Alarum Technologies Ltd. (IL:ALAR)
TASE:ALAR
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Alarum Technologies
(TASE:ALAR)
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Rating:58Neutral
Price Target:
201.00
▼(-30.26% Downside)
Action:ReiteratedDate:03/22/26
The score is driven primarily by strong top-line growth and a solid, low-leverage balance sheet, but is held back by the sharp 2025 profitability and cash-flow deterioration. Technically, the stock is in a clear downtrend with weak momentum, and valuation is unattractive due to the extremely high P/E. The earnings call supports the growth outlook (AI demand) but also underscores near-term margin pressure.
Positive Factors
Sustained revenue growth driven by AI demand
Alarum’s revenue growth is structurally tied to AI data demand: strong Q3 growth and expanding ARPC reflect deeper product adoption and enterprise engagements. This enlarges the addressable market and supports recurring revenue expansion, underpinning durable top-line momentum over months.
Negative Factors
Sharp gross margin compression in 2025
Material margin deterioration tied to servicing large AI customers and pricing changes reduces operating leverage. If lower gross margins persist, the company will face sustained pressure on profitability and returns, requiring structural cost or pricing fixes to restore long-term margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth driven by AI demand
Alarum’s revenue growth is structurally tied to AI data demand: strong Q3 growth and expanding ARPC reflect deeper product adoption and enterprise engagements. This enlarges the addressable market and supports recurring revenue expansion, underpinning durable top-line momentum over months.
Read all positive factors
Alarum Technologies (ALAR) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪136.73M
Dividend YieldN/A
Average Volume (3M)402.02K
Price to Earnings (P/E)72.1
Beta (1Y)0.41
Revenue Growth9.00%
EPS Growth-84.50%
CountryIL
Employees68
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.00
Shares Outstanding72,576,020
10 Day Avg. Volume238,672
30 Day Avg. Volume402,023
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.95
Price to Sales (P/S)1.42
P/FCF Ratio-44.99
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 ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, the Middle East, the United Kingdom, the British Virgin Islands, the Asia Pacific, and internationally. The company op...
How the Company Makes Money
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Alarum Technologies Earnings Call Summary
Earnings Call Date:Nov 26, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 02, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
68
Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.49M | 44.12M | 31.82M | 26.52M | 18.78M | 10.28M |
| Gross Profit | 20.74M | 25.41M | 23.91M | 19.11M | 10.13M | 5.14M |
| EBITDA | 2.44M | 1.37M | 8.31M | 3.60M | -10.53M | -9.70M |
| Net Income | 5.39M | 1.04M | 5.78M | -5.53M | -13.15M | -13.13M |
Balance Sheet | ||||||
| Total Assets | 35.77M | 45.90M | 34.81M | 20.07M | 22.37M | 30.65M |
| Cash, Cash Equivalents and Short-Term Investments | 14.91M | 12.27M | 15.08M | 10.87M | 3.29M | 9.71M |
| Total Debt | 893.00K | 2.64M | 1.59M | 1.99M | 3.05M | 562.00K |
| Total Liabilities | 6.65M | 13.80M | 8.46M | 6.88M | 9.06M | 6.47M |
| Stockholders Equity | 29.13M | 32.10M | 26.35M | 13.18M | 13.31M | 24.19M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.39M | 8.79M | 4.67M | -8.11M | -9.49M |
| Operating Cash Flow | 0.00 | -1.23M | 8.89M | 4.73M | -8.05M | -9.21M |
| Investing Cash Flow | 0.00 | -706.85K | -9.34M | 592.00K | 5.04M | -9.80M |
| Financing Cash Flow | 0.00 | -587.78K | 4.69M | 2.21M | 2.60M | 11.64M |
Alarum Technologies Technical Analysis
Negative
288.20
Price Trends
227.42
Negative
274.21
Negative
371.36
Negative
Market Momentum
-10.06
Positive
35.05
Neutral
10.06
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 288.2 is above the 20-day moving average (MA) of 211.95, above the 50-day MA of 227.42, and below the 200-day MA of 371.36, indicating a bearish trend. The MACD of -10.06 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 10.06 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
UnderperformOutperform
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IL:ALAR
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185.20
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-21.43%
IL:ABRA
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379.50
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29.92%
IL:NTGR
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1,075.00
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-14.55%
IL:GOSS
G 1 Secu
1,155.00
712.55
161.05%
IL:UTRN
Utron
483.10
-170.70
-26.11%
IL:RZR
Razor Labs
692.20
243.50
54.27%
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.