Allot (ALLT) investor relations material

Executive summary

• Achieved fourth consecutive quarter of double-digit year-over-year revenue growth, with Q2 2026 revenue up 15% and strong performance in North America and SECaaS momentum.

• SECaaS annual recurring revenue (ARR) grew 44% year-over-year to $36.1 million, now over a third of total revenue.

• Recurring revenue accounted for 67% of total revenue, enhancing visibility and predictability.

• Raised 2026 revenue guidance to $115–$118 million, citing strong backlog, order momentum, and improved profitability outlook.

• Board approved a $40 million share repurchase program, reflecting confidence in financial strength and strategy.

Financial highlights

• Q2 2026 revenue was $27.7 million, up 15% year-over-year; SECaaS revenue grew 47% to $9.4 million.

• Non-GAAP gross margin was 71.8%, down from 73.4% last year; GAAP gross margin was 71.3%.

• Non-GAAP operating income reached $2.7 million (9.9% margin), up from $1.2 million; GAAP operating income was $1.1 million (4.0% margin).

• Non-GAAP net profit was $4.6 million ($0.09 per diluted share), up from $1.5 million ($0.03 per share); GAAP net income was $2.6 million ($0.05 per share), compared to a net loss of $1.7 million last year.

• Operating cash flow was $8.5 million, more than doubling year-over-year; cash and equivalents totaled $107 million as of June 30, 2026, with no debt.

Outlook and guidance

• 2026 revenue guidance raised to $115–$118 million, with SECaaS revenue growth expected at 40% or more.

• Gross margin expected to remain around 70% for 2026.

• Continued profitability improvement anticipated for the remainder of 2026.

• Growth driven by accelerating order momentum in North America, strong backlog, and continued high growth in SECaaS.