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Alarum Technologies Ltd. (IL:ALAR)
:ALAR
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Alarum Technologies
(ALAR)
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Rating:65Neutral
Price Target:
313.00
▲(7.45% Upside)
Alarum Technologies' overall stock score reflects strong financial performance and promising growth prospects in the AI sector. However, technical indicators show bearish momentum, and valuation metrics suggest the stock may be overvalued. The earnings call provided a mixed outlook with both significant growth and operational challenges.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective product adoption, particularly in AI-centric solutions, positioning Alarum Technologies for sustained expansion.
Financial Stability
A strong equity base and cash reserves provide Alarum Technologies with financial flexibility to invest in growth opportunities and weather economic fluctuations.
AI Market Traction
The robust growth in AI product adoption underscores Alarum's competitive positioning in the cybersecurity market, enhancing its long-term growth prospects.
Negative Factors
Gross Margin Pressure
The decline in gross margins due to increased investments and lower pricing pressures could impact profitability, necessitating efficiency improvements to sustain margins.
Operating Expenses Increase
Rising operating expenses, driven by higher employee costs and scaling operations, could pressure net margins, requiring cost control measures for long-term financial health.
Net Profit Decline
The sharp decline in net profit, partly due to the absence of one-time financial income, highlights the need for sustainable profit generation strategies to enhance shareholder value.
Alarum Technologies (ALAR) vs. iShares MSCI Israel ETF (EIS)
Market Cap
382.99M
Dividend YieldN/A
Average Volume (3M)402.02K
Price to Earnings (P/E)18.0
Beta (1Y)0.12
Revenue Growth9.00%
EPS Growth-84.50%
CountryIL
Employees68
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.20
Shares Outstanding71,694,244
10 Day Avg. Volume238,672
30 Day Avg. Volume402,023
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)2.87
Price to Sales (P/S)2.37
P/FCF Ratio8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Alarum Technologies Business Overview & Revenue Model
Company DescriptionAlarum Technologies (ALAR) is a leading provider of advanced cybersecurity solutions, specializing in real-time threat detection and response services. The company operates primarily in the technology and cybersecurity sectors, offering a range of products that include network security, endpoint protection, and cloud security solutions to a diverse clientele, including enterprises and government organizations. With a focus on innovation, Alarum Technologies aims to deliver cutting-edge solutions that enhance the security posture of its customers against evolving cyber threats.
How the Company Makes MoneyAlarum Technologies generates revenue through multiple streams, primarily by offering subscription-based services for its cybersecurity products. This includes licensing fees for software solutions, maintenance contracts, and cloud-based security services. Additionally, the company earns income from consulting services, where it provides expert guidance on cybersecurity best practices and threat mitigation strategies. Significant partnerships with major technology firms and government contracts also play a crucial role in its earnings, as they expand its market reach and enhance its credibility in the cybersecurity landscape.
Alarum Technologies Earnings Call Summary
Earnings Call Date:Nov 26, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong revenue growth driven by AI market expansion and a solid financial position. However, it also highlighted challenges in terms of gross margin pressure and increased operating expenses, leading to a decline in net profit.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Q3 revenues reached $13 million, representing an 81% increase year-over-year and a 48% sequential growth, marking one of the strongest quarters in the company's history.
AI Customer Expansion
26% more paying customers and a 17% higher average revenue per customer were recorded, with significant growth driven by major AI customers.
Strong AI Market Traction
Alarum achieved strong adoption of newer AI-centric products, with Website Unblocker and Custom Scrapers showing triple and high double-digit sequential growth, respectively.
Financial Stability
Shareholders' equity increased to $31.1 million, and the company maintains a solid cash position with $24.6 million in cash and cash equivalents.
Negative Updates
Gross Margin Pressure
Non-IFRS gross margins fell to 56% in Q3 2025 from 74% in Q3 2024, due to increased investments and lower unit pricing with large AI customers.
Operating Expenses Increase
Operating expenses rose to $7.4 million in Q3 2025 from $4.1 million in Q3 2024, driven by higher employee-related costs and an overall increase in operational scale.
Net Profit Decline
Net profit for Q3 2025 was $0.1 million, down from $4.2 million in Q3 2024, due to the absence of a one-time financial income that benefited the previous year.
Company Guidance
During Alarum Technologies' third-quarter 2025 earnings call, the company reported a significant milestone with revenues reaching $13 million, marking an 81% year-over-year and 48% sequential increase. The surge was primarily driven by heightened demand from major AI customers and the expansion of AI-centric products. Key metrics included a 26% increase in paying customers and a 17% rise in average revenue per customer. While the gross margin faced short-term pressure, declining to 56% from 74% the previous year, due to investments and the high scale demands of large AI customers, the company anticipates margin improvements through initiatives like in-house solutions and network optimization. The outlook for Q4 2025 forecasts revenues around $12 million, reflecting a 62% year-over-year growth, with adjusted EBITDA expected to be approximately $1 million. The call highlighted Alarum's strategic focus on long-term growth, emphasizing the foundational role AI is expected to play in the company's future.Alarum Technologies Financial Statement Overview
Summary
The company has demonstrated strong financial performance with significant revenue growth, improved profitability margins, and enhanced cash flow metrics. Low leverage and a strong equity position further contribute to its financial stability.Income Statement
The company has shown significant revenue growth with a notable increase in total revenue from $26.52M in 2023 to $31.82M in 2024, marking a 19.99% growth rate. Gross profit margin improved to 75.12% in 2024, indicating strong cost management. The net profit margin increased to 18.16%, reflecting a turnaround from losses in prior years. EBIT and EBITDA margins also improved substantially, showcasing enhanced operational efficiency.78
Positive
Balance Sheet
The debt-to-equity ratio decreased to 0.06, demonstrating low leverage and financial stability. Return on equity (ROE) reached 21.94%, highlighting effective management of shareholder funds. The equity ratio at 75.68% indicates a strong equity position, although the total assets growth has been moderate.72
Positive
Cash Flow
Free cash flow grew by 88.19% to $8.79M, reflecting improved cash generation. The operating cash flow to net income ratio of 1.54 indicates solid cash conversion from profits. The free cash flow to net income ratio is 1.52, further supporting strong cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.49M | 31.82M | 26.52M | 18.78M | 10.28M | 4.89M |
| Gross Profit | 20.74M | 23.91M | 19.11M | 10.13M | 5.14M | 2.39M |
| EBITDA | 2.44M | 8.31M | 3.60M | -10.53M | -9.70M | -8.03M |
| 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
Negative
291.30
Price Trends
465.10
Negative
469.97
Negative
384.07
Negative
Market Momentum
-50.40
Positive
27.40
Positive
10.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALAR, the sentiment is Negative. The current price of 291.3 is below the 20-day moving average (MA) of 408.29, below the 50-day MA of 465.10, and below the 200-day MA of 384.07, indicating a bearish trend. The MACD of -50.40 indicates Positive momentum. The RSI at 27.40 is Positive, neither overbought nor oversold. The STOCH value of 10.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL: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
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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.