Operational efficiency has surged, with the company achieving a 38.6% free cash flow margin in 2026Q1, a stark reversal from the -22.6% margin observed in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 27.73M | 17.79M | 4.83M | -29.74M | -32.56M | -8.37M | -12.22M | 16.09M | 1.03M | -229K | -3.47M | 4.38M | 15.84M | -19.25M | 8.69M | 14.95M | 7.35M | -392K | -176K | -6.1M | 1.24M | 156K | -1.71M |
| Operating CF Margin % | - | 17.44% | 5.23% | -31.92% | -26.53% | -5.75% | -8.99% | 14.62% | 1.07% | -0.28% | -3.84% | 4.38% | 13.51% | -19.94% | 8.3% | 19.22% | 12.9% | -0.94% | -0.47% | -18.77% | 3.63% | 0.68% | -9.45% |
| Operating CF Growth % | 1042.09% | 268.65% | 116.23% | 8.69% | -289.11% | 31.54% | -175.97% | 1462.33% | 549.78% | 93.39% | -179.08% | -72.32% | 182.26% | -321.47% | -41.84% | 103.31% | 1975.26% | -122.73% | 97.12% | -592.89% | 693.59% | 109.13% | - |
| Net Income | 5.98M | 3.71M | -5.87M | -62.8M | -32.03M | -15.04M | -9.35M | -8.66M | -10.41M | -18.07M | -7.99M | -19.84M | -2.5M | -6.46M | -6.74M | 8.81M | -5.76M | -7.67M | -16.5M | -9.94M | 616K | -2.38M | -3.29M |
| Depreciation & Amortization | 3.36M | 4.05M | 6.22M | 8.13M | 7.35M | 5.58M | 4.31M | 4.24M | 3.83M | 3.67M | 4.04M | 11.15M | 5.17M | 6.34M | 5.07M | 2.88M | 2.7M | 2.58M | 2.11M | 1.52M | 963K | 632K | 1.24M |
| Stock-Based Compensation | 1.45M | 0 | 6.04M | 8.85M | 9.16M | 8M | 5.2M | 3.42M | 2.86M | 3.37M | 5.18M | 7.15M | 8.1M | 7.73M | 4.82M | 2.26M | 1.99M | 2.3M | 1.7M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 3.09M | 0 | 420K | 96K | -236K | 20K | -34K | 234K | 1.4M | -224K | -77K | -931K | -114K | 49K | 316K | 7.7M | 102K | -90K | -281K | 0 |
| Other Non-Cash Items | 5.66M | 6.39M | 1.84M | -2.89M | 171K | -420K | -78K | 236K | 19K | 61K | -210K | -1.25M | 224K | 95K | 951K | 124K | 7.73M | 3M | 244K | 6.16M | 1.06M | 305K | 155K |
| Working Capital Changes | 11.29M | 3.65M | -3.4M | 15.89M | -17.22M | -6.91M | -12.4M | 17.09M | 4.71M | 10.78M | -4.72M | 5.77M | 5.07M | -26.88M | 5.53M | 995K | 641K | -915K | 4.56M | -3.95M | -1.31M | 1.87M | 185K |
| Change in Receivables | -1.35M | -969K | -1.65M | 34.27M | -11.63M | -16.79M | 8.32M | -2.92M | -3.36M | 1.42M | -284K | -847K | -6.85M | 2.85M | -8.14M | -1.19M | -2.9M | -1.68M | 20K | 0 | 0 | 0 | 0 |
| Change in Inventory | -7.84M | -4.57M | 3.26M | 1.39M | -2.17M | 1.49M | -1.92M | -138K | -3.45M | -662K | 2.93M | -950K | 3.69M | -3.83M | 3.23M | 329K | -5.78M | -787K | -44K | -1.59M | -2.05M | -271K | -337K |
| Change in Payables | 418.78K | -8K | -24K | -10.69M | 7.72M | 1.85M | -9.58M | 3.86M | 1.95M | 2.58M | -3.83M | 2.22M | 3.11M | -1.62M | -1.29M | -2.71M | 2M | 240K | -507K | 0 | 0 | 0 | 0 |
| Cash from Investing | -36.79M | -28.53M | -2.88M | 31.63M | -6.51M | -6.32M | 17.06M | -16.49M | -453K | -8.12M | 15.04M | -8.05M | -40.94M | 11.14M | -79.3M | -29.13M | -4.01M | -3.65M | 12.01M | 25.59M | -73.87M | -430K | -5.47M |
| Capital Expenditures | -2.53M | -2.29M | -2.12M | -2.49M | -5.64M | -7.64M | -7.58M | -3.71M | -3.48M | -2.83M | -1.58M | -2.22M | -3.39M | -2.71M | -3.82M | -2.95M | -2.33M | -3.61M | -1.72M | -3.03M | -2.07M | -686K | -607K |
| CapEx % of Revenue | 2.4% | 2.25% | 2.3% | 2.67% | 4.6% | 5.25% | 5.58% | 3.37% | 3.64% | 3.46% | 1.75% | 2.22% | 2.89% | 2.8% | 3.65% | 3.8% | 4.1% | 8.64% | 4.64% | 9.32% | 6.07% | 2.99% | 3.36% |
| Acquisitions | 106.06K | 100K | 0 | 0 | -500K | 0 | 0 | 0 | -3.05M | 0 | 26K | -10.05M | 0 | 0 | -24.89M | 30K | 0 | 0 | -3.8M | 0 | 4K | 4K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.69M | 0 | -760K | -836K | 430K | -280K | 32.9M | -33.37M | -294K | -428K | 203K | -203K | -2.08M | 146K | 913K | -78K | -2.94M | 157K | -1.06M | 0 | -209K | 2K | -18K |
| Cash from Financing | 11.54M | 11.14M | 1K | 0 | 39.66M | 2.81M | 1.83M | 993K | 417K | 362K | -3.72M | -43K | 1.48M | 899K | 3.95M | 88.01M | 3.05M | 485K | 90K | 1.5M | 76.07M | -144K | 7.65M |
| Debt Issued (Net) | -33.16M | -31.41M | 0 | 0 | 39.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.95M | 0 | 0 | 0 | 0 | -6K | 6K | -166K | -234K |
| Equity Issued (Net) | 44.7M | 42.55M | 1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.83M | -166K | 0 | 0 | 0 | 84.92M | 0 | 0 | 0 | 1.44M | 76M | 22K | 7.88M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.83M | -166K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 251K | 2.81M | 1.83M | 993K | 418K | 362K | 113K | 132K | 1.48M | 899K | 5.9M | 2.84M | 3.05M | 485K | 90K | 69K | 67K | 0 | 0 |
