Alarum Technologies (ALAR) AI Stock Analysis

• Market Cap: $70.48M
• Dividend Yield: N/A
• Average Volume (3M): 71.97K
• Price to Earnings (P/E): 54.4
• Beta (1Y): 1.81
• 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: 7,171,404
• 10 Day Avg. Volume: 140,527
• 30 Day Avg. Volume: 71,971
• PEG Ratio: -0.08
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 8.25
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 79.36
• 1Y Price Target: $23.50
• Price Target Upside: 144.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.50 ▲(9.03% Upside)

The score is primarily supported by strong financial improvement (profitability, low leverage, and strong cash conversion) and an earnings narrative featuring exceptional revenue growth with positive forward guidance. These positives are partially offset by weak technical trends (below major moving averages with negative MACD) and a high P/E valuation without a dividend yield.

Positive Factors

Customer & Revenue Growth

Substantial recurring demand: 81% YoY revenue growth, a 26% increase in paying customers and 17% higher ARPC signal strong product-market fit and expanding wallet share with AI customers; supports durable top-line expansion and market-share capture over coming quarters.

Balance Sheet Strength

Very low leverage and high equity ratio provide financial flexibility to fund product investments and absorb cyclical shocks without heavy refinancing. This strengthens long-term resilience and capacity to invest in R&D, infrastructure, or strategic partnerships.

Cash Generation & Conversion

Strong cash conversion indicates earnings translate into free cash reliably, reducing reliance on external funding. Robust FCF relative to net income enables self-funded R&D, capex for AI infrastructure, and supports sustainable execution of growth initiatives.

Negative Factors

Gross Margin Compression

Margin pressure stems from upfront costs on large-scale AI projects and a higher mix of resource-intensive contracts. If these project-driven margins persist, sustained profitability and margin expansion will depend on scale efficiencies that may take multiple quarters to realize.

Rising Operating Expenses

Significant increase in employee and operating costs to support AI product expansion raises the fixed cost base. Long-term margin recovery requires continued revenue growth and efficiency gains; slower demand could compress profits and strain cash flow over the medium term.

Scale Constraints from Asset Base

Relatively low total assets may limit capacity to rapidly scale infrastructure-heavy AI services versus larger peers. To serve very large customers or expand capacity materially, the company may need capital investment or partnerships, affecting execution pace and margins.

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 software that protects users from online threats, including phishing, malware, ransomware and others; AdBlocker, an iOS application for an ad-free internet experience; ZoneZero SDP, a solution based on software defined perimeter and zero trust network access concepts that grant access to applications on a need-to-know basis only; ZoneZero MFA, a solution designed to add centralized multi-factor authentication capabilities for various types of internal applications; and SDE, which is designed to unify various data exchange scenarios of an organization. The company also provides Proxy solutions consisting of static and dynamic residential proxy network cloud services, data center proxy network cloud services, and data collection API cloud services; Proxy-in-a-Box, an on-premise solution of private proxy access network for customers who wish to deploy and maintain their own proxy network; and Premium dedicated static residential proxies, a solution that creates a dedicated static IP for each user. It offers its products through resellers, distributors, and internet service providers. The company serves finance, healthcare, and retail sectors; and government agencies, commercial and online companies, and educational institutions. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv-Yafo, Israel.

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 revenue growth and a turnaround in net income. The company has a robust gross profit margin and improved operational efficiency. The balance sheet is solid with low leverage, and cash flow has improved significantly, indicating strong cash generation 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	36.33M	31.98M	26.45M	18.48M	10.29M	4.92M
Gross Profit	22.83M	23.74M	15.90M	9.05M	4.51M	2.12M
EBITDA	1.47M	8.32M	-1.64M	-10.23M	-12.17M	-6.47M
Net Income	1.19M	5.81M	-5.59M	-12.41M	-13.13M	-7.90M
Balance Sheet
Total Assets	43.44M	34.81M	20.07M	22.37M	30.65M	22.97M
Cash, Cash Equivalents and Short-Term Investments	14.37M	15.08M	10.87M	3.29M	9.71M	11.02M
Total Debt	3.07M	1.59M	1.99M	3.05M	562.00K	663.00K
Total Liabilities	12.35M	8.46M	6.88M	9.06M	6.47M	6.76M
Stockholders Equity	31.09M	26.35M	13.18M	13.31M	24.19M	16.22M
Cash Flow
Free Cash Flow	0.00	8.79M	4.67M	-8.11M	-9.38M	-6.75M
Operating Cash Flow	0.00	8.89M	4.73M	-8.05M	-9.11M	-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: 9.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.63 is above the 20-day moving average (MA) of 8.66, below the 50-day MA of 10.19, and below the 200-day MA of 11.49, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, 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	78 Outperform	$4.81B	25.92	38.64%	―	9.95%	12.72%
ALAR	67 Neutral	$70.48M	54.39	4.27%	―	15.29%	-84.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CYBR	57 Neutral	$23.31B	-98.47	-12.73%	―	43.26%	-1651.82%
VRNS	48 Neutral	$4.11B	-33.51	-22.17%	―	11.37%	-34.44%
GRRR	48 Neutral	$284.27M	―	―	―	―	―

Alarum Technologies Corporate Events

Alarum Technologies’ Class Action Dismissed in Israel

Alarum Technologies Ltd. announced that the motion to certify a claim as a class action pending in Israel has been dismissed. This follows the voluntary dismissal of a similar complaint in the United States. On December 10, 2025, the applicant in the Israeli motion submitted a request to dismiss the proceedings, which was approved by the Israeli court on December 11, 2025. The dismissal was agreed upon without costs or compensation, reflecting a consensus that the claims lacked merit. Alarum Technologies maintains that there was no legal or factual basis for the proceedings, which were dismissed at a preliminary stage.

The most recent analyst rating on (ALAR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Alarum Technologies stock, see the ALAR Stock Forecast page.

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.

The most recent analyst rating on (ALAR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Alarum Technologies stock, see the ALAR Stock Forecast page.