Alarum Technologies (ALAR)
NASDAQ:ALAR
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Alarum Technologies
(NASDAQ:ALAR)
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Rating:52Neutral
Price Target:
$6.00
▼(-9.50% Downside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by weakened 2025 financial quality (margin compression and negative operating/free cash flow) and a bearish technical setup. Offsetting factors include strong revenue growth and a supportive earnings outlook tied to AI-driven demand, while valuation remains demanding given the elevated P/E and lack of dividend support.
Positive Factors
Revenue Growth
Consistent multi-year revenue growth demonstrates durable demand for Alarum's offerings and supports scale benefits. Strong top-line traction across consecutive years provides a foundation to invest in product development and customer success, enabling sustainable expansion of recurring SaaS and services revenue streams.
Negative Factors
Margin Compression
Steep gross margin decline tied to large-scale AI projects and upfront infrastructure costs can persist if data workloads remain cost-intensive. Sustained margin pressure reduces the company's ability to convert revenue into operating profit, requiring either price increases, efficiency gains, or scale to restore historical profitability levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent multi-year revenue growth demonstrates durable demand for Alarum's offerings and supports scale benefits. Strong top-line traction across consecutive years provides a foundation to invest in product development and customer success, enabling sustainable expansion of recurring SaaS and services revenue streams.
Read all positive factors
Alarum Technologies (ALAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.33M
Dividend YieldN/A
Average Volume (3M)71.97K
Price to Earnings (P/E)71.1
Beta (1Y)1.63
Revenue Growth15.29%
EPS Growth-84.06%
CountryUS
Employees68
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.00
Shares Outstanding7,257,602
10 Day Avg. Volume140,527
30 Day Avg. Volume71,971
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)1.89
Price to Sales (P/S)1.48
P/FCF Ratio-46.99
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.38
Enterprise Value/Ebitda31.52
Forecast
1Y Price Target
$14.00Price Target Upside111.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)$47.50M
Alarum Technologies Business Overview & Revenue Model
Company Description
Alarum Technologies Ltd. provides cybersecurity and privacy solutions to consumers and enterprises in Israel, the United States, Hong Kong, the Asia Pacific, and internationally. Its cybersecurity solutions comprise iShield, a cybersecurity cloud ...
How the Company Makes Money
Alarum generates revenue primarily by selling access to its software-based cybersecurity/privacy products and related services. Key revenue streams include (1) recurring fees from subscriptions/SaaS access where customers pay to use the company’s ...
Alarum Technologies Earnings Call Summary
Earnings Call Date:Nov 26, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and expansion in AI-centric products, indicating robust operational momentum. However, the company faced temporary gross margin pressure and increased operating expenses, impacting short-term profitability. Despite these challenges, the overall outlook remains positive with a strong cash position and promising revenue projections.Positive Updates
Record Revenue Growth
Q3 revenue reached $13 million, up 81% year-over-year and 48% sequentially. This was driven by increased consumption from major AI customers and strong adoption of AI-centric products.
Negative Updates
Temporary Gross Margin Pressure
Non-IFRS gross margins for Q3 2025 were 56%, down from 74% in Q3 2024, due to increased investments and a higher share of large-scale projects with AI customers.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Revenue Growth
Q3 revenue reached $13 million, up 81% year-over-year and 48% sequentially. This was driven by increased consumption from major AI customers and strong adoption of AI-centric products.
Read all positive updates
Company Guidance
In the third quarter of 2025, Alarum Technologies reported a revenue of $13 million, which marked an 81% increase year-over-year and a 48% sequential rise. The company experienced a 26% rise in paying customers and a 17% increase in average revenue per customer. However, the non-IFRS gross margin decreased to 56% from 74% in Q3 2024, primarily due to upfront costs associated with large-scale AI projects. Operating expenses rose to $7.4 million from $4.1 million in the previous year, driven by strategic investments in R&D and sales. Despite these expenses, the company reported a net profit of $0.1 million, compared to $4.2 million in Q3 2024, with adjusted EBITDA at $1.2 million. Looking ahead to Q4 2025, Alarum anticipates revenues of approximately $12 million, reflecting a 63% year-over-year growth, and an adjusted EBITDA around $1 million. The company continues to focus on capturing long-term market share and improving margins through strategic initiatives, including in-house solutions and network optimization.Alarum Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.08M | 31.98M | 26.45M | 18.48M | 10.29M |
| Gross Profit | 23.66M | 23.74M | 15.90M | 9.05M | 4.51M |
| EBITDA | 1.27M | 8.32M | -1.64M | -10.23M | -12.17M |
| Net Income | 970.64K | 5.81M | -5.59M | -12.41M | -13.13M |
Balance Sheet | |||||
| Total Assets | 45.89M | 34.81M | 20.07M | 22.37M | 30.65M |
| Cash, Cash Equivalents and Short-Term Investments | 12.27M | 15.08M | 10.87M | 3.29M | 9.71M |
| Total Debt | 2.64M | 1.59M | 1.99M | 3.05M | 562.00K |
| Total Liabilities | 13.80M | 8.46M | 6.88M | 9.06M | 6.47M |
| Stockholders Equity | 32.09M | 26.35M | 13.18M | 13.31M | 24.19M |
Cash Flow | |||||
| Free Cash Flow | -1.29M | 8.79M | 4.67M | -8.11M | -9.38M |
| Operating Cash Flow | -1.15M | 8.89M | 4.73M | -8.05M | -9.11M |
| Investing Cash Flow | -658.18K | -9.34M | 592.00K | 5.04M | -9.80M |
| Financing Cash Flow | -547.31K | 4.69M | 2.21M | 2.60M | 11.64M |
Alarum Technologies Technical Analysis
Negative
6.63
Price Trends
7.04
Negative
8.48
Negative
11.40
Negative
Market Momentum
-0.38
Positive
39.92
Neutral
19.14
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 6.63 is below the 20-day moving average (MA) of 6.65, below the 50-day MA of 7.04, and below the 200-day MA of 11.40, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 19.14 is Positive, 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.
The increasing use of social media platforms and new technologies present risks and challenges for our business and reputation. Q4, 2023
3.
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
Alarum Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.13B | 24.22 | 37.83% | ― | 9.95% | 12.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $2.52B | -38.13 | -27.04% | ― | 11.37% | -34.44% | |
52 Neutral | $42.33M | 71.15 | 3.23% | ― | 15.29% | -84.06% | |
48 Neutral | $238.70M | -21.55 | ― | ― | ― | ― |
* Technology Sector Average
ALAR
Alarum Technologies
5.96
-0.40
-6.29%
QLYS
Qualys
87.85
-40.82
-31.72%
VRNS
Varonis Systems
21.47
-19.43
-47.51%
CISO
Cerberus Cyber Sentinel Corp
0.35
-0.08
-17.86%
GRRR
Gorilla Technology Group Inc.
10.53
-14.60
-58.10%
Alarum Technologies Corporate Events
Alarum Technologies Posts 60% Q4 Revenue Surge as AI Workloads Drive 2025 Transformation
Mar 19, 2026
On March 19, 2026, Alarum Technologies reported that 2025 revenues rose 28% year-over-year to $40.7 million, including a 60% jump in fourth-quarter sales to $11.8 million, driven largely by soaring AI-related data workloads. Despite higher infrast...
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.