its multi-year strategic pivot toward a service-based model.

The primary engine of growth was the company’s Security-as-a-Service (SECaaS) segment.

Annual Recurring Revenue (ARR) for SECaaS reached $30.8 million in December 2025, representing a 69% year-over-year increase.

This growth reflects deepening penetration within Tier-1 telecom operators and a growing "attach rate" among mobile and fixed-line subscribers who utilize Allot’s network-native security tools.

Meanwhile, Allot’s balance sheet significantly strengthened over the period, ending 2025 with $88 million in cash and cash equivalents and no debt.

The robust liquidity position follows a year of disciplined cost management and a successful equity offering earlier in the year that was used to retire convertible debt.

Looking ahead to 2026, management issued optimistic guidance, projecting total revenue between $113 million and $117 million.