Allot Ltd. (ALLT): Business Model Canvas [Dec-2025 Updated]

Honestly, you're looking at a company in transition, and Allot Ltd.'s recent performance confirms the strategy is working: the pivot to Security-as-a-Service (SECaaS) is defintely paying off, as seen in their Q3 2025 results. As an analyst who's seen countless business model shifts, the key takeaway here is Allot Ltd.'s move to embed network-native security directly with Tier-1 Mobile Network Operators, creating new, high-margin recurring revenue streams-evidenced by those 72.2% non-GAAP gross margins last quarter. With a solid $81 million in cash as of Q3 2025, the foundation is set for aggressive growth in this channel-driven model, moving beyond just selling hardware licenses. If you want to see exactly how their Key Resources, like proprietary Deep Network Inspection technology, translate into Value Propositions for CSPs and their end-subscribers, dive into the full Business Model Canvas below.

Allot Ltd. (ALLT) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Allot Ltd.'s recurring revenue, which is heavily reliant on its relationships with major service providers. These partnerships are where the Security-as-a-Service (SECaaS) or Cybersecurity as a Service (CSaaS) model truly takes shape, driving significant Annual Recurring Revenue (ARR).

Tier-1 Mobile Network Operators (MNOs) and CSPs for SECaaS Distribution

Allot Ltd.'s deployment footprint is substantial, with its multi-service platforms deployed by over 500 mobile, fixed, and cloud service providers globally. Verizon Business recently launched a new mobile plan that incorporates Allot's SECaaS service. Vodafone's migration to the new CSaaS platform was a noted contributor to ARR growth in the second quarter of 2025. Furthermore, Allot Ltd. secured a landmark, multi-year agreement in July 2025 with an unnamed Tier-1 EMEA Telecom Operator, valued at tens of millions of dollars, which is the company's largest customer win in five years. This deal leverages the SG Tera-III platform for both mobile and fixed network security and intelligence.

The success in this segment is clear from the financial metrics tied to these recurring revenue streams:

• June 2025 CSaaS (SECaaS) ARR reached a record $25.2 million, marking a 73% year-over-year increase.
• CSaaS contributed 27% of total non-GAAP revenue in the second quarter of 2025.
• The company raised its full-year 2025 SECaaS ARR growth expectation to a range of 55%-60% year-over-year.
• In the first quarter of 2025, SECaaS revenues grew 49% year-over-year to $5.1 million.

Strategic Deals with Telcos

Allot Ltd. continues to secure specific, strategic wins that expand its geographic and service coverage. For instance, Más Móvil Panamá selected Allot NetworkSecure in August 2025 to provide network-native cybersecurity and parental control, starting with residential postpaid customers and planning expansion to prepaid mobile and fixed-line segments. Also, Play, an operator in Poland, selected Allot's DNS Secure solution in April 2025 for fixed broadband customers, which builds on their prior deployment of NetworkSecure for mobile customers in 2021.

Here is a snapshot of these specific CSP engagements:

Partner/Operator	Product/Service	Scope/Status	Date Reference
Más Móvil Panamá	NetworkSecure (Defender+)	Initial rollout to residential postpaid; expansion planned for prepaid mobile and fixed-line.	August 2025
Play (Poland)	DNS Secure	For fixed broadband customers; builds on existing NetworkSecure for mobile (since 2021).	April 2025
Tier-1 EMEA Telecom Operator	Integrated Network Intelligence and Cybersecurity (SG Tera-III based)	Multi-year agreement valued at tens of millions of dollars; largest win in five years.	July 2025
Existing Multinational Telco (Europe)	NetworkSecure	Service offered as an add-on feature, with some plans generating €1-2 per month per user.	Pre-2025 data

Technology Partners for Integrated Security Solutions

The integration of solutions is key, as evidenced by the landmark Tier-1 EMEA deal, which is based on the newly launched SG Tera-III platform. This platform is described as the highest capacity multiservice gateway in the telecommunications market. The solutions provided in that deal include Allot Smart for Traffic Management, Policy & Charging Control, Network Visibility and Analytics, and cybersecurity services like DDoS protection and anti-botnet. Allot's multi-service platforms are deployed by over 1,000 enterprises globally.

