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Alarum Technologies
(NASDAQ:ALAR)
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Rating:52Neutral
Price Target:
$1.50
▼(-9.64% Downside)
Action:Reiterated
Date:10/03/26
The score is held back primarily by deteriorating cash flow and compressed profitability in the latest year, alongside bearish technicals with the stock trading below major moving averages. A low P/E and low leverage provide some support, but the near-term financial quality and trend signals remain the key risks.
Positive Factors
Strong Revenue Growth
Sustained revenue expansion indicates continued demand for Alarum’s cybersecurity and network-intelligence offerings. Growth across multiple years can strengthen scale, broaden customer reach, and provide a durable base for improving profitability if execution remains consistent.
Negative Factors
Negative Cash Generation
Negative operating and free cash flow weaken earnings quality and reduce internally generated funding for product development, expansion, or other priorities. The sharp reversal from prior positive years indicates that cash conversion and operating stability remain unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained revenue expansion indicates continued demand for Alarum’s cybersecurity and network-intelligence offerings. Growth across multiple years can strengthen scale, broaden customer reach, and provide a durable base for improving profitability if execution remains consistent.
Read all positive factors
Alarum Technologies (ALAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.12M
Dividend YieldN/A
Average Volume (3M)123.16K
Price to Earnings (P/E)8.8
Beta (1Y)1.18
Revenue Growth49.15%
EPS Growth-76.75%
CountryUS
Employees103
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.18
Shares Outstanding7,405,142
10 Day Avg. Volume33,726
30 Day Avg. Volume123,158
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 Cap3.14
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.21
Enterprise Value/Ebitda7.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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...
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 | -4.51M | -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
1.68
Negative
3.37
Negative
5.34
Negative
Market Momentum
-0.12
Positive
40.63
Neutral
49.80
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 1.56, below the 50-day MA of 1.68, and below the 200-day MA of 5.34, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 49.80 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 | $6.59B | 33.91 | 37.17% | ― | 10.71% | 14.48% | |
63 Neutral | $5.61B | -39.91 | -26.91% | ― | 15.86% | -33.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $10.12M | 8.75 | 3.67% | ― | 49.15% | -76.75% | |
47 Neutral | $205.18M | -4.37 | -26.83% | ― | ― | ― |
* Technology Sector Average
ALAR
Alarum Technologies
1.44
-12.82
-89.90%
QLYS
Qualys
208.20
80.30
62.78%
VRNS
Varonis Systems
48.89
-13.43
-21.55%
CISO
Cerberus Cyber Sentinel Corp
0.17
-0.99
-85.17%
GRRR
Gorilla Technology Group Inc.
8.14
-8.72
-51.72%
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 ...
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.