Allot Ltd. (ALLT): History, Ownership, Mission, How It Works & Makes Money

You're watching the cybersecurity space for companies that can actually turn network intelligence into recurring, profitable revenue, so where does Allot Ltd. (ALLT) fit into that picture?

Honestly, the story is in the pivot: Allot is transforming from a traditional hardware/software vendor into a Security-as-a-Service (SECaaS) powerhouse, evidenced by Q2 2025 revenues of $24.1 million and a non-GAAP operating profit of $1.2 million-a clear swing from last year's loss. This shift is working, with SECaaS Annual Recurring Revenue (ARR) soaring to $25.2 million by June 2025, an exceptional 73% year-over-year increase, plus they've landed a landmark multi-year deal with a tier-1 EMEA telecom operator valued in the defintely tens of millions of dollars.

To be fair, the company's success hinges on whether its Deep Packet Inspection (DPI) technology can continue to drive its network-based security solutions for major carriers like Verizon Business, but understanding its ownership structure and how it monetizes 5G traffic is crucial for mapping its near-term risk and opportunity.

Allot Ltd. (ALLT) History

You need to understand Allot Ltd.'s journey because its current focus on Security-as-a-Service (SECaaS) is a direct result of two decades of evolution from a core network traffic management business. The company's history shows a clear, strategic shift from optimizing network performance to securing it, which is the key driver of its financial guidance for 2025.

Given Company's Founding Timeline

Year established

Allot Ltd. was established in 1996.

Original location

The company was founded in Hod HaSharon, Israel, which remains its headquarters today.

Founding team members

The company was co-founded by Yigal Jacoby and Michael Shurman.

Initial capital/funding

While the precise seed amount isn't public, Allot raised approximately $38 million in several rounds of funding from prominent Israeli venture capital firms by 2004, which was crucial for its early research and development (R&D) in deep packet inspection (DPI) technology.

Given Company's Evolution Milestones

Tracking the company's growth reveals key moments that marked its expansion and strategic shifts, moving from a niche product to broader market engagement.

Given Company's Transformative Moments

The company's trajectory was shaped by a few game-changing decisions, most notably the shift in its core offering. From my experience, recognizing market shifts early and having the operational agility to realign the business model is defintely paramount.

The 2006 IPO was fundamental, giving the company the financial firepower to scale globally and make acquisitions. Without that access to capital, the growth trajectory would look very different. The firm's cash and cash equivalents totaled $72 million as of June 30, 2025, showing a strong liquidity position that stems from this early financial foundation and recent capital management.

The most significant transformation was the deliberate pivot toward Security as a Service (SECaaS) starting around 2017. This move identified the growing convergence of network management and security, realigning the entire product and sales strategy toward recurring revenue, which investors typically value highly. This strategy is clearly paying off in 2025:

• SECaaS Annual Recurring Revenue (ARR) reached $25.2 million by June 2025.
• This ARR figure represents a massive 73% year-over-year increase.
• SECaaS contributed over 25% of overall revenue for the first time in the second quarter of 2025.

A recent transformative moment occurred in July 2025 when Allot signed a landmark, multi-year deal with a Tier-1 EMEA telecom operator, valued at tens of millions of dollars. This was the largest customer win in five years and validated the company's 'security-first' strategy and its new, high-capacity SG Tera-III platform. This demonstrates that the sustained focus on cybersecurity and 5G integration is moving the needle on revenue. You can explore more about their guiding principles here: Mission Statement, Vision, & Core Values of Allot Ltd. (ALLT).

Allot Ltd. (ALLT) Ownership Structure

The ownership structure of Allot Ltd. is dominated by institutional investors, which is typical for a publicly traded technology company, but a significant portion remains in the hands of the general public. This balance means major strategic decisions require alignment between large funds and the broader retail investor base.

You need to understand who holds the voting power, because that tells you whose interests defintely drive the company's long-term strategy.

Allot Ltd.'s Current Status

Allot Ltd. is a publicly traded company, listed on the NASDAQ Global Select Market under the ticker symbol ALLT and also on the Tel Aviv Stock Exchange (TASE). This dual listing means the company is subject to the regulatory and financial reporting requirements of both the U.S. Securities and Exchange Commission (SEC) and Israeli authorities.

