Allot Communications (ALLT) Stock Forecast & Price Target

Allot Ltd demonstrated robust financial performance in 2QCY25, with total revenue increasing by 8.5% year-over-year to $24.1 million, driven significantly by a 73.0% year-over-year growth in SECaaS revenue, which reached $6.4 million, accounting for 26.6% of total revenue. The company recorded impressive annual recurring revenue (ARR) growth of 43.3% in SECaaS for CY24 and anticipates a further increase of 55%-60% in CY25, bolstered by strong traction with major clients like Verizon and Vodafone. Additionally, Allot raised its revenue guidance for the year to between $100.0 million and $103.0 million, indicating confidence in continued business expansion and the sustainability of its growth trajectory.

Allot Ltd has experienced a significant decline in Product Revenue, with an 18.7% year-on-year decrease to $7.6 million in the second quarter of calendar year 2025, indicating ongoing struggles in maintaining growth. The company's difficulties in expanding its customer base among existing communication service providers (CSPs) and the pressure on capital expenditure budgets further exacerbate the negative outlook. Additionally, longer sales cycles and a weaker economic environment could hinder revenue growth and create further demand and pricing pressures, raising concerns about Allot's future performance.