Quality Investor

Allot Ltd.

Rank #123Op. LeverageWatchlistCompare with other stocks

ALLT · Nasdaq · Technology

Allot Ltd. (ALLT) — Rank #123 by gross profitability (GP/assets 0.42) · ROE 3.3% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

348

Industry

Software - Infrastructure

Exchange

Nasdaq

10/12

Flags passed

ALLT passes 10/12 quality flags

2 cautions to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 88th percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.42

Primary signal (Novy-Marx).

88th pctl of 26 SIC 35 peers

Return on equity

3.3%

Gross margin

71.1%

92nd pctl of 26 SIC 35 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)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 318% above net income

Free cash flow

$15.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

318.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $65.77M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.52

84th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

2.65×

84th pctl of 26 SIC 35 peers

Quick ratio

—

Net cash

$65.77M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
18.6%0/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
13.4%5/5 Strong

Lifecycle Phase History

20202025
Hypergrowth
Startup
Decline
Op. Leverage

Price History

ALLT-48.1% · -12.3% CAGRSPY+82.9% · +12.8% CAGR