Malaysia champions CHASE City for sustainable ASEAN urban growth
Minister in the Prime Minister's Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa emphasised its focus on Clean, Healthy, Advanced, Safe, and Eco-friendly cities.
She described the framework as adaptable to diverse ASEAN urban realities while promoting integrated planning.
'This is not a collection of separate agendas, but an integrated philosophy that guides urban policy, design and governance, in a holistic way,' she said.
Dr Zaliha spoke at the ASEAN Sustainable Urbanisation Forum held at the Kuala Lumpur Convention Centre.
She highlighted the framework's alignment with ASEAN's urban priorities, fostering collaboration among governments, businesses, and communities.
The Kota MADANI project in Putrajaya was cited as a successful application of CHASE principles.
It integrates low-carbon solutions, AI-driven technologies, and green mobility for sustainable urban living.
Malaysia's membership in the Davos Baukultur Alliance was also underscored as a milestone.
The country is the first non-European member of this global coalition promoting cultural urban development.
'Cities are more than functional spaces. They are cultural and social ecosystems,' Dr Zaliha noted.
She pointed to heritage conservation efforts like Warisan KL, which revitalises landmarks such as Bangunan Sultan Abdul Samad.
These initiatives blend adaptive reuse with sustainable design to boost civic pride and tourism.
The forum serves as a platform for ASEAN leaders to exchange sustainable urbanisation strategies. - Bernama
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Auxly Reports Second Quarter 2025 Results
TORONTO, Aug. 14, 2025 /PRNewswire/ – Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) ('Auxly' or the 'Company') a leading consumer packaged goods company in the cannabis products market, today released its financial results for the three and six months ended June 30, 2025. These filings and additional information regarding Auxly are available for review on SEDAR+ at Financial highlights for the second quarter: Net revenues of $38.8 million, an increase of 33% year-over-year Gross Margin on Finished Cannabis Inventory Sold of 52%, compared to 41% in Q2 2024 SG&A of $10.3 million, an increase of 11% year-over-year Adjusted EBITDA of $11.6 million or 30% of net revenue, an increase of 123% year-over-year Net income of $8.3 million, an increase of 315% year-over-year Cash flow from operations of $4 million Cash at quarter end totalled $17 million. Balance sheet enhancement initiatives after the second quarter: Amended senior debt, extended maturity, and added $10 million in new credit Imperial Brands converted remaining debt into equity, reinforcing long-term support Pro forma Total Debt to TTM Adjusted EBITDA of 1.4x Pro forma net working capital at June 30, 2025 of $35 million. See definitions and reconciliation of non-GAAP measures elsewhere in this release. Commercial highlights for the second quarter: #3 largest Canadian Licensed Producer with market share of 6.2% at quarter end1 Back Forty exited the quarter as the #1 cannabis brand in Canada Liquid Imagination and Fire Breath 28g were the top two best-selling SKUs nationwide Leader in the all-in-one vape category, holding 12 of the top 15 SKUs nationally Maintained the #1 non-infused pre-roll brand in Ontario. Management Commentary Hugo Alves, CEO of Auxly, commented: 'Amidst a record quarter for net revenue, gross profit, and Adjusted EBITDA, we believe we are still Just Getting Started. Net revenue increased 33% year-over-year through increased demand for our products, deeper distribution across the country, increasing production volumes, and higher pricing. Customers and consumers love and trust our brands which bodes well for maintaining and increasing market share. Gross margin improved to 52% as we gained production efficiencies, and a stable cost base has translated to a 30% Adjusted EBITDA margin. Subsequent to quarter-end, we were delighted to announce a recapitalization that decreased our debt burden and materially reduced interest expense going forward. Looking forward, we are remaining focused on what works. We are going to provide innovative products to Canadian cannabis consumers, and we plan to capitalize on our scale and market leadership to deliver sustainable financial performance.' ____________________________ 1 HiFyre IQ (July 2025) Financial Highlights and Key Performance Indicators For the three months ended: June 30, June 30, (000's) 2025 2024 Change % Change Net revenues $ 38,802 $ 29,178 $ 9,624 33 % Gross margin on finished cannabis inventory sold* 20,268 12,049 8,219 68 % Gross margin on finished cannabis inventory sold (%)* 52 % 41 % 11 % 27 % Net income/(loss) 8,310 2,002 6,308 315 % Adjusted EBITDA* 11,545 5,173 6,372 123 % Weighted average shares outstanding 1,315,584,918 1,250,513,293 65,071,625 5 % For the six months