Gross margins have stabilized at 70.9% in 2026Q1, reflecting a successful shift toward software-centric delivery compared to the 46.8% trough recorded 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 |
|---|
| Sales/Revenue | 105.27M | 101.99M | 92.19M | 93.15M | 122.74M | 145.6M | 135.92M | 110.1M | 95.84M | 81.99M | 90.37M | 99.97M | 117.19M | 96.55M | 104.75M | 77.75M | 56.97M | 41.75M | 37.1M | 32.5M | 34.14M | 22.97M | 18.09M |
| Revenue Growth % | 12.64% | 10.63% | -1.03% | -24.11% | -15.7% | 7.12% | 23.45% | 14.88% | 16.89% | -9.27% | -9.6% | -14.69% | 21.38% | -7.83% | 34.72% | 36.48% | 36.46% | 12.53% | 14.15% | -4.81% | 48.63% | 27.02% | - |
| Cost of Goods Sold | 30.02M | 29.44M | 28.5M | 40.46M | 39.83M | 44.55M | 40.08M | 33.83M | 29.35M | 28.53M | 27.89M | 33.43M | 34.74M | 26.82M | 46.92M | 22.18M | 15.98M | 11.84M | 9.7M | 8.02M | 7.6M | 5.42M | 4.62M |
| COGS % of Revenue | - | 28.87% | 30.92% | 43.44% | 32.45% | 30.6% | 29.49% | 30.73% | 30.62% | 34.8% | 30.87% | 33.44% | 29.64% | 27.78% | 44.79% | 28.52% | 28.06% | 28.35% | 26.13% | 24.67% | 22.25% | 23.59% | 25.55% |
| Gross Profit | 75.25M | 72.55M | 63.69M | 52.69M | 82.91M | 101.05M | 95.84M | 76.27M | 66.49M | 53.46M | 62.47M | 66.54M | 82.45M | 69.73M | 57.83M | 55.58M | 40.99M | 29.92M | 27.41M | 24.48M | 26.55M | 17.55M | 13.46M |
| Gross Margin % | 71.48% | 71.13% | 69.08% | 56.56% | 67.55% | 69.4% | 70.51% | 69.27% | 69.38% | 65.2% | 69.13% | 66.56% | 70.36% | 72.22% | 55.21% | 71.48% | 71.94% | 71.65% | 73.87% | 75.33% | 77.75% | 76.41% | 74.45% |
| Gross Profit Growth % | - | 13.91% | 20.89% | -36.45% | -17.95% | 5.43% | 25.67% | 14.71% | 24.37% | -14.43% | -6.11% | -19.29% | 18.24% | 20.57% | 4.05% | 35.6% | 37.01% | 9.16% | 11.93% | -7.77% | 51.24% | 30.37% | - |
| Operating Expenses | 69.4M | 68.95M | 69.7M | 117.62M | 115.17M | 114.58M | 104.87M | 85.24M | 76.68M | 70.86M | 69.32M | 82.44M | 85.55M | 76.79M | 66.85M | 47.24M | 38.76M | 35.21M | 38.16M | 33.05M | 26.45M | 20.19M | 16.51M |
| OpEx % of Revenue | - | 67.6% | 75.61% | 126.27% | 93.84% | 78.69% | 77.15% | 77.42% | 80.01% | 86.43% | 76.71% | 82.47% | 73.01% | 79.54% | 63.82% | 60.76% | 68.03% | 84.34% | 102.86% | 101.68% | 77.47% | 87.9% | 91.28% |
| Selling, General & Admin | 44.62M | 44.45M | 43.59M | 78.51M | 65.38M | 67.48M | 61.42M | 53.78M | 51.27M | 49.01M | 45.1M | 56.02M | 56.54M | 49.77M | 44.79M | 34.02M | 27.49M | 25.95M | 26.03M | 23.66M | 18.92M | 14.27M | 12.19M |
| SG&A % of Revenue | - | 43.58% | 47.28% | 84.28% | 53.26% | 46.35% | 45.19% | 48.85% | 53.49% | 59.78% | 49.91% | 56.04% | 48.25% | 51.55% | 42.76% | 43.75% | 48.26% | 62.15% | 70.17% | 72.81% | 55.42% | 62.11% | 67.38% |
| Research & Development | 24.79M | 24.5M | 26.11M | 39.12M | 49.8M | 47.09M | 43.45M | 31.46M | 25.42M | 21.85M | 24.22M | 26.42M | 29.01M | 27.02M | 22.06M | 13.22M | 11.26M | 9.27M | 12.13M | 9.38M | 7.53M | 5.92M | 3.96M |
