Allot Ltd. (NASDAQ:ALLT) moved sharply higher in premarket trading on Thursday, rising 4.45% after the company delivered a stronger-than-expected third-quarter update powered by rapid growth in its Security-as-a-Service (SECaaS) business and a notable improvement in profitability.
The company posted adjusted EPS of $0.10, far ahead of the $0.04 analysts were expecting. Revenue reached $26.4 million, edging past the $26 million consensus estimate and marking a 14% year-over-year increase. SECaaS annual recurring revenue continued its impressive expansion, hitting $27.6 million, up 60% from a year earlier.
“We reported a return to double-digit year-over-year revenue growth of 14% and our operations generated the highest profitability in over a decade,” said Eyal Harari, CEO of Allot. “The growth was driven by excellent performance from both our cyber security solutions and our network intelligence offerings.”
Adjusted operating income jumped to $3.7 million, compared with $1.1 million a year earlier, highlighting significant margin gains. Allot also recorded $4.0 million in positive operating cash flow, underscoring the company’s strengthened financial position.
Given the momentum, Allot raised its full-year 2025 revenue outlook to a range of $100–103 million. The company also expects SECaaS ARR growth to remain above 60% year over year.
SECaaS now represents 28% of total revenue, reflecting Allot’s ongoing shift toward a recurring-revenue model. The company ended the quarter with $81 million in cash, an increase of $22 million from the end of 2024.
“We are advancing strongly on our cyber-security first strategy, and we are progressing well with our key customers,” added Harari. “Helping our customers achieve their business goals is a key to driving our profitable growth.”