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Alarum Technologies (ALAR)
NASDAQ:ALAR
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Alarum Technologies (ALAR) AI Stock Analysis

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ALAR

Alarum Technologies

(NASDAQ:ALAR)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$16.50
▲(11.04% Upside)
Alarum Technologies demonstrates strong financial performance and promising growth prospects, particularly in AI-driven markets. The stock's technical indicators suggest a positive trend, though valuation remains moderate. The earnings call underscores strategic investments for future growth, despite some operational challenges.
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 (ALAR) vs. SPDR S&P 500 ETF (SPY)

Alarum Technologies Business Overview & Revenue Model

Company DescriptionAlarum 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 MoneyAlarum Technologies generates revenue through a combination of direct product sales, subscription-based services, and consulting fees. The primary revenue stream comes from the sale of its cybersecurity software and hardware solutions, which are tailored for businesses of varying sizes. Additionally, the company offers subscription plans for ongoing access to its cloud-based security services, which provide continuous updates, monitoring, and support. Consulting services, including security assessments and compliance audits, contribute further to its earnings. Alarum Technologies has forged strategic partnerships with other tech firms and cybersecurity organizations, enhancing its market reach and enabling bundled offerings that attract a broader customer base, thus significantly boosting its revenue potential.

Alarum Technologies Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and profit performance, significant new projects with large-scale AI and e-commerce platforms, and heavy investments in future growth. However, challenges included decreased gross margin, increased operating expenses, market volatility, and a low net retention rate. Despite these challenges, the company is strategically positioned for long-term growth.
Q2-2025 Updates
Positive Updates
Strong Revenue and Profit
The company reported second quarter revenue of $8.8 million, net profit of $0.3 million, and adjusted EBITDA of $1 million, which exceeded expectations.
New Large-Scale AI Projects
Alarum has initiated new projects with large AI and e-commerce platforms, including a major marketplace in Asia, indicating significant growth opportunities.
Investment in Future Growth
The company is heavily investing in infrastructure and R&D to support future demand, particularly from AI-driven customers, with a strong focus on long-term profitability.
Financial Stability
Alarum maintains a solid financial position with cash and liquid investments of approximately $25 million, providing a stable foundation for strategic investments.
Positive Financial Income
The company recorded a financial income of $400,000 in Q2 2025, compared to an expense of $2.5 million in the same period last year, due to interest income generated from cash reserves.
Negative Updates
Decreased Gross Margin
Non-IFRS gross margin decreased to 63% in Q2 2025 from 78% in Q2 2024 due to increased investment in infrastructure and a shift in customer mix.
Operating Expenses Increase
Operating expenses rose to $5.4 million in Q2 2025 from $4.2 million in Q2 2024, driven by higher employee salary-related costs, particularly in R&D.
Volatility and Uncertainty
The market is highly dynamic, with significant volatility and unpredictability, particularly concerning the demand from AI-driven customers.
Low Net Retention Rate
The net retention rate (NRR) was 0.98, indicating a slight reduction in overall revenues due to a shift in the customer base towards AI segments.
Company Guidance
During the Alarum Technologies Conference Call for the second quarter of 2025, the company reported a revenue of $8.8 million, a net profit of $0.3 million, and an adjusted EBITDA of $1 million, exceeding earlier expectations and aligning with upgraded guidance issued in June. The company's non-IFRS gross margin stood at 63%, down from 78% in the same quarter of 2024, due to strategic investments to support increased demand from AI-driven customers. Alarum highlighted a significant new project with a large-scale AI and e-commerce platform, expected to contribute approximately $3 million in revenue per quarter, though initially at lower margins. The company's cash position was $25 million as of June 30, 2025, enabling ongoing investments in infrastructure and R&D to capture long-term growth opportunities in the AI market. For the third quarter of 2025, Alarum anticipates revenues of about $12.8 million, reflecting a 78% year-over-year increase, and adjusted EBITDA of around $1.1 million.

