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what it is
Allot sells the software telecom operators use to inspect, manage, and secure internet traffic on their networks.
how it gets paid
Last year Allot made $92M in revenue. network-based security services was the main engine at $28M, or 30% of sales.
what just happened
The quarter's real story was 70.7% gross margin, because revenue still looked small at $47M.
At a glance
n/a balance sheet
35/100 earnings predictability — expect surprises
171.8x trailing p/e — you're paying up for this one
-$0.15 fy2024 eps est
$92M fy2024 rev est
xvary composite: 57/100 — below average
What they do
Allot sells the software telecom operators use to inspect, manage, and secure internet traffic on their networks.
Allot is already inside the pipes: its platforms are deployed by over 500 service providers and more than 1,000 enterprises. Deep packet inspection (seeing what traffic is doing on a network) → carriers can control, secure, and monetize traffic → so what: once your network runs on this software, replacing it is painful.
How they make money
$92M
annual revenue
network-based security services
$28M
multi-service platforms
$24M
traffic intelligence and dpi
$18M
enterprise and private network solutions
$12M
support and related services
$10M
The products that matter
carrier cybersecurity subscriptions
Security-as-a-Service
$30.8M · 30% of revenue
this $30.8M business grew 69% in 2025. It is the recurring piece of the model, which means it matters more than its current size suggests.
growth engine
telecom traffic intelligence
Network Intelligence
$71.2M · 70% of revenue
it's still the majority of the $102M company, but management described growth here as low single-digit. That makes it the stabilizer and the constraint at the same time.
legacy base
Key numbers
171.8x
trailing p/e
P/E (price divided by earnings) → how expensive the stock is versus profit → so what: you are paying a premium multiple for a company that still posted a 2024 loss.
$40M
long-term debt
Debt (money the company owes over time) → fixed obligations → so what: $40M is 11% of capital for a business with only $92M in annual revenue.
70.7%
gross margin
Gross margin (sales left after direct costs) → core economics → so what: the product is profitable before overhead, but the company still struggles to turn that into real earnings.
0.2%
operating margin
Operating margin (profit after running the business) → what actually sticks → so what: nearly all of that 70.7% gross margin gets eaten by expenses.
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $40M (11% of capital)
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ALLT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter's real story was 70.7% gross margin, because revenue still looked small at $47M.
Latest-quarter revenue was $47M and EPS was -$0.05 from the provided SEC-verified figures. Contrast frame: gross margin was healthy at 70.7%, while operating margin for 2024 was only 0.2%, which tells you overhead is still doing most of the damage.
$47M
revenue
$0.05
eps
70.7%
gross margin
the number that mattered
70.7% gross margin matters most because it shows the product can make money even if the company still cannot convert that into much operating profit.
source: company earnings report, 2026
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What could go wrong
the #1 risk is carrier security subscription growth slowing before it is big enough to matter.
med
the growth engine is still only 30% of revenue
Security-as-a-Service grew 69% to $30.8M, which is impressive. It is also still the smaller piece of a $102M company. If that growth rate cools fast, the rerating story cools with it.
management's 2026 revenue guide of $113M–$117M needs the subscription mix to keep doing the heavy lifting.
med
profitability has almost no margin for error
full-year net income was $3.7M on $102M of revenue. That is progress, but it is not a cushion. A few points of operating cost drift or slower carrier spending could push earnings back below zero.
with trailing valuation at 171.8x earnings, losing the profit narrative would hit the multiple and the story at the same time.
med
the legacy business may stay too large for too long
Network Intelligence still accounts for about 70% of revenue and is growing at a low single-digit pace. That means the slower business can dilute the faster one for longer than bulls want.
if the legacy segment stays flat while the subscription segment normalizes, the company starts looking like a telecom vendor with a nice side business instead of a software turnaround.
with only $3.7M of net income on $102M of revenue, this company does not need a collapse to lose the turnaround narrative. It just needs a miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that matters
Security-as-a-Service growth vs. the rest of the business
$30.8M of subscription revenue grew 69% last year. If that starts converging toward the low single-digit pace of Network Intelligence, the premium part of the story fades fast.
earnings
next earnings report
scheduled for May 19, 2026. You want to see whether the first profitable year turns into a second profitable quarter rhythm, not a one-off spike.
guidance
2026 revenue target
management guided to $113M–$117M for 2026. From a $102M base, that implies another step up. The stock will treat any cut to that range as proof the pivot is slower than advertised.
sentiment
post-profit skepticism
the stock fell 38% after the company reported its first annual profit in years. That tells you the market is no longer reacting to good news alone. It wants repeatability.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts do not trust the quarter-to-quarter pattern yet. expect surprises.
price stability
10 / 100
this stock does not trade like a steady compounder. It trades like a small turnaround with credibility still on trial.
risk rank
3
that places it around the middle of the pack on broad stock risk, but the business-specific risk is higher because profit only recently appeared.
source: institutional data
Institutional activity
institutional ownership data for ALLT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$10
current price
n/a
target midpoint · n/a from current
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