Channel Partners and System Integrators for Enterprise Sales

While the primary focus appears to be on CSPs, Allot Ltd.'s risk factors note dependence on fourth party channel partners for a material portion of its revenues. The company reported signing a number of multi-million dollar agreements with new customers for its Smart product in the first quarter of 2025, which likely involves these channel partners in the enterprise segment.

Allot Ltd. (ALLT) - Canvas Business Model: Key Activities

You're looking at the core engine driving Allot Ltd.'s performance as of late 2025. It's all about turning network visibility into recurring security revenue.

Research and Development (R&D) for cyber security

Allot Ltd. focuses R&D on its network-native cybersecurity and network intelligence offerings. This activity is supported by external funding, which helps offset internal costs. For instance, during the third quarter of 2025, the company received a grant of approximately $1 million specifically for research and development funding. This investment underpins the product's technical foundation, which supports a GAAP gross profit margin of 71.4% in Q3 2025.

Selling and deploying complex network solutions

The sales and deployment effort centers on getting multi-service platforms into major service providers and large enterprises. As of the end of Q3 2025, Allot Ltd.'s platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises globally. The company secured a landmark, multi-year agreement in July 2025 with a tier-1 EMEA telecom operator, a deal valued in the tens of millions of dollars, which is one of Allot Ltd.'s largest ever wins.

The success of these deployments is reflected in the overall financial performance:

Metric	Q3 2025 Value	Year-over-Year Change
Total Revenues	$26.4 million	Up 14%
GAAP Operating Income	$2.2 million	Improvement from a loss of $0.2 million in Q3 2024
Full Year 2025 Revenue Guidance	$100-103 million	Raised from previous guidance

Managing the revenue-share model with CSPs

A critical activity is managing the shift toward the Security-as-a-Service (SECaaS) recurring revenue model, which is key to profitability. This model involves revenue-sharing agreements with Communication Service Providers (CSPs). The success of this strategy is evident in the growth metrics for this segment.

Here's how the SECaaS component is shaping the revenue mix:

• SECaaS represented 28% of overall Q3 2025 revenue.
• September 2025 SECaaS Annual Recurring Revenue (ARR) reached $27.6 million.
• SECaaS ARR showed a year-over-year growth rate of 60%.

This focus drove Non-GAAP operating income to $3.7 million in Q3 2025, compared with $1.1 million in Q3 2024.

Continuous platform and network intelligence updates

Keeping the platform current means constant updates to maintain security efficacy and network intelligence capabilities. This is an ongoing operational necessity that supports the high gross margins seen in the business. Non-GAAP gross margin for the third quarter of 2025 stood at 72.2%.

The company is generating strong cash from operations to fund these continuous improvements:

• Strong positive operating cash flow for Q3 2025 was $4.0 million.
• Quarter-end total cash as of September 30, 2025, was $81 million.
• The company reported having no debt as of September 30, 2025.

Capturing market share from competitors like Sandvine

Allot Ltd. advances strongly on its cyber-security first strategy, which is designed to win business against competitors in the network intelligence and security space. The CEO noted that recent agreements demonstrate the value of Allot Ltd.'s unique technological advantages for major telco players in cyber security and network intelligence. While specific market share percentages against Sandvine (now AppLogic Networks) for 2025 are not publicly quantified in the latest reports, the growth in SECaaS ARR at 60% year-over-year and the raising of full-year revenue guidance to $100-103 million indicate successful traction in the competitive landscape.

Allot Ltd. (ALLT) - Canvas Business Model: Key Resources

You're looking at the core assets Allot Ltd. (ALLT) relies on to execute its strategy as of late 2025. These aren't just concepts; they are measurable capabilities and financial buffers.

Financial Strength as a Resource:

The balance sheet provides a solid foundation. As of September 30, 2025, Allot Ltd. reported a cash, bank deposits, and investments balance totaling $81 million. Importantly, the company confirmed it has no debt. This quarter also marked the third consecutive quarter of positive operating cash flow, which reached $4.0 million in Q3 2025.

Global Footprint and Deployment Scale:

The reach of Allot Ltd.'s platforms is a critical resource, proving market acceptance for its network intelligence and security offerings. The company's multi-service platforms are deployed by:

• Over 500 mobile, fixed, and cloud service providers globally.
• Over 1000 enterprises.
• Its network-native Security-as-a-Service (SECaaS) solution is used by many millions of subscribers globally.

