Strong SECaaS Momentum Combined with Product Upside Drives a Healthy 1Q26 Beat

Research evidence excerpt

Strong SECaaS Momentum Combined with Product Upside Drives a Healthy 1Q26 Beat

Security & Infrastructure Software

Allot Ltd. (ALLT)

EQUITY RESEARCH Company Update

May 12, 2026

Strong SECaaS Momentum Combined with Product Price: $7.86

Price Target: $15.00 Upside Drives a Healthy 1Q26 Beat

Rating: Overweight

Investment Summary. We maintain our Overweight rating and reiterate

Key Statistics: our 12-month PT of $15. Allot delivered a solid quarter of security

Symbol NSQ: ALLT momentum, outperforming FactSet consensus on revenue, free cash flow, 52-Week Range 6.12 - 11.92

and operating income. Management initiated a SECaaS revenue growth Market Cap 384.5

ADV (3 mo) 466,170 outlook of >40% for FY26, citing stronger visibility following the 1Q print.

Shares Out (M) 48.9 FY26 revenue guidance of $113M-$117M was reiterated with increased

confidence toward the upper end of the range.

Research Analysts:

Jonathan Ruykhaver, CFA We are encouraged by the continued strength in SECaaS adoption, the

617-443-4473 inflection in profitability, and the Terra III demand cycle providing stability in

Jonathan.Ruykhaver@cantor.com the smart product line. While the company did not provide a specific FY26 Ben Mitchell

212-428-5917 ARR target, we believe our estimate of 35% growth is quite conservative.

Ben.Mitchell@cantor.com This estimate implies a 14% decrease in FY26 NNARR ($10.8M vs $12.6M

in FY25). We view the stock’s recent pullback (down ~16% YTD versus the

REV ($M) S&P up ~8%) as a compelling buying opportunity for a double-digit grower

FYE Dec 2025A 2026E 2027E trading at a meaningful discount, at ~2.8x FY26E EV/Sales versus peers at

1Q $23.2 $26.4A $28.8

Prev - $26.6E $29.2 ~8.8x.

2Q $24.1 $27.1E $29.6

Prev - $27.8E $30.4 What we liked:

3Q $26.4 $30.2E $32.9 1) SECaaS Strength.