Alarum Technologies Ltd Sponsored Adr ((ALAR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Alarum Technologies Ltd’s recent earnings call painted a picture of robust growth tempered by some short-term challenges. The company reported significant revenue increases and expansion in AI-centric products, underscoring strong operational momentum. However, temporary gross margin pressures and rising operating expenses have impacted short-term profitability. Despite these hurdles, the overall sentiment remains positive, buoyed by a strong cash position and promising revenue projections.
Record Revenue Growth
Alarum Technologies reported a record revenue of $13 million for Q3, marking an 81% increase year-over-year and a 48% rise sequentially. This impressive growth was primarily driven by increased consumption from major AI customers and the strong adoption of the company’s AI-centric products.
Increase in Paying Customers
The quarter also saw a 26% increase in paying customers, with a 17% rise in average revenue per customer. This growth reflects the company’s successful efforts in expanding its customer base and enhancing customer value.
Product Suite Expansion
Alarum’s AI-strengthening product suite experienced significant growth, with the Website Unblocker achieving triple-digit sequential growth and custom scrapers delivering high double-digit growth. This expansion highlights the company’s focus on enhancing its product offerings to meet growing market demands.
Strong Cash Position
As of September 30, 2025, Alarum maintained a robust cash position with cash, cash equivalents, and debt investments totaling approximately $24.6 million. This financial strength supports the company’s strategic investments and long-term growth initiatives.
Positive Q4 Revenue Outlook
Looking ahead, Alarum anticipates Q4 revenue to be around $12 million, representing a 63% year-over-year growth. This positive outlook is driven by continued strong demand for the company’s AI-centric products and services.
Temporary Gross Margin Pressure
The company experienced a decline in non-IFRS gross margins to 56% in Q3 2025, down from 74% in Q3 2024. This was attributed to increased investments and a higher share of large-scale projects with AI customers, which are expected to yield long-term benefits.
Increased Operating Expenses
Operating expenses rose to $7.4 million in Q3 2025 from $4.1 million in Q3 2024. This increase was driven by higher employee-related costs and the scaling of operations, reflecting the company’s commitment to strategic growth.
Net Profit Decline
Alarum reported a net profit of $0.1 million for Q3 2025, compared to $4.2 million in Q3 2024. The decline was due to the absence of high financial income from the previous year, but the company remains focused on long-term profitability.
Forward-Looking Guidance
Alarum Technologies provided forward-looking guidance with expectations of approximately $12 million in Q4 2025 revenue, reflecting a 63% year-over-year growth. The company also anticipates an adjusted EBITDA of around $1 million. Alarum continues to focus on capturing long-term market share and improving margins through strategic initiatives, including in-house solutions and network optimization.
In summary, Alarum Technologies Ltd’s earnings call highlighted a strong growth trajectory with significant revenue increases and an expanding customer base. While short-term profitability was impacted by increased expenses and margin pressures, the company’s positive outlook and strategic initiatives suggest a promising future. Investors and market watchers will be keen to see how Alarum navigates these challenges and capitalizes on its growth opportunities.