| R&D % of Revenue | - | 24.02% | 28.32% | 41.99% | 40.57% | 32.34% | 31.96% | 28.57% | 26.52% | 26.65% | 26.8% | 26.43% | 24.76% | 27.99% | 21.06% | 17.01% | 19.77% | 22.19% | 32.69% | 28.87% | 22.05% | 25.79% | 21.88% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 366K |
| Operating Income | 5.84M | 3.6M | -6.01M | -64.94M | -32.27M | -13.53M | -9.03M | -8.98M | -10.2M | -17.4M | -6.85M | -15.9M | -3.11M | -7.06M | -9.02M | 8.34M | 2.23M | -5.3M | -10.76M | -8.56M | 97K | -2.64M | -3.04M |
| Operating Margin % | 5.55% | 3.53% | -6.52% | -69.71% | -26.29% | -9.29% | -6.64% | -8.15% | -10.64% | -21.22% | -7.58% | -15.91% | -2.65% | -7.32% | -8.61% | 10.72% | 3.91% | -12.69% | -29% | -26.35% | 0.28% | -11.49% | -16.83% |
| Operating Income Growth % | - | 159.93% | 90.74% | -101.23% | -138.53% | -49.83% | -0.57% | 11.94% | 41.41% | -154.08% | 56.93% | -411.81% | 56.02% | 21.7% | -208.19% | 274.11% | 142.07% | 50.75% | -25.6% | -8929.9% | 103.68% | 13.3% | - |
| EBITDA | 9.2M | 7.65M | 210K | -58.42M | -24.92M | -7.95M | -4.72M | -4.62M | -6.36M | -13.73M | -2.81M | -4.75M | 2.06M | -726K | -3.96M | 11.21M | 4.93M | -2.71M | -8.65M | -7.04M | 1.06M | -2.01M | -1.8M |
| EBITDA Margin % | 8.74% | 7.5% | 0.23% | -62.71% | -20.3% | -5.46% | -3.47% | -4.2% | -6.64% | -16.75% | -3.1% | -4.75% | 1.76% | -0.75% | -3.78% | 14.42% | 8.65% | -6.5% | -23.32% | -21.66% | 3.1% | -8.74% | -9.98% |
| EBITDA Growth % | 319.03% | 3543.81% | 100.36% | -134.45% | -213.3% | -68.6% | -2.12% | 27.39% | 53.68% | -389.45% | 40.93% | -330.69% | 383.61% | 81.64% | -135.27% | 127.51% | 281.61% | 68.63% | -22.87% | -764.25% | 152.82% | -11.19% | - |
| D&A (Non-Cash Add-back) | 3.36M | 4.05M | 6.22M | 6.52M | 7.35M | 5.58M | 4.31M | 4.36M | 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 |
| EBIT | 6.63M | 5.01M | -4.1M | -61.65M | -30.1M | -13.11M | -7.04M | -6.76M | -7.19M | -16.51M | -5.79M | -15.21M | -2.45M | -5.75M | -7.45M | 8.9M | 2.23M | -7.47M | -15.94M | -8.56M | 727K | -2.64M | -3.04M |
| Net Interest Income | 2.56M | 2.45M | 2.57M | 3M | 1.84M | 969K | 1.63M | 2.29M | 1.9M | 1.5M | 1.25M | 896K | 834K | 774K | 1.53M | 510K | 681K | 777K | 2.24M | 0 | 0 | 0 | 0 |
| Interest Income | 2.56M | 2.45M | 2.57M | 3.07M | 1.88M | 1.04M | 1.75M | 1.96M | 2.7M | 2.51M | 2.47M | 2.17M | 1.9M | 1.36M | 1.75M | 661K | 492K | 914K | 2.57M | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 72K | 38K | 76K | 128K | 257K | 793K | 1.02M | 1.22M | 1.28M | 1.07M | 584K | 212K | 16K | 7.91M | 137K | 335K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.45M | 1.33M | 1.91M | 3.21M | 2.13M | 339K | 1.86M | 1.96M | 2.21M | 894K | 1.06M | -584K | 660K | 727K | 1.36M | 415K | -7.91M | -2.31M | -5.52M | -845K | 630K | 45K | -241K |
