ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has demonstrated a strong cash position, ending Q2 with $25 million in total cash, equivalents, and liquid investments, an increase from $21.6 million in the same period the previous year, indicating a solid liquidity position. While the AI vertical has shown positive performance, there are other segments experiencing declines; however, the overall revenue diversity across international markets, notably strong revenues from the United Arab Emirates, reflects robust business resilience. The potential for significant growth is emphasized by the prospect of improving sequential performance, suggesting the company could achieve a rerating beyond 4x sales if it continues to deliver strong results in coming quarters.

Alarum Technologies Ltd has reported an adjusted EBITDA of $1.0 million for the most recent quarter, a decline from previous quarters, coupled with a total of $2.3 million for the first half of the year, indicating weakened profitability. The company's net retention rate fell to 98% in Q2, a considerable drop from mid-110s levels, which reflects an ongoing shift in customer segments negatively impacting revenue stability. Additionally, while Alarum anticipates $3 million in revenue from servicing a new customer, it is expected to be achieved at a lower gross margin, further contributing to a challenging financial outlook.