Allot Delivers Strong Start to 2026 with 14% Revenue Growth and Record Operating Cash Flow
Allot, a leading provider of cybersecurity solutions, has reported a strong start to 2026 with a 14% year-over-year increase in revenues. This marks the company's third consecutive quarter of double-digit growth and reflects the continued successful execution of its cybersecurity-first strategy.
According to Eyal Harari, CEO of Allot, the first quarter results demonstrate the company's ability to drive revenue growth while also improving profitability. SECaaS ARR grew nearly 60% year-over-year in the quarter, with SECaaS revenue representing approximately one-third of total revenues, up from around one-fifth a year ago.
The company's recurring revenue base now stands at 67% of total revenue, providing strong visibility into future quarters. This, combined with significant operating leverage and improved gross margin, has led to substantial improvements in profitability and the generation of record operating cash flow of over $10 million in the quarter.
Harari noted that Allot's strong cash flow generation enabled the company to end the quarter with almost $100 million in cash and no debt. This strengthens the company's increasingly healthy balance sheet, providing significant flexibility to continue investing in long-term business growth.
Allot's capital allocation strategy is focused on maximizing long-term shareholder value through investments in organic growth, strategic acquisitions, and returning capital to shareholders. The company has increased its investment in R&D, where it is innovating and bringing new products, services, and capabilities to the market.
The pipeline of business opportunities expands across all regions, with Harari citing the significant long-term potential he sees in the SECaaS market. This growth, combined with Allot's strong financial position, gives the company increased confidence that it is well-positioned to continue its revenue growth trajectory at a mid-teens rate over the coming year.
