Technology

Lanvin Group Reports H1 2026 Revenue of €101 Million

Published

3 months ago

August 26, 2026

Improving Momentum Positions the Group for Sustainable Growth

Group revenue was €101 million in H1 2026, down 13% versus H1 2025, reflecting the Group’s ongoing brand transformation and the strategic optimization of its retail footprint with store network reduced to 151 directly operated stores. Group e-commerce returned to growth.Gross profit margin expanded to 59%, up 1.29 pp(1) year-on-year, as improved sell-through, more effective product lifecycle management and efficiency programs across major brands took effect.Gross profitability improved markedly, with Contribution Profit and Adjusted EBITDA margins up 7.7 and 10.7 pp(1) respectively.Brand highlights include like-for-like growth across boutiques and a well-received FW26 Paris runway at Lanvin, resilient trading and gross margin expansion to 60% at Wolford, early wholesale momentum building at Sergio Rossi, and continued strength at St. John with e-commerce up 31% in its reporting currency and a stable 70% gross margin.Group-wide priorities in H2 2026 include advancing the reset and transformation agenda; unlocking new revenue opportunities across markets, channels and categories; accelerating strategic partnerships and collaborations; maintaining disciplined cost, working capital and cash management while selectively investing behind growth; and continuing to optimize the Group’s brand portfolio.

SHANGHAI, Aug. 26, 2026 /PRNewswire/ — Lanvin Group (NYSE: LANV, the “Group”), a global luxury fashion group with Lanvin, Wolford, Sergio Rossi and St. John in its portfolio of brands, today announced its unaudited results for the first half of 2026. Against a still-transitional luxury market, the Group delivered a marked improvement in gross profitability, underpinned by strong cost discipline, operational efficiency and the continued execution of its strategic transformation.

Group revenue for H1 2026 was €101 million, down 13% year-on-year, primarily driven by the planned optimization of the retail footprint and the Group’s ongoing brand transformation. Despite lower revenue, the Group delivered gross profit of €59 million at a margin of 59%, an improvement from prior-year period, supported by improved sell-through, disciplined inventory management and efficiency initiatives across major brands. Strong cost control delivered a substantial reduction in losses, as a result of the Group’s efficiency improvement initiatives.

Zhen Huang, Chairman of Lanvin Group, said: “The first half represented an encouraging step forward for the Group. Supported by renewed creative and executive leadership across our houses, we are confident in our ability to progressively unlock the long-term potential of our brands amid market challenges.”

Andy Lew, Executive President of Lanvin Group, said: “We have reshaped how the Group operates—emerging leaner, more agile and materially more efficient. With that foundation in place, the second half is about further execution: activating our new creative and commercial leadership, sharpening our channel mix, and through its directly owned and licensing businesses, bringing a compelling pipeline of collections to market to reignite brand desirability and consumer engagement.”

Review of the First Half 2026 Results

Lanvin Group Revenue by Brand

€ in Thousands, unless otherwise noted

2025(2)

2026

2026H1 vs
2025H1

Lanvin

27,932

22,924

-17.9 %

Wolford

32,985

31,017

-6.0 %

St. John

39,654

35,505

-10.5 %

Sergio Rossi

15,314

10,932

-28.6 %

Total Brand

115,885

100,378

-13.4 %

Eliminations, other and holding companies

-117

418

Total Group

115,768

100,796

-12.9 %

Lanvin Group Consolidated P&L
€ in Thousands, unless otherwise noted

2025(2)

2026

Revenue

115,768

100.0 %

100,796

100.0 %

Gross profit

66,823

57.7 %

59,486

59.0 %

Contribution profit

-19,162

-16.6 %

-8,936

-8.9 %

Adjusted EBITDA

-52,179

-45.1 %

-34,622

-34.3 %

Review of First Half 2026 Financials

Revenue

For H1 2026, the Group generated revenue of €101 million, a 12.9% decrease year-over-year. The decline primarily reflected the planned rationalization of the retail network and the Group’s strategic brand transformation, partially offset by encouraging like-for-like retail performance. Within DTC, Group e-commerce returned to growth, driven by a strong recovery and sustained momentum at Wolford and St. John. Retail footprint optimization continued through H1, with the store network reduced to 151 directly operated stores as the Group continues to rationalize underperforming locations and strengthen the productivity of its retail network.

