Allot Ltd. (ALLT) AI Stock Analysis
ALLT AI stock analysis summary
AI ResearchAllot Ltd. (ALLT) provides network intelligence and cybersecurity solutions for telecom operators, enterprises, and governments. After multi-year contractions, the company returned to profitability in FY2025 with net income of $3.7M on revenue of $102.0M, up 10.6% year-over-year. For the trailing twelve months ended June 30, 2026, revenue totaled $109.0M, backed by a debt-free net cash position of $95.3M.
- Market cap
- $445.2M
- Revenue (TTM)
- $109.0M
- P/E
- 41.0x fwd 37.2x
- 1Y return
- -5.9% S&P 500 16.8%
- Avg. target
- $13.48 49.3% vs last close
Bull case
- Allot returned to positive annual profitability in FY2025 with net income of $3.7M and free cash flow of $15.5M.
- The balance sheet provides substantial liquidity, backed by $95.3M in net cash and a current ratio of 2.26 as of June 30, 2026.
- Recent operational momentum shows acceleration, with second-quarter FY2026 revenue up 15.3% and earnings surging 816.8% year-over-year.
Bear case
- ALLT shares fell 39.8% over the past 5 years, lagging the S&P 500 return of 83.0%.
- Long-term revenue trends remain negative, highlighted by a 5-year CAGR of -5.6% between FY2020 and FY2025.
- The stock commands premium multiples, including a forward P/E of 37.2x versus the median of 18.8x for its US-listed Technology peers.
What Allot does
Allot Ltd. delivers network intelligence and security solutions designed to enhance and safeguard digital experiences globally across Europe, Asia, Oceania, the Middle East, Africa, and the Americas. Its offerings include the Allot Secure Management platform, featuring products such as Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. Flagship solutions include Allot DDoS Secure/5G Protect for cyberattack mitigation, as well as Allot NetXplorer for network-wide monitoring, analytics, and quality of service provisioning. The company serves carriers, mobile and fixed service providers, cable operators, satellite providers, private networks, data centers, financial institutions, educational institutions, and governments.
Growth and profitability
Annual revenue contracted from $145.6M in FY2021 to $92.2M in FY2024 before rebounding 10.6% to $102.0M in FY2025. Gross margin expanded to 71.1% in FY2025 from 56.6% in FY2023, while operating margin improved to 3.5% after falling to -69.7% in FY2023. Net income shifted from -$62.8M in FY2023 to $3.7M in FY2025, yielding an EPS of $0.23. In the trailing twelve months ended June 30, 2026, revenue reached $109.0M with an operating margin of 4.0% and a profit margin of 9.4%. For the latest quarter ended June 30, 2026, quarterly revenue grew 15.3% year-over-year, while quarterly earnings grew 816.8%.
Balance sheet and cash flow
As of June 30, 2026, Allot held $102.2M in cash and short-term investments against total debt of $6.9M, resulting in a net cash position of $95.3M. Total assets stood at $203.6M against shareholders' equity of $119.3M, supported by a current ratio of 2.26 and a debt-to-equity ratio of 0.06. In FY2025, operating cash flow reached $17.8M, funding capital expenditures of $2.3M to generate free cash flow of $15.5M. Over the trailing five years, share count increased 36.8%.
Valuation and performance
ALLT closed at $9.03 on October 16, 2026, resulting in a market capitalization of $445.2M and an enterprise value of $321.8M. The stock trades at a trailing P/E of 41.0x and a forward P/E of 37.2x, both above the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value-to-EBITDA multiple is 27.4x compared to the peer median of 16.6x, with a price-to-sales ratio of 4.1x versus 2.8x for peers. Over the trailing 12 months, ALLT fell 5.9%, trailing the S&P 500 return of 16.8%.
What analysts expect
Wall Street coverage includes 5 Strong Buy and 1 Buy recommendations, with no Hold, Sell, or Strong Sell ratings. The mean price target is $13.48, representing 49.3% upside compared to the last close of $9.03. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $116.4M and EPS of $0.34, representing 47.8% EPS growth. For the following fiscal year, 6 analysts anticipate revenue of $130.9M and EPS of $0.39. Allot beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 19, 2026.
Key risks and what to watch
- Allot's trailing operating margin of 4.0% remains well below the median of its US-listed Technology peers at 13.2%.
- Shareholder value has experienced dilution, with total share count expanding 36.8% over the 5-year period through FY2025.
- Earnings consistency remains uneven, as the company beat consensus EPS estimates in only 2 of the past 4 quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ALLT AI stock analysis
This page is an AI-written research summary of Allot Ltd. (ALLT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ALLT income statement, ALLT balance sheet, ALLT key metrics, ALLT analyst forecast, ALLT chart. See the ALLT stock overview for the latest quote and news.
ALLT AI stock analysis FAQ
What does Allot Ltd. do?
Allot Ltd. develops network intelligence and cybersecurity solutions, including DDoS protection, traffic management, and cloud security platforms for communication service providers and enterprise networks.
Does ALLT pay a dividend?
No, Allot Ltd. does not pay a dividend.
How strong is Allot's balance sheet?
As of June 30, 2026, Allot held $102.2M in cash and short-term investments against $6.9M in total debt, giving it $95.3M in net cash, a current ratio of 2.26, and a debt-to-equity ratio of 0.06.
What are analysts forecasting for Allot in FY2026?
For the fiscal year ending December 31, 2026, analysts expect revenue of $116.4M and EPS of $0.34, with an average price target of $13.48.