Key Highlights

  • ALLT shares traded up 0.78% at $9.06, with the 50-day Moving Average moving above the 200-day average.
  • Second-quarter Revenue was $27.7 million, up 15% year over year, the fourth consecutive quarter of double-digit growth.
  • SECaaS revenue rose 47% to $9.4 million, and SECaaS annual Recurring Revenue reached $36.1 million, up 44%.
  • Full-year 2026 revenue guidance was raised to between $115 million and $118 million, with SECaaS growth of 40% or more.
  • Operating cash flow was $8.5 million, cash and investments totaled $107 million, and the board approved a $40 million buyback.

Allot (NASDAQ:ALLT) shares are trading up 0.78% at $9.06, and the stock's 50-day simple moving average has moved above its 200-day, a pattern technical analysts call a golden cross. The company has a market Capitalization of $446.69 million.

Allot, based in Israel, provides network intelligence and security solutions to communications service providers and enterprises. Its security-as-a-service offering, known as SECaaS, is the fastest-growing part of the business. Allot reported second-quarter results on August 12.

SECaaS Momentum Drives a Fourth Straight Double-Digit Quarter

Revenue for the quarter ended June 30 was $27.7 million, up 15% from $24.1 million a year earlier. The chief executive described it as the fourth consecutive quarter of double-digit growth and pointed to revenue strength in North America. The Americas contributed $8.5 million, or 31% of revenue, and the chief executive said the company sees many growth opportunities ahead.

SECaaS revenue rose 47% to $9.4 million, or 34% of total revenue, while SECaaS annual recurring revenue was $36.1 million in June, up 44%. Support and maintenance accounted for a further 33% of revenue.

Profitability Improves as Gross Margin Holds Near 71%

GAAP gross margin was 71.3% and non-GAAP gross margin was 71.8%. Non-GAAP Operating Income was $2.7 million, and non-GAAP Net Income was $4.6 million, or $0.09 per diluted share.

GAAP net income was $2.6 million, or $0.05 per share, against a net loss of $1.7 million a year earlier. Six-month GAAP net income was $4.5 million.

Operating cash flow was $8.5 million, up from $4.0 million in the same quarter of 2025. Cash, deposits and investments totaled $107 million at June 30, and the Balance Sheet shows no bank loans or convertible debt.

Guidance Raise and a $40 Million Buyback

Allot raised its 2026 revenue guidance to between $115 million and $118 million and expects SECaaS revenue growth of 40% or more for the year. Management referred to continued improvement in profitability but did not give a specific profit target, and the release carries no ARR or EBITDA guidance. Total ARR is not reported, so SECaaS ARR is the disclosed recurring-revenue measure.

On June 23, the board approved a share repurchase program of up to $40 million. The authorization compares with $107 million of cash, deposits and investments at the end of the quarter.

SECaaS Growth Is the Next Test

The golden cross reflects past price action. The next report will show whether SECaaS growth holds at or above the guided 40%, whether gross margin stays near current levels, and how the buyback is deployed.