Gross Profit

Gross profit was €59 million, representing a margin of 59.0%, compared to 57.7% in H1 2025. The 1.29 pp(1) improvement was driven by stronger sell-through, more effective product lifecycle management and supply chain efficiencies at Lanvin, Wolford and St. John.

Contribution Profit

Contribution profit was -€9 million in the first half, a €10 million improvement from the prior-year period. The improvement was driven primarily by lower selling expenses following the strategic rationalization of the retail network, alongside broader cost discipline across the Group, offsetting the impact of lower revenue.

Adjusted EBITDA

Adjusted EBITDA improved to -€35 million in H1 2026, from -€52 million in the prior-year period, representing a €17 million reduction in losses, as a result of disciplined cost management and operating efficiencies. The Group continued to invest selectively in creative initiatives and product development.

2026 Full-Year Outlook

The Group enters H2 2026 on a leaner, more agile platform and a materially improved cost base. The focus includes: pursuing new revenue opportunities across markets, channels and categories, and exploring new licensing and partnership opportunities. The Group will maintain disciplined cost, working capital and cash management while investing selectively in high-return opportunities. Across the portfolio, Lanvin will deepen client engagement and asset-light partnerships, Wolford will accelerate wholesale and e-commerce, Sergio Rossi will build on the strong reception of its SS27 collection, and St. John will harness its new creative leadership and upcoming capsules.

Note (1): pp stands for percentage points, representing the arithmetic difference between two percentages.

(2) At the end of 2025, the Group approved the strategic carve-out of Caruso. In accordance with IFRS 5, Caruso is presented as a discontinued operation, with prior periods restated for comparability. The sale was completed on February 6, 2026.

Note: Unless otherwise stated, all percentage changes are calculated on an actual currency basis.

Note: Numbers may not sum precisely due to rounding.

Note: This communication includes certain non-IFRS financial measures such as Contribution Profit, Contribution Profit Margin, and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Please see Use of Non-IFRS Financial Metrics and Non-IFRS Financial Measures and Definition.

Semi-Annual Report

Our semi-annual report, including the interim condensed consolidated financial statements as of and for the six months ended June 30, 2026, can be downloaded from the Company’s investor relations website (ir.lanvin-group.com) under the section Financials / SEC Filings, or from the SEC’s website (www.sec.gov).

Conference Call

As previously announced, today at 8:00AM EST/8:00PM CST/2:00PM CET, Lanvin Group will host a conference call to discuss its results for the first half of 2026 and provide an outlook for the remainder of the year. Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, please visit the “Events” tab of the Group’s investor relations website at https://ir.lanvin-group.com.

All participants who would like to join the conference call must pre-register using the link provided below. Once the registration is complete, participants will receive dial-in numbers, a passcode, and a registrant ID which can be used to join the conference call. Participants may register at any time, including up to and after the call starts.

Registration Link:
https://dpregister.com/sreg/10211387/104b342f75c

A replay of the conference call will be accessible approximately one hour after the live call until September 1, 2026, by dialing the following numbers:

USA/Canada Toll-Free: 1-855-669-9658
International Toll: 1-412-317-0088
Replay Access Code: 1329150

A recorded webcast of the conference call and a slide presentation will also be available on the Group’s investor relations website at https://ir.lanvin-group.com.

About Lanvin Group

Lanvin Group is a leading global luxury fashion group headquartered in Shanghai, China and Milan, Italy, managing iconic brands worldwide including Lanvin, Wolford, Sergio Rossi and St. John. Harnessing the power of its unique strategic alliance of industry-leading partners in the luxury fashion sector, Lanvin Group strives to expand the global footprint of its portfolio brands and achieve sustainable growth through strategic investment and extensive operational know-how, combined with an understanding and unparalleled access to the fastest-growing luxury fashion markets in the world. The shares of Lanvin Group are listed on the New York Stock Exchange under the ticker symbol ‘LANV’. For more information about Lanvin Group, please visit www.lanvin-group.com, and to view our investor presentation, please visit https://ir.lanvin-group.com.

