ALAR Stock Forecast & Price Target

Alarum Technologies Ltd demonstrated a robust cash position at the end of Q2, with total cash, equivalents, and liquid investments increasing to $25 million compared to $21.6 million a year earlier. The company's performance in the AI vertical indicates potential for growth, which could enhance overall revenue despite challenges in other segments. With a focus on web data collection and a strong geographical revenue base primarily in the UAE, Alarum Technologies is well-positioned for future growth, particularly if it can maintain robust performance in its high-potential areas.

Alarum Technologies Ltd reported an adjusted EBITDA of $1.0 million for the quarter and $2.3 million for the first half of the year, indicating a decline in profitability compared to previous quarters. The company's net retention rate fell to 98% in Q2, significantly down from mid-110s, signaling challenges stemming from a shift in customer segments and reduced usage by major clients. Furthermore, the anticipated $3 million in revenue from servicing a specific customer is expected to come with a considerably lower gross margin than the overall business, highlighting potential profitability concerns in the near term.