Allot Raises 2026 Revenue Outlook to $118M on C-SaaS Surge
Allot lifted its full-year revenue target after C-SaaS revenue grew 47% in Q2 2026, supported by strong North American demand.
Key points
- Allot raised 2026 revenue guidance to $115M-$118M following a 15% YoY revenue increase in Q2.
- C-SaaS revenue grew 47% year-over-year, driving North America to 31% of total sales.
- The board approved a $40M share repurchase program, supported by over $100M in cash.
Allot (NASDAQ:ALLT) raised its full-year 2026 revenue guidance to $115 million–$118 million, up from the previous range of $113 million–$117 million. The increase follows a second quarter in which total revenue rose 15% year-over-year to $27.7 million, driven primarily by a 47% expansion in cybersecurity-as-a-service (C-SaaS) revenue.
North America emerged as the primary growth engine, accounting for 31% of total revenue. The region’s performance was fueled by strong product sales, specifically the Tera 3 platform, alongside consistent demand for C-SaaS subscriptions. This regional strength contributed to a robust backlog, providing increased visibility for future revenue recognition.
C-SaaS expansion drives profitability
The company’s shift toward subscription models yielded tangible financial results. Non-GAAP operating income improved to $2.7 million, resulting in a 9.9% operating margin. Operating cash flow reached $8 million, reflecting strong cash collections. According to Benzinga.com, these figures demonstrate that the mix shift toward recurring revenue is enhancing both margin structure and liquidity.
International expansion also contributed to the quarter’s performance. Allot secured new C-SaaS agreements in EMEA and Africa, including a notable upsell in Europe. This land-and-expand strategy allowed the company to deepen relationships with existing partners while opening new revenue streams outside its traditional markets.
Board approves $40M buyback
Backed by a balance sheet holding over $100 million in cash and no debt, Allot’s board approved a $40 million share repurchase program. This move signals management confidence in the company’s financial position and its ability to return capital to shareholders while maintaining operational flexibility.
Backlog supports future revenue
The Tera 3 platform continues to generate high demand, particularly in North America, which has bolstered the company’s order backlog. This backlog serves as a leading indicator for future revenue, supporting the raised guidance for the remainder of 2026. The sustained double-digit growth marks the fourth consecutive quarter of such performance, indicating an acceleration in momentum.
