Alarum Technologies (ALAR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $7.1 million, with net profit at $0.4 million and adjusted EBITDA at $1.3 million, exceeding guidance.

• The company accelerated strategic investments in infrastructure and next-gen technologies to meet rising AI-driven data demand, impacting gross margin but reinforcing market position.

• Major tech firms and startups, including a top Asian marketplace and a global electronics brand, expanded collaborations for large-scale AI and e-commerce data projects.

• Strategic reinvestment of profits is fueling operational scaling, talent acquisition, and product innovation.

• NetNut Net Retention Rate (NRR) reached 1.13 as of March 31, 2025, indicating strong customer revenue expansion.

Financial highlights

• Q1 2025 revenue was $7.1 million, down from $8.4 million in Q1 2024; $7 million attributed to data collection.

• Gross profit for Q1 2025 was $4.8 million (gross margin 67.5%), compared to $6.6 million (78.5%) in Q1 2024.

• Non-IFRS gross margin declined to 69.4% from 80.4% year-over-year due to increased investment in scale.

• Operating expenses rose to $4.5 million from $4 million, mainly from higher employee costs and R&D salaries.

• Cash equivalents and long-term investments rose to $24 million, up nearly 60% year-over-year.

Outlook and guidance

• Q2 2025 revenue is projected at $7.9 million ±3%.

• Adjusted EBITDA for Q2 2025 is expected between $0.5 million and $0.8 million.

• Guidance reflects broad-based demand growth, not reliant on a single customer.

• Management remains focused on optimizing network infrastructure and product delivery to maintain high margins and long-term value.