ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has demonstrated a robust cash position, ending Q2 with $25 million in total cash, equivalents, and liquid investments, an increase from $21.6 million in the same period a year ago. The company's focus on the AI vertical is noteworthy, as it indicates growth potential, despite being partially offset by declines in other segments. With the observed potential for significant rerating opportunities, particularly if Alarum can achieve consistent strong growth in subsequent quarters, the outlook for the company remains positive.

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 weaker profitability compared to recent performance. The company's net retention rate (NRR) fell to 98% in Q2, a significant decline from mid-110s levels, which reflects an ongoing shift in customer segments negatively impacting revenue stability. Additionally, projected revenue growth from servicing new customers is anticipated to come with notably lower gross margins, further challenging the company's financial outlook amidst reduced consumption from major clients.