Nehal Chokshi

David Kaynan

Jonathan Ho

Matt Calitri

Rory Donald Wallace

Shaul Eyal

- Allot, established over two decades ago, has diversified into **Security as a Service (SaaS)**, which is now its primary growth engine.  **[0001365767_2194290_0]**  This segment reported **73% year-over-year growth** in Q2 and is projected to reach **$30 million in Annual Recurring Revenue (ARR)** this year.  **[0001365767_2194290_0]** 
- The company expects to achieve approximately **$100 million in revenue** this year, representing about **8% growth**, with **60%** of its business being recurring.  **[0001365767_2194290_1]**  Allot became profitable and started generating positive cash flow and non-GAAP operating profit in **Q4 of last year**.  **[0001365767_2194290_1]** 
- Allot completed a secondary offering in June, raising **$55 million**, and is now **debt-free** with over **$70 million in capital** as of the end of Q2.  **[0001365767_2194290_4]** 
- The company recently secured a **multi-million dollar networking deal** in July, expected to contribute to 2026 and 2027 revenue, and is expanding its Security as a Service partnerships, including a **10x addressable market expansion** with Verizon.  **[0001365767_2194290_4]**

Allot Highlights Cybersecurity Growth and Recent Capital Raise

- Allot Ltd. (ALLT) is experiencing significant growth in its cybersecurity-as-a-service (SECaaS) business, reporting **73% year-over-year growth** in Q2 and targeting **$30 million in Annual Recurring Revenue (ARR)** from this segment this year.  **[0001365767_2194271_1]** 
- The company expects to achieve approximately **$100 million in total revenue** this year, representing about **8% growth**, with **60% of its business being recurring revenue**.  **[0001365767_2194271_1]** 
- Allot has become profitable, generating **positive cash flow** and **positive non-GAAP operating profit** since Q4 of last year, and anticipates an **operating profit margin of about 5%** this year.  **[0001365767_2194271_1]** **[0001365767_2194271_2]** 
- In late June, Allot completed a secondary offering that raised **$55 million**, leading to the elimination of convertible debt and making the company **debt-free** with over **$70 million in capital** as of the end of Q2.  **[0001365767_2194271_5]** 
- The company recently secured a **multi-million dollar networking deal** in July, expected to contribute to revenue in 2026 and 2027, indicating potential growth in its traditional networking business.  **[0001365767_2194271_4]**

Allot Ltd. Discusses Cybersecurity-as-a-Service Growth and Financial Performance

- Allot Ltd. reported **total revenues of $47.2 million** for the six months ended June 30, 2025, an increase of **7.1%** compared to $44.1 million in the same period of 2024.  **[1365767_0001178913-25-003436_exhibit_99-1.htm:1]** **[1365767_0001178913-25-003436_exhibit_99-2.htm:1]**  This was primarily driven by a **21.5% increase in service revenues** to $33.2 million, while product revenues decreased by 16.2% to $14.0 million.  **[1365767_0001178913-25-003436_exhibit_99-2.htm:1]** 
- The company significantly reduced its **net loss to $(2.0) million** (or **$(0.05) per share**) for the six months ended June 30, 2025, from $(5.9) million (or $(0.16) per share) in the prior year period.  **[1365767_0001178913-25-003436_exhibit_99-1.htm:1]** **[1365767_0001178913-25-003436_exhibit_99-2.htm:1]** 
- **Net cash provided by operating activities was $6.1 million** for the six months ended June 30, 2025, a substantial improvement from net cash used in operating activities of $(1.1) million in the corresponding period of 2024.  **[1365767_0001178913-25-003436_exhibit_99-1.htm:2]** **[1365767_0001178913-25-003436_exhibit_99-2.htm:4]**  This improvement was partly attributable to a cost reduction process, including a reduction in workforce.  **[1365767_0001178913-25-003436_exhibit_99-2.htm:3]** **[1365767_0001178913-25-003436_exhibit_99-2.htm:4]** 
- In June 2025, Allot Ltd. completed a **private placement, issuing 5,000,000 Ordinary shares for $37.7 million** in proceeds and redeemed **$31.4 million of convertible debt**.  **[1365767_0001178913-25-003436_exhibit_99-1.htm:2]** **[1365767_0001178913-25-003436_exhibit_99-1.htm:8]** **[1365767_0001178913-25-003436_exhibit_99-1.htm:10]**  As of June 30, 2025, the company held **$26.9 million in cash and cash equivalents** and had **$45.5 million in working capital**.  **[1365767_0001178913-25-003436_exhibit_99-1.htm:2]** **[1365767_0001178913-25-003436_exhibit_99-2.htm:4]**

Allot (ALLT)