Forward-Looking Statements

This communication, including the section “2026 Full-Year Outlook”, contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “project” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Lanvin Group’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and must not be relied on by an investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Lanvin Group. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, changes adversely affecting the business in which Lanvin Group is engaged; Lanvin Group’s projected financial information, anticipated growth rate, profitability and market opportunity may not be an indication of its actual results or future results; management of growth; the impact of public health crises on Lanvin Group’s business; Lanvin Group’s ability to safeguard the value, recognition and reputation of its brands and to identify and respond to new and changing customer preferences; the ability and desire of consumers to shop; Lanvin Group’s ability to successfully implement its business strategies and plans; Lanvin Group’s ability to effectively manage its advertising and marketing expenses and achieve desired impact; its ability to accurately forecast consumer demand; high levels of competition in the personal luxury products market; disruptions to Lanvin Group’s distribution facilities or its distribution partners; Lanvin Group’s ability to negotiate, maintain or renew its license agreements; Lanvin Group’s ability to protect its intellectual property rights; Lanvin Group’s ability to attract and retain qualified employees and preserve craftsman skills; Lanvin Group’s ability to develop and maintain effective internal controls; general economic conditions; the result of future financing efforts; and those factors discussed in the reports filed by Lanvin Group from time to time with the SEC. If any of these risks materialize or Lanvin Group’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lanvin Group presently does not know, or that Lanvin Group currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lanvin Group’s expectations, plans, or forecasts of future events and views as of the date of this communication. Lanvin Group anticipates that subsequent events and developments will cause Lanvin Group’s assessments to change. However, while Lanvin Group may elect to update these forward-looking statements at some point in the future, Lanvin Group specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Lanvin Group’s assessments of any date subsequent to the date of this communication. Accordingly, reliance should not be placed upon the forward-looking statements.

Use of Non-IFRS Financial Metrics

This communication includes certain non-IFRS financial measures such as Contribution Profit, Contribution Profit Margin, Adjusted Operating Profit, adjusted earnings before interest and taxes (“Adjusted EBIT”), and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). These non-IFRS measures are an addition, and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS. Reconciliations of non-IFRS measures to their most directly comparable IFRS counterparts are included in the Appendix to this communication. Lanvin Group believes that these non-IFRS measures of financial results provide useful supplemental information to investors about Lanvin Group. Lanvin Group believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Lanvin Group’s financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors. However, there are a number of limitations related to the use of these non-IFRS measures and their nearest IFRS equivalents. For example, other companies may calculate non-IFRS measures differently, or may use other measures to calculate their financial performance, and therefore Lanvin Group’s non-IFRS measures may not be directly comparable to similarly titled measures of other companies. Lanvin Group does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses, income and tax liabilities that are required by IFRS to be recorded in Lanvin Group’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgements by Lanvin Group about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, Lanvin Group presents non-IFRS financial measures in connection with IFRS results.

Non-IFRS Financial Measures and Definitions

Our management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: Contribution Profit, Contribution Profit Margin, Adjusted Operating Profit, Adjusted EBIT and Adjusted EBITDA. Our management believes that these non-IFRS financial measures provide useful and relevant information regarding our performance and improve their ability to assess financial performance and financial position. They also provide comparable measures that facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. While similar measures are widely used in the industry in which we operate, the financial measures that we use may not be comparable to other similarly named measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.

Contribution Profit is defined as revenue less the cost of sales and selling and marketing expenses. Contribution Profit subtracts the main variable expenses of selling and marketing expenses from Gross Profit, and our management believes this measure is an important indicator of profitability at the marginal level. Below contribution profit, the main expenses are general administrative expenses and other operating expenses (which include foreign exchange gains or losses and impairment losses). As we continue to improve the management of our portfolio brands, we believe we can achieve greater economy of scale across the different brands by maintaining the fixed expenses at a lower level as a proportion of revenue. We therefore use Contribution Profit Margin as a key indicator of profitability at the group level as well as the portfolio brand level.

Contribution Profit Margin is defined as Contribution Profit divided by revenue.

Adjusted EBITDA is defined as profit or loss before income taxes, net finance cost, exchange gains/(losses), depreciation, amortization, share-based compensation and provisions and impairment losses adjusted for income and costs which are significant in nature and that management considers not reflective of underlying operational activities, mainly including net gains on disposal of long-term assets, gain on debt restructuring and government grants.