| Pretax Income | 7.29M | 4.94M | -4.1M | -61.72M | -30.14M | -13.19M | -7.17M | -7.02M | -7.99M | -16.51M | -5.79M | -16.49M | -2.45M | -6.34M | -7.66M | 8.75M | -5.68M | -7.61M | -16.27M | -9.41M | 727K | -2.59M | -3.29M |
| Pretax Margin % | 6.92% | 4.84% | -4.45% | -66.26% | -24.55% | -9.06% | -5.28% | -6.37% | -8.33% | -20.13% | -6.41% | -16.49% | -2.09% | -6.56% | -7.32% | 11.26% | -9.97% | -18.22% | -43.87% | -28.95% | 2.13% | -11.29% | -18.16% |
| Income Tax | 1.31M | 1.23M | 1.76M | 1.08M | 1.9M | 1.85M | 2.18M | 1.64M | 2.43M | 1.56M | 2.2M | 3.36M | 50K | 120K | -926K | -55K | 84K | 63K | 220K | 530K | 111K | -218K | 3K |
| Effective Tax Rate % | 17.94% | 24.97% | -43.01% | -1.76% | -6.29% | -14.03% | -30.34% | -23.38% | -30.4% | -9.47% | -38.07% | -20.36% | -2.04% | -1.89% | 12.08% | -0.63% | -1.48% | -0.83% | -1.35% | -5.63% | 15.27% | 8.4% | -0.09% |
| 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 |
| Net Margin % | 5.68% | 3.63% | -6.37% | -67.42% | -26.1% | -10.33% | -6.88% | -7.86% | -10.87% | -22.04% | -8.85% | -19.85% | -2.13% | -6.69% | -6.43% | 11.33% | -10.11% | -18.38% | -44.46% | -30.58% | 1.8% | -10.34% | -18.18% |
| Net Income Growth % | 261.99% | 163.13% | 90.66% | -96.08% | -112.97% | -60.89% | -7.96% | 16.86% | 42.37% | -126.07% | 59.71% | -694.63% | 61.33% | 4.17% | -176.49% | 252.88% | 24.9% | 53.49% | -65.95% | -1713.64% | 125.93% | 27.74% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.12 | 0.08 | -0.15 | -1.66 | -0.87 | -0.42 | -0.27 | -0.25 | -0.31 | -0.54 | -0.24 | -0.59 | -0.08 | -0.20 | -0.21 | 0.33 | -0.25 | -0.35 | -0.75 | -0.46 | 0.04 | -0.11 | -1.18 |
| EPS Growth % | 227.12% | 153.47% | 90.96% | -90.8% | -107.14% | -55.56% | -8% | 19.35% | 42.59% | -125% | 59.32% | -683.53% | 62.35% | 4.76% | -163.64% | 232% | 28.57% | 53.33% | -63.04% | -1250% | 136.36% | 90.68% | - |
| EPS (Basic) | - | 0.08 | -0.15 | -1.66 | -0.87 | -0.42 | -0.27 | -0.25 | -0.31 | -0.54 | -0.24 | -0.59 | -0.08 | -0.20 | -0.21 | 0.35 | -0.25 | -0.35 | -0.75 | -0.46 | 0.03 | -0.11 | -1.18 |
| Diluted Shares Outstanding | 49.89M | 46.18M | 38.93M | 37.91M | 36.98M | 36.05M | 35.01M | 34.25M | 33.71M | 33.25M | 33.2M | 33.42M | 33.14M | 32.68M | 31.96M | 27.07M | 22.83M | 22.19M | 22.05M | 21.53M | 16.42M | 20.91M | 2.79M |
| Basic Shares Outstanding | 48.78M | 44.07M | 38.93M | 37.91M | 36.98M | 36.05M | 35.01M | 34.25M | 33.6M | 33.25M | 33.2M | 33.42M | 33.14M | 32.29M | 31.96M | 25.05M | 22.83M | 22.19M | 22.05M | 21.53M | 20.96M | 20.91M | 2.79M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical and Telco Cyclicality
According to the most recent quarterly data, Allot achieved a 14.1% year-over-year revenue growth rate in 2026Q1, signaling a meaningful recovery from the contraction observed in late 2023 and early 2024 as the company pivots toward its recurring Security-as-a-Service model within global telecommunications infrastructure.
