ALAR Stock Forecast & Price Target

Alarum Technologies Ltd has shown a positive trend in its cash position, ending Q2 with $25 million in cash and liquid investments, an increase from $21.6 million in the same quarter the previous year. The company's focus on the AI vertical indicates potential for growth, even if it faced challenges in other segments during the quarter. Furthermore, the expectation of significant re-rating potential, particularly if Alarum can maintain strong sequential growth, enhances the company's outlook within the competitive web data collection market.

Alarum Technologies Ltd reported an adjusted EBITDA of $1.0 million for the latest quarter and $2.3 million for the first half of the year, indicating a decline in profitability compared to preceding quarters. The company's net retention rate (NRR) fell to 98% in Q2, a considerable decrease from previous levels in the mid-110s, largely due to shifts in customer segments and reduced consumption from several large clients. Additionally, anticipated revenue growth from servicing new customers is expected to come at significantly lower gross margins, further complicating the company's financial outlook.