Alarum Technologies Financial Statement Overview

Summary
Alarum Technologies shows strong financial recovery with revenue growth, improved profitability, and robust cash flow. Minimal leverage and strong equity position enhance financial stability, although scalability is limited by relatively low assets.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.82M26.52M18.78M10.28M4.89M
Gross Profit23.91M19.11M10.13M5.14M2.39M
EBITDA8.31M-2.90M-10.53M-9.70M-6.58M
Net Income5.78M-5.53M-13.15M-13.13M-7.84M
Balance Sheet
Total Assets34.81M20.07M22.37M30.65M22.97M
Cash, Cash Equivalents and Short-Term Investments15.08M10.87M3.29M9.71M11.02M
Total Debt1.59M1.99M3.05M562.00K663.00K
Total Liabilities8.46M6.88M9.06M6.47M6.76M
Stockholders Equity26.35M13.18M13.31M24.19M16.22M
Cash Flow
Free Cash Flow8.79M4.67M-8.11M-9.49M-6.75M
Operating Cash Flow8.89M4.73M-8.05M-9.21M-6.61M
Investing Cash Flow-9.34M592.00K5.04M-9.80M-1.19M
Financing Cash Flow4.69M2.21M2.60M11.64M14.71M

Alarum Technologies Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price14.86
Price Trends
50DMA
14.74
Positive
100DMA
12.46
Positive
200DMA
10.57
Positive
Market Momentum
MACD
0.15
Positive
RSI
45.94
Neutral
STOCH
21.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Neutral. The current price of 14.86 is below the 20-day moving average (MA) of 15.40, above the 50-day MA of 14.74, and above the 200-day MA of 10.57, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 21.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks

Alarum Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$106.68M18.9821.76%-1.43%3.86%
59
Neutral
48.81M-56.62-10.37%18.99%77.96%
55
Neutral
69.74M-3.40-20.05%9.16%20.13%
46
Neutral
42.62M-2.08-123.99%295.86%-2.95%
41
Neutral
221.08M-3.25-148.40%7.05%19.75%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALAR
Alarum Technologies
14.86
4.22
39.66%
VHC
Virnetx Holding
17.14
10.09
143.12%
JG
Aurora Mobile
8.13
1.20
17.32%
REKR
Rekor Systems
1.75
0.57
48.31%
AUID
Ipsidy
3.17
-3.12
-49.60%
ZENV
Zenvia
1.33
-0.17
-11.33%

Alarum Technologies Corporate Events

Alarum Technologies Reports Q2 2025 Financial Results and Strengthens AI Collaborations
Aug 28, 2025

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.

Alarum Technologies Confirms Key Appointments and Approvals at Annual Meeting
Aug 7, 2025

On August 7, 2025, Alarum Technologies Ltd. conducted its Annual and Extraordinary General Meeting of Shareholders, where several key proposals were approved. These included the re-appointment of PwC Israel as the company’s independent auditor, the re-appointment of Mr. Chen Katz and Mr. Avi Rubinstein as Class III directors for a three-year term, and the approval of a grant of RSUs to CEO Shachar Daniel. These decisions reflect the company’s strategic focus on maintaining strong leadership and ensuring robust financial oversight, which are crucial for its continued growth and stability in the cybersecurity sector.

Alarum Technologies Sees U.S. Class Action Dismissed
Jul 9, 2025

Alarum Technologies Ltd., a company involved in legal proceedings, announced that on July 7, 2025, the U.S. lead plaintiff voluntarily dismissed a class action complaint against the company and its officers. The complaint, initially filed in the United States District Court for the District of New Jersey, was dismissed following further investigation by the plaintiffs’ counsel. This dismissal leaves the status of similar proceedings in Israel uncertain, as the plaintiffs have not indicated if they will renew the Israeli Motion. The company maintains that the Israeli Motion is without merit and there was no settlement between the parties.

Alarum Technologies Announces Annual and Extraordinary General Meeting
Jul 2, 2025

Alarum Technologies Ltd. announced an upcoming Annual and Extraordinary General Meeting of shareholders scheduled for August 7, 2025. The meeting will address several key agenda items, including the re-appointment of PwC Israel as the company’s independent auditor, the re-appointment of Mr. Chen Katz and Mr. Avi Rubinstein as Class III directors, and the approval of restricted share units for CEO Mr. Shachar Daniel. The meeting will also present the company’s financial statements and annual report for the year ended December 31, 2024. Shareholders of record as of July 9, 2025, are entitled to vote at the meeting.

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.Date of analysis: Aug 29, 2025