Allot Announces Second Quarter 2026 Financial Results

Allot posts strong Q2 growth, returns to profitability, and launches a $40M buyback.

What the company is saying

Allot Ltd. reports unaudited Q2 2026 results, emphasizing a 15% year-over-year revenue increase to $27.7 million and a 47% surge in Security-as-a-Service (SECaaS) revenues to $9.4 million. The company highlights a turnaround to GAAP operating income of $1.1 million from a prior-year loss, and a more than doubling of operating cash flow to $8.5 million. Management frames these results as evidence of strategic execution and financial strength, using language such as 'reflecting our confidence in Allot's strategy.' The announcement spotlights the Board's approval of a $40 million share repurchase program, presenting it as a shareholder value initiative. Forward-looking statements include raised 2026 revenue guidance to $115–118 million and expectations for 40%+ SECaaS revenue growth. The tone is confident, with CEO Eyal Harari credited for the operational and financial progress.

What the data suggests

The disclosed numbers confirm a clear improvement in Allot's financial position. Q2 2026 revenues rose to $27,737,000, up 15% from $24,051,000 in Q2 2025. SECaaS revenues reached $9,400,000, a 47% year-over-year increase, while SECaaS ARR climbed 44% to $36,100,000. GAAP operating income turned positive at $1,099,000, reversing a $407,000 loss a year earlier. Non-GAAP operating income more than doubled to $2,700,000 from $1,200,000. Operating cash flow more than doubled to $8,466,000 from $3,985,000. Gross margin remained strong at 71.3% (GAAP) and 71.8% (non-GAAP), with only a slight decrease from the prior year. Net income on a GAAP basis was $2,573,000 ($0.05 per diluted share), compared to a net loss of $1,690,000 ($0.04 per share) in Q2 2025. Cash and equivalents increased to $107,000,000 as of June 30, 2026, from $88,000,000 at year-end 2025. The data supports the company's narrative of accelerating growth and improved profitability.

Analysis

The announcement is strongly positive, with the majority of claims supported by realised, audited financial results for the second quarter of 2026. Key profitability metrics (GAAP and non-GAAP operating income, net income, gross margin, and operating cash flow) are disclosed alongside revenue and operational growth, satisfying the disclosure completeness rule for a strong_positive signal. Only one key claim—the raised 2026 revenue guidance—is forward-looking, and it is proportionate to the realised growth trends. The share repurchase program is a capital allocation decision, not a capital-intensive project with delayed returns. The language is factual and proportionate to the evidence, with no exaggerated or unsupported claims. The gap between narrative and evidence is minimal, as all major financial improvements are substantiated by numerical data.

Risk flags

• ●The results are unaudited, introducing the risk that final audited numbers could differ, potentially impacting perceived profitability or cash flow. Investors should be aware that unaudited figures may be subject to revision.
• ●The share repurchase program is announced but lacks detail on execution timing, pricing, or pace, creating uncertainty about its actual impact on share count and capital allocation.
• ●Raised revenue guidance for 2026 is forward-looking and contingent on sustaining high growth rates, especially in SECaaS. Any slowdown in customer acquisition or market demand could cause a miss versus guidance.
• ●Gross margin declined slightly year-over-year (GAAP: 71.3% vs. 72.1%), which, if it continues, could pressure future profitability even as revenues grow.

Bottom line

Allot's Q2 2026 results show a decisive return to profitability, robust revenue growth, and strong operating cash flow, all supported by detailed financial disclosures. The $40 million share buyback signals management's confidence and provides a potential near-term catalyst, but its real impact depends on execution details yet to be disclosed. While the raised 2026 revenue guidance is credible given current trends, it relies on continued high growth in SECaaS, which carries execution risk. The unaudited nature of the results is a caveat, though the magnitude of improvement across metrics is clear. Investors should focus on the pace and scale of actual share repurchases, gross margin trends, and whether the company can maintain its current growth trajectory. The most important takeaway is that Allot has delivered tangible financial improvement, but sustaining this momentum and translating it into shareholder returns will depend on disciplined execution in the coming quarters.

Announcement summary

(NASDAQ: ALLT) Allot Ltd. announced its unaudited financial results for the second quarter of 2026, reporting strong revenue growth to $27.7 million, up 15% year-over-year. Security-as-a-Service (SECaaS) revenues reached $9.4 million, increasing 47% year-over-year, and June 2026 SECaaS ARR was $36.1 million, up 44% year-over-year. GAAP operating income was $1.1 million, compared with a GAAP operating loss of $0.4 million in the second quarter of 2025. Non-GAAP operating income was $2.7 million, a significant increase compared with $1.2 million in the second quarter of 2025. Operating cash flow was $8.5 million, more than double compared with $4.0 million in the second quarter of 2025. On June 23, 2026, the Board of Directors approved a share repurchase program of up to $40 million. The company raised its 2026 revenue guidance to between $115 million and $118 million.

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