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HOD HASHARON, Israel - On Thursday, Allot Ltd. (NASDAQ:ALLT) reported third-quarter earnings that significantly exceeded analyst expectations, driven by strong Security-as-a-Service (SECaaS) growth and improved profitability.
The cybersecurity solutions provider’s shares jumped 4.45% in pre-market trading after the results.
The company reported adjusted earnings of $0.10 per share for the third quarter, beating analyst estimates of $0.04 by a substantial margin. Revenue came in at $26.4 million, slightly above the consensus estimate of $26 million and representing a 14% increase YoY. The company’s SECaaS annual recurring revenue (ARR) reached $27.6 million, up 60% YoY.
"We reported a return to double-digit year-over-year revenue growth of 14% and our operations generated the highest profitability in over a decade," said Eyal Harari, CEO of Allot. "The growth was driven by excellent performance from both our cyber security solutions and our network intelligence offerings."
The company’s adjusted operating income reached $3.7 million, compared with $1.1 million in the same period last year, demonstrating substantial margin improvement. Allot also reported strong positive operating cash flow of $4.0 million for the quarter.
Based on continued strong performance, Allot raised its full-year 2025 revenue guidance to between $100-103 million. The company expects its SECaaS ARR year-over-year growth to surpass 60%.
SECaaS revenue now represents 28% of Allot’s overall revenue, highlighting the company’s successful transition toward a recurring revenue model. The company ended the quarter with $81 million in total cash, an increase of $22 million compared to December 31, 2024.
"We are advancing strongly on our cyber-security first strategy, and we are progressing well with our key customers," added Harari. "Helping our customers achieve their business goals is a key to driving our profitable growth."
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