Allot (ALLT) investor relations material

Executive summary

• Achieved 9% year-over-year revenue growth to $24.1M in Q2 2025, with improved margins and a shift to non-GAAP profitability.

• CCaaS/SECaaS ARR grew 73% year-over-year, reaching $25.2M and comprising 27% of total revenue, reflecting strong traction in security offerings.

• Secured major new contracts, including a landmark multi-year deal with a tier one EMEA telco valued in the tens of millions.

• Completed a $46M public share offering, repaid all debt, and ended the quarter with $72M in net cash.

• Raised full-year 2025 revenue guidance to $98–102M and increased CCaaS/SECaaS ARR growth expectations to 55–60%.

Financial highlights

• Q2 2025 revenue was $24.1M, up from $22.2M in Q2 2024, with 9% year-over-year growth.

• Non-GAAP gross margin improved to 73.4% from 70.6% a year ago; GAAP gross margin at 72.1%.

• Non-GAAP operating income was $1.2M, compared to a $1M loss in Q2 2024; GAAP operating loss narrowed to $0.4M.

• Non-GAAP net profit was $1.5M (3¢ per diluted share), versus a net loss of $800K (2¢ loss per share) last year.

• Operating cash flow was $4.4M in Q2; cash and equivalents totaled $72M as of June 30, 2025, with no debt outstanding.

Outlook and guidance

• 2025 revenue guidance set at $98M–$102M, positioning for profitable growth.

• CCaaS/SECaaS ARR expected to grow 55–60% year-over-year by year-end 2025.

• Strong backlog and pipeline provide improved visibility for the second half of the year.