ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has demonstrated a positive cash position, concluding Q2 with total cash, equivalents, and liquid investments of $25 million, an increase from $21.6 million in the same quarter the previous year. The company's focus on web data collection products, particularly within the AI vertical, positions it favorably across various global markets, with substantial revenue generated from the United Arab Emirates, China, and the United States. Analysts recognize significant potential for rerating in the company's valuation, particularly if Alarum can sustain strong sequential growth in upcoming quarters.

Alarum Technologies Ltd has demonstrated a decline in profitability, with an adjusted EBITDA of $1.0 million for the quarter and $2.3 million for the first half of the year, underperforming relative to prior quarters. The company's net retention rate has dropped to 98% in Q2, a significant decline from previous mid-110s levels, driven by an ongoing shift in customer segments and reduced consumption from multiple large customers. Additionally, the anticipated revenue growth of $3 million is expected to come with a notably lower gross margin, further complicating the company’s financial landscape and contributing to the negative outlook.