Q2 2026 Allot Ltd Earnings Call Transcript
Key Points
- Allot Ltd (ALLT) reported its fourth consecutive quarter of double-digit year-over-year revenue growth, with Q2 2026 revenue up 15% to $27.7 million.
- Cybersecurity as a Service (CCaaS) revenue grew 47% year-over-year, and CCaaS ARR increased 44% to $36.1 million, driving recurring revenue to 67% of total revenue.
- North America emerged as a standout region, contributing 31% of revenue (up from 17% a year ago), driven by strong Tier 3 platform sales and the major USC customer.
- Non-GAAP operating income more than doubled to $2.7 million (9.9% margin), and non-GAAP net income rose to $4.6 million ($0.09 per diluted share), up from $1.5 million a year ago.
- Operating cash flow was robust at $8.5 million in Q2, and the company raised its full-year 2026 revenue guidance to $115-$118 million, reflecting strong backlog and demand.
- Non-GAAP gross margin declined to 71.8% from 73.4% in the prior year quarter, due to product mix, though still within the expected ~70% range.
- Revenue in EMEA and APAC declined sequentially, reflecting timing of large product deals, which can cause quarterly volatility.
- Operating expenses increased to $17.2 million from $16.4 million, partly due to one-time costs from an office lease modification and continued investment in sales and marketing.
- The company's growth is increasingly reliant on a few large Tier 3 deals, which can lead to lumpy revenue recognition and concentration risk in certain quarters.
- CCaaS ARR growth requires a step-up in the second half of 2026 to meet the 40%+ full-year target, which depends on partner execution and customer onboarding.
Hello, everybody. The Allot Second Quarter 2026 Results Conference Call will start in two minutes. Good day to all of you and welcome to Allot's conference call to discuss its financial results for the second quarter 2026. (Operator instructions)
You should have all received by now the company's press release. If you have not, please check the company website at www.allot.com. With me today on the call are Eyal Harari, CEO, Mrs. Liat Nahum, CFO.
Following the prepared remarks, we will open the call for the question-and-answer session. All the highlights of the quarter are in today's earnings press release. Before we start, I'd like to point out that the following Safe Harbor statement.
This conference call may contain projections or other forward-looking statements regarding future events or the future performance of the company. Those statements are only predictions and a lot cannot guarantee that they will, in fact, occur. A lot does not assume any obligation to update that information. Actual events or results may
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