As of November 2025, the company has a total of approximately 46.47 million shares outstanding. The company's market capitalization, as of a recent 2025 estimate, was around $403.6 million.

Allot Ltd.'s Ownership Breakdown

The majority of Allot Ltd.'s shares are held by institutional investors, including large asset managers and hedge funds, providing a high degree of professional oversight on the stock. This institutional concentration can lead to lower day-to-day volatility, but it also means the stock is sensitive to a few large holders changing their position.

For a detailed look at the major funds and individual investors driving the stock, you should read Exploring Allot Ltd. (ALLT) Investor Profile: Who's Buying and Why?

Allot Ltd.'s Leadership

The company's strategic direction is steered by an experienced leadership team, many of whom joined in 2024, bringing fresh perspectives to the Security-as-a-Service (SECaaS) and network intelligence space. The average tenure for the management team is around 2.7 years, which suggests a relatively recent, but experienced, operational core.

The key executives and board members as of November 2025 include:

• Eyal Harari: Chief Executive Officer (CEO) and President, appointed in May 2024. His total compensation for the fiscal year 2025 was approximately $1.04 million.
• David Reis: Independent Chairman of the Board, providing oversight and governance since September 2023.
• Liat Nahum: Chief Financial Officer (CFO), who joined in July 2024.
• Mark Shteiman: Chief Product Officer, overseeing the development and strategy for the Allot Smart and Allot Secure solution suites.
• Noam Lila: Senior VP of Customer Success & Operations.

This leadership structure, with a new CEO and CFO in 2024, points to a clear focus on executing a new phase of growth, likely centered on their network-based security offerings. The board's role, led by an Independent Chairman, is to hold this new management accountable for the projected turnaround.

Allot Ltd. (ALLT) Mission and Values

The company's mission and core values are centered on securing and optimizing digital networks, which directly maps to its strategic pivot towards recurring revenue streams like Security as a Service (SECaaS). This focus is not just altruistic; it's the engine driving the projected full-year 2025 revenue guidance of between $98 million and $102 million.

You can defintely see the cultural DNA-the long-term aspiration-in how Allot operates, prioritizing network intelligence to solve complex security and traffic management issues for its global client base.

Allot Ltd.'s Core Purpose

Official mission statement

Allot's mission is to be a leader in network intelligence and security, empowering Communication Service Providers (CSPs) and enterprises to optimize, protect, and monetize their networks effectively. This translates into three clear, actionable goals:

• Lead in Network Intelligence and Security Solutions.
• Enable a Safer and Smarter Digital Lifestyle for end-users.
• Deliver Actionable Intelligence to customers.

This mission underpins why the company is pushing its SECaaS business, which saw its Annual Recurring Revenue (ARR) reach $25.2 million by June 2025, a 73% year-over-year increase.

Vision statement

The company envisions a future where digital connectivity is inherently safe and efficient, removing friction for both providers and consumers. This vision drives their continuous investment in next-generation network capabilities, like 5G integration.

• Networks are Intelligent, Secure, and Adaptable.
• Seamless Digital Experiences are enabled for everyone.

What this vision hides, however, is the competitive pressure; you have to constantly innovate to maintain that lead, especially with a market cap of around $420 million as of late 2025.

Allot Ltd. slogan/tagline

The company's core value proposition is distilled into a concise, three-part directive that explains what their technology actually does for a customer:

• Allot. See. Control. Secure.

Here's the quick math: The 'Secure' part, the SECaaS solution, is expected to grow its ARR by 55-60% in 2025, showing that security is where the control and monetization are happening right now. This is why analysts expect Allot to post an Earnings Per Share (EPS) of $0.16 for the full fiscal year 2025, a significant turnaround from prior losses. You can explore more about who is betting on this turnaround in Exploring Allot Ltd. (ALLT) Investor Profile: Who's Buying and Why?

Allot Ltd. (ALLT) How It Works

Allot Ltd. operates by giving Communication Service Providers (CSPs) and large enterprises a critical layer of visibility and control over their network traffic, which they then use to deliver cybersecurity services and manage network performance. The company's business model is shifting from a capital expenditure (CapEx) model-selling hardware and licenses-to a high-margin, recurring revenue Security-as-a-Service (SECaaS) model, which is fueling its path to profitability in 2025.

