Technology
First Trades of Tokenized U.S. Equity under SEC Innovation Exemption Executed on the Canton Network
Published
1 week agoon
By
Shares of CNTN, Canton Strategic Holdings’ Common Stock, Traded Between Verified Counterparties including Five North, DRW Cumberland, and Flowdesk on Tradecraft’s TSV
Trades Mark the First Transactions in Issuer-Sponsored Tokenized NMS Stock, with Fairmint’s Onchain Transfer Agent, Under the SEC’s Innovation Exemption for Onshore U.S. Equities
NEW YORK, Nov. 4, 2026 /PRNewswire/ — Canton Strategic Holdings, Inc. (NASDAQ: CNTN) (“Canton Strategic Holdings” or the “Company”) today announced the first trades of its issuer-sponsored tokenized common stock on TSV LLC (“TSV”), the permissioned venue for tokenized NMS stocks on the Canton Network. Fairmint TA LLC (“Fairmint”), the Company’s SEC-registered transfer agent, recorded the shares in token form. The trades were executed on November 4 through a permissioned pool on Tradecraft, the automated market maker protocol that powers TSV, and settled atomically on the Canton Network, with Five North, the existing shareholder and seller; DRW Cumberland, the buyer; and Flowdesk Liquidity Solutions LLC (“Flowdesk”), the liquidity provider. These trades are the first of their kind under the SEC’s September 17 Innovation Exemption and follow the Company’s October 29 announcement of its agreement to make its shares of common stock available to trade on TSV.
“Last week we set out to be the first tokenized U.S. equity traded under the SEC’s new framework. Today, the first trades are done,” said Mark Wendland, Chairman and CEO of Canton Strategic Holdings. “Our shareholders on TSV keep the same rights they have on Nasdaq, and the Canton Network’s privacy protects them from the MEV frontrunning and information leakage common on other public chains. Moreover, DRW Cumberland, Flowdesk, and Five North participating demonstrates institutional market readiness. With the framework for regulated, compliant, onshore tokenized equities enabled by the SEC’s Innovation Exemption and the visionary work of TSV and Fairmint to build a venue on the Canton Network, issuers can maintain control of where and how their stock is tokenized.”
Five North, an existing shareholder of the Company, requested that its shares of CNTN common stock be registered in tokenized form. Fairmint, on behalf of the Company, recorded the issuer-sponsored tokenized shares directly with Five North’s verified Loop Wallet, moving its position from a broker-dealer account onto the Company’s onchain shareholder register. A pool operated by TSV was then established among liquidity providers, including Flowdesk and DRW Cumberland, where Flowdesk provided liquidity and DRW Cumberland executed the first purchases of tokenized CNTN common stock.
TSV offers shareholders of the Company’s tokenized shares the ability to participate in its automated market maker on the Tradecraft protocol, allowing for 24/7 trading availability, atomic settlement, and limiting access to verified holders. Only holders whose identity and wallets have been verified and approved to get a holder account by the transfer agent Fairmint can hold and trade the tokenized shares, with requirements for identity verification and sanctions screening.
“We set out to make our first listing the standard for how tokenized U.S. equities should work under the SEC’s Innovation Exemption,” said Ryan Trinkle, Co-Founder of TSV. “The token is issuer-sponsored and carries the same rights as the CNTN stock that trades on Nasdaq. Fairmint, an SEC-registered transfer agent, keeps the official record, and every holder is verified before they can hold or trade. On Tradecraft, approved investors can now trade at any hour, and shares and payment settle atomically on the Canton Network.”
The Company’s tokenized shares are issued on behalf of the Company as issuer-sponsored shares by Fairmint, the Company’s SEC-registered transfer agent and a subsidiary of Fairmint, Inc. Fairmint maintains the official onchain record of ownership on the Canton Network, operates the allow list of verified holders and wallets, and applies the Company’s transfer controls. Holders of these issuer-sponsored tokenized shares receive the same rights and privileges as those holding the Company’s stock via Nasdaq.