This installed base is the platform upon which recurring revenue is built. For instance, the SECaaS Annual Recurring Revenue (ARR) as of September 2025 stood at $27.6 million, reflecting a 60% year-over-year growth.

Proprietary Technology and Intellectual Property Validation:

The value of the proprietary Deep Network Inspection (DNI) technology and network intelligence intellectual property is best quantified by the financial results it drives. The growth in SECaaS, which is directly tied to the security offerings built on this IP, is a key indicator of resource effectiveness. Here's a snapshot of the Q3 2025 performance that validates this core asset:

Metric	Value (Q3 2025)	Comparison/Context
Total Revenue	$26.4 million	Up 14% year-over-year.
SECaaS Revenue	$7.3 million	Represented 28% of total revenue.
SECaaS ARR	$27.6 million	Up 60% year-over-year.
Non-GAAP Operating Income	$3.7 million	Compared with $1.1 million in Q3 2024.

The talent pool, centered in Israel, supports the continued development of this IP. As of September 30, 2025, Allot Ltd. employed 497 full-time personnel. Allot Ltd. confirms its principal offices, research and development division, and manufacturing facilities are located in Israel.

The expected full-year 2025 revenue guidance was raised to between $100 million and $103 million, showing confidence in these key resources to deliver results.

Allot Ltd. (ALLT) - Canvas Business Model: Value Propositions

You're looking at the core value Allot Ltd. (ALLT) delivers, which is all about making security and network intelligence seamless for Communications Service Providers (CSPs) and their customers. It's a shift from selling boxes to selling recurring, embedded services.

Network-native, zero-touch cybersecurity for end-users is a major draw. This means the security is built right into the network, so the end-user gets protection without needing to install or manage anything themselves. This is what Allot Ltd. calls device agnostic, zero-touch network-native security. You're selling simplicity and automatic coverage across all devices.

For the CSP partners, the value is clearly in the economics and service differentiation. They get new recurring revenue streams, which is the engine of modern telecom value. The success of this is clear in the financials:

Metric	Q3 2025 Value	Comparison/Context
SECaaS Annual Recurring Revenue (ARR) Growth	60% Year-over-Year	Driven by the cybersecurity-first strategy.
Recurring Revenue as % of Total Revenue	63%	Up from 58% in Q3 2024.
Total Revenues	$26.4 million	A 14% increase year-over-year for Q3 2025.

This focus on recurring revenue, especially Security-as-a-Service (SECaaS), which represented 28% of overall Q3 2025 revenue, shows where the strategic value is being captured.

The proposition also includes delivering deep network visibility and application analytics. This isn't just about blocking threats; it's about giving the CSPs the intelligence to manage their network better and offer premium services. The Smart product for network intelligence remains an important part of the overall Allot Ltd. business. This visibility helps partners accelerate ARPU (Average Revenue Per User) by differentiating services and reducing customer churn.

The offering is positioned as unified security solutions, covering the entire customer footprint. This means providing 360 degree protection across the network and off-net, which encompasses solutions like HomeSecure and NetworkSecure, ensuring consistent policy enforcement wherever the user connects.

Finally, the underlying financial strength of the model supports these propositions. You see this in the profitability metrics, which are quite strong for a software/service provider. The high non-GAAP gross margins demonstrate the scalability of the service delivery model. For Q3 2025, this stood at 72.2%. That's a solid margin for a network-embedded service.

Here are the key takeaways on what this means for the partner:

• Network-native delivery means zero-touch deployment for subscribers.
• High gross margins of 72.2% (non-GAAP, Q3 2025) support profitable service offerings.
• SECaaS ARR growth of 60% YoY shows strong market adoption.
• Recurring revenue mix hit 63% in Q3 2025.
• Delivers actionable intelligence from granular visibility.

If onboarding takes 14+ days, churn risk rises, so the zero-touch aspect is defintely critical for realizing that high margin. Finance: draft 13-week cash view by Friday.

Allot Ltd. (ALLT) - Canvas Business Model: Customer Relationships

Dedicated, long-term strategic partnerships with Tier-1 telcos form a core part of Allot Ltd.'s go-to-market. You see this in the July 2025 announcement of a multi-year agreement with a Tier-1 EMEA telecom operator, a deal valued at tens of millions of dollars, which was the company's largest customer win in five years. This partnership covers integrated network intelligence and cybersecurity for both fixed fiber and mobile 5G and 4G networks. Also, there is strong interest in the new Tera III product from tier-1 customers, which is actively building out the pipeline. As of the first quarter of 2025, Allot Ltd.'s multi-service platforms were deployed by over 500 mobile, fixed and cloud service providers globally.

