This article first appeared on GuruFocus .
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Fourth Quarter Revenue:$11.8 million, up 60% year-over-year.
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Full Year Revenue:$40.7 million, up 28% from 2024.
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Fourth Quarter Net Profit:$0.2 million.
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Full Year Net Profit:$1 million.
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Fourth Quarter Adjusted EBITDA:$1 million.
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Full Year Adjusted EBITDA:$4.4 million.
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Fourth Quarter Gross Margin:53.8%, down from 72.4% in 2024.
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Full Year Gross Margin:58.5%, down from 75.1% in 2024.
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Fourth Quarter Operating Expenses:$6.4 million, up from $5 million in 2024.
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Full Year Operating Expenses:$23.6 million, up from $17.2 million in 2024.
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Basic Earnings Per Share (ADS) for Q4:$0.03, down from $0.06 in 2024.
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Basic Earnings Per Share (ADS) for Full Year:$0.14, down from $0.87 in 2024.
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Shareholders' Equity as of December 31, 2025:$32.1 million, up from $26.4 million in 2024.
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Cash and Cash Equivalents as of December 31, 2025:$22.5 million, down from $25 million in 2024.
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Guidance for Q1 2026 Revenue:Approximately $11 million, with a range of plus or minus 7%.
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Guidance for Q1 2026 Adjusted EBITDA:Approximately $1.4 million, with a range of plus or minus $0.5 million.
Release Date: March 19, 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 60% year-over-year increase in fourth-quarter revenue, reaching $11.8 million.
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Full-year 2025 revenues grew by 28%, totaling nearly $41 million, driven by strong demand from AI-focused customers.
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The company's new AI-focused products accounted for about 30% of revenues, up from 4% the previous year.
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Alarum significantly expanded its work with major global technology companies, enhancing its competitive advantage.
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The company maintained profitability with a fourth-quarter net profit of $0.2 million and adjusted EBITDA of $1 million.
Negative Points
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Gross margin declined to 53.8% in Q4 2025 from 72.4% in Q4 2024, due to higher initial infrastructure costs.
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Operating expenses increased to $6.4 million in Q4 2025, up from $5 million in Q4 2024, impacting net profit.
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Net profit for the full year 2025 was $1 million, down from $5.8 million in 2024, reflecting increased strategic costs.
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Adjusted EBITDA for the full year 2025 decreased to $4.4 million from $9.4 million in 2024.
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The company anticipates variability in demand due to the early stages of the global AI market, affecting revenue predictability.
Q & A Highlights
Q: Can you provide an update on the state of modern website data collection prevention techniques and how Alarum is keeping up with these changes? A: Shachar Daniel, CEO, explained that as data becomes crucial for AI and LLMs, collecting it at scale is increasingly challenging. Alarum views this as an opportunity rather than a threat, as it raises barriers for smaller players. The company focuses on collecting publicly available data and ensuring they are not perceived as a cyber threat, which helps them maintain access to necessary data.
Q: With revenue declines this quarter and guidance for a decline in Q1, how do you see visibility improving with long-term infrastructure partnerships? A: Shachar Daniel, CEO, noted that while quarterly revenues may fluctuate due to the nature of AI model development cycles, the overall trend is positive. The company experienced significant growth in 2025, and while demand can vary quarter-to-quarter, the long-term opportunity remains substantial.
Q: Nearly half of Q4 revenue came from new customers. How do you see this trend continuing, and are there new customer engagements in the works? A: Shachar Daniel, CEO, stated that the AI sector's demand for data is not a trend but a lasting need. Alarum is continuously negotiating with new and existing customers, including major and mid-level LLMs, to expand their customer base and capitalize on the growing demand for data collection for AI model training.
Q: Can you elaborate on the progress of bringing more infrastructure in-house to expand gross margins? A: Shachar Daniel, CEO, mentioned that Alarum is investing in expanding their network and infrastructure to support large-scale demands, particularly from AI use cases. They are also working to optimize costs and improve efficiency, which is expected to positively impact margins throughout 2026.
Q: How is the partnership with your large anchor customer, the Asian Online Marketplace, progressing? A: Shachar Daniel, CEO, reported that the partnership is stable and going well. The demand for data from this customer is consistent, and they require ongoing data collection for model training and updates, indicating a sustained relationship.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