| Net Change in Cash | 5.75M | 3.63M | 1.95M | 1.9M | 578K | -11.88M | 6.67M | 594K | 994K | -7.98M | 7.86M | -3.71M | -23.63M | -7.21M | -66.66M | 73.82M | 6.39M | -3.56M | 11.93M | 20.98M | 3.44M | -418K | 464K |
| Free Cash Flow | 25.2M | 15.5M | 2.71M | -32.23M | -38.21M | -16.01M | -19.81M | 12.38M | -2.46M | -3.06M | -5.05M | 2.17M | 12.44M | -21.96M | 4.87M | 11.99M | 5.02M | -4M | -1.9M | -9.13M | -834K | -530K | -2.32M |
| FCF Margin % | 23.94% | 15.2% | 2.94% | -34.59% | -31.13% | -11% | -14.57% | 11.25% | -2.56% | -3.73% | -5.59% | 2.17% | 10.62% | -22.74% | 4.65% | 15.42% | 8.81% | -9.58% | -5.11% | -28.1% | -2.44% | -2.31% | -12.81% |
| FCF Growth % | 266.69% | 472.09% | 108.41% | 15.66% | -138.63% | 19.16% | -259.94% | 604.44% | 19.82% | 39.34% | -333.16% | -82.6% | 156.68% | -550.66% | -59.37% | 139.03% | 225.42% | -110.97% | 79.24% | -994.96% | -57.36% | 77.12% | - |
| FCF per Share | 0.51 | 0.34 | 0.07 | -0.85 | -1.03 | -0.44 | -0.57 | 0.36 | -0.07 | -0.09 | -0.15 | 0.06 | 0.38 | -0.67 | 0.15 | 0.44 | 0.22 | -0.18 | -0.09 | -0.42 | -0.05 | -0.03 | -0.83 |
| FCF Conversion (FCF/Net Income) | 4.21x | 4.80x | -0.82x | 0.47x | 1.02x | 0.56x | 1.31x | -1.86x | -0.10x | 0.01x | 0.43x | -0.22x | -6.34x | 2.98x | -1.29x | 1.70x | -1.28x | 0.05x | 0.01x | 0.61x | 2.01x | -0.07x | 0.52x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 601K | 385K | 413K | 633K | 410K | 473K | 347K | 342K | 175K | 139K | 82K | 9K | -48K | 100K | 168K | 0 | 0 | 0 | 0 | 0 | 0 |
Telco infrastructure spending volatility
According to recent financial disclosures, Allot's operating cash flow to net income ratio reached 5.44 in 2026Q1, signaling a significant improvement in cash conversion quality as the company moves away from the negative cash flow periods that characterized its 2024 fiscal year performance.
The wide variance between net income and operating cash flow suggests that non-cash items and working capital fluctuations have historically obscured the underlying cash-generating capacity of the business. Investors should monitor whether this high conversion ratio is sustainable or if it remains heavily dependent on favorable timing of customer payments.
As reported in quarterly filings, Allot achieved a 38.6% free cash flow margin in 2026Q1, a stark reversal from the -22.6% margin observed in 2023Q4, indicating that the transition to a recurring revenue model is finally yielding meaningful cash flow generation relative to top-line performance.
The trajectory of free cash flow suggests that the company is successfully scaling its SECaaS offerings without requiring proportional increases in capital expenditure. This trend warrants further investigation to determine if the current margin levels are representative of a new steady state or if they reflect temporary deferrals in operational spending.
Based on the provided cash flow statements, working capital changes contributed $6.9M to operating cash flow in 2026Q1, which appears to be a primary driver of the company's recent liquidity improvement compared to the $2.6M outflow recorded in the first quarter of 2024.
The volatility in working capital suggests that Allot's cash position is highly sensitive to the timing of large-scale telecommunications contract settlements. Analysts should scrutinize whether these inflows represent permanent improvements in collection efficiency or merely the lumpy realization of deferred revenue from prior periods.
Data from recent filings indicates that Allot maintained a capital expenditure to revenue ratio of just 1.4% in 2026Q1, confirming that the company's shift toward a software-centric delivery model has successfully minimized the need for heavy investment in physical infrastructure or hardware assets.
The low capital intensity suggests that the business model is inherently scalable, provided that the SECaaS subscriber base continues to grow. This capital-light profile may provide a competitive advantage by allowing the company to allocate more resources toward R&D rather than maintenance of legacy hardware.
Quick answers to the most common questions about buying ALLT stock.
Allot Ltd. (ALLT) generated $17.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Allot Ltd. (ALLT) generated $15.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Allot Ltd. (ALLT) spent $2.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.