ALAR Stock Forecast & Price Target

Alarum Technologies Ltd concluded the second quarter with a solid cash position of $25 million, an increase from $21.6 million during the same period a year earlier, indicating improved liquidity and financial health. The company's focus on the AI vertical, despite some offsets from declining segments, demonstrates its potential for growth in high-demand areas. Additionally, the ongoing performance and expansion into key markets such as the United Arab Emirates and China suggest a promising trajectory for revenue generation in the web data collection sector.

Alarum Technologies Ltd reported adjusted EBITDA of $1.0 million for the quarter and $2.3 million for the first half of the year, indicating a decline in profitability compared to previous periods. Additionally, the company's net retention rate fell to 98% in Q2, a significant decrease from prior levels in the mid-110s, largely due to ongoing shifts in customer segments. Furthermore, the anticipated $3 million in revenue from servicing a new customer is expected to come with a considerably lower gross margin, which will impact overall profitability in the near term.