ended: June 30, June 30, (000's) 2025 2024 Change % Change Net revenues $ 71,471 $ 54,419 $ 17,052 31 % Gross margin on finished cannabis inventory sold* 36,099 21,618 14,481 67 % Gross margin on finished cannabis inventory sold (%)* 51 % 40 % 11 % 28 % Net income/(loss) 20,421 (24,010) 44,431 185 % Adjusted EBITDA* 18,978 7,413 11,565 156 % Weighted average shares outstanding 1,312,952,853 1,133,676,385 179,276,468 16 % As at: June 30, December 31, (000's) 2025 2024 Change % Change Cash and equivalents $ 17,026 $ 18,356 $ (1,330) -7 % Total assets 258,486 261,530 (3,044) -1 % Debt* 48,989 55,683 (5,694) -10 % *Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions. Results of Operations For the periods ended: Three months June 30, Six months June 30, (000's) 2025 2024 2025 2024 Revenues Revenue from sales of cannabis products $ 59,124 $ 43,433 $ 108,336 $ 81,790 Excise taxes (20,322) (14,255) (36,865) (27,371) Total net revenues 38,802 29,178 71,471 54,419 Costs of sales Costs of finished cannabis inventory sold 18,534 17,129 35,372 32,801 Inventory impairment 147 473 270 929 Gross profit/(loss) excluding fair value items 20,121 11,576 35,829 20,689 Unrealized fair value gain/(loss) on biological transformation 15,842 8,817 28,154 11,590 Realized fair value gain/(loss) on inventory (13,274) (4,464) (22,611) (6,899) Gross profit 22,689 15,929 41,372 25,380 Expenses Selling, general, and administrative expenses 10,315 9,311 19,987 17,932 Equity-based compensation 1,092 701 2,597 2,628 Depreciation and amortization 1,276 1,067 2,572 2,297 Interest and accretion expenses 1,866 2,749 4,013 9,617 Total expenses 14,549 13,828 29,169 32,474 Other income/(loss) Interest and other income 32 140 79 159 Gain/(loss) on settlement of assets and liabilities and other expenses (243) 391 (204) (243) Gain/(loss) on disposal of assets held for sale – (453) – (453) Foreign exchange gain/(loss) 381 (177) 218 (387) Total other income/(loss) 170 (99) 93 (924) Net income/(loss) before income tax 8,310 2,002 12,296 (8,018) Income tax recovery/(expense) – – 8,125 (15,992) Net income/(loss) $ 8,310 $ 2,002 $ 20,421 $ (24,010) Adjusted EBITDA $ 11,545 $ 5,173 $ 18,978 $ 7,413 Net income/(loss) per common share – basic ($) $ 0.01 $ 0.00 $ 0.02 $ (0.02) Net income/(loss) per common share – diluted ($) $ 0.01 $ 0.00 $ 0.01 $ (0.02) Weighted average shares outstanding – basic 1,315,584,918 1,250,513,293 1,312,952,853 1,133,676,385 Weighted average shares outstanding – diluted 1,473,690,262 1,304,108,532 1,459,289,465 1,133,676,385 Net Revenues For the three and six months ended June 30, 2025, net revenues were $38.8 million and $71.5 million as compared to $29.2 million and $54.4 million during the same periods in 2024, representing increases of 33% and 31% respectively. The year-over-year growth in net revenue was primarily driven by higher incremental volumes and improved pricing across the portfolio. The increase was particularly supported by strong performance in the Company's flower portfolio, which benefited from increased demand and improved distribution. Revenues for the three and six months ended June 30, 2025 were comprised of approximately 65% (2024 – 63%) and 64% (2024 – 61%) in sales of dried flower and pre-roll Cannabis Products, with the remainder from oils and Cannabis 2.0 Product sales. For the three and six months ended June 30, 2025, approximately 75% (2024 – 78%) and 75% (2024 – 77%) of cannabis sales originated from sales to British Columbia, Alberta and Ontario. Since 2024, the Company had sales in all Canadian provinces and the Yukon and Northwest Territories. Gross Profit Auxly realized a gross profit of $22.7 million and $41.4 million for the three and six months ended June 30, 2025, resulting in a 58% Gross Profit Margin for both periods, as compared to $15.9 million (55%) and $25.4 million (47%) during the same periods in 2024. The Gross Margin on Finished Cannabis Inventory Sold for the three months ended June 30, 2025 improved to 52% from 41% in 2024. The Gross Margin on Finished Cannabis Inventory Sold for the six months ended June 30, 2025 improved to 51% from 40% in 2024. The higher Gross Margin on Finished Cannabis Inventory Sold resulted from the improvements made in our manufacturing process to reduce operating costs as well as benefiting from increased demand and pricing of adult-use recreational market and bulk flower products. Higher cultivation yields lowered costs, and efficiency improvements at our Auxly Charlottetown facility further reduced costs. Realized and unrealized fair value gains and losses reflect accounting treatments associated with Auxly Leamington cultivation activities and sales and are influenced by changes in production, sales and net realizable value assumptions. Inventory impairments during the second quarter of 2025 of $0.1 million were associated with charges related to reductions in net realizable value of dried cannabis under the Company's product specifications, a decrease of $0.3 million from the comparative period. Total Expenses Selling, general and administrative expenses ('SG&A') are comprised of wages and benefits, office and administrative, professional fees, business development, and selling expenses. SG&A expenses were $10.3 million in the second quarter of 2025, $1.0 million or 11% higher than the same period in 2024. Year-to-date expenditures of $20.0 million in 2025 were $2.1 million higher than the same period in 2024. The increase in SG&A was primarily driven by investments to support higher sales. Wages and benefits were $4.5 million for the quarter, as compared to $4.8 million during the same period in 2024. Year-to-date wages and benefits of $9.2 million were $0.1 million higher than that of the same period in 2024. Year-to-date wages and benefits increased compared to 2024 due to an increase in bonus accruals which was partially offset by cost savings from the streamlining of operations and support staff as a result of a more focused product portfolio. Wages and benefits in the seconder quarter of 2024 included non-recurring restructuring related cost of $0.7 million. Office and administrative expenses were $1.2 million for the quarter, flat compared to the same period in 2024. Year-to-date expenditures of $2.7 million were $0.1 million higher than the same period in 2024. The Company continues to actively control overhead spend in the organization while growing sales. Auxly's professional fees were $0.5 million during the second quarter of 2025, flat compared to the same period in 2024. Year-to-date expenditures of $0.9 million were $0.1 million lower than that of the same period in 2024. Professional fees incurred primarily related to accounting fees, regulatory matters, reporting issuer fees, and legal fees associated with certain corporate activities and as a result can fluctuate significantly from one period to the next. Business development expenses were $0.1 million for the six months ended June 30, 2025 as compared to $0.2 million for the same period in 2024. These expenses primarily relate to business development and travel related expenses. Selling expenses were $4.0 million and $7.1 million for the three and six months ended June 30, 2025, an increase of $1.3 million and $2.0 million from the same periods in 2024. The increase in expenditures was primarily as a result of investments in marketing initiatives and higher Health Canada fees related to higher revenues. Equity-based compensation for the three and six months ended June 30, 2025 was $1.1 million and $2.6 million, respectively, primarily driven by the Cash Settled RSUs granted in 2023 and RSUs issued in 2025 and 2024. During the same periods in 2024, equity-based compensation was $0.7 million and $2.6 million, respectively. Depreciation and amortization expenses were $1.3 million for the three months ended June 30, 2025 and $2.6 million year-to-date, representing an increase of $0.2 million and $0.3 million over the same periods in 2024 as a result of capital investments made during 2024. Interest expenses were $1.9 million and $4.0 million for the three and six months ended June 30, 2025, a decrease of $0.9 million and $5.6 million over the same periods in 2024. The decrease in expenses were primarily a result of the conversion of Imperial Debentures into Shares and lower interest expense on adjustable-rate debt. Interest expense includes accretion on the convertible debentures and interest paid in kind on the Imperial Debenture. Interest payable in cash was approximately $1.5 million for the second quarter of 2025, $0.7 million lower than the same period in 2024 as a result of lower principal amounts outstanding on debt instruments. Total Other Income and Losses Total other income and losses was a net gain of $0.2 million for the three months ended June 30, 2025, compared to a net loss of $0.1 million in the same period in 2024. The other income and losses in the second quarter of 2025 were primarily driven by foreign exchange gains, partially offset by non-recurring expenses related to the Bank of Montreal Amended Credit Facility. The other income and losses in second quarter of 2024 were primarily driven by the loss on the sale of the Auxly Inc. facility and foreign exchanges losses, partially offset by the gains on the extensions of the unsecured promissory notes and interest and other income. Total other income and losses for the six months ended June 30, 2025 was a net gain of $0.1 million compared to a net loss of $0.9 million in the comparative period. The year-to-date net loss for 2024 included the loss on the adjustment to the provision related to the claim filed by Kindred Partners Inc. Net Income and Loss Net income for the three months ended June 30, 2025 was $8.3 million, representing a net income of $0.01 per share on a basic and diluted basis. The change in net income in 2025 as compared to a net income of 2.0 million in the same period in 2024 was primarily driven by improved gross profits and reduction in interest and accretion expenses. The net income of $20.4 million for the six months ended June 30, 2025 includes $8.1 million of deferred tax recovery related to the change in estimated useful life of intangible assets. The net loss of $24.0 million for the six months ended June 30, 2024 included $16.0 million of deferred tax expense on the conversion of Imperial Debenture into Shares. Excluding the deferred tax recovery related to the change in estimated useful life of intangible assets in 2025 and the deferred tax expense on the conversion of Imperial Debenture into Shares in 2024, year-to-date net income increased by $20.3 million primarily due to improved gross profits and reduction in interest and accretion expenses. Adjusted EBITDA Adjusted EBITDA was $11.5 million and $19.0 million for the three and six months ended June 30, 2025, an improvement of $6.4 million and $11.6 million over the same periods in 2024, primarily as a result of improved gross profits, partially offset by higher selling expenses to support higher sales. Outlook Auxly remains focused on delivering sustainable, profitable growth by building on its leadership in the Canadian cannabis market. The Company continues to advance its strategy through focused innovation, operational excellence, and prudent financial management. With a strengthened balance sheet, the Company is well-positioned to drive long-term shareholder value. We expect the Canadian recreational cannabis market will continue to provide tailwinds in the near-term from increasing social acceptability, capture of market share from the illicit market, the reduction of supply from shuttered capacity and the divergence of existing supply to international markets. Due to these market factors, increasing demand for our trusted brands, focused product innovations, efficiencies across our operations and favourable product mix, we expect continued growth in net revenue in the second half of 2025. Considering the improvements we have made towards operational efficiencies, increasing net revenue should continue to translate into higher gross profit, and Adjusted EBITDA should benefit from operating leverage given a consistent overhead cost structure. We expect to allocate $1.5 million to $2.5 million of cash flow from operations towards capital projects at Auxly Leamington and Auxly Charlottetown in 2025, part of which has already been invested. Excess cash flow after these expenditures will be allocated towards strengthening our balance sheet and/or pursuing accretive strategic initiatives. We continue to see long-term potential in international markets, and we are actively evaluating export opportunities. The Company is well-positioned to succeed internationally, supported by our strong brands, scalable production, and strategic partnership with Imperial Brands. Over the long-term, Auxly remains confident in its ability to deepen its leadership position in Canada's largest cannabis categories: dried flower, vapes, and pre-rolls. With its consumer-trusted brands, best-in-class operating assets, national distribution, and data-driven approach to innovation, Auxly is well-positioned to meet evolving consumer preferences and deliver strong financial performance. Non- GAAP Measures Please see the Company's MD&A dated August 13, 2025, under 'Non-GAAP Measures' for a further description of the following financial and supplementary financial measures. Financial Measures EBITDA and Adjusted EBITDA These are non-GAAP measures used in the cannabis industry and by the Company to assess operating performance removing the impacts and volatility of non-cash and other adjustments. The definition may differ by issuer. The Adjusted EBITDA reconciliation is as follows: (000's) Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Net income/(loss) $ 32,621 $ (54,020) $(26,012) $ 2,002 $ 3,239 $ 4,423 $12,111 $ 8,310 Interest and accretion expense 6,613 6,837 6,868 2,749 3,133 2,291 2,147 1,866 Interest and other income (16) (22) (19) (140) (54) (27) (47) (32) Income tax expense/(recovery) – (3,238) 15,992 – – – (8,125) – Depreciation and amortization included in cost of sales 1,151 1,084 1,292 1,780 1,382 1,338 1,274 1,785 Depreciation and amortization included in expenses 1,817 1,708 1,230 1,067 1,197 990 1,296 1,276 EBITDA 42,186 (47,651) (649) 7,458 8,897 9,015 8,656 13,205 Impairment of inventory 3,233 5,109 456 473 674 729 123 147 Unrealized fair value loss/(gain) on biological transformation (4,766) (2,481) (2,773) (8,817) (9,964) (11,073) (12,312) (15,842) Realized fair value loss/(gain) on inventory 5,538 5,428 2,435 4,464 7,703 11,625 9,337 13,274 Restructuring and acquisition costs 29 131 – 655 (75) 271 – – Equity-based compensation 707 148 1,927 701 1,324 1,103 1,505 1,092 Impairment of assets – 37,118 – – – – – – Non-recurring expense/(recovery) 360 – – – (123) – – (193) (Gain)/loss on settlement of assets, liabilities and disposals (46,887) 4,006 634 62 (183) (1,461) (39) 243 Foreign exchange loss/(gain) (283) 486 210 177 33 797 163 (381) Adjusted EBITDA $ 117 $ 2,294 $ 2,240 $ 5,173 $ 8,286 $ 11,006 $ 7,433 $11,545 Supplementary Financial Measures Gross Margin on Finished Cannabis Inventory Sold 'Gross Margin on Finished Cannabis Inventory Sold' is a supplementary financial measure and is defined as net revenues less cost of finished cannabis inventory sold divided by net revenues. Gross Profit Margin 'Gross Profit Margin' is defined as gross profit divided by net revenues. Gross Profit Margin is a supplementary financial measure. Debt 'Debt' is defined as current and long-term debt and is a supplementary financial measure. It is a useful measure in managing the Company's capital structure and financing requirements. ON BEHALF OF THE BOARD 'Hugo Alves' CEO About Auxly Cannabis Group Inc. (TSX: XLY) Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in Toronto, Canada. Our mission is to help consumers live happier lives through quality cannabis products that they trust and love. Our vision is to be a leader in branded cannabis products that deliver on our consumer promise of quality, safety and efficacy. Learn more at and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/. Notice Regarding Forward Looking Information: This news release contains certain 'forward‐looking information' within the meaning of applicable Canadian securities law. Forward‐looking information is frequently characterized by words such as 'plan', 'continue', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'may', 'will', 'potential', 'proposed' and other similar words, or information that certain events or conditions 'may' or 'will' occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward‐looking information throughout this news release. Forward‐looking information includes, but is not limited to: the proposed operation of Auxly, its subsidiaries and partners; the intention to grow the business, operations and existing and potential activities of Auxly; proposed timelines for the build‐out, expansion, licencing or commercialization of the Company's facilities and projects; the Company's execution of its innovative product development, commercialization strategy and expansion plans; the Company's intention to introduce innovative new cannabis products to the market and the timing thereof; the anticipated benefits of the Company's partnerships, research and development initiatives and other commercial arrangements; the expectation, timing and quantum of future revenues, Gross Margin on Finished Cannabis Inventory Sold, SG&A and of positive Adjusted EBITDA; expectations regarding the Company's expansion of sales, operations and investment into foreign jurisdictions; future legislative and regulatory developments involving cannabis and cannabis products; the timing and outcomes of regulatory or intellectual property decisions; the ability of the Company to maintain and grow its market share; the relevance of Auxly's subsidiaries' current and proposed products with provincial purchasers and consumers; consumer preferences; political change; competition and other risks affecting the Company in particular and the cannabis industry generally. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward‐looking information in this release including, but not limited to, whether: the Company will be able to execute on its business strategy or achieve its goals; Auxly's subsidiaries are able to maintain the necessary governmental and regulatory authorizations to conduct business; the Company is able to successfully manage the integration of its various business units with its own; the Company's subsidiaries obtain and maintain all necessary governmental and regulatory permits and approvals for the operation of their facilities and the development of cannabis products, and whether such permits and approvals can be obtained in a timely manner; the Company will be able to successfully launch new product formats and enter into new markets; there is acceptance and demand for current and future Company products by consumers and provincial purchasers; the Company will be able to increase and maintain revenues, maintain positive Adjusted EBITDA, and/or achieve and maintain its target Gross Margin on Finished Cannabis Inventory Sold; risks relating to the overall macroeconomic environment, which may impact customer spending, the Company's costs and margins, including tariffs (and related retaliatory measures), the levels of inflation, and interest rates; and general economic, financial market, legislative, regulatory, competitive and political conditions in which the Company and its subsidiaries and partners operate will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2024 dated