Alarum Technologies (ALAR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $8.8 million, net profit was $0.3 million, and adjusted EBITDA was $1 million, reflecting stabilization and renewed growth momentum after a period of market-driven decline, exceeding prior expectations and aligning with upgraded guidance issued in June.

• Strong performance driven by surging demand from AI and e-commerce customers, including major tech giants and large-scale projects, with new strategic collaborations and increased usage of data collection solutions.

• Strategic focus on investing profits into infrastructure, R&D, and expanding the customer base to capture long-term value and support positioning in the AI value chain.

Financial highlights

• Q2 2025 revenue was $8.8 million, nearly flat year-over-year (Q2 2024: $8.9 million); H1 2025 revenue was $15.9 million, down from $17.3 million in H1 2024 due to reduced consumption by several large customers.

• Non-IFRS gross margin declined to 61.7% from 76.9% year-over-year, mainly due to higher infrastructure costs for large AI customers.

• Operating expenses rose to $5.4 million from $4.2 million, mainly due to increased R&D hiring.

• Financial income of $400,000 in Q2 2025 versus a $2.5 million expense in Q2 2024, driven by interest income and the expiration of warrants.

• Non-IFRS net profit was $0.3 million, up from a net loss of $0.4 million year-over-year; adjusted EