Alarum Technologies Ltd. (ALAR) reported its fourth‑quarter 2025 results on March 19 2026, posting revenue of $11.8 million—an increase of 60 % year‑over‑year—and a full‑year revenue of $40.7 million, up 28 % from $31.8 million in 2024. Gross margin fell to 53.8 % in Q4 from 72.4 % in Q4 2024, and the full‑year gross margin contracted to 58.5 % from 75.1 % the previous year. Net profit declined to $0.2 million in Q4 from $0.4 million, and the full‑year net profit dropped to $1.0 million from $5.8 million. Adjusted EBITDA also slipped year‑over‑year.
Revenue growth was driven by robust demand from large‑scale AI customers and increased sales of new AI‑focused products. The company’s expansion of infrastructure, enterprise customer support, and product development—intended to capture long‑term market share—contributed to the sharp compression in gross margin. These investments, while boosting top‑line growth, have increased operating costs and reduced profitability.
Management guided for the first quarter of 2026 with revenue of approximately $11 million (± 7 %) and adjusted EBITDA of about $1.4 million (± $0.5 million). The guidance reflects expected quarter‑to‑quarter variability tied to AI customers’ model development cycles, yet it signals confidence in sustaining a >$100 million run‑rate over the long term.
CEO Shachar Daniel described 2025 as a "transformational year" for Alarum, noting the company’s scaling of organization, infrastructure, and product platform to support the AI ecosystem. CFO Shai Avnit attributed the decline in profit to "increased strategic costs" associated with these investments.
Investors reacted negatively to the margin compression and reduced profitability, a pattern consistent with past earnings releases. Alarum’s strategic shift to a pure data‑collection model—divesting cybersecurity and consumer activities—has positioned it to capitalize on the growing AI training‑data market, while its balance sheet remains solid with $22.5 million in cash and $32.1 million in shareholders’ equity as of December 31 2025.
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