March 20, 2025. New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward‐looking information. The forward‐looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward‐looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward‐looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The forward‐looking information is being provided for the purposes of assisting the reader in understanding the Company's financial performance, financial position and cash flows as at and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that such forward‐ looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward‐looking information contained in this release. The forward‐looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward‐ looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Neither Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Malaysian Reserve
3 hours ago
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Allot Announces Second Quarter 2025 Financial Results
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Financial Highlights for the Second Quarter of 2025 Revenues of $24.1 million, up 9% year-over-year with SECaaS representing 27% of overall revenue; June 2025 SECaaS ARR* of $25.2 million, up 73% year-over-year; GAAP operating loss of $0.4 million versus $3.4 million operating loss last year; Non-GAAP operating profit of $1.2 million versus an operating loss of $1.0 million in Q2 2024; Strong positive operating cash flow of $4.4 million, compared to $1.2 million in Q2 2024; Management Comment Eyal Harari, CEO of Allot, commented, 'We are very pleased with our strong Q2 financial results, which benefitted from exceptional SECaaS performance. SECaaS ARR was up 73% year-over-year, and SECaaS revenue exceeded 25% of our overall revenue. This strong SECaaS performance drove our overall company revenue growth to 9% year-over-year and supported our improvement in profitability.' Continued Mr. Harari, 'Our recent agreements illustrate the growing traction of our cyber-security offering. Verizon Business's new mobile offering, which includes our SECaaS service, is gaining significant traction among end-customers and is already contributing meaningfully to our strong SECaaS revenue growth. 'As we announced in July, we won a landmark deal valued in the tens of millions of dollars with a tier-1 EMEA telecom operator. The multi-year agreement is one of Allot's largest ever customer wins to-date and is particularly strategic as it demonstrates the value of our unique technological advantages and core expertise for major telco players in two key areas: cyber security and network intelligence.' Concluded Mr. Harari, 'In light of our accelerated SECaaS growth, improved visibility, and high level of backlog, we are introducing full year 2025 revenue guidance of $98-102 million, positioning us for a year of profitable growth. Furthermore, we are increasing our 2025 SECaaS ARR year-over-year growth expectations to a range of 55-60%.' Second Quarter 2025 Financial Results Summary Total revenues for the second quarter of 2025 were $24.1 million, a 9% increase year-over-year compared with $22.2 million in the second quarter of 2024. Gross profit on a GAAP basis for the second quarter of 2025 was $17.3 million (gross margin of 72.1%), a 14% increase compared with $15.2 million (gross margin of 68.5%) in the second quarter of 2024. Gross profit on a non-GAAP basis for the second quarter of 2025 was $17.6 million (gross margin of 73.4%), a 13% increase compared with $15.7 million (gross margin of 70.6%) in the second quarter of 2024. Operating loss on a GAAP basis for the second quarter of 2025 was $0.4 million, compared with an operating loss of $3.4 million in the second quarter of 2024. Operating income on a non-GAAP basis for the second quarter of 2025 was $1.2 million, compared with an operating loss of $1.0 million in the second quarter of 2024. Net loss on a GAAP basis for the second quarter of 2025 was $1.7 million, or $0.04 per share, an improvement compared to the net loss of $3.4 million, or $0.09 per share, in the second quarter of 2024. Net income on a non-GAAP basis for the second quarter of 2025 was $1.5 million, or $0.03 profit per diluted share, compared to the non-GAAP net loss of $0.8 million, or $0.02 loss per basic share, in the second quarter of 2024. Operating cash flow generated in the quarter was $4.4 million. Net cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2025, totaled $72 million, an increase of $13 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of June 30, 2025, the company has no debt. During the quarter, Allot closed a public offering of $46 million, out of which $40 million in gross proceeds were received during the second quarter and an additional $6 million in gross proceeds were received following the close of the quarter. The Company used the net proceeds to repay $31.4 million in convertible debt and the balance for general corporate purposes. Conference Call & Webcast: The Allot management team will host a conference call to discuss its second quarter 2025 earnings results today, August 14, 2025 at 9:00 am ET, 4:00 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: About Allot Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure. For more information, visit Performance Metrics * SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of June 2025 and multiplied by 12. GAAP to Non-GAAP Reconciliation: The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-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 is provided in the accompanying Table 2. 