ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has demonstrated a positive financial trajectory, with total cash, equivalents, and liquid investments increasing to $25 million in Q2 from $21.6 million in the same period a year ago, indicating strong liquidity. The company operates exclusively in the web data collection segment, which allows for secure and anonymous data gathering, primarily generating revenue from diverse regions, including the UAE, China, and the United States. The performance of the AI vertical is noted as a strong point, enhancing the overall growth potential, especially if the company can maintain a trend of strong sequential growth.

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 recent periods. The company's net retention rate fell to 98% in Q2, a significant drop from previous levels in the mid-110s, which reflects ongoing challenges with customer segment shifts. Furthermore, a notable portion of upcoming revenue is expected to come from a customer at a lower gross margin, which raises concerns about overall profitability moving forward.