Alarum Technologies (ALAR) AI Stock Analysis

• Market Cap: $63.22M
• Dividend Yield: N/A
• Average Volume (3M): 60.83K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.86
• Revenue Growth: 15.29%
• EPS Growth: -84.06%
• Country: US
• Employees: 68
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 7,169,424
• 10 Day Avg. Volume: 97,681
• 30 Day Avg. Volume: 60,828
• PEG Ratio: -0.08
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 8.25
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 39.05
• 1Y Price Target: $23.50
• Price Target Upside: 156.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $13.00 ▲(41.77% Upside)

Alarum Technologies' overall stock score reflects its strong financial performance and undervaluation, tempered by bearish technical indicators and short-term profitability challenges. The company's robust revenue growth and strategic focus on AI products are significant positives, while temporary margin pressures and increased expenses are notable risks.

Positive Factors

Strong Financial Position

A strong cash position provides Alarum with the financial flexibility to invest in growth opportunities and withstand market volatility, supporting long-term stability.

Strategic AI Partnerships

Strategic partnerships in the AI sector position Alarum to capitalize on emerging trends, enhancing its market presence and driving sustainable revenue growth.

Revenue Growth Prospects

Projected revenue growth reflects strong demand for Alarum's products, indicating robust market positioning and potential for continued expansion.

Negative Factors

Decreased Gross Margin

A declining gross margin may impact profitability, as increased costs could outweigh revenue gains, challenging long-term financial performance.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, could pressure margins and limit the company's ability to invest in other growth initiatives.

Market Volatility

Market volatility can lead to unpredictable demand and revenue fluctuations, posing risks to Alarum's ability to maintain stable growth and profitability.

Alarum Technologies Business Overview & Revenue Model

Company Description

Alarum Technologies (ALAR) is an innovative company specializing in cybersecurity solutions, focusing on advanced threat detection and response services. Operating primarily in the technology sector, Alarum Technologies provides a suite of products designed to protect organizations from cyber threats, including intrusion detection systems, threat intelligence platforms, and security information and event management (SIEM) solutions. The company serves various industries, including finance, healthcare, and government, helping them safeguard their digital assets and maintain compliance with regulatory standards.

How the Company Makes Money

Alarum Technologies generates revenue through multiple streams, primarily driven by the sale of its cybersecurity products and subscription-based services. The company offers tiered pricing for its software solutions, allowing customers to choose plans that best fit their needs, which includes ongoing support and updates. Additionally, Alarum Technologies engages in consulting services, where they provide expertise in implementing and managing cybersecurity protocols for businesses. Strategic partnerships with other technology firms and cybersecurity organizations enhance its market reach and credibility, contributing to its earnings by facilitating bundled offerings and shared customer bases.

Alarum Technologies Financial Statement Overview

Summary

Alarum Technologies has shown strong financial performance with significant improvements in profitability, cash flow, and financial stability. The company has turned around its net income from a loss to a profit, with a robust gross profit margin and improved operational efficiency. The balance sheet reflects a healthy capital structure with low leverage, and cash flow performance indicates excellent cash conversion capabilities.

Income Statement

Alarum Technologies has demonstrated strong growth in revenue, increasing by 20% from the previous year. The company turned around its net income from a loss to a profit of $5.78 million, resulting in a net profit margin of 18.2%. The gross profit margin is robust at 75.1%, and both EBIT and EBITDA margins have significantly improved, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity position with a high equity ratio of 75.7%. The debt-to-equity ratio is low at 0.06, reflecting minimal leverage. Return on equity stands at 21.9%, highlighting effective utilization of equity to generate profits. However, the relatively low total assets compared to industry peers might limit scalability.

Cash Flow

Alarum Technologies has shown remarkable improvement in cash flow, with free cash flow increasing significantly. The operating cash flow to net income ratio of 1.54 indicates strong cash generation relative to earnings. The free cash flow to net income ratio is robust at 1.52, showcasing excellent cash conversion capabilities. Despite past negative cash flows, the company has managed a positive trajectory in recent periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.49M	31.82M	26.52M	18.55M	9.65M	4.89M
Gross Profit	20.74M	23.91M	15.94M	10.13M	4.81M	2.39M
EBITDA	2.44M	8.31M	-2.90M	-10.53M	-12.16M	-6.58M
Net Income	5.39M	5.78M	-5.53M	-13.15M	-13.13M	-7.84M
Balance Sheet
Total Assets	35.77M	34.81M	20.07M	22.37M	30.65M	22.97M
Cash, Cash Equivalents and Short-Term Investments	14.91M	15.08M	10.87M	3.29M	9.71M	11.02M
Total Debt	893.00K	1.59M	1.99M	3.05M	562.00K	663.00K
Total Liabilities	6.65M	8.46M	6.88M	9.06M	6.47M	6.76M
Stockholders Equity	29.13M	26.35M	13.18M	13.31M	24.19M	16.22M
Cash Flow
Free Cash Flow	0.00	8.79M	4.67M	-8.11M	-9.49M	-6.75M
Operating Cash Flow	0.00	8.89M	4.73M	-8.05M	-9.21M	-6.61M
Investing Cash Flow	0.00	-9.34M	592.00K	5.04M	-9.80M	-1.19M
Financing Cash Flow	0.00	4.69M	2.21M	2.60M	11.64M	14.71M

Alarum Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 9.17 is below the 20-day moving average (MA) of 13.49, below the 50-day MA of 14.44, and below the 200-day MA of 11.32, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 19.64 is Positive, neither overbought nor oversold. The STOCH value of 17.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAR.

Alarum Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	77 Outperform	$5.08B	27.43	38.64%	―	9.95%	12.72%
ALAR	71 Outperform	$63.22M	53.28	4.27%	―	15.29%	-84.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CYBR	52 Neutral	$22.49B	―	-12.73%	―	43.26%	-1651.82%
VRNS	48 Neutral	$3.81B	―	-22.17%	―	11.37%	-34.44%
GRRR	48 Neutral	$294.47M	―	―	―	―	―

Alarum Technologies Corporate Events

Alarum Technologies Achieves Record Q3 Revenue Growth Amid AI Demand Surge

On November 26, 2025, Alarum Technologies announced a record revenue growth of 81% in the third quarter of 2025, reaching $13 million, driven by high demand from leading AI model developers. The company is prioritizing long-term market-share capture in the AI training-data segment, despite short-term margin pressures. Alarum’s strategic investments in infrastructure aim to position it for significant future growth, with a notable increase in paying customers and average revenue per customer.

Alarum Technologies Reports Q2 2025 Financial Results and Strengthens AI Collaborations

Alarum Technologies announced its financial results for the second quarter of 2025, reporting revenues of $8.8 million and a net profit of $0.3 million. The company is deepening collaborations with major AI and e-commerce players, expanding its market presence and strengthening its role in the AI ecosystem. Alarum is investing in infrastructure and talent to support growing demand, positioning itself as a central player in the AI revolution. The company anticipates revenue growth in the upcoming quarter, despite potential short-term fluctuations due to the evolving AI market.