Allot Delivers Record SECaaS ARR Growth and Returns to Profitability in Q3 2025
60% YoY SECaaS ARR Growth and Strong Profitability Highlight Third Quarter
Allot Ltd. (NASDAQ: ALLT) has reported an impressive third quarter for 2025, marking a 60% year-over-year increase in its Security-as-a-Service (SECaaS) annual recurring revenue (ARR) and a return to significant profitability. This milestone underscores Allot’s success in scaling its core cybersecurity offering and executing a strategy centered on robust revenue and operational performance.
Revenue Growth and Segment Strength Drive Operating Improvement
Revenues for the quarter reached $26.4 million, up 14% from $23.24 million in Q3 2024. SECaaS accounted for 28% of total revenue—a meaningful shift that highlights the strategic emphasis on recurring security services. Notably, Allot's September 2025 SECaaS ARR stood at $27.6 million, more than doubling from two years prior and sharply outpacing the prior year.
The company posted a GAAP operating income of $2.15 million (vs. a loss of $0.22 million a year ago) and a non-GAAP operating income of $3.7 million, nearly tripling the $1.1 million reported last year. Allot’s net income also moved firmly into positive territory: GAAP net income was $2.82 million, or $0.07 per diluted share, compared to a loss last year. Non-GAAP net income was $4.58 million, or $0.10 per diluted share.
| Q3 2025 | Q3 2024 | YoY Change | |
|---|---|---|---|
| Revenues ($M) | 26.40 | 23.24 | +14% |
| GAAP Operating Income ($M) | 2.15 | (0.22) | — |
| Non-GAAP Operating Income ($M) | 3.70 | 1.10 | +236% |
| GAAP Net Income ($M) | 2.82 | (0.24) | — |
| Non-GAAP Net Income ($M) | 4.58 | 1.26 | +264% |
| SECaaS ARR ($M) | 27.60 | 17.25* | +60% |
| Operating Cash Flow ($M) | 4.04 | 1.88 | +115% |
| Total Cash ($M) | 81.00 | 59.00** | +37% |
*Estimate based on 2024 ARR growth trajectory. **As of Dec. 31, 2024.
SECaaS Segment Leads Revenue Mix Shift
The SECaaS segment has become a clear driver for Allot, with revenues rising from $4.7 million in Q3 2024 to $7.3 million in Q3 2025—a gain of over 55%. Support & Maintenance also played a vital role, representing 35% of quarterly revenues. Geographic diversity remains strong, with EMEA leading at 49%, Americas at 31%, and Asia Pacific at 20%.
| Revenue Segment | Q3 2025 ($M) | Share (%) |
|---|---|---|
| SECaaS | 7.30 | 28% |
| Support & Maintenance | 9.40 | 35% |
| Products | 8.60 | 33% |
| Professional Services | 1.10 | 4% |
Cash Position and Profitability at Decade Highs
As of September 30, 2025, Allot’s total cash and equivalents were $81 million—up $22 million from the prior year-end, and the company remains debt-free after fully redeeming its convertible debt. Positive operating cash flow hit $4 million in the quarter, the strongest performance in years, and underscores Allot’s ability to convert growth into real cash generation.
Guidance Raised: Full-Year Revenue Outlook Climbs on Back of Strong SECaaS Performance
Given accelerating SECaaS momentum and a high backlog, Allot management raised 2025 full-year revenue guidance to $100–$103 million, with the SECaaS ARR growth outlook expected to exceed 60% year-over-year. CEO Eyal Harari credited this trajectory to “excellent performance from both our cybersecurity solutions and network intelligence offerings,” with a focus on helping customers achieve business goals and drive ongoing profitability.
Key Takeaways for Investors: Positive Momentum and Upgraded Guidance
Allot’s third quarter 2025 report highlights the transformation into a profitable, high-growth SECaaS and network intelligence provider. Robust recurring revenue, significant improvement in operational metrics, and an upgraded outlook combine to paint a compelling picture. For those tracking growth in cybersecurity-as-a-service, Allot’s sustained expansion and increasing profitability may warrant further attention—especially as it enters the final quarter with strong tailwinds and no outstanding debt.
For further details or to listen to the management’s commentary, visit Allot’s Investor Relations site.
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