Allot Ltd. Reports Strong Q1 2025 Financial Performance

Allot Communications ( (ALLT) ) has released its Q1 earnings. Here is a breakdown of the information Allot Communications presented to its investors.

Allot Ltd. is a global provider of network intelligence and security solutions, catering to service providers and enterprises with a focus on enhancing customer value through innovative technologies. The company operates in the network and security sector, offering services such as network analytics, traffic control, and network-based security solutions.

In the first quarter of 2025, Allot Ltd. reported a solid financial performance with a notable 54% year-over-year increase in its Security as a Service (SECaaS) annual recurring revenue (ARR). The company achieved a 6% rise in total revenues, reaching $23.2 million, and transitioned to a non-GAAP operating profit of $0.4 million from a previous loss.

Key financial metrics for the quarter included a 49% year-over-year growth in SECaaS revenues, amounting to $5.1 million, and a non-GAAP gross margin of 70.4%. The company also generated a positive operating cash flow of $1.7 million. Additionally, Allot signed several multi-million dollar agreements for its Smart and Tera III products, indicating a robust pipeline for future growth.

Looking ahead, Allot’s management remains optimistic about achieving profitable growth throughout 2025, with expectations of continued strong performance in SECaaS revenue and ARR, projecting year-over-year increases of around 50% or more.