Allot Ltd. (ALLT) experiences significant growth in its Cybersecurity-as-a-Service (SECaaS) business, with annual recurring revenue (ARR) rising by 60% in the third quarter of 2025. SECaaS accounted for 28% of total revenues, expected to increase to 30%. Recurring revenues made up 63% of total revenues, showcasing improved revenue quality.

Drivers behind SECaaS growth include large Tier-1 telecom customers adding new subscribers and upselling existing services. New offerings like OffNetSecure expand SECaaS usage. If telecom partners continue to scale services, ALLT’s ARR growth is expected to continue. Zacks Consensus Estimate predicts revenue growth of 10.3% and 13.3% for 2025 and 2026, respectively.

Competitors like Cisco Systems (CSCO) and F5 (FFIV) challenge Allot in network traffic management and security. Cisco introduces AI-native wireless network stack for 6G networks with NVIDIA, preparing for next-gen connectivity. F5 offers cloud-native networking products to manage heavy network traffic efficiently and securely.

Allot’s shares have declined by 4.2% in the past three months, outperforming the Internet – Software industry’s 11.3% decline. With a forward price-to-sales ratio of 4.05, lower than the industry average of 4.7, Allot is well-positioned for growth. The Zacks Consensus Estimate for full year 2026 earnings suggests a 15.9% year-over-year increase, with a Zacks Rank #1 (Strong Buy) for Allot.

Read more at Nasdaq: Can Allot’s Strong SECaaS Momentum Fuel Continued ARR Growth?