ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has demonstrated a solid cash position, concluding the second quarter with $25 million in cash, equivalents, and liquid investments, marking an increase from $21.6 million in the prior year. The company's focus on the AI vertical indicates potential growth opportunities, despite some offsets from other declining segments, highlighting a dynamic approach within its sole market of web data collection. The positive outlook is further supported by the expectation of strong sequential growth which could lead to significant revaluation well beyond 4x sales, underpinned by updated financial projections for fiscal year 2026.

Alarum Technologies Ltd has reported an adjusted EBITDA of $1.0 million for the quarter and $2.3 million for the first half of the year, marking a decline relative to prior periods. The company's net retention rate (NRR) has decreased to 98% in Q2, a substantial drop from mid-110s, reflecting ongoing shifts in customer segments that have adversely affected revenue stability. Additionally, anticipated revenue from servicing a new customer is expected to carry a significantly lower gross margin, further complicating the company's profitability outlook amidst declining consumption from several major clients.