Enquiries:

Media & Investors
Lanvin Group
Ross Luo
ross.luo@lanvin-group.com

Coco Wang
coco.wang@lanvin-group.com

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Technology

Govee Strengthens Its Commitment to User Security with Updated Security Response Center

Published

19 minutes ago

November 12, 2026

BELLEVUE, Wash., Nov. 12, 2026 /PRNewswire/ — Govee, a global leader in smart lighting, today announced the update of its official Security Response Center, reinforcing its ongoing commitment to protecting user privacy and product security through greater transparency and closer collaboration with the global security research community.

At Govee, user privacy and product security are top priorities. The updated Security Response Center provides a centralized platform where users and researchers can access security advisories, stay informed about security updates, and learn more about Govee’s coordinated vulnerability disclosure process.

As part of this initiative, Govee is strengthening its engagement with security researchers worldwide through its Vulnerability Reward Program. Researchers are encouraged to responsibly report potential vulnerabilities, with eligible submissions qualifying for bounty rewards following review and verification, directly through Govee’s Security Response Center Portal.

The platform also features a Contributors section, publicly recognizing researchers who have helped improve Govee products and services, with their consent.

Through continued investment in security, transparent communication, and collaboration with independent researchers, Govee remains committed to delivering safer, more reliable products and experiences for its users.

For more information, visit the Govee Security Response Center: security.govee.com

About Govee

Govee has been revolutionizing the smart living experience with innovative, ambient lighting solutions since 2017. From living spaces, gaming setups, and outdoor areas, Govee’s smart home tech is not just visually stunning, but also functional – transforming small everyday moments into more personalized and brighter engaging lighting experiences. Embracing the idea that users should “Life is Colorful” and push the boundaries of what lighting can do by blending design, and utility. To learn more about Govee, please visit govee.com.

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SOURCE Govee

Technology

Rafay and Fortanix Help Neoclouds, Sovereign AI Clouds and Enterprises Deliver Confidential AI as a Service

Published

19 minutes ago

November 12, 2026

Joint solution lets operators run customers’ AI workloads in attested, hardware-isolated environments where sensitive data and models stay encrypted even while in use.

SUNNYVALE, Calif., Nov. 12, 2026 /PRNewswire/ — Rafay Systems and Fortanix® Inc. today announced a joint solution that lets neoclouds, sovereign AI clouds and enterprises deliver confidential AI as a Service. The Rafay Platform now orchestrates workloads that run on CNCF® Confidential Containers (CoCo) with Fortanix Confidential AI, extending the companies’ existing integration for confidential virtual machines.

With the joint solution, operators can offer AI workloads that run inside hardware-based Trusted Execution Environments (TEEs), where encryption keys are released only after Fortanix verifies the environment and AI workload through cryptographic attestation. End users launch those workloads from the Rafay Developer Hub without filing a support ticket.

In regulated industries such as financial services, healthcare and the public sector, many of the mission critical AI use cases involve sensitive data such as customer records, patient information and financial transactions, and model providers need to protect the proprietary models that process it. These workloads often run on GPU infrastructure operated by a 3rd party: a neocloud, a sovereign cloud or a shared internal AI factory. Encryption protects data at rest and in transit, but without confidential computing, data and model weights must be decrypted for processing, leaving them exposed in CPU and GPU memory to anyone with privileged access to the infrastructure. Research from Fortanix and Atomik Research found that while 93% of AI leaders understand traditional encryption does not protect data while AI is processing it, only half can fully verify that protection is in place during inference.

“Confidential computing enables model owners to deploy proprietary AI models on third-party infrastructure with reduced risk of exposing valuable intellectual property, while creating new revenue opportunities for cloud operators to offer premium, security-focused AI inference services.” said Mohan Atreya, chief product officer at Rafay. “Fortanix verifies the environment through cryptographic attestation and controls the secure key release. Rafay turns that into a governed, multi-tenant service, so a neocloud or sovereign cloud can offer confidential AI as a SKU, and its customers can run sensitive workloads on infrastructure they don’t operate. With Confidential Containers, that model now reaches the Kubernetes pod, where AI teams already ship their workloads.”

How the Joint Solution Works

CoCo, a CNCF Incubating project, applies confidential computing to the Kubernetes pod. Built on Kata Containers, CoCo runs each pod in its own lightweight confidential virtual machine, with memory encrypted by the CPU and, on supported hardware, GPUs included in the trust boundary. Developers deploy workloads with standard Kubernetes workflows.

Fortanix Confidential Computing Manager (CCM) performs composite attestation across the confidential computing environment, verifying the integrity of CPU and GPU trusted execution environments, firmware, and software components before authorizing the release of encryption keys. Fortanix Data Security Manager (DSM), backed by a FIPS 140-3 Level 3 HSM certification, releases encryption keys only to environments CCM has attested. If attestation fails, encryption keys remain protected, preventing the workload from accessing sensitive data or executing successfully.

The Rafay Platform turns that infrastructure into a service operators can deliver to their own customers:

Cluster automation: Rafay blueprints install the Fortanix CoCo add-ons and keep them in sync on every confidential cluster.Multi-tenancy: Operators onboard GPU infrastructure once, then give each customer an isolated tenant.Self-service SKUs: Administrators package a confidential workload as a SKU in Rafay SKU Studio, and end users launch it on demand from the Rafay Developer Hub.Governance: Policy, access controls and quotas apply across tenants and clusters.

“Every AI Factory faces a trust dilemma. Model owners want their weights hidden from operators and customers; enterprises want their data hidden from model owners and operators; and operators must prove they can see neither, even via another tenant or compromised software,” said Anuj Jaiswal, Chief Product Officer at Fortanix. “Fortanix and Rafay resolve that dilemma in one click. Rafay orchestrates the deployment of proprietary models and AI applications across on-premises, sovereign and cloud infrastructures. Fortanix Confidential AI releases keys only to attested workloads, so model owners, enterprises, and operators, each keep control of what they own, every time it runs.”

Use Cases

Neoclouds and GPU cloud providers can offer confidential AI as a premium service, backed by attestation evidence that tenant workloads run in TEEs and that keys go only to verified workloads. Sovereign AI clouds can keep keys in an HSM under the operator’s control, on-premises or as SaaS, and attest what is running before any data is decrypted. Regulated enterprises in financial services, healthcare and the public sector can run AI on customer, patient or financial data while keeping it protected from the infrastructure operator during processing. AI model providers can deliver proprietary models into customer environments with weights that stay encrypted until the environment is attested.

A recorded demo shows the end-to-end workflow, with a customer of a neocloud launching a confidential application via the Rafay end user portal with attestation and key release by Fortanix.

Availability

Rafay support for CoCo-based deployments with Fortanix Confidential AI is available now, alongside the existing confidential VM integration. Fortanix announced Fortanix Confidential AI for CoCo on Oct. 19, 2026.

About Rafay Systems

Rafay Systems is a leading software provider powering the operators building the AI cloud, including neoclouds, telecommunications providers, enterprises, and sovereign AI operators. The Rafay Platform lets these organizations operationalize GPU and compute infrastructure with self-service automation, governance, and multi-tenancy, spanning bare metal provisioning, infrastructure lifecycle management, virtual machines, Kubernetes, GPU PaaS, AI development environments, and Token Factory for publishing AI models as token-metered inference services. By simplifying orchestration and operations across this stack, Rafay helps operators increase GPU utilization and turn raw infrastructure into monetizable, production-ready AI services, all while maintaining security, consistency, and control. Rafay is a validated partner in the NVIDIA AI Cloud Ready initiative. For more information, visit rafay.co.

About Fortanix

Fortanix is the global leader in data and AI security and a pioneer of Confidential Computing, delivering a unified platform to protect sensitive data, AI models, and applications across on-premises and multi-cloud environments—at rest, in transit, and in use. Built on hardware-enforced security, Fortanix enables workloads to run in tamper-proof, isolated enclaves, protecting against data leakage, model extraction, and unauthorized access, even from privileged insiders.

As enterprises scale modern AI factories, Fortanix provides a Confidential AI foundation built on attestation-based trust, secure key release, and zero-trust enforcement. This ensures AI systems remain verifiable, auditable, and trustworthy—while enabling crypto agility and long-term resilience through post-quantum cryptography (PQC).

