Allot Communications Ltd

Allot reported first-half GAAP earnings per share of $0.09 and revenue of $54.16 million, up 14.7% year over year. The company's shares fell 2.46% following the announcement. The results were disclosed in a press release, and Allot also beat top-line and bottom-line estimates while raising its FY2026 outlook.

Allot reported second-quarter 2026 revenue of $27.7 million, up 15% year-over-year, and raised its full-year revenue guidance to between $115 million and $118 million from the previous range of $130 million to $170 million. Security-as-a-Service revenue grew 47% to $9.4 million, representing 34% of total revenue, while SECaaS annual recurring revenue rose 44% to $36.1 million. The company posted non-GAAP operating income of $2.7 million and non-GAAP net income of $4.6 million, or $0.09 per diluted share, compared with $1.5 million, or $0.03 per share, a year earlier. North America revenue jumped to 31% of total revenue from 17% a year ago, driven by strong product sales including the new Tera III platform. Allot's board approved a share repurchase program of up to $40 million, and the company ended the quarter with $107 million in cash and no debt.

Allot Ltd. announced it is a founding member and Chair of a new Post-Quantum Communications Consortium dedicated to developing technologies that will secure communications networks and protect data against future quantum computing threats. Supported by the Israel Innovation Authority's Technological Infrastructure Division, the consortium includes Allot, Ceragon, Classiq, Gilat Satellite Networks, Heqa, Elta, NVIDIA, RAD, and Ribbon, along with academic partners Bar-Ilan University, Ben-Gurion University of the Negev, The Hebrew University of Jerusalem, The Open University of Israel, the Technion, and the University of Haifa. The consortium will develop and evaluate technologies based on Post-Quantum Cryptography, Quantum Key Distribution, and hybrid approaches, addressing multiple network layers including optical, Ethernet, IP, mobile, satellite, data center, and internet-based communications. Dr. Yaakov Stein, VP CTO of Allot and Chair of the Consortium Board, said the transition to quantum-safe communications is one of the most important cybersecurity challenges facing the world today.

Riverwater Partners' Micro Opportunities Strategy increased its position in Allot Ltd., a network intelligence and security software provider, following a substantial buyback announcement. The addition modestly raised the strategy's technology exposure, which the firm noted had been too thin during the quarter. Allot shares closed at $7.65 on July 24, 2026, with a market capitalization of $374.26 million, and posted a one-month return of negative 11.76% while losing 4.38% over the past 52 weeks. The strategy underperformed the Russell Microcap Index in the second quarter of 2026 despite a positive absolute result, as the micro-cap rally exhibited speculative traits the fund avoids by design. The fund remains focused on owning profitable, well-managed small businesses at reasonable prices.

Allot Ltd. received board authorization for a share repurchase program allowing the company to buy back up to $40 million of its ordinary shares. The program reflects the board's confidence in the company's long-term growth strategy, with repurchases to be made opportunistically through open market purchases, private negotiations, or other permitted methods. CEO Eyal Harari noted consecutive quarters of double-digit topline growth over the past 12 months and improving profitability and cash generation, stating the buyback is an attractive use of excess capital to create shareholder value while continuing to invest in internal growth initiatives.

Allot Ltd. has authorized a share repurchase program of up to $40 million of its ordinary shares. The program reflects the Board's confidence in Allot's long-term growth strategy and financial position, allowing the company to opportunistically repurchase shares while continuing to invest in growth initiatives. CEO Eyal Harari highlighted consecutive quarters of profitable growth with double-digit revenue increases and improving cash generation. Repurchases may be made on the Tel Aviv Stock Exchange and Nasdaq through open market or privately negotiated transactions, funded from existing cash resources. The program does not obligate any specific amount and may be modified or discontinued at any time.