Assessing Allot (NasdaqGS:ALLT) Valuation As Cybersecurity Subscription Growth Accelerates

Allot (NasdaqGS:ALLT) is drawing investor interest after reporting approximately 60% year over year growth in annual recurring revenue from its Cybersecurity as a Service business in the third quarter of 2025.

See our latest analysis for Allot.

The recent Cybersecurity as a Service update comes after a period of strong share price momentum, with a 7 day share price return of 16.99% and a year to date share price return of 19.05%, while the 1 year total shareholder return sits at 59.06% and the 3 year total shareholder return is around 3.4x, despite a 20.08% total shareholder return decline over five years.

If Allot’s SECaaS growth has your attention, this can be a good moment to widen your watchlist and look at high growth tech and AI stocks as potential next candidates to research.

With the shares up sharply and Cybersecurity as a Service gaining traction, the big question now is whether Allot’s current valuation still leaves room for upside or if the market is already pricing in future growth.

Compared with the last close of US$11.50, the most followed narrative sees fair value closer to the mid teen range, built on detailed long term forecasts.

Rapid expansion of Allot’s Security-as-a-Service (SECaaS) revenue, evidenced by a 73% YoY increase in ARR and strong initial contribution from major telecom partners like Verizon and Vodafone, signals the company is effectively capturing the global surge in demand for bundled, carrier-grade cybersecurity services, supporting future revenue growth and greater earnings visibility as more subscribers migrate to bundled services.

Read the complete narrative.

Curious what kind of revenue climb, margin reset, and future P/E this narrative leans on? The projections are bold and tightly modelled. Want the full picture?

Result: Fair Value of $13.38 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on major telco partners ramping SECaaS as expected, and long sales cycles or project delays could easily knock the growth story off course.

Find out about the key risks to this Allot narrative.

The narrative and SWS fair value model suggest Allot trades about 12% below fair value. However, the current P/S of 5.7x sits well above both the estimated fair ratio of 2.9x and the US Software industry average of 4.8x, which points to richer expectations baked into the price. Which signal do you trust more?

See what the numbers say about this price — find out in our valuation breakdown.

If you see the assumptions differently or prefer to rely on your own research, you can test your inputs and build a custom valuation story in just a few minutes by starting with Do it your way.

A great starting point for your Allot research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

If Allot has sharpened your focus, do not stop here. Broaden your opportunity set with pre screened ideas that line up with the kind of portfolio you want.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ALLT.

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