Alarum Technologies Ltd. (ALAR) AI Stock Analysis
ALAR AI stock analysis summary
AI ResearchAlarum Technologies Ltd. (ALAR) provides cybersecurity, privacy, and proxy cloud solutions. Revenue expanded at a 5-year CAGR of 52.8% to reach $40.8M in FY2025, and the company maintains net cash of $11.5M as of March 31, 2026. However, its stock fell 90.9% over the past year to trade at $1.33, reflecting compressed operating margins of 1.2% in FY2025.
- Market cap
- $9.8M
- Revenue (TTM)
- $45.3M
- P/E
- 8.9x fwd 13.9x
- 1Y return
- -90.9% S&P 500 16.8%
- Avg. target
- $16.00 1103.0% vs last close
Bull case
- Trailing twelve-month revenue expanded to $45.3M, supported by latest quarterly revenue growth of 64.2% year-over-year.
- Alarum holds net cash of $11.5M with total cash and short-term investments of $14.1M compared to total debt of $2.6M as of March 31, 2026.
- The stock trades at an EV/EBITDA of 1.4x and a price-to-sales ratio of 0.2x, below the US-listed Technology peer medians of 16.6x and 2.8x.
Bear case
- The stock dropped 90.9% over the past year and remains 75.8% below its 200-day moving average.
- Operating margin contracted sharply from 22.3% in FY2024 to 1.2% in FY2025, while free cash flow was -$1.3M.
- Analysts estimate a net loss for the fiscal year ending December 31, 2026, forecasting an EPS of -$0.15 followed by -$0.49 the following year.
What Alarum Technologies does
Founded in 2013 and headquartered in Tel Aviv-Yafo, Israel, Alarum Technologies Ltd., formerly Safe-T Group Ltd., provides cybersecurity, privacy, and proxy solutions. Its security offerings include iShield, a cloud-based software defending against phishing, malware, and ransomware, AdBlocker for iOS, and ZoneZero SDP for software-defined perimeter and zero trust network access. The company is also recognized for its Proxy solutions, delivering static and dynamic residential proxy cloud services, data center proxies, data collection APIs, Proxy-in-a-Box for private deployments, and dedicated static residential proxies. Alarum serves sectors such as finance, healthcare, retail, and government through resellers, distributors, and internet service providers.
Growth and profitability
Alarum's revenue increased from $9.7M in FY2021 to $40.8M in FY2025, reflecting a 5-year compound annual growth rate of 52.8%. Growth was 20.0% in FY2024 and 28.1% in FY2025. Gross margin shifted from 49.8% in FY2021 to a high of 75.1% in FY2024, before declining to 58.5% in FY2025. Operating margin rose from -107.7% in FY2021 to 22.3% in FY2024, but dropped to 1.2% in FY2025 alongside increased R&D expenses of $7.5M. Net income turned positive at $5.8M in FY2024 and stood at $963,000 in FY2025. For the trailing twelve months ended March 31, 2026, revenue was $45.3M with quarterly revenue growth of 64.2% year-over-year and diluted EPS of $0.15.
Balance sheet and cash flow
As of March 31, 2026, Alarum reported cash and short-term investments of $14.1M and total debt of $2.6M, resulting in net cash of $11.5M. Total assets stood at $44.8M against shareholders' equity of $33.4M. The company maintains a current ratio of 2.58 and a debt-to-equity ratio of 0.08. In FY2025, operating cash flow was -$1.1M and free cash flow was -$1.3M, while capital expenditures totaled $144,137. Over five years, the share count increased 96.8%.
Valuation and performance
At $1.33 per share, Alarum carries a market cap of $9.8M and an enterprise value of $3.1M. It trades at a trailing P/E of 8.9x and a forward P/E of 13.9x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its price-to-sales multiple is 0.2x compared to the peer median of 2.8x, and its EV/EBITDA stands at 1.4x versus the peer median of 16.6x. Over the past year, Alarum's shares fell 90.9%, trailing the S&P 500 benchmark return of 16.8%.
What analysts expect
Wall Street coverage consists of 1 Strong Buy rating, with 0 Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $16.00, representing an upside of 1103.0% over the last close of $1.33. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $50.9M and an EPS of -$0.15. For the next fiscal year, projected revenue is $64.2M with an EPS of -$0.49. Alarum has beaten EPS estimates in each of the last 4 quarters.
Key risks and what to watch
- Shareholder dilution has been substantial, with share count increasing by 96.8% over the past five years.
- Profitability has shown volatility, as net income declined from $5.8M in FY2024 to $963,000 in FY2025.
- Cash generation remains inconsistent, evidenced by operating cash flow of -$1.1M in FY2025.
- Low institutional ownership of 4.2% and insider ownership of 0.5% may limit trading stability.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ALAR AI stock analysis
This page is an AI-written research summary of Alarum Technologies Ltd. (ALAR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ALAR income statement, ALAR balance sheet, ALAR key metrics, ALAR analyst forecast, ALAR chart. See the ALAR stock overview for the latest quote and news.
ALAR AI stock analysis FAQ
What was Alarum Technologies' revenue growth in FY2025?
Alarum generated $40.8M in revenue in FY2025, representing an increase of 28.1% over FY2024. Over a five-year period from FY2020 to FY2025, revenue achieved a compound annual growth rate of 52.8%.
Does Alarum Technologies carry net debt?
No, Alarum holds net cash of $11.5M as of March 31, 2026. It reported $14.1M in cash and short-term investments against $2.6M in total debt.
What is the consensus analyst price target for ALAR stock?
The sole analyst covering the stock has a Strong Buy rating and a mean price target of $16.00. This implies an upside of 1103.0% compared to the October 16, 2026 closing price of $1.33.
Does Alarum Technologies pay a dividend?
Alarum Technologies does not pay a dividend. Capital allocation has focused on operations and research and development, with R&D expenses reaching $7.5M in FY2025.