ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has shown a notable improvement in its cash position, ending Q2 with $25 million in total cash, equivalents, and liquid investments, an increase from $21.6 million year-over-year. The company primarily operates in the web data collection market and has generated significant revenue from key regions, particularly the United Arab Emirates, indicating a strong geographical revenue base. Despite some segment performance fluctuations, the positive momentum in the AI vertical and the overall solid financial standing reflect a promising outlook for Alarum Technologies's stock.

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, indicating a decline in profitability compared to recent quarters. The company's net retention rate (NRR) has also decreased significantly to 98% in Q2, down from the mid-110s, reflecting an ongoing shift in customer segments that has negatively impacted revenue stability. Additionally, anticipated near-term revenue growth from servicing new customers is expected to come at a much lower gross margin, compounding financial concerns due to reduced consumption from multiple large customers experiencing changes in their businesses.