The recent acceleration in top-line performance suggests that the transition from lumpy, project-based hardware sales to a more predictable revenue-share model is beginning to gain traction. Investors should monitor whether this growth trajectory can be sustained without the volatility historically associated with carrier-grade infrastructure deployment cycles.
As reported in financial statements, Allot's gross margin has stabilized at approximately 71% in recent quarters, a significant improvement from the 46.8% trough in 2023Q4, which appears to validate the company's strategic shift toward higher-margin software-centric delivery models over legacy hardware appliance sales.
The restoration of gross margins to the 70% range indicates that the company is successfully reducing its reliance on low-margin hardware components. This structural shift is essential for the firm to achieve sustainable profitability, though margin durability remains contingent on the product mix within its SECaaS offerings.
Based on reported figures, Allot's operating margin reached 5.8% in 2026Q1, marking a return to positive territory after several quarters of operating losses, which suggests that the company is finally beginning to realize the benefits of scaling its recurring revenue base against a fixed cost structure.
While the return to positive operating income is a positive development, the thin margin profile implies that the company remains sensitive to fluctuations in R&D and SG&A spending. Further expansion of operating margins will likely require a significant increase in SECaaS subscriber volume to dilute the impact of high engineering costs.
Analysis of recent income statements reveals that Allot has successfully eliminated stock-based compensation expenses in the most recent two quarters, a notable departure from the $1.2M to $2.2M quarterly charges previously recorded, which significantly enhances the quality and transparency of the company's reported net income.
The cessation of stock-based compensation suggests a potential shift in management's approach to talent retention or a temporary pause in equity-based incentives. Investors should investigate whether this trend is sustainable or if it represents a temporary accounting anomaly that could reverse in future periods.
Despite recent growth, skeptics may point to the historical volatility of Allot's revenue, as evidenced by the 26.3% decline in 2023Q4, which highlights the inherent risk of relying on telecommunications carriers that often defer infrastructure spending during periods of macroeconomic uncertainty or shifting regulatory priorities.
The reliance on Tier-1 and Tier-2 service providers creates a concentrated customer risk that could lead to sudden revenue lulls if carrier marketing efforts for SECaaS fail to meet expectations. The market's current valuation may reflect a justified skepticism regarding the company's ability to maintain consistent growth in a highly competitive and cyclical industry.
Quick answers to the most common questions about buying ALLT stock.
For fiscal year 2025, Allot Ltd. (ALLT) reported total revenue of $102.0M. This represents a 464.0% increase compared to $18.1M in 2004.
Allot Ltd. (ALLT) is profitable, generating $3.7M in net income for the fiscal year ending 2025 with a net profit margin of 3.6%.
Allot Ltd. (ALLT) reported an operating income of $3.6M, resulting in an operating profit margin of 3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Allot Ltd. (ALLT) generated $72.6M in gross profit for the year, representing a gross profit margin of 71.1%. This demonstrates the company's core pricing power and production efficiency.