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, which 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 receivables, 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 fourth 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 filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These 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: Public Relations Contact: EK Global Investor Relations Seth Greenberg, Allot Ltd Ehud Helft +972 54 922 2294 +1 212 378 8040 sgreenberg@ allot@ TABLE – 1 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Revenues $ 24,051 $ 22,164 $ 47,201 $ 44,054 Cost of revenues 6,721 6,989 13,823 13,781 Gross profit 17,330 15,175 33,378 30,273 Operating expenses: Research and development costs, net 7,261 7,326 13,252 14,475 Sales and marketing 7,261 7,911 14,599 15,701 General and administrative 3,215 3,304 6,643 6,206 Total operating expenses 17,737 18,541 34,494 36,382 Operating loss (407) (3,366) (1,116) (6,109) Loss from extinguishment (1,410) – (1,410) – Other income 100 – 100 – Financial income, net 359 489 1,033 1,029 Loss before income tax expenses (1,358) (2,877) (1,393) (5,080) Income tax expenses 332 479 628 786 Net loss $ (1,690) $ (3,356) $ (2,021) $ (5,866) Basic net loss per share $ (0.04) $ (0.09) $ (0.05) $ (0.16) Diluted net loss per share $ (0.04) $ (0.09) $ (0.05) $ (0.16) Weighted average number of shares used in computing basic net loss per share 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 Weighted average number of shares used in computing diluted net loss per share 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 TABLE – 2 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 Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) GAAP cost of revenues $ 6,721 $ 6,989 $ 13,823 $ 13,781 Share-based compensation (1) (160) (324) (254) (478) Amortization of intangible assets (2) (152) (152) (305) (304) Non-GAAP cost of revenues $ 6,409 $ 6,513 $ 13,264 $ 12,999 GAAP gross profit $ 17,330 $ 15,175 $ 33,378 $ 30,273 Gross profit adjustments 312 476 559 782 Non-GAAP gross profit $ 17,642 $ 15,651 $ 33,937 $ 31,055 GAAP operating expenses $ 17,737 $ 18,541 $ 34,494 $ 36,382 Share-based compensation (1) (1,289) (1,863) (2,176) (3,069) Non-GAAP operating expenses $ 16,448 $ 16,678 $ 32,318 $ 33,313 GAAP Loss from extinguishment $ (1,410) $ – $ (1,410) $ – Loss from extinguishment 1,410 – 1,410 – Non-GAAP Loss from extinguishment $ – $ – $ – $ – GAAP financial and other income $ 359 $ 489 $ 1,033 $ 1,029 Exchange rate differences* 104 110 43 204 Non-GAAP Financial and other income $ 463 $ 599 $ 1,076 $ 1,233 GAAP taxes on income $ 332 $ 479 $ 628 $ 786 Changes in tax related items (25) (133) (70) (177) Non-GAAP taxes on income $ 307 $ 346 $ 558 $ 609 GAAP Net profit (Loss) $ (1,690) $ (3,356) $ (2,021) $ (5,866) Share-based compensation (1) 1,449 2,187 2,430 3,547 Amortization of intangible assets (2) 152 152 305 304 Loss from extinguishment 1,410 – 1,410 – Exchange rate differences* 104 110 43 204 Changes in tax related items 25 133 70 177 Non-GAAP Net income (loss) $ 1,450 $ (774) $ 2,237 $ (1,634) GAAP Loss per share (diluted) $ (0.04) $ (0.09) $ (0.05) $ (0.16) Share-based compensation 0.03 0.06 0.06 0.10 Amortization of intangible assets 0.01 0.01 0.01 0.01 Loss from extinguishment 0.03 – 0.03 – Non-GAAP Net income (Loss) per share (diluted) $ 0.03 $ (0.02) $ 0.05 $ (0.05) – Weighted average number of shares used in computing GAAP diluted net income (loss) per share 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 Weighted average number of shares used in computing non-GAAP diluted net income (loss) per share 4,37,94,580 3,87,12,407 4,37,50,663 3,85,62,065 * Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. TABLE – 2 cont. 