Allot Ltd

Allot's capital structure shows a debt-to-equity ratio of 0.83, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.43, suggesting it can cover its short-term obligations. However, the company's negative operating cash flow of -2.31 million USD and free cash flow of -1.57 million USD indicate a cash outflow from operations.

Profitability metrics reveal a challenging financial position for Allot. The company reported a net loss of 2.51 million USD and an operating loss of 2.74 million USD. Return on equity (ROE) is -5.2%, and return on assets (ROA) is -1.88%, both significantly below the industry median for software companies. These figures suggest that Allot is not generating returns that meet the expectations of its shareholders or asset base.

Geographically, Allot's revenue is not disclosed by region in the provided data, but the company's exposure to the software industry is evident. The company's primary business is in software, and its services are likely distributed across multiple regions. However, the lack of segment-specific revenue data limits the ability to assess geographic concentration.

The company's growth trajectory is mixed. While the current fiscal year (FY) outlook is not explicitly provided, the negative operating and net income suggest a challenging period. The next FY outlook is not quantified, but the company's historical performance indicates a need for improvement in both revenue and profitability. The company's operating cash flow and free cash flow are negative, which could hinder its ability to invest in growth initiatives.

Risk factors for Allot include liquidity concerns, as the company has a negative net cash position after subtracting total debt. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's negative operating cash flow and free cash flow could lead to increased reliance on external financing, which may affect its financial flexibility. No significant dilution adjustments have been applied to the valuation metrics.

Recent events and filings do not provide specific details in the input data, but the company's financial performance and risk profile suggest a need for strategic adjustments. Analysts have provided a mean price target of 13.10 USD, with a median of 12.00 USD, indicating a potential upside from the current market price of 7.4 USD. The mean recommendation of 1.83 suggests a generally positive outlook from analysts, with 1.00 strong-buy and 5.00 buy ratings.

Analysts project 90.4% upside to a mean price target of $13.10, signaling strong market confidence in future performance.

Free cash flow surged 422.7% year-over-year to $5.7 million in fiscal 2026, demonstrating significant improvement in cash generation.

Long-term debt was fully eliminated by fiscal 2026, reducing financial risk and improving the balance sheet structure significantly.

A current ratio of 2.65 indicates strong short-term liquidity, providing a robust buffer against immediate financial obligations.

Revenue declined at a 4-year CAGR of 8.5%, indicating a persistent long-term contraction in top-line growth potential.

Operating and net margins remain negative at -12.5% and -11.5% respectively, lagging significantly behind software cohort medians.

Return on equity of -5.2% is well below the software cohort median of 2.8%, highlighting poor capital efficiency.

Medium liquidity risk flags suggest potential challenges in meeting short-term obligations despite the current ratio appearing strong.

Revenue $28.4M, +14,0% YoY; Operating income +723,7% YoY.

• ▍Revenue $28.4M, +14,0% YoY
• ▍Operating income +723,7% YoY
• ▍Net income +1 104,2% YoY
• ▍Free cash flow +15,6% YoY
• ▍Net margin 10.2%

Revenue $26.4M, +13,6% YoY; Operating income +1 090,8% YoY.

• ▍Revenue $26.4M, +13,6% YoY
• ▍Operating income +1 090,8% YoY
• ▍Net income +1 257,4% YoY
• ▍Free cash flow +395,0% YoY
• ▍Net margin 10.7%

Revenue $24.1M, +8,5% YoY; Operating income +46,0% YoY.

• ▍Revenue $24.1M, +8,5% YoY
• ▍Operating income +46,0% YoY
• ▍Net income +49,6% YoY
• ▍Free cash flow +65,9% YoY
• ▍Net margin -7.0%

Revenue $23.1M, +5,8% YoY; Operating income +74,2% YoY.

• ▍Revenue $23.1M, +5,8% YoY
• ▍Operating income +74,2% YoY
• ▍Net income +86,8% YoY
• ▍Free cash flow +144,9% YoY
• ▍Net margin -1.4%

Revenue $24.9M; Operating income $312.0k.

• ▍Revenue $24.9M
• ▍Operating income $312.0k
• ▍Net margin 1.0%

Revenue $23.2M; Operating income -$217.0k.

• ▍Revenue $23.2M
• ▍Operating income -$217.0k
• ▍Net margin -1.1%

Revenue $22.2M; Operating income -$3.4M.

• ▍Revenue $22.2M
• ▍Operating income -$3.4M
• ▍Net margin -15.1%

Revenue $21.9M; Operating income -$2.7M.

• ▍Revenue $21.9M
• ▍Operating income -$2.7M
• ▍Net margin -11.5%

Revenue $102.0M, +10,6% YoY; Operating income +136,5% YoY.

• ▍Revenue $102.0M, +10,6% YoY
• ▍Operating income +136,5% YoY
• ▍Net income +163,1% YoY
• ▍Free cash flow +422,7% YoY
• ▍Net margin 3.6%

Revenue $92.2M, −1,0% YoY; Operating income +90,7% YoY.

• ▍Revenue $92.2M, −1,0% YoY
• ▍Operating income +90,7% YoY
• ▍Net income +90,7% YoY
• ▍Free cash flow +97,0% YoY
• ▍Net margin -6.4%

Revenue $93.2M, −24,1% YoY; Operating income −101,2% YoY.

• ▍Revenue $93.2M, −24,1% YoY
• ▍Operating income −101,2% YoY
• ▍Net income −96,1% YoY
• ▍Free cash flow −90,7% YoY
• ▍Net margin -67.4%

Revenue $122.7M, −15,7% YoY; Operating income −138,5% YoY.

• ▍Revenue $122.7M, −15,7% YoY
• ▍Operating income −138,5% YoY
• ▍Net income −113,0% YoY
• ▍Free cash flow −80,2% YoY
• ▍Net margin -26.1%