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Why Allot (ALLT) Is Up 17.0% After SECaaS Recurring Revenue Jumps About 60% Year Over Year

Simply Wall St · 6d ago
  • In the third quarter of 2025, Allot reported that its Cybersecurity-as-a-Service (SECaaS) annual recurring revenue grew about 60% year over year, increasingly making SECaaS the company’s primary growth engine through stronger adoption by telecom partners and end users.
  • This acceleration in SECaaS, now expected by management to move toward roughly 30% of total revenue, suggests a greater tilt toward recurring, subscription-based income streams that can reshape Allot’s overall revenue mix and quality.
  • Next, we’ll examine how SECaaS’s rapid recurring revenue growth reshapes Allot’s existing investment narrative built around telecom partnerships and software-driven margins.

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Allot Investment Narrative Recap

To own Allot, you need to believe it can keep shifting from lumpy hardware and project revenue toward higher quality, recurring SECaaS income, while deepening its relationships with large telecom partners. The latest update, with SECaaS ARR up about 60% year over year and moving toward roughly 30% of total revenue, reinforces that transition and supports the current key catalyst of recurring growth, but it does not materially reduce the concentration risk around a few large carrier customers in the near term.

Among recent announcements, the Q3 2025 earnings release stands out, as it paired the SECaaS ARR acceleration with improved profitability and a lift in full year 2025 revenue guidance to US$100 million to US$103 million. That combination of stronger recurring security revenue and higher guidance directly underpins the core thesis that Allot’s telecom centric SECaaS model can support more predictable results, even as investors still need to watch how quickly major carrier deployments ramp and how smoothly the company continues its shift away from one time CapEx deals.

However, investors should also be aware that reliance on a small group of tier 1 carriers for a large share of SECaaS ARR means...

Read the full narrative on Allot (it's free!)

Allot's narrative projects $142.3 million revenue and $15.0 million earnings by 2028.

Uncover how Allot's forecasts yield a $13.38 fair value, a 16% upside to its current price.

Exploring Other Perspectives

ALLT 1-Year Stock Price Chart
ALLT 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$7.65 to US$13.38 per share, showing how far apart individual views can be. Against that wide range, the recent strength in SECaaS ARR growth highlights why some investors focus heavily on recurring revenue momentum when weighing Allot’s longer term performance potential.

Explore 6 other fair value estimates on Allot - why the stock might be worth as much as 16% more than the current price!

Build Your Own Allot Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Allot research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free Allot research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allot's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.