Trusted by leading enterprises and sovereign entities in highly regulated industries and powered by an industry-standard approach to Confidential Computing supported by leading technology providers, including Intel, Microsoft, and NVIDIA, Fortanix enables organizations to safely use sensitive data and drive AI adoption with confidence.

Media Contacts

Rafay Systems: Angela Shugarts, angela@rafay.co

Fortanix: BOCA Marketing for Fortanix, Fortanix@bocamarketing.com

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Technology

Allot Announces Third Quarter 2026 Financial Results

Published

19 minutes ago

November 12, 2026

Revenue growth of 16% and SECaaS ARR increases 41% year-over-year

HOD HASHARON, Israel, Nov. 12, 2026 /PRNewswire/ — Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the third quarter of 2026.

Financial Highlights for the Third Quarter of 2026

Strong revenue growth to $30.6 million, up 16% year-over-year;Security-as-a-Service (SECaaS) revenues of $9.9 million, increasing 37% year-over-year;September 2026 SECaaS ARR* of $38.8 million, up 41% year-over-year;GAAP operating income of $2.8 million, compared with $2.2 million in the third quarter of 2025;Non-GAAP operating income of $3.9 million compared with $3.7 million in the third quarter of 2025;Operating cash flow of $7.4 million, up 85% compared with $4.0 million in the third quarter of 2025.

Management Comment

Eyal Harari, CEO of Allot, commented, ” This quarter demonstrated continued excellent execution and showed the strength of our business model. Allot is now a sustainably profitable company, and we continue to expand our profitability as we grow our business. We delivered a strong third quarter, combining double-digit revenue growth with improved profitability and robust cash generation. Growth was driven by both SECaaS and SMART solutions, that are both now showing double-digit year-over-year revenue increases. The SMART product growth follows our high level of backlog which we are converting into revenue, following our recent significant wins.”

Mr. Harari added, “SECaaS ARR continues to grow strongly at 41% year-over-year, further building our recurring revenue base and our visibility into the quarters ahead. We continue to innovate to find new ways to protect consumers, as demonstrated with our recent launch of Allot IOT security. As threat actors use AI to target individuals and businesses at-scale, it is becoming more critical for service providers to provide a layer of protection for their end-customers, supporting demand for cyber-security solutions.”

Mr. Harari concluded, “Given the momentum, we are raising the midpoint of our guidance for 2026 and narrowing the range to between $116 million and $118 million. We also expect SECaaS revenue growth for 2026, to be above 40%.”

Third Quarter 2026 Financial Results Summary

Total revenues for the third quarter of 2026 were $30.6 million, a 16% increase year-over-year compared with $26.4 million in the third quarter of 2025.

Gross profit on a GAAP basis for the third quarter of 2026 was $21.9 million (gross margin of 71.6%), a 16% increase compared with $18.9 million (gross margin of 71.4%) in the third quarter of 2025.

Gross profit on a non-GAAP basis for the third quarter of 2026 was $22.0 million (gross margin of 71.9%), a 15% increase compared with $19.1 million (gross margin of 72.2%) in the third quarter of 2025.

Operating income on a GAAP basis for the third quarter of 2026 was $2.8 million (operating margin of 9.2%), a 31% increase compared with $2.2 million (operating margin of 8.1%) in the third quarter of 2025.

Operating income on a non-GAAP basis for the third quarter of 2026 was $3.9 million (operating margin of 12.9%), a 6% increase compared with $3.7 million (operating margin of 14.0%) in the third quarter of 2025.

Net income on a GAAP basis for the third quarter of 2026 was $3.4 million, or $0.07 per diluted share, compared with $2.8 million, or $0.07 per diluted share, in the third quarter of 2025.

Net income on a non-GAAP basis for the third quarter of 2026 was $4.7 million, or $0.09 per diluted share, compared with $4.6 million, or $0.10 per diluted share, in the third quarter of 2025.

Operating cash flow generated in the quarter was $7.4 million, compared with $4.0 million in the third quarter of 2025.

Cash and cash equivalents, bank deposits, restricted deposits and investments as of September 30, 2026, totaled $112 million, compared with $88 million as of December 31, 2025.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its third quarter 2026 earnings results today, November 12, 2026, at 8:30 am ET, 1:30 pm UK, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers’ customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1,000 enterprises. Allot’s industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.

