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1. Company Snapshot

1.a. Company Description

Allot Ltd.provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas.The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud.


It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning.The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments.Allot Ltd.


was formerly known as Allot Communications Ltd.and changed its name to Allot Ltd.in October 2018.


The company was incorporated in 1996 and is based in Hod Hasharon, Israel.

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1.b. Last Insights on ALLT

Allot Ltd.'s recent performance is driven by strong product demand and growing SECaaS revenues. The company's Q2 2025 earnings report revealed exceptionally strong 73% year-over-year growth in SECaaS ARR, leading to a raise in full-year guidance. Strategic product launches, including ACTI, DDoS Business Secure, and OffNetSecure, expand Allot's addressable market and reinforce its competitive edge. A landmark deal with a Tier 1 EMEA telecom operator, valued at tens of millions of dollars, also contributed to the positive momentum.

1.c. Company Highlights

2. Allot's Q3 2025 Earnings: A Strong Performance Driven by CCaaS Growth

Allot's third-quarter 2025 financial results showcased a robust performance, with revenue growing 14% year-over-year to $26.4 million. The non-GAAP operating income stood at $3.7 million. Earnings per share (EPS) came in at $0.1, beating estimates of $0.04. The company's Cybersecurity as a Service (CCaaS) segment continued to be a significant growth driver, with a 60% year-over-year increase in CCaaS Annual Recurring Revenue (ARR) and accounting for 28% of the quarter's revenue.

Publication Date: Nov -24

📋 Highlights
  • Revenue Growth:: 14% YoY increase to $26.4 million in Q3 2025.
  • CCaaS Performance:: 60% YoY growth in CCaaS ARR, contributing 28% of quarterly revenue.
  • Financial Position:: $80 million in cash with no debt, supporting strong liquidity.
  • Full-Year Guidance Raised:: Revenue projected to $100–$103 million, with CCaaS ARR growth exceeding 60%.
  • New Product Adoption:: First major customer for Ofnet Secure, expanding cybersecurity protection to subscribers beyond operator networks.

CCaaS Growth Engine

The CCaaS segment's strong performance was highlighted by Eyal Harari, CEO, who mentioned that the company is seeing four drivers for CCaaS growth, including new customers expanding the Total Addressable Market (TAM) into new subscriber bases, offering additional services to existing customers, marketing efforts, and customer success teams. This growth is expected to be sustainable due to the typical two to three-year peak period for new services. The company's efforts in go-to-market strategies, customer success, and investing in new innovations have contributed to the 60% year-over-year growth in CCaaS ARR.

Financial Position and Guidance

Allot's financial position remains strong, with $80 million in cash and no debt. The company has increased its guidance for 2025, expecting year-end CCaaS ARR to show an exceptionally strong year-over-year growth surpassing 60%. The full-year 2025 revenue guidance has been raised to between $100 and $103 million. Analysts estimate next year's revenue growth at 13.0%, indicating a continued growth trajectory.

Valuation Metrics

Examining the valuation metrics, Allot's Price-to-Sales (P/S) Ratio stands at 4.37, and the EV/EBITDA ratio is 80.46. These metrics suggest that the market is pricing in a certain level of growth, which is being delivered by the company's CCaaS segment. The Return on Invested Capital (ROIC) is -4.39%, and the Return on Equity (ROE) is -3.27%, indicating that the company is still in an investment phase. The current valuation multiples should be considered in the context of the company's growth prospects and the competitive landscape.

3. NewsRoom

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How Much Upside is Left in Allot Communications (ALLT)? Wall Street Analysts Think 42.71%

Dec -02

Source: zacks.com

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Are Computer and Technology Stocks Lagging Allot (ALLT) This Year?

Nov -26

Source:

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Allot: Accelerating Revenue Growth And Potential Margin Expansion

Nov -21

Source: seekingalpha.com

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Allot Ltd. (ALLT) Q3 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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Allot Announces Third Quarter 2025 Financial Results

Nov -20

Source: prnewswire.com

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Allot to Participate in the 6th Annual Needham Tech Week Conference on November 24, 2025

Nov -17

Source: globenewswire.com

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Allot to Release Third Quarter 2025 Results and Host Conference Call on November 20, 2025

Nov -03

Source: globenewswire.com

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Allot to Present at the LD Micro Main Event Conference on October 21, 2025

Oct -09

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.90%)

6. Segments

Services

Expected Growth: 2.5%

Allot Ltd.'s 2.5% growth in services is driven by increasing demand for cybersecurity and network intelligence solutions, fueled by rising cyberattacks and growing need for network visibility. Additionally, the shift towards 5G and IoT adoption, as well as the growing importance of digital transformation, are contributing to the growth of Allot's services segment.

Network Intelligence and Security Solutions

Expected Growth: 3.5%

Allot Ltd.'s Network Intelligence and Security Solutions growth is driven by increasing demand for cybersecurity, rising adoption of 5G and IoT, and growing need for network visibility and analytics. Additionally, the shift towards cloud-based security solutions and the requirement for real-time threat detection and mitigation also contribute to the 3.5% growth.

7. Detailed Products

Allot Secure

A cybersecurity solution that provides network-based threat detection and mitigation, enabling service providers to offer their customers protection from cyber threats.

Allot NetworkVisibility

A network monitoring and analytics solution that provides real-time visibility into network traffic, enabling service providers to optimize network performance and improve quality of experience.

Allot Traffic Management

A traffic management solution that enables service providers to manage network congestion, prioritize critical traffic, and ensure a high-quality user experience.

Allot Service Gateway

A virtualized service delivery platform that enables service providers to deploy and manage value-added services, such as security, analytics, and optimization.

Allot Analytics

A network analytics solution that provides insights into network traffic, enabling service providers to optimize network performance, improve quality of experience, and identify new revenue opportunities.

8. Allot Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Allot Ltd. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of cybersecurity threats.

Bargaining Power Of Customers

Allot Ltd.'s customers are primarily large enterprises and telecom operators, which have limited bargaining power due to their reliance on Allot's solutions.

Bargaining Power Of Suppliers

Allot Ltd. has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's strong financial position allows it to negotiate favorable terms.

Threat Of New Entrants

The cybersecurity market is highly competitive, and new entrants can easily disrupt the market with innovative solutions, posing a significant threat to Allot Ltd.'s market share.

Intensity Of Rivalry

The cybersecurity market is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.31%
Debt Cost 3.95%
Equity Weight 54.69%
Equity Cost 9.13%
WACC 6.78%
Leverage 82.84%

11. Quality Control: Allot Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WAGPS

A-Score: 4.3/10

Value: 4.5

Growth: 5.7

Quality: 2.0

Yield: 2.5

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

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Spirent Communications

A-Score: 4.1/10

Value: 0.8

Growth: 1.7

Quality: 5.1

Yield: 3.1

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Arqit Quantum

A-Score: 4.0/10

Value: 6.0

Growth: 4.8

Quality: 3.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Radware

A-Score: 3.6/10

Value: 1.2

Growth: 3.6

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
OVH

A-Score: 3.5/10

Value: 2.8

Growth: 5.1

Quality: 2.7

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Allot

A-Score: 3.4/10

Value: 2.6

Growth: 2.9

Quality: 4.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.53$

Current Price

9.53$

Potential

-0.00%

Expected Cash-Flows