Q4 2025 Allot Ltd Earnings Call Transcript
Key Points
- Allot Ltd (ALLT) reported a strong fourth quarter with a 14% year-over-year increase in revenue, reaching $28.4 million.
- The company achieved double-digit year-over-year revenue growth for 2025, with total revenue reaching $102 million, up 11% from 2024.
- Cybersecurity as a Service (SECaaS) revenue grew significantly, with a 70% year-over-year increase in the fourth quarter, comprising 28% of total revenue.
- Recurring revenue represented over 60% of total revenue for 2025, enhancing revenue visibility and stability.
- Allot Ltd (ALLT) ended 2025 with a strong balance sheet, holding $88 million in cash and no debt, providing strategic flexibility for growth initiatives.
- The company faces cost pressures due to increased demand and supply constraints for key components like memory and servers, impacting gross margins.
- Operating expenses are expected to rise in 2026 due to increased sales and marketing investments and a modest increase in R&D expenses.
- The weakening of the U.S. dollar against the Israeli shekel is expected to negatively impact profitability due to significant operating expenses in shekels.
- The timing of new customer wins and service launches is uncertain, which could affect the predictability of revenue growth.
- The company acknowledges that while the MVNO market presents opportunities, the success of these partnerships is dependent on the MVNOs' market success, which is uncertain.
Good day to all of you, and welcome to Allot's conference call to discuss its results for the fourth quarter and full year 2025. I would like to thank Allot's management for hosting this conference call. (Event Instructions)
As a reminder, this conference call is being recorded. If you have not received the company's press release, please check the company's website at www.allot.com. With me today on the line are Mr. Eyal Harari, CEO; and Ms. Liat Nahum, CFO.
Following Eyal's prepared remarks, we will open the call for the question-and-answer session. Both Eyal and Liat will be available to answer those questions. You can all find the highlights of the quarter, including the financial highlights and metrics, including those we typically discuss on the conference call in today's earnings press release. Before we start, I'd like to point out the following safe harbor statement. This conference call may contain projections or other forward-looking statements
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