Allot (ALLT) Profitability Turn Reinforces Bullish SECaaS Margin Narratives In Q1 2026

Allot (NasdaqGS:ALLT) has opened Q1 2026 with revenue of $26.4 million and basic EPS of $0.04, outlining how the business is translating its operations into earnings per share. The company’s revenue increased from $23.2 million and a basic EPS loss of $0.01 in Q1 2025 to $26.4 million and basic EPS of $0.04 in Q1 2026. Trailing twelve month basic EPS moved from a loss of $0.09 at Q1 2025 to $0.13 at Q1 2026, indicating that margins have become a more prominent factor in the company’s recent results.

See our full analysis for Allot.

With the latest quarter reported, the next step is to compare these numbers with the prevailing narratives around Allot to see which views align with the data and which ones appear less supported.

See what the community is saying about Allot

TTM earnings of US$6.0 million change the story

• Over the last twelve months, Allot generated total revenue of US$105.3 million and net income of US$6.0 million, which works out to trailing EPS of about US$0.13.
• Consensus narrative points to a shift toward higher margin, recurring SECaaS revenue, and the trailing figures partly line up with that, as net income moved from a reported loss of US$5.9 million twelve months ago to a profit of US$6.0 million, while revenue over the same window moved from US$92.2 million to US$105.3 million.
  • This change in profitability is consistent with the consensus view that a higher share of software and recurring contracts supports margins, given gross margin is referenced in the low 70% range in the narratives.
  • At the same time, consensus expects earnings to reach US$17.0 million by around 2029, which is a much steeper climb than the US$6.0 million currently in the trailing numbers, so there is still a gap between today’s results and those longer term expectations.

Revenue near US$26 million sits inside a much larger annual run rate

• Q1 2026 revenue of US$26.4 million is one quarter of a trailing twelve month revenue base of US$105.3 million, while EPS of about US$0.04 this quarter compares with trailing EPS of roughly US$0.13.
• Bulls argue that growing telecom cybersecurity demand and recurring SECaaS deals can support multi year expansion in earnings, and the current numbers give them some support but also some friction points.
  • On the supportive side, trailing revenue has risen from US$92.2 million to US$105.3 million in about a year, and net income has moved from a loss of US$5.9 million to a profit of US$6.0 million, which lines up with the bullish view that the business model is scaling.
  • On the other hand, Q1 2026 revenue of US$26.4 million is below the recent Q4 2025 level of US$28.4 million and quarterly net income of US$1.9 million is below US$2.9 million in Q4 2025, so anyone leaning on a straight line bullish growth path will need to allow for quarter to quarter swings.

Bulls who see SECaaS and recurring revenue as the main story may want to compare this earnings run rate with the more optimistic multi year forecasts in the full bull case.🐂 Allot Bull Case

High 61.2x P/E and recent dilution keep bears focused

• Allot is reported on a trailing P/E of 61.2x at a share price of US$7.48, even though it has only recently moved to trailing EPS of roughly US$0.13, and shareholders also experienced dilution over the past year.
• Bears highlight that this high multiple and new shares on issue leave little room for earnings disappointment, and the current data gives them several points to lean on.
  • The P/E of 61.2x sits above the cited US software industry average of 28x and peer average of 23.8x, so the stock is carrying a premium multiple even though trailing net income is US$6.0 million on revenue of US$105.3 million.
  • On top of that, the share price of US$7.48 is below a DCF fair value of about US$11.14 and below an analyst price target of US$13.10, which means anyone agreeing with the bearish view will likely focus on whether the high P/E and recent dilution leave the stock sensitive to any shortfall versus those expectations.

Skeptics who worry about the 61.2x P/E and recent dilution can see how those concerns stack up against detailed bear side assumptions in the full narrative.🐻 Allot Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Allot on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

There are mixed signals at this stage, with both risks and rewards to consider. It may be useful to move quickly and evaluate the complete picture yourself using 3 key rewards and 2 important warning signs.

See What Else Is Out There

Allot is carrying a high 61.2x P/E and recent dilution, so the stock price leaves limited room if earnings fall short of expectations.

If that premium multiple and dilution make you cautious, it can be helpful to compare with 46 high quality undervalued stocks that may offer pricing more in line with current earnings power.

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.

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