This article first appeared on GuruFocus .
Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Alarum Technologies Ltd ( NASDAQ:ALAR ) reported a 64% year-over-year revenue growth, reaching $11.7 million in Q1 2026.
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The company achieved a positive IFRS net income of $0.6 million and an adjusted EBITDA of $2.1 million.
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Alarum's infrastructure handled over 50 petabytes of monthly data traffic, showcasing significant scaling capabilities.
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The company is expanding its product mix to include AI-ready datasets and agentic workflow capabilities, broadening its addressable market.
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Alarum ended the quarter with a strong balance sheet, holding $24.2 million in cash equivalents and no financial debt.
Negative Points
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Gross margins decreased to 61.7% in Q1 2026 from 67.5% in Q1 2025, indicating pressure on profitability.
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Operating expenses increased to $6.4 million from $4.5 million in the same quarter last year, driven by higher payroll and R&D costs.
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The market environment remains highly dynamic and volatile, with fluctuating demand patterns impacting short-term profitability.
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Quarter-to-quarter variability is expected to continue due to changes in large AI customers' consumption patterns.
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The company prioritizes long-term infrastructure leadership over short-term margin maximization, which may affect immediate profitability.
Q & A Highlights
Q: Can you provide more details about the Agentic Workflow product and its potential impact on revenue? A: The Agentic Workflow product simplifies customer interactions by automatically directing them to the most relevant products and services. While it is not expected to generate direct revenue, it serves as a layer that enhances customer experience and provides upsell opportunities. (Respondent: CEO, Shahar Daniel)
Q: How does Alarum Technologies maintain its competitive edge in the increasingly challenging data scraping environment? A: Alarum leverages its extensive network size, diversified IPs, and advanced routing capabilities to maintain high success rates in data collection. The company continuously adapts to technological advancements in anti-bot protections to ensure efficient data retrieval. (Respondent: CEO, Shahar Daniel)
Q: What factors contributed to the strong gross margin performance in the first quarter, and what are the expectations for the rest of the year? A: The improvement in gross margins was due to better infrastructure utilization and efficiency gains from previous investments. While the company aims to maintain efficiency, it is willing to adjust margins to penetrate new markets or customers if necessary. (Respondent: CEO, Shahar Daniel)
Q: Can you elaborate on the retention and expansion potential of AI and LLM infrastructure-related customers? A: AI customers show strong retention due to their ongoing need for data, which is essential for both training and production stages. While consumption can be volatile, the long-term relationship with these customers is expected to be stable and potentially expand over time. (Respondent: CEO, Shahar Daniel)
Q: What is the company's approach to managing quarter-to-quarter variability in customer demand? A: Alarum Technologies focuses on long-term infrastructure leadership and strategic positioning, accepting short-term variability as part of the evolving AI infrastructure market. The company aims to diversify its customer base and product offerings to enhance resilience. (Respondent: CEO, Shahar Daniel)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
