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Alarum Technologies
(TASE:ALAR)
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Rating:62Neutral
Price Target:
62.00
▲(0.98% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily supported by solid underlying financial position (low leverage and improved balance sheet) and a low P/E valuation, but it is held back by the sharp 2025 downturn in profitability and cash generation and a clearly bearish technical trend with weak momentum.
Positive Factors
Sustained multi-year revenue growth
Consistent high revenue growth across years shows product-market fit and scalable demand for both cybersecurity subscriptions and data-collection services. Combined with recurring subscription/usage pricing, this trend supports durable top-line expansion and customer-retention driven revenue over the next several months.
Negative Factors
Sharp 2025 margin deterioration
A steep compression from prior profitable years to near-break-even operations signals margin pressure that could persist from pricing, cost or mix shifts. Sustained low margins would erode cash generation, limit reinvestment capacity, and could force restructuring or pricing changes over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained multi-year revenue growth
Consistent high revenue growth across years shows product-market fit and scalable demand for both cybersecurity subscriptions and data-collection services. Combined with recurring subscription/usage pricing, this trend supports durable top-line expansion and customer-retention driven revenue over the next several months.
Read all positive factors
Alarum Technologies (ALAR) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪39.68M
Dividend YieldN/A
Average Volume (3M)402.02K
Price to Earnings (P/E)10.2
Beta (1Y)0.34
Revenue Growth33.07%
EPS Growth-79.48%
CountryIL
Employees103
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding73,488,260
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. engages in the provision of zero trust access solutions. It operates through the Enterprise Internet Access and Consumer Internet Access segments. The Enterprise Internet Access segment focuses on solutions provided throug...
How the Company Makes Money
Alarum primarily makes money by selling subscription-based and usage-based services to business customers. A key revenue stream comes from its cybersecurity offerings, where customers pay recurring fees (typically SaaS-style) for access to secure ...
Alarum Technologies Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated strong top-line growth (+64% YoY) and improving operating leverage (adjusted EBITDA $2.1M, sequential gross margin improvement), alongside major infrastructure scale gains (>50 PB/month, >80M IPs) and a healthy cash position with no debt. Offsetting concerns include year-over-year margin compression, rising operating expenses (+~42% YoY), continued demand volatility from AI customers, market complexity from anti-bot defenses, and FX headwinds. Management signaled continued prioritization of long-term infrastructure investment over short-term margin maximization.Positive Updates
Strong Revenue Growth
Q1 2026 revenue was $11.7 million, up ~64% year-over-year (from $7.1M in Q1 2025). Guidance for Q2 2026 is ~$12.2M (+/-5%), which implies ~39% year-over-year growth at the midpoint.
Negative Updates
Year-over-Year Gross Margin Decline
Gross margin declined to 61.7% in Q1 2026 from 67.5% in Q1 2025, a decrease of ~580 basis points year-over-year, indicating some margin pressure versus last year despite sequential improvement.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 2026 revenue was $11.7 million, up ~64% year-over-year (from $7.1M in Q1 2025). Guidance for Q2 2026 is ~$12.2M (+/-5%), which implies ~39% year-over-year growth at the midpoint.
Read all positive updates
Company Guidance
The company guided second-quarter 2026 revenues of approximately $12.2 million (±5%, or about $11.59M–$12.81M), which the company said implies ~39% year‑over‑year growth at the midpoint, and adjusted EBITDA of about $1.8 million (±$0.5M, or roughly $1.3M–$2.3M); the midpoint implies an adjusted EBITDA margin near 14.8%. Versus Q1 (revenues $11.7M, +64% YoY; adjusted EBITDA $2.1M; IFRS net income $0.6M; cash, cash equivalents and debt investments $24.2M; 72.6M shares outstanding), the guide implies a modest sequential revenue increase (~4.3%) but a lower adjusted EBITDA (~‑14%). Management emphasized the guidance is based on current visibility of customer activity, existing workloads and consumption patterns and cautioned that market dynamics could produce quarter‑to‑quarter variability.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 | 45.58M | 44.12M | 31.82M | 26.52M | 18.78M | 10.28M |
| Gross Profit | 26.38M | 25.41M | 23.91M | 19.11M | 10.13M | 5.14M |
| EBITDA | 759.64K | 1.37M | 8.31M | 3.60M | -10.53M | -9.70M |
| Net Income | 1.15M | 1.04M | 5.78M | -5.53M | -13.15M | -13.13M |
Balance Sheet | ||||||
| Total Assets | 44.85M | 45.90M | 34.81M | 20.07M | 22.37M | 30.65M |
| Cash, Cash Equivalents and Short-Term Investments | 14.06M | 12.27M | 15.08M | 10.87M | 3.29M | 9.71M |
| Total Debt | 2.55M | 2.64M | 1.59M | 1.99M | 3.05M | 562.00K |
| Total Liabilities | 11.48M | 13.80M | 8.46M | 6.88M | 9.06M | 6.47M |
| Stockholders Equity | 33.36M | 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 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.
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
3.
The increasing use of social media platforms and new technologies present risks and challenges for our business and reputation. Q4, 2023
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.