Summary of Alarum Technologies Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $11.8 million, a 60% increase year-over-year (YoY) from $7.4 million.

Full Year Revenue: Approximately $41 million, up 28% from $31.8 million in 2024.

Q4 Net Profit: $0.2 million, down from $0.4 million YoY.

Full Year Net Profit: $1 million, significantly down from $5.8 million in 2024.

Q4 Adjusted EBITDA: $1 million, compared to $1.5 million YoY.

Full Year Adjusted EBITDA: $4.4 million, down from $9.4 million in 2024.

Gross Margin: Q4 gross margin at 53.8%, down from 72.4% YoY; full year gross margin at 58.5%, down from 75.1%.

Cash Position: $22.5 million as of December 31, 2025, down from $25 million in 2024; zero debt.

2Strategic Updates and Business Highlights

Alarum's growth is primarily driven by demand from AI-focused customers, with AI products accounting for 30% of revenues, up from 4% the previous year.

Significant operational scaling included doubling headcount and expanding infrastructure to support increased workloads, which rose from 3-4 petabytes per month to 70 petabytes.

The company is transitioning from a proxy-focused model to a diversified data infrastructure platform, enhancing customer relationships and operational complexity.

Alarum is positioning itself as a key player in the AI ecosystem, with expectations of smoother revenue patterns as the market matures.

3Forward Guidance and Outlook

Q1 2026 Revenue Guidance: Expected around $11 million, representing approximately 46% YoY growth.

Q1 2026 Adjusted EBITDA Guidance: Approximately $1.4 million, with a range of plus or minus $0.5 million.

Management anticipates continued growth and a path to exceed a $100 million revenue run rate as the AI data infrastructure market develops.

4Bad News, Challenges, or Points of Concern

Declining Profitability: Net profit and adjusted EBITDA have decreased significantly YoY, reflecting increased strategic costs and investments.

Gross Margin Compression: Decline in gross margins due to higher infrastructure costs associated with large-scale AI customer demands.

Revenue Volatility: Revenue fluctuations are expected as large AI developers adjust spending based on their model development cycles, leading to potential quarterly revenue variability.

Competitive Pressures: The evolving landscape of data collection techniques and competition from companies implementing advanced data prevention measures pose ongoing challenges.

5Notable Q&A Insights

Data Collection Challenges: CEO Shachar Daniel emphasized that while data collection is becoming more challenging due to evolving website data prevention techniques, this presents an opportunity for Alarum as it raises barriers for smaller competitors.

Customer Engagements: Alarum is actively negotiating with new customers, particularly in the AI sector, and anticipates that new customer cohorts will drive future growth.

Infrastructure Investments: The company is focused on optimizing its infrastructure to improve efficiency and margins, although current investments are impacting short-term profitability.

Long-term Relationships: The CEO noted that partnerships with enterprise customers are stabilizing and demand is expected to remain strong as these customers continue to require data for model training and updates. Overall, Alarum Technologies reported strong revenue growth in Q4 2025, driven by AI demand, but faces challenges related to profitability and margin compression due to strategic investments. The company remains optimistic about future growth and market opportunities.