The single most important thing to understand about Allot in 2026 is that the company is no longer a one-segment networking equipment story. Allot still sells its legacy Deep Packet Inspection, or DPI, hardware platforms under the AllotSmart brand to mobile operators, fixed-line carriers, and large enterprises, and that line of business still produces real, lumpy, high-margin revenue, but the company's center of gravity has shifted to a subscription-based cybersecurity service that rides inside operator networks and protects consumer and small-business subscribers. That service is what Allot calls SECaaS, and it is the line that is driving growth, margin expansion, and the equity story. The Q2 2026 results are the first full quarter of operating evidence that the pivot is durable, and the simultaneous authorization of a $40 million share repurchase program, a buyback that represents more than 10% of the company's market capitalization, is the management signal that the pivot is also believed internally.
The quarter itself was a clean beat-and-raise. Revenue of $27.7 million was up 15% year-over-year against the $24.1 million reported in Q2 2025. More importantly, the composition shifted decisively toward recurring revenue: SECaaS revenue of $9.4 million grew 47% year-over-year, and the SECaaS annual recurring revenue, or ARR, the company's preferred forward-looking metric, reached $36.1 million at the end of June 2026, up 44% from a year earlier. The two-year stack on ARR is even more striking: $36.1 million at June 2026, $30.8 million at December 2025, $18.2 million at December 2024, and $12.7 million at December 2023, which is roughly a 2.8x in two and a half years. For a company that exited 2023 with $93 million of total revenue and a GAAP operating loss, the current trajectory is materially different from what the bear case assumed.
Management's response was to raise the 2026 full-year revenue guide to a range of $115 million to $118 million, up from the prior $113 million to $117 million range given in February and May, and to reconfirm that SECaaS revenue growth for the year is expected to be 40% or better. The buyback is a separate but reinforcing signal. Allot's board approved the program on June 23, 2026, the day before the end of the second quarter, and the accompanying release notes that the authorization reflects "confidence in Allot's strategy and financial strength." When a company with $107 million of cash, no debt, and a $375 million market cap authorizes a $40 million buyback, the implicit message is that management believes the equity is cheap on a free-cash-flow basis. Whether the market agrees is the trade.
The other reason this quarter matters is geographic. Allot's geographic mix for the second quarter broke to Americas at $8.5 million or 31% of revenue, EMEA at $13.4 million or 48%, and Asia Pacific at $5.8 million or 21%. Compare that to full-year 2024, when Americas was 15%, EMEA was 59%, and Asia Pacific was 26%, and to 2025, when Americas was 19%, EMEA was 62%, and Asia Pacific was 19%. The Americas line, in other words, has roughly doubled as a share of revenue over six quarters, which is the second material signal in the print: the Tier-1 EMEA deal that Allot announced in July 2025 and the Verizon Business SECaaS traction management has been calling out are not one-off. The company is converting a legacy EMEA-heavy business into a more geographically balanced one with a North American growth engine.