Allot projects cybersecurity services to grow over 60% year-over-year in 2025, after a 50% increase in 2024, leading to a 14% revenue boost in Q3. Momentum stems from carrier wins like Verizon and partnerships, with a focus on four growth levers and high gross margins in cybersecurity. Allot’s networking segment also remains stable with a new Tera III platform.

At the Needham Growth Conference, Allot emphasized its cybersecurity services for consumers and small businesses. With a networking business comprising 70% of revenue and a security-as-a-service business at 30%, strong double-digit growth in security services is evident. Allot’s security business is driving overall revenue growth and stability in the networking segment.

Allot’s security services growth is driven by new CSP partnerships, expansion within carriers, multi-year growth ramps, and ongoing R&D efforts. The company’s cybersecurity services are seeing traction with new customers like Verizon due to increased cybersecurity urgency for consumers and SMBs.

Allot’s management discussed a partnership with Compax Ventures targeting MVNOs, emphasizing security in mobile plans. The cybersecurity-as-a-service business carries high gross margins around 80%, contributing to consolidated margins around 70%. The company’s primary KPI is security ARR, with nearly 70% of revenue being recurring, supporting future visibility.

Allot focuses on cybersecurity growth, with the networking segment showing improved stability. The launch of the Tera III platform offers scalability up to 3 Tbps, supporting carriers facing rising network traffic. The company aims for profitable growth through existing products and organic execution, with plans to expand cybersecurity offerings and channels beyond CSPs.

Allot Ltd. provides network intelligence and security solutions globally, offering real-time visibility into network traffic and security policy enforcement. Its platforms support various applications, from DDoS protection to network analytics. The company’s product portfolio includes managed solutions for mobile and fixed-line operators, as well as cloud-native services for private, public, and hybrid environments.

Read more at Yahoo Finance: Allot Highlights 60%+ Cybersecurity Growth Outlook and Carrier Wins at Needham Growth Conference