For more information, visit www.allot.com

Performance Metrics

* SECaaS ARR – measures the current annual recurring SECaaS revenues, calculated as estimated SECaaS revenues for the month of September 2026, multiplied by 12.

GAAP to Non-GAAP Reconciliation:

The Company presents non–GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company’s ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP operating income is defined as GAAP operating income excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, loss from extinguishment, acquisition–related and other non–recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-related items.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are presented below. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our revenue guidance, revenue, growth, demand for our solutions, our ability to execute our strategy, our ability to convert backlog into revenue, our product innovation, capital allocation, share repurchase programs, maximizing shareholder value, and future opportunities, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivable, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third party channel partners for a material portion of our revenues; and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com

Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

December 31,

2026

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 29,650

$ 17,107

Restricted deposit

4,243

3,573

Short-term bank deposits

24,500

15,100

Available-for-sale marketable securities

52,355

48,663

Trade receivables, net (net of allowance for credit losses of $9,095 and
$9,611 on September 30, 2026, and December 31, 2025, respectively)

28,974

17,451

Other receivables and prepaid expenses

6,845

9,906

Inventories

17,011

13,180

Total current assets

163,578

124,980

NON-CURRENT ASSETS:

Severance pay fund

$ 324

$ 295

Restricted deposit

908

3,327

Operating lease right-of-use assets

6,143

5,518

Other assets

835

732

Property and equipment, net

4,978

6,014

Goodwill

31,833

Total non-current assets

45,021

47,719

Total assets

$ 208,599

$ 172,699

LIABILITIES AND

SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

$ 2,776

$ 938

Employees and payroll accruals

11,433

9,254

Deferred revenues

42,980

24,700

Short-term operating lease liabilities

1,622

348

Other payables and accrued expenses

14,806

11,919

Total current liabilities

73,617

47,159

LONG-TERM LIABILITIES:

Deferred revenues

$ 9,004

$ 5,912

Long-term operating lease liabilities

4,463

5,392

Accrued severance pay

672

886

Total long-term liabilities

14,139

12,190

SHAREHOLDERS’ EQUITY

120,843

113,350

Total liabilities and shareholders’ equity

$ 208,599

$ 172,699

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Revenues

$ 30,588

$ 26,405

$ 84,750

$ 73,606

Cost of revenues

8,690

7,539

24,342

21,362

Gross profit

21,898

18,866

60,408

52,244

Operating expenses:

Research and development
costs, net

6,351

5,489

19,624

18,741

Sales and marketing

8,580

8,148

24,445

22,747

General and administrative

4,153

3,079

10,898

9,722

Total operating expenses

19,084

16,716

54,967

51,210

Operating income

2,814

2,150

5,441

1,034

Loss from extinguishment

–

(1,410)

Other income

–

100

Financial income, net

1,091

869

3,851

1,902

Income before tax

3,905

3,019

9,292

1,626

Income tax expenses

486

195

1,358

823

Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Income per share

Basic

$ 0.07

$ 0.16

$ 0.02

Diluted

$ 0.07

$ 0.16

$ 0.02

Weighted average shares
outstanding

Basic

49,276,707

41,487,057

49,070,116

42,580,555

Diluted

49,806,002

43,253,509

49,845,813

44,909,810

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Adjustments to reconcile net income to net cash
used in operating activities:

Depreciation and amortization

588

835

1,933

3,254

Share-based compensation

1,123

1,559

3,860

3,989

Capital loss

113

–

113

255

Loss from extinguishment

–

1,410

Other income

–

(100)

Amortization of premium, discount and accrued
interest on marketable securities

162

(237)

(283)

(1,099)

Financial income from lease modification

–

(1,158)

–

Loss (gain) on foreign exchange on cash and
cash equivalents

(44)

(454)

Changes in operating assets and liabilities:

Increase (decrease) in accrued severance pay, net

(243)

117

Decrease (increase) in other assets, other
receivables and prepaid expenses

1,443

(3,817)

510

(2,198)

(Increase) decrease in operating leases liability

(834)

190

(253)

(13)

Increase in operating lease right-of-use asset

404

292

1,131

871

Increase in trade receivables

(3,804)

(679)

(11,523)

(4,332)

Decrease (increase) in inventories

486

(5,703)

(3,831)

(5,597)

Increase in trade payables

1,358

6,274

1,838

6,252

Increase (decrease) in employees and
payroll accruals

2,651

844

2,179

1,417

(Decrease) increase in deferred revenues

(1,963)

420

21,372

2,956

Increase in other payables and accrued expenses

2,125

1,211

2,737

2,126

Net cash provided by operating activities

7,375

3,997

26,415

9,657

Cash flows from investing activities:

(Increase) decrease in restricted deposit

(848)

–

1,749

353

Investment in short-term bank deposits

(13,000)

(16,800)

(44,400)

(32,550)

Withdrawal of short-term bank deposits

19,600

11,050

35,000

31,000

Purchase of property and equipment

(360)

(100)

(1,010)

(789)

Investment in marketable securities

(30,844)

(44,213)

(65,398)

(99,647)

Proceeds from redemption or sale of
marketable securities

35,660

38,694

61,910

88,377

Proceeds from sale of patent

–

100

Net cash provided by (used in)
investing activities

10,208

(11,369)

(12,149)

(13,156)

Cash flows from financing activities:

Issuance of share capital

–

4,617

–

42,308

Purchase of treasury stocks

(1,624)

Exercise of employee stock options

–

238

Redemption of convertible debt

–

(31,410)

Net cash (used in) provided by
financing activities

(1,624)

4,617

(1,624)

11,136

Effect of exchange rate changes on cash and
cash equivalents

(68)

(99)

454

Increase (decrease) in cash and
cash equivalents

15,891

(2,711)

12,543

8,090

Cash and cash equivalents at the beginning
of the period

13,759

26,943

17,107

16,142

Cash and cash equivalents at the end
of the period

$ 29,650

$ 24,232

$ 29,650

$ 24,232

Non-cash activities:

Right-of-use assets obtained in exchange for
operating lease liabilities

–

(12)

593

(83)

Redemption of convertible debt

–

(10,000)

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

(Unaudited)

GAAP cost of revenues

$ 8,690

$ 7,539

$ 24,342

$ 21,362

Share-based compensation

(80)

(211)

(320)

(465)

Amortization of intangible assets

–

(305)

Non-GAAP cost of revenues

$ 8,610

$ 7,328

$ 24,022

$ 20,592

GAAP gross profit

$ 21,898

$ 18,866

$ 60,408

$ 52,244

Share-based compensation

211

320

465

Amortization of intangible assets

–

305

Non-GAAP gross profit

$ 21,978

$ 19,077

$ 60,728

$ 53,014

GAAP operating expenses

$ 19,084

$ 16,716

$ 54,967

$ 51,210

Share-based compensation – Research and development costs, net

(203)

(400)

(731)

(1,022)

Share-based compensation – Sales and marketing

(427)

(466)

(1,590)

(1,237)

Share-based compensation – General and administrative

(413)

(482)

(1,219)

(1,265)

Non-GAAP operating expenses

$ 18,041

$ 15,368

$ 51,427

$ 47,686

GAAP operating Income

$ 2,814

$ 2,150

$ 5,441

$ 1,034

Share-based compensation

1,123

1,559

3,860

3,989

Amortization of intangible assets

$ –

$ 305

Non-GAAP operating Income

$ 3,937

$ 3,709

$ 9,301

$ 5,328

GAAP Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Share-based compensation

1,123

1,559

3,860

3,989

Amortization of intangible assets

–

305

Loss from extinguishment

–

1,410

Exchange rate differences*

(189)

116

(86)

159

Changes in tax related items

329

627

150

Non-GAAP Net income

$ 4,682

$ 4,579

$ 12,335

$ 6,816

Non-GAAP income per share

Basic

$ 0.10

$ 0.11

$ 0.25

$ 0.16

Diluted

$ 0.09

$ 0.10

$ 0.24

$ 0.15

Weighted average shares outstanding

Basic

49,276,707

41,487,057

49,070,116

42,580,555

Diluted

51,204,432

44,592,351

51,102,519

46,409,437

* Financial income or expenses related to exchange rate differences in connection
with revaluation of assets and liabilities in non-dollar denominated currencies.

Other financial metrics (Unaudited)

U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares

Q3-26

FY 2025

FY 2024

Revenues geographic breakdown

Americas

5.8

19 %

19.1

19 %

14.2