The relationship with major service providers is clearly shifting toward recurring security services. For instance, Verizon Business recently launched a new mobile plan that includes Allot Ltd.'s SECaaS offering, showing the importance placed on network-based cybersecurity protection for their end-customers. This traction with key partners directly fuels the subscription model.

The subscription-based model for recurring SECaaS revenue shows significant acceleration throughout 2025. Here's the quick math on that recurring growth:

Metric/Period	SECaaS Revenue Amount	SECaaS ARR Amount	SECaaS Revenue % of Total Revenue
Q1 2025	$5.1 million	$21.2 million (March 2025)	Not explicitly stated for Q1, but segment accounted for 22% of total revenue in Q1 2025 compared to 11% in 2023
Q2 2025	$6.4 million	$25.2 million (June 2025)	26.6%
Q3 2025	Not explicitly stated	$27.6 million	28%

Management has raised the full-year 2025 guidance for SECaaS ARR year-over-year growth to a range of 55-60%, and expects SECaaS revenue to exceed 60% year-over-year growth for the full year. The overall company revenue for the third quarter of 2025 hit $26.4 million, a 14% increase year-over-year, largely driven by this security segment.

For large enterprises, Allot Ltd. relies on direct sales and account management, evidenced by signing a number of multi-million dollar agreements with new customers for its Smart product during the first quarter of 2025. The company's platforms are deployed by over 1000 enterprises as of early 2025. This direct engagement supports the overall transition to a recurring model, as shown by the fact that SECaaS revenue now represents 28% of total revenue in Q3 2025, up from 18% in FY2024.

Co-marketing and joint service launch support are visible through specific customer actions. The recent launch of a new mobile plan by Verizon Business, which incorporates Allot Ltd.'s SECaaS service, is a prime example of this joint effort gaining significant traction among end-customers. This success in co-launching services is key to driving the recurring revenue stream.

Key relationship indicators as of late 2025 include:

• SECaaS ARR growth target for FY2025: Exceed 60% year-over-year.
• Total cash reserve by end of Q3 2025: $81 million.
• Largest customer win in five years: Valued at tens of millions of dollars.
• Q3 2025 adjusted operating income: $3.7 million.

Finance: review the Q4 2025 pipeline conversion rate for the Tera III product by next Tuesday.

Allot Ltd. (ALLT) - Canvas Business Model: Channels

Direct sales force targeting global CSPs.

Allot Ltd. solutions are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises globally.

Telecom operator's own consumer and business sales channels.

Verizon Business launched a new mobile plan, the My Biz Plan, which includes Allot Ltd.'s Business Mobile Internet Security (BMIS) solution powered by Security as a Service (SECaaS). This specific integration is projected to add between $11-$18 million of SECaaS Annual Recurring Revenue (ARR) by year-end 2025.

Value-Added Resellers (VARs) and distributors.

Allot Ltd. markets and sells its products through a network of channel partners, including distributors, resellers, OEMs, and system integrators.

Integration into partner mobile plans (e.g., Verizon's My Biz Plan).

The NetworkSecure offering is a monetizable network-based solution, offering zero-touch, clientless operation. The SECaaS segment is a key driver, with June 2025 SECaaS ARR reaching $25.2 million, up 73% year-over-year. For the third quarter of 2025, SECaaS revenues represented 28% of total revenue.

Here's the quick math on the revenue context for these channels as of the latest reported quarter:

Metric	Value (Q2 2025)	Value (Q3 2025)	FY 2025 Guidance Range
Total Revenues	$24.1 million	$26.4 million	$98-$102 million
SECaaS Revenue Percentage of Total	27%	28%	N/A
SECaaS ARR Growth (YoY)	73% (June 2025)	55.3% (Q3 2025)	55-60% expected

You'll note the SECaaS segment is accelerating its contribution, which is where these channel partnerships, especially with major carriers like Verizon Business, are most impactful.

• Allot Ltd.'s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers.
• The company's solutions are utilized by over 1000 enterprises.
• The Verizon Business integration is expected to add $11-$18 million in SECaaS ARR by the end of 2025.
• Q2 2025 SECaaS ARR was $25.2 million.

