ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has shown a strong financial profile, ending Q2 with $25 million in cash, equivalents, and liquid investments, representing a notable increase from $21.6 million in the same period of the previous year. The company's focus on the AI vertical is promising, and this growth potential, despite some offset by weaker segments, highlights a dynamic business environment. With a robust cash position and increasing operational engagement in high-growth areas such as AI, Alarum is well-positioned for future expansion and could experience significant rerating potential as it builds on sequential growth.

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, which is weaker compared to previous quarters and indicates declining profitability. The company's net retention rate fell to 98% in Q2, a significant decrease from the mid-110s, attributed to ongoing shifts in customer segments that have negatively impacted revenue stability. Additionally, the anticipated $3 million in revenue from a new customer is expected to come with meaningfully lower gross margins, further hindering overall financial performance in the near term.