Quality Investor

Allot Ltd.

Rank #124Op. Leverage

ALLT · Nasdaq · Technology

Allot Ltd. (ALLT) — Rank #124 by gross profitability (GP/assets 0.42) · ROE 3.3% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001365767 · all metrics point-in-time as of the filing date.

About

Allot Ltd., together with its subsidiaries, develops, sells, and markets network intelligence and security solutions in Israel, Europe, Asia, Oceania, the Americas, the Middle East, and Africa.

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The company's Allot Secure Management platform, which provides end-to-end security management infrastructure that comprises Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, Allot IoTSecure, Allot EndpointSecure, and Allot BusinessSecure, as well as Allot Secure Cloud and Allot Network Protection as a Service. It also provides DDoS Secure, a solution that provides attack detection and mitigation services; NetProtect that offers protection from multi-vector attacks against network infrastructure, subscribers, and applications; 5GNetProtect, a solution for 5G SA architecture; AllotSmart solutions, which include Smart5G, SmartVisibility, SmartTraffic QoE, SmartPCC, and SmartSentinel that enables telecommunication providers to comply with a range of regulatory requirements targeted to assist governments with securing the public; and Allot NetXplorer, which provides a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to mobile and fixed broadband service providers, cable operators, satellite service providers, private networks, data centers, governments, and financial and educational institutions. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018.

The company was incorporated in 1996 and is headquartered in Hod Hasharon, Israel.

Industry
Software - Infrastructure
Sector
Technology
State
L3
Filer Category
Accelerated filer
Fiscal Year End
December 31
Website
allot.com

Price History

ALLT-53.5% · -14.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$390.86M

P/E (annual)

98.9

P/S (annual)

3.8

P/B

3.4

P/OCF (annual)

22.0

Shareholder Yield

-18.6%

Employees

348

Industry

Software - Infrastructure

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.42
Return on equity
3.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.52
Current ratio
2.65×
Net cash
$65.77M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
4.9%

Growth

1/2 pass
Revenue growth
10.6%
Piotroski F-Score
6 / 9
Share dilution
18.6%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 18.6% — per-share value needs a total required return of 28.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.0%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

5.5%

r = 10% (base)

10.0%

r = 12%

13.8%

Net debt / market cap: -18.0%

Base FCF: $15.5M3Y mean FCF: -$4.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

3.0xExpensive
0.8xmed 2.4x4.2x

P / B

Price / book value per share

2.7xExpensive
1.0xmed 2.2x4.7x

P / GP

Price / gross profit per share

4.2xExpensive
1.2xmed 3.6x6.0x

P / FCF

Price / free cash flow per share

19.5xCheap
19.5xmed 26.3x86.9x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.42

Primary signal (Novy-Marx).

1st of 5 SIC 3576 peers

Return on equity

3.3%

Gross margin

71.1%

3rd of 5 SIC 3576 peers

Revenue growth (YoY)

10.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-6.0%

Revenue CAGR (5Y)

-5.6%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.52

3rd of 5 SIC 3576 peers (best = lowest)

Current ratio

2.65×

2nd of 5 SIC 3576 peers

Quick ratio

Net cash

$65.77M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Strong
2008-2009 (GFC)
N/AN/A
2020 (COVID)
23.5%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-24.1%Significant decline

Cash-flow health

Free cash flow

$15.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

3.18

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup
Decline
Op. Leverage