Honestly, the whole game now is the SECaaS pivot.

Allot Ltd.'s Product/Service Portfolio

The company's core offerings are built on its proprietary Deep Packet Inspection (DPI) technology, which allows for granular analysis of network traffic. This technology powers both their network intelligence and their security solutions, creating a unified platform for customers.

Allot Ltd.'s Operational Framework

The operational framework is centered on a 'security-first' strategy, focusing on scaling the SECaaS subscription model through CSP partnerships rather than relying on one-off product sales. This shift changes everything about their delivery and financial profile.

• Software-Centric Delivery: The company is moving away from capital-intensive hardware reliance, focusing on software and cloud solutions to improve cost controls and capital allocation.
• Carrier-Grade Deployment: Solutions are deployed directly into the core networks of CSPs (over 500 globally), ensuring network-native security and traffic management that is invisible to the end-user.
• Value Creation via Monetization: Allot enables CSPs to monetize their networks twice: first, by selling security services (SECaaS) to their millions of subscribers, and second, by optimizing network capacity, which reduces the need for expensive bandwidth upgrades.
• Financial Trajectory: This operational pivot led to a Q2 2025 non-GAAP gross margin of 73.4% and a non-GAAP operating profit of $1.2 million, signaling a strong move toward full-year profitability.

Allot Ltd.'s Strategic Advantages

In a crowded market, Allot's advantages aren't just about the technology; they're about how they partner with the world's biggest carriers to reach millions of end-users quickly. Exploring Allot Ltd. (ALLT) Investor Profile: Who's Buying and Why?

• Network-Native Security: Unlike endpoint security (like antivirus software), Allot's security is embedded in the network, offering 'zero-touch' protection that requires no customer installation, a huge selling point for CSPs like Verizon Communications Inc. and Vodafone Group Public Limited Company.
• Deep Packet Inspection (DPI) Expertise: Decades of focus on DPI technology gives them granular, real-time visibility into network traffic, which is crucial for both security threat detection and complex 5G traffic management.
• Recurring Revenue Momentum: The SECaaS model creates high-quality, predictable revenue streams. Management is guiding for full-year 2025 revenue between $98 million and $102 million, with SECaaS Annual Recurring Revenue (ARR) expected to grow by 55%-60% year-over-year.
• Strong Balance Sheet: As of June 30, 2025, the company has no debt and reported net cash and equivalents of $72 million, giving it financial flexibility for strategic growth and R&D.

Allot Ltd. (ALLT) How It Makes Money

Allot Ltd. makes money by selling network intelligence, traffic management, and cybersecurity solutions primarily to communication service providers (CSPs) and enterprises globally. The business model is shifting from one-time product sales to a high-margin, recurring Security as a Service (SECaaS) model, which is their core growth engine.

Allot Ltd.'s Revenue Breakdown

The company's revenue streams are clearly bifurcating, with the high-growth, recurring SECaaS segment rapidly increasing its contribution to the overall top line, while the traditional business maintains a large, stable base.

In the second quarter of 2025, Allot Ltd. reported total revenues of $24.1 million, with the SECaaS portion contributing 27% of that total. The SECaaS Annual Recurring Revenue (ARR) hit $25.2 million as of June 2025, which is an exceptionally strong increase of 73% year-over-year. Here's the quick math: with overall revenue up 9% year-over-year and SECaaS growing so fast, the traditional 73% of the business is actually seeing a slight decline, about 3.8% year-over-year, which is an important trend to watch.

Business Economics

The core economic shift for Allot Ltd. is moving from a Capital Expenditure (CapEx) model-selling hardware and perpetual software licenses-to a recurring Operational Expenditure (OpEx) model with SECaaS. This change fundamentally improves the business's quality of earnings.

• Pricing Strategy: The SECaaS model is priced on a per-subscriber, revenue-share basis with the CSPs, like the deal with Verizon Business. This means Allot Ltd.'s revenue scales directly with the CSP's customer adoption of the security service.
• High Gross Margin: The non-GAAP gross margin for Q2 2025 was 73.4%, up from 70.6% in the prior year, driven by the higher-margin software and service revenue mix. Higher margins mean more money drops to the bottom line.
• Recurring Revenue Focus: The goal is to maximize the SECaaS ARR growth, which management is guiding to be between 55% and 60% year-over-year for the full fiscal year 2025. This focus provides better revenue visibility and long-term stability.
• Network Intelligence: The traditional products, like the Smart product for network intelligence, still serve as a crucial entry point and foundation for their telco customers, often leading to opportunities for cross-selling the SECaaS offering.

The shift to SECaaS is defintely a high-stakes bet, but the early numbers are compelling. If you want to dig deeper into who is backing this strategy, you should be Exploring Allot Ltd. (ALLT) Investor Profile: Who's Buying and Why?

Allot Ltd.'s Financial Performance

Allot Ltd. is on a clear path toward sustained profitable growth in 2025, driven by the momentum in its SECaaS segment. For the full year 2025, management has guided for total revenues to be in the range of $98 million to $102 million.

• Profitability Turnaround: The company achieved a non-GAAP operating profit of $1.2 million in Q2 2025, a significant improvement from a loss in the prior year. This marks a key milestone in their turnaround strategy.
• Net Profit: Non-GAAP net profit for Q2 2025 was $1.5 million, or $0.03 profit per diluted share, reversing a net loss from the same quarter last year.
• Cash Position: Allot Ltd. generated strong positive operating cash flow of $4.4 million in Q2 2025. Plus, they have zero debt and a cash position of $72 million as of June 30, 2025, following a $46 million equity offering and debt repayment.

That strong balance sheet gives them the capital to fund the SECaaS growth and new product development without relying on external financing right now. You need to see continued growth in SECaaS revenue percentage to confirm the long-term sustainability of the model.

Allot Ltd. (ALLT) Market Position & Future Outlook

Allot Ltd. is strategically shifting its focus from traditional network intelligence to a high-growth, recurring revenue model centered on Security as a Service (SECaaS), positioning itself as a critical partner for Communication Service Providers (CSPs). This pivot is expected to drive significant growth, with the company forecasting full-year 2025 revenue guidance between $98 million and $102 million, aiming for profitable growth this year.

The company's future trajectory is defintely tied to the successful execution of its SECaaS rollout with Tier-1 operators like Verizon Business and Vodafone, which is transforming its revenue quality and predictability. The core of the strategy is to monetize the network edge by offering cybersecurity directly to millions of mobile and fixed-line subscribers. Exploring Allot Ltd. (ALLT) Investor Profile: Who's Buying and Why?

Competitive Landscape

Allot operates in the Deep Packet Inspection (DPI) and network security space, a market dominated by large, diversified technology conglomerates. Its competitive edge is not in market size but in its specialized, network-based Security as a Service (SECaaS) platform, which is easily deployable by CSPs.

Opportunities & Challenges

The company's near-term opportunities are concentrated on converting its massive pipeline of CSP deals into active SECaaS subscribers. The biggest challenge remains scaling the new business model fast enough to offset the slower, traditional network intelligence segment and achieve sustained profitability.

Industry Position

Allot is a specialized, mid-tier player in the massive global Deep Packet Inspection (DPI) market, which is projected to be valued at approximately $17.03 billion in 2025.

Its standing is defined by its deep integration with Communication Service Providers (CSPs), a relationship that larger security firms often lack.

• Dominant in Network-Based Security: The company's SECaaS solution is used by many millions of subscribers globally, establishing a leadership position in this specific niche.
• High Gross Margin: Non-GAAP gross margin is expected to be around 70% for 2025, which is characteristic of a high-value software and service provider.
• Strategic Partner, Not Market Leader: Allot is a critical technology partner for over 500 mobile, fixed, and cloud service providers, but it does not command the overall market share of diversified giants like Cisco Systems.

The company's success hinges on its ability to convert its SECaaS Annual Recurring Revenue (ARR), which hit $25.2 million in Q2 2025, into a larger portion of its overall revenue mix, thereby improving long-term valuation metrics.