“This is a landmark for U.S. equity markets: a Nasdaq-listed company’s actual stock trading onchain, with shareholder rights intact and Fairmint maintaining the official ownership record,” said Joris Delanoue, CEO and co-founder of Fairmint. “A blockchain can settle a trade, but it takes an accountable transfer agent to say who legally owns the share. Since we founded Fairmint, we’ve been building toward a market where equity is programmable and ownership moves with it. Today, we’ve put our infrastructure to work on the Canton Network with Canton Strategic Holdings and TSV. This trade opens a path for public companies to bring their shares onchain while retaining control.”
“The SEC has opened a path for U.S. listed securities to trade onchain. Our job is to make sure that path has reliable liquidity from the very first trade. Being among the first covered firms under the Innovation Exemption is exactly what we’ve been building toward,” said Reed Werbitt, U.S. CEO and Global CRO of Flowdesk.
“Canton was built so institutions could move real assets on chain with confidence. Today a Nasdaq-listed company’s shares were tokenized, held in Loop Wallet, and settled on the network within the SEC’s new framework. We’re proud Five North helped make the first trade happen,” said Yiannis Varelas, Founder and CEO of Five North.
Canton Strategic Holdings is an investor and active participant in the Canton Network ecosystem, providing both capital and insights to further the integration of the network into modern financial systems. As a Super Validator on the Canton Network and a member of the Canton Foundation, the Company continues to support and help secure the network in line with its commitment to strengthening the ecosystem.
About Canton Strategic Holdings, Inc.
Canton Strategic Holdings, Inc. (NASDAQ: CNTN) is the first publicly traded company to leverage Canton Coin and support the Canton Network to advance institutional blockchain adoption and the digitization of financial markets. In addition to its operating business that drives value through activities on the Canton Network, the Company is a strategic investor in the Canton ecosystem. For more information, visit www.cantonstrategic.com.
About TSV LLC
TSV LLC, founded by Ali Abrar and Ryan Trinkle, is the first Tokenized Securities Venue to complete the SEC’s Innovation Exemption process set out in Release No. 34-106402. The venue and platform enable approved participants to provide liquidity and trade tokenized NMS stocks through automated market maker pools on the Tradecraft protocol on the Canton Network. The Tradecraft protocol is the leading automated market maker protocol on the Canton Network, developed by Obsidian Software LLC. The venue is designed to be available 24/7 subject to regulatorily required trading stoppages, maintenance, risk controls, and trading volume limits. Settlement is atomic on Canton: both sides of a trade transfer together, or neither does, in an instantaneous Delivery versus Payment transaction. Participants and their wallets must be approved before trading, including identity verification and sanctions screening, and smart contracts enforce these rules on every token transfer. Learn more at tokenizedstockvenue.com.
About Fairmint
Fairmint is building the onchain Equity Capital Markets platform to bring recordkeeping and liquidity onto the same rails. Its subsidiary Fairmint TA LLC (formerly Fair FP LLC) is an SEC-registered transfer agent (file no. 084-06901) offering issuers an onchain solution to preserve issuer control and maintain shareholder rights. Founded in 2019 by Joris Delanoue and Thibauld Favre, Fairmint developed the Open Cap Table Protocol, and is a governing member of the Open Cap Table Coalition, which stewards the industry’s open-source standard. For more information, visit fairmint.com.
About DRW Cumberland
Since its founding in 2014, DRW Cumberland has provided liquidity across global digital asset markets and helped build the systems and relationships institutions rely on to trade them. Across DRW, our teams bring Cumberland’s digital asset expertise together with more than three decades of the firm’s experience in traditional markets, trading, risk management, market structure and technology. Together, we bring the right capabilities to each opportunity and provide institutions with deep liquidity and sophisticated execution as traditional finance and digital assets converge. Learn more at drw.com.
About Five North
Five North operates and builds for the network it invests in. As a Super Validator on the Canton Network, Five North takes part in securing and governing the network, backs the teams building on it through Canton Ventures, and develops Loop, the wallet, data and developer tools that connect institutions to Canton. Learn more at fivenorth.io and looptech.io.
About Flowdesk
Flowdesk Group is a full-service digital asset trading and technology firm specializing in liquidity solutions and OTC trading. With offices globally, Flowdesk Group combines deep financial and crypto expertise with algorithmic and proprietary trading systems to connect digital assets to global liquidity. Flowdesk Group’s technology is engineered to bring clarity and precision to digital asset and tokenized asset markets. Learn more at flowdesk.co.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are statements other than historical facts and include, without limitation, those regarding management expectations, strategy execution, market conditions, and the Company’s involvement with the Canton Network. These statements are based on current expectations and involve risks and uncertainties that may cause actual results to differ materially. Further information regarding factors that may affect the Company’s prospects is included in its annual and quarterly reports filed with the U.S. Securities and Exchange Commission, available at www.sec.gov. The Company undertakes no obligation to update these statements except as required by law.
Securities Disclaimers:
The information provided in this press release is intended for informational purposes only and does not constitute investment advice, endorsement, analysis, or recommendations with respect to any securities, digital assets, financial instruments, investments, or issuers. Investment in cryptocurrency securities, including tokenized shares of common stock, and digital assets involves substantial risk, including the risk of complete loss. Trading in tokenized securities may also involve additional technological, operational, regulatory, liquidity, and other risks associated with blockchain-based infrastructure and trading platforms. Each individual is urged to consult their legal, tax, and financial advisors before making any investment decisions.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Canton is a registered trademark of Digital Asset (Switzerland) GmbH. Digital Asset is not affiliated with, and has not sponsored or endorsed, the operations of Canton Strategic Holdings, Inc.
Contacts
Media:
Gasthalter & Co.
(212) 257-4170
canton@gasthalter.com
Investors:
ir@cantonstrategic.com
X: @CantonStrategic
LinkedIn: Linkedin.com/CantonStrategicHoldings
Website: www.cantonstrategic.com
View original content:https://www.prnewswire.com/news-releases/first-trades-of-tokenized-us-equity-under-sec-innovation-exemption-executed-on-the-canton-network-302929795.html
SOURCE Canton Strategic Holdings, Inc.
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Govee Strengthens Its Commitment to User Security with Updated Security Response Center
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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.
View original content:https://www.prnewswire.com/news-releases/govee-strengthens-its-commitment-to-user-security-with-updated-security-response-center-302937742.html
SOURCE Govee
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Rafay and Fortanix Help Neoclouds, Sovereign AI Clouds and Enterprises Deliver Confidential AI as a Service
Published
18 minutes agoon
November 12, 2026By
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/rafay-and-fortanix-help-neoclouds-sovereign-ai-clouds-and-enterprises-deliver-confidential-ai-as-a-service-302937100.html
SOURCE Rafay Systems
Technology
Allot Announces Third Quarter 2026 Financial Results
Published
18 minutes agoon
November 12, 2026By
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
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,
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
$ 0.07
$ 0.16
$ 0.02
Diluted
$ 0.07
$ 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,
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
68
(44)
99
(454)
Changes in operating assets and liabilities:
Increase (decrease) in accrued severance pay, net
36
28
(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)
(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)
44
(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,
September 30,
2026
2025
2026
2025
(Unaudited)
(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
80
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
80
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
15 %
EMEA
14.8
48 %
63.7
62 %
54.0
59 %
Asia Pacific
10.0
33 %
19.2
19 %
24.0
26 %
30.6
100 %
102.0
100 %
92.2
100 %
Revenues breakdown by type
SECaaS (Security as a Service)
9.9
33 %
26.8
26 %
16.5
18 %
Products & Professional Services
11.1
36 %
39.3
38 %
38.4
42 %
Support & Maintenance
9.6
31 %
35.9
36 %
37.3
40 %
30.6
100 %
102.0
100 %
92.2
100 %
Top 10 customers as a % of revenues
57 %
41 %
43 %
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
Q3-2026
9.9
Q2-2026
9.4
Q1-2026
8.7
Q4-2025:
8.1
Q3-2025:
7.3
SECaaS ARR* – U.S. dollars in millions (Unaudited)
Sep. 2026
38.8
Dec. 2025:
30.8
Dec. 2024:
18.2
Dec. 2023:
12.7
View original content to download multimedia:https://www.prnewswire.com/news-releases/allot-announces-third-quarter-2026-financial-results-302937688.html
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