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 Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) (1) Share-based compensation: Cost of revenues $ 160 $ 324 $ 254 $ 478 Research and development costs, net 380 787 622 1,285 Sales and marketing 466 792 771 1,235 General and administrative 443 284 783 549 $ 1,449 $ 2,187 $ 2,430 $ 3,547 (2) Amortization of intangible assets Cost of revenues $ 152 $ 152 $ 305 $ 304 Sales and marketing $ 152 $ 152 $ 305 $ 304 TABLE – 3 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) June 30, December 31, 2025 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 26,943 $ 16,142 Restricted deposit 501 904 Short-term bank deposits 11,050 15,250 Available-for-sale marketable securities 11,518 26,470 Trade receivables, net (net of allowance for credit losses of $22,392 and $25,306 on June 30, 2025 and December 31, 2024 , respectively) 20,135 16,482 Other receivables and prepaid expenses 8,641 6,317 Inventories 8,505 8,611 Total current assets 87,293 90,176 NON-CURRENT ASSETS: Severance pay fund $ 243 $ 464 Restricted deposit 329 279 Available-for-sale marketable securities 21,672 – Operating lease right-of-use assets 6,091 6,741 Other assets 552 2,151 Property and equipment, net 6,039 7,692 Intangible assets, net – 305 Goodwill 31,833 31,833 Total non-current assets 66,759 49,465 Total assets $ 1,54,052 $ 1,39,641 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 924 $ 946 Employees and payroll accruals 8,780 8,208 Deferred revenues 20,647 17,054 Short-term operating lease liabilities 484 562 Other payables and accrued expenses 10,996 9,200 Total current liabilities 41,831 35,970 LONG-TERM LIABILITIES: Deferred revenues 6,079 7,136 Long-term operating lease liabilities 5,611 5,807 Accrued severance pay 814 946 Convertible debt – 39,973 Total long-term liabilities 12,504 53,862 SHAREHOLDERS' EQUITY 99,717 49,809 Total liabilities and shareholders' equity $ 1,54,052 $ 1,39,641 TABLE – 4 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $ (1,690) $ (3,356) $ (2,021) $ (5,866) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization and impairment 1,073 1,359 2,419 2,776 Share-based compensation 1,449 2,187 2,430 3,547 Capital loss – – 255 – Loss from extinguishment 1,410 – 1,410 – Other income (100) – (100) – Changes in operating assets and liabilities: Decrease (Increase) in accrued severance pay, net 93 (107) 89 (165) Decrease in other assets, other receivables and prepaid expenses 196 955 1,619 1,672 Decrease in accrued interest and amortization of premium on available-for sale marketable securities (521) (405) (862) (777) Decrease in operating leases liability (60) (159) (203) (618) Decrease in operating lease right-of-use asset 275 622 579 1,174 Increase in trade receivables (901) (2,789) (3,653) (2,980) Decrease (Increase) in inventories (312) 2,101 106 2,268 Increase (Decrease) in trade payables (97) 278 (22) 16 Increase (Decrease) in employees and payroll accruals 2,785 (649) 573 (4,135) Increase in deferred revenues 273 595 2,536 1,965 Increase (Decrease) in other payables and accrued expenses 511 542 914 (12) Net cash provided by (used in) operating activities 4,384 1,174 6,069 (1,135) Cash flows from investing activities: Decrease (Increase) in restricted deposit 50 (1) 353 703 Investment in short-term bank deposits (7,050) (3,800) (15,750) (3,800) Withdrawal of short-term bank deposits 12,700 – 19,950 10,000 Purchase of property and equipment (408) (957) (689) (1,386) Investment in marketable securities (26,458) (10,477) (55,434) (34,752) Proceeds from redemption or sale of marketable securities 27,283 7,225 49,683 32,060 Proceeds from sale of patent 100 – 100 – Net cash provided by (used in) investing activities 6,217 (8,010) (1,787) 2,825 Cash flows from financing activities: Issuance of share capital 37,691 – 37,691 – Proceeds from exercise of stock options – 1 238 1 Redemption of convertible debt (31,410) – (31,410) – Net cash provided by financing activities 6,281 1 6,519 1 Increase (Decrease) in cash and cash equivalents 16,882 (6,835) 10,801 1,691 Cash, cash equivalents at the beginning of the period 10,061 22,718 16,142 14,192 Cash, cash equivalents at the end of the period $ 26,943 $ 15,883 $ 26,943 $ 15,883 Non-cash activities: ROU asset and lease liability decrease, due to lease termination – – (71) – Redemption of convertible debt (10,000) – (10,000) – Other financial metrics (Unaudited) U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares Q2-25 FY 2024 FY 2023 Revenues geographic breakdown Americas 4.2 17 % 14.2 15 % 16.6 18 % EMEA 15.8 66 % 54.0 59 % 56.1 60 % Asia Pacific 4.1 17 % 24.0 26 % 20.5 22 % 24.1 100 % 92.2 100 % 93.2 100 % Revenues breakdown by type Products 7.6 31 % 30.1 33 % 37.6 40 % Professional Services 1.6 7 % 8.3 9 % 6.1 7 % SECaaS (Security as a Service) 6.4 27 % 16.5 18 % 10.6 11 % Support & Maintenance 8.5 35 % 37.3 40 % 38.9 42 % 24.1 100 % 92.2 100 % 93.2 100 % Top 10 customers as a % of revenues 55 % 43 % 47 % Non-GAAP Weighted average number of basic shares (in millions) 40.1 38.9 37.9 Non-GAAP weighted average number of fully diluted shares (in millions) 43.8 42.3 40.3 SECaaS (Security as a Service) revenues– U.S. dollars in millions (Unaudited) Q2-2025: 6.4 Q1-2025: 5.1 Q4-2024: 4.8 Q3-2024: 4.7 Q2-2024: 3.7 SECaaS ARR* – U.S. dollars in millions (Unaudited) Jun. 2025: 25.2 Dec. 2024: 18.2 Dec. 2023: 12.7 Dec. 2022: 9.2 Logo: View original content:
