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Alarum Technologies
(NASDAQ:ALAR)
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Rating:56Neutral
Price Target:
$1.50
▼(-9.64% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weakened financial quality (2025 margin compression and negative operating/free cash flow) and bearish technicals (price well below key moving averages with negative MACD). Offsetting these are a low-leverage balance sheet, supportive valuation (P/E ~10), and an earnings call that indicates strong growth and improving profitability, albeit with clear near-term volatility risk.
Positive Factors
Rapid Revenue Growth and Platform Scale
Rapid revenue growth alongside a tenfold increase in monthly data throughput indicates strong customer demand and expanding platform utilization. This scale can strengthen Alarum’s infrastructure economics, support broader enterprise adoption, and improve its competitive position as AI data requirements grow.
Negative Factors
Weak Recent Cash Generation and Margin Durability
The 2025 swing to negative operating and free cash flow, together with sharply lower net margin, weakens earnings quality and reduces internally generated funding. Until cash conversion and profitability stabilize, growth may require greater discipline in infrastructure spending and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth and Platform Scale
Rapid revenue growth alongside a tenfold increase in monthly data throughput indicates strong customer demand and expanding platform utilization. This scale can strengthen Alarum’s infrastructure economics, support broader enterprise adoption, and improve its competitive position as AI data requirements grow.
Read all positive factors
Alarum Technologies (ALAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.37M
Dividend YieldN/A
Average Volume (3M)120.91K
Price to Earnings (P/E)8.1
Beta (1Y)1.60
Revenue Growth49.15%
EPS Growth-76.75%
CountryUS
Employees103
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.18
Shares Outstanding7,348,826
10 Day Avg. Volume106,800
30 Day Avg. Volume120,905
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.89
Price to Sales (P/S)1.49
P/FCF Ratio-46.99
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)$50.90M
Alarum Technologies Business Overview & Revenue Model
Company Description
Alarum Technologies Ltd., established in 2013 and based in Tel Aviv-Yafo, Israel, previously known as Safe-T Group Ltd. until its rebranding in January 2023, specializes in delivering advanced cybersecurity and privacy solutions. These offerings s...
How the Company Makes Money
Alarum Technologies makes money primarily by selling and licensing its cybersecurity and privacy software/services. Revenue is generated through recurring subscriptions and service fees for access to its privacy and security products (e.g., consum...
Alarum Technologies Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call conveyed strong top-line growth and meaningful operating leverage as the company scaled its AI data infrastructure (64% YoY revenue growth, adjusted EBITDA improvement, and a 10x increase in monthly data throughput). Management emphasized positive early returns from prior infrastructure investments, product expansion into broader AI data solutions, and a healthy balance sheet with no debt. At the same time, the company faces notable challenges: year-over-year gross margin contraction, materially higher operating expenses due to R&D and payroll, and ongoing demand volatility driven by large AI customers and increasingly sophisticated anti-bot protections. Guidance shows revenue growth but indicates potential near-term EBITDA variability. Overall, the positives around rapid scale, profitability improvement and platform evolution outweigh the operational and market headwinds, though the near-term outlook remains somewhat uncertain.Positive Updates
Strong Revenue Growth
Revenue for Q1 2026 was $11.7 million, up 64% year-over-year from $7.1 million in Q1 2025.
Negative Updates
YoY Gross Margin Contraction
Gross margin declined year-over-year to 61.7% in Q1 2026 from 67.5% in Q1 2025, a drop of 5.8 percentage points, despite sequential improvement versus the prior quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue for Q1 2026 was $11.7 million, up 64% year-over-year from $7.1 million in Q1 2025.
Read all positive updates
Company Guidance
Alarum guided Q2 2026 revenue of approximately $12.2 million (±5%, implying a range of about $11.6M–$12.8M) — ~39% year‑over‑year growth at the midpoint — and adjusted EBITDA of roughly $1.8 million (±$0.5M, implying a range of about $1.3M–$2.3M). That outlook is given against Q1 results of $11.7M revenue (64% YoY), IFRS net income of ~$0.6M, adjusted EBITDA of ~$2.1M, and a 61.7% gross margin, with a strong balance sheet of $24.2M in cash, cash equivalents and debt investments, shareholders’ equity of $33.4M, ~72.6M outstanding ordinary shares, and infrastructure scale (avg. >50 PB/month, tens of billions of requests, >80M IPs, success rates >85%); management noted the guidance reflects current customer activity and consumption patterns but warned of continued quarter‑to‑quarter volatility as they prioritize long‑term infrastructure investment.Alarum Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.33M | 40.76M | 31.82M | 26.52M | 18.55M | 9.65M |
| Gross Profit | 26.25M | 23.84M | 23.91M | 18.81M | 10.15M | 4.81M |
| EBITDA | 3.98M | 2.82M | 8.31M | -2.90M | -10.53M | -7.68M |
| Net Income | 1.15M | 963.00K | 5.78M | -5.53M | -13.15M | -13.13M |
Balance Sheet | ||||||
| Total Assets | 44.85M | 45.89M | 34.81M | 20.07M | 22.37M | 30.65M |
| Cash, Cash Equivalents and Short-Term Investments | 14.06M | 12.27M | 15.08M | 10.87M | 3.29M | 9.71M |
| Total Debt | 2.55M | 2.64M | 1.59M | 1.99M | 3.05M | 562.00K |
| Total Liabilities | 11.48M | 13.80M | 8.46M | 6.88M | 9.06M | 6.47M |
| Stockholders Equity | 33.36M | 32.09M | 26.35M | 13.18M | 13.31M | 24.19M |
Cash Flow | ||||||
| Free Cash Flow | -1.29M | -1.29M | 8.79M | 4.67M | -8.11M | -9.38M |
| Operating Cash Flow | -1.15M | -1.15M | 8.89M | 4.73M | -8.05M | -9.11M |
| Investing Cash Flow | -658.18K | -658.18K | -9.34M | 592.00K | 5.04M | -9.80M |
| Financing Cash Flow | -547.31K | -547.31K | 4.69M | 2.21M | 2.60M | 11.64M |
Alarum Technologies Technical Analysis
Negative
1.66
Price Trends
2.48
Negative
5.28
Negative
6.52
Negative
Market Momentum
-0.34
Negative
28.74
Positive
24.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Negative. The current price of 1.66 is above the 20-day moving average (MA) of 1.65, below the 50-day MA of 2.48, and below the 200-day MA of 6.52, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 28.74 is Positive, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAR.
Alarum Technologies Risk Analysis
Alarum Technologies disclosed 57 risk factors in its most recent earnings report. Alarum Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our securities are traded on more than one market or exchange, and this may result in price variations. Q4, 2023
2.
Unsuccessful management of environmental, social and governance matters could adversely affect our reputation and we may experience difficulties meeting the expectations of our stakeholders. Q4, 2023
3.
The increasing use of social media platforms and new technologies present risks and challenges for our business and reputation. Q4, 2023
Alarum Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.94B | 29.59 | 37.17% | ― | 10.71% | 14.48% | |
67 Neutral | $5.29B | -37.78 | -26.91% | ― | 15.86% | -33.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $10.37M | 8.13 | 3.67% | ― | 49.15% | -76.75% | |
54 Neutral | $379.36M | -7.33 | -26.83% | ― | ― | ― |
* Technology Sector Average
ALAR
Alarum Technologies
1.39
-13.48
-90.65%
QLYS
Qualys
171.65
36.49
27.00%
VRNS
Varonis Systems
46.09
-11.48
-19.94%
CISO
Cerberus Cyber Sentinel Corp
0.23
-0.85
-78.43%
GRRR
Gorilla Technology Group Inc.
13.79
-4.41
-24.23%
Alarum Technologies Corporate Events
Alarum Technologies Delays Release of Second-Quarter 2026 Financial Results
Aug 27, 2026
On August 27, 2026, Alarum Technologies announced it will delay releasing its financial results for the three- and six-month periods ended June 30, 2026, citing the ongoing impact of recently disclosed developments affecting the company. The postp...
Alarum Faces New Discovery Motion in Israel and Parallel U.S. Class Action Filing
Aug 13, 2026
Alarum Technologies reported that on August 10, 2026 it was formally served with an additional discovery motion in the Economic Department of the Tel Aviv District Court under Section 198A of the Israeli Companies Law, expanding earlier discovery ...
Alarum Technologies Faces Israeli Derivative Discovery Bid and Securities Class Action Motions
Jul 22, 2026
On July 16, 2026, Alarum Technologies Ltd. was served with a motion in the Tel Aviv District Court under Section 198A of the Israeli Companies Law, seeking discovery and inspection of company documents related to recent public disclosures, a proce...
Alarum Technologies Details Investigation and Cost Cuts After NetNut Network Disruption
Jul 13, 2026
On July 13, 2026, Alarum Technologies reported that it is still investigating a disruption affecting proxy network operations at subsidiary NetNut Ltd., whose root cause remains unknown. The company has engaged an external team of cybersecurity an...
Alarum Technologies Warns of Material Impact From FBI Seizure of NetNut Domains
Jul 6, 2026
On July 2, 2026, Alarum Technologies and its proxy-network subsidiary NetNut Ltd. discovered that certain NetNut-associated domains had been seized by the U.S. Federal Bureau of Investigation, with additional domains subsequently affected. In a Ju...
Alarum Technologies Faces FBI Seizure of NetNut Domains, Pauses Parts of Proxy Network
Jul 6, 2026
Alarum Technologies disclosed a series of developments in early July 2026 involving its subsidiary NetNut’s residential proxy network. On July 2, 2026, the company reported that certain NetNut domains linked to its proxy operations were seiz...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.