Allot Ltd. (ALLT) - Canvas Business Model: Customer Segments

You're looking at the core groups Allot Ltd. serves to drive its Security-as-a-Service (SECaaS) and network intelligence business. The customer base is clearly tiered, moving from the service providers who embed the technology to the end-users who benefit from it.

The primary direct customers are the service providers and large organizations. As of the first quarter of 2025, Allot Ltd.'s multi-service platforms were deployed by over 500 mobile, fixed, and cloud service providers globally. Also, over 1,000 enterprises were using these platforms.

The success of the cybersecurity push is evident in the recurring revenue metrics. For the third quarter of 2025, SECaaS accounted for 28% of overall revenue, which totaled $26.4 million. The Security-as-a-Service Annual Recurring Revenue (ARR) as of September 2025 hit $27.6 million, marking a 60% year-over-year growth. Recurring revenue, in general, was at 63% of total revenue in Q3 2025.

The indirect segment, the end-subscribers, is massive. Allot's industry-leading network-based security as a service solution is already used by many millions of subscribers globally.

Here's a breakdown of the quantitative aspects of these segments, drawing from the latest available reports:

Customer Segment Category	Specific Segment Example	Number of Customers/Users	Associated Financial Metric (Latest Available)
Mobile, Fixed, and Cloud Service Providers (CSPs)	Total CSP Deployments (Multi-Service Platforms)	Over 500	SECaaS represented 28% of Q3 2025 revenue.
Large Enterprises	Financial Sector Institutions (as of Jan-2025)	45 global institutions	Average Annual Contract Value: $3.2 million.
Large Enterprises	Total Enterprise Security Clients (as of Jan-2025)	214	Security solution annual revenue: $42.6 million.
Small and Medium Businesses (SMBs) via CSPs	SMBs (Indirectly via CSP offerings)	Not explicitly quantified	SECaaS ARR as of September 2025: $27.6 million.
End-Subscribers of CSPs	Subscribers Protected by SECaaS	Many millions globally	SECaaS ARR growth YoY: 60% (as of Sept 2025).

For the Cloud Service Provider segment specifically, one data point from early 2025 indicated 28 total cloud provider customers with an average annual contract value of $1.7 million. The enterprise segment, which covers large organizations needing network intelligence, includes specific verticals like government, with 17 Federal Agencies and 23 State/Local Governments reported in one data set.

• Total Q3 2025 Revenues: $26.4 million.
• Total Q3 2025 GAAP Operating Income: $2.2 million.
• Total Q3 2025 Non-GAAP Operating Income: $3.7 million.
• Quarter-end Total Cash (June 30, 2025): $72 million.
• Quarter-end Total Cash (September 2025): $81 million.

Finance: review the Q4 2025 guidance update against the $100-103 million full-year revenue target.

Allot Ltd. (ALLT) - Canvas Business Model: Cost Structure

You're looking at the expense side of Allot Ltd.'s business as they push hard into the Security-as-a-Service (SECaaS) model. The cost structure reflects a company investing heavily in its platform while simultaneously driving toward better bottom-line results. Here's the quick math on where the money is going, based on the third quarter of 2025 (Q3 2025) figures, reported in thousands of U.S. dollars unless otherwise noted.

High R&D expenses for platform innovation.

Allot Ltd. maintains a significant investment in Research and Development (R&D) to keep its platform innovative, which is key for a security and network intelligence provider. For the three months ended September 30, 2025, Research and development costs, net, were $5,489 thousand. Looking at the first half of the year, the cumulative R&D spend for the six months ended June 30, 2025, stood at $18,741 thousand.

Sales and Marketing (S&M) costs for SECaaS adoption.

Driving the adoption of SECaaS requires substantial Sales and Marketing (S&M) spending. In Q3 2025, Sales and marketing expenses totaled $8,148 thousand. This is a primary operational outlay, reflecting the push for the high-growth recurring revenue stream, which saw September 2025 SECaaS Annual Recurring Revenue (ARR) hit $27.6 million, up 60% year-over-year. For the first six months of 2025, S&M costs were $22,747 thousand.

Cost of revenues, including hardware and professional services.

The Cost of Revenues reflects the direct costs associated with delivering the solutions, which includes the underlying components for hardware-based offerings and the personnel for professional services. While a direct split isn't explicitly detailed in the top-line summaries, we can infer the total cost based on gross profit. For Q3 2025, GAAP revenues were $26.4 million, with a GAAP gross margin of 71.4%, implying a GAAP Cost of Revenues of approximately $7.55 million (or $7,550 thousand). Non-GAAP gross margin was slightly higher at 72.2%. For comparison, the Cost of Revenues in Q2 2025 was $6,721 thousand.

The cost structure components for the first half of 2025 are summarized below:

Expense Category (U.S. dollars in thousands)	Six Months Ended June 30, 2025	Three Months Ended September 30, 2025 (Q3 2025)
Research and development costs, net	18,741	5,489
Sales and marketing	22,747	8,148
General and administrative	6,643	3,079
Total Operating Expenses (GAAP)	34,494	(Calculated from Q3 data: 5,489 + 8,148 + 3,079 = 16,716)

General and Administrative (G&A) overhead.

General and Administrative (G&A) overhead, covering essential corporate functions, is managed tightly. For Q3 2025, G&A was $3,079 thousand. The six-month total for G&A expenses through June 30, 2025, was $6,643 thousand. It's defintely a smaller component compared to S&M and R&D.

Operating expenses managed for profitability turnaround.

The management focus is clearly on turning operating expenses into operating income, and the numbers show progress. Allot Ltd. achieved a GAAP operating income of $2.2 million in Q3 2025, a significant swing from the operating loss of $0.2 million reported in Q3 2024. On a Non-GAAP basis, the operating income for Q3 2025 was $3.7 million, up from $1.1 million in the prior year's third quarter. This profitability improvement is supported by strong revenue growth and margin expansion.

Key indicators of this turnaround include:

• GAAP Operating Income (Q3 2025): $2.2 million.
• Non-GAAP Operating Income (Q3 2025): $3.7 million.
• SECaaS now represents 28% of overall revenue as of Q3 2025.
• Positive operating cash flow generation of $4.0 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Allot Ltd. (ALLT) - Canvas Business Model: Revenue Streams

You're looking at the financial structure for Allot Ltd. as of late 2025, focusing on how they bring in money. The company has clearly shifted its focus, and the numbers from the third quarter of 2025 show that shift in action.

Allot Ltd. raised its full year 2025 revenue guidance to be between $100 million and $103 million. This guidance raise came after strong Q3 performance.

The Security-as-a-Service (SECaaS) model is the primary growth engine. For the third quarter of 2025, SECaaS revenue was $7.3 million. This represented 28% of the total quarterly revenue. The momentum in this area is significant; the September 2025 SECaaS Annual Recurring Revenue (ARR) hit $27.6 million, marking a year-over-year growth of 60% or more.

Overall recurring revenue is becoming a larger piece of the pie. In Q3 2025, recurring revenue stood at 63% of total revenue, an increase from 58% in Q3 2024.

Here's a look at the revenue components based on the Q3 2025 results. Remember, the total revenue for Q3 2025 was $26.4 million.

Revenue Stream Category	Q3 2025 Amount (USD)	Percentage of Total Revenue (Q3 2025)
Security-as-a-Service (SECaaS)	$7.3 million	28%
Total Recurring Revenue	Approx. $16.63 million (63% of $26.4M)	63%
Non-SECaaS Revenue (Includes Product Sales, Support/Maintenance, Professional Services)	Approx. $19.1 million (100% - 28%)	Approx. 72%

The remaining revenue streams-Product sales (hardware/software licenses for DNI), Support and Maintenance contracts, and Professional Services for deployment and integration-are captured within the non-SECaaS portion, which also includes the difference between the total recurring revenue and the SECaaS revenue. Support and Maintenance contracts are a key part of the recurring revenue that sits alongside the SECaaS subscriptions.

You can see the clear trend toward subscription-based income:

• SECaaS ARR growth expectations for year-end 2025 were raised to surpass 60% year-over-year growth.
• Total Q3 2025 revenue was $26.4 million, a 14% increase year-over-year from $23.2 million in Q3 2024.
• The recurring revenue percentage moved from 58% in Q3 2024 to 63% in Q3 2025.

The non-recurring revenue, which would primarily consist of initial product sales and one-time professional services, makes up the difference between the total revenue and the recurring revenue components. For Q3 2025, the non-recurring portion was approximately 37% of the total $26.4 million revenue.

Finance: draft 13-week cash view by Friday.