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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting its successful transition toward high-margin cloud services, Allot announced a return to GAAP operating profitability in the first quarter of fiscal year 2026. Security-as-a-Service (SECaaS) revenue grew by a robust 71% year-over-year, strengthening the stability of the company's business model. Furthermore, Annual Recurring Revenue (ARR) surged by 59%, now accounting for 67% of the company's total revenue.
This performance comes amid intense competition in the cybersecurity sector, where peers such as CrowdStrike and Palo Alto Networks have also reported consistent growth in annual recurring revenue in recent periods per market data. Compared to the same quarter last year, Allot's success in reducing operating costs while expanding its SECaaS footprint aligns with analyst expectations for increased adoption of subscription-based digital protection models.
Looking ahead, investors are focused on the sustainability of this profitability amid global tech spending fluctuations, while monitoring UK and US inflation data scheduled for June 17, 2026, per the economic calendar, which could impact borrowing costs for tech firms. Markets will also watch the company's ability to maintain recurring revenue growth rates above 50% to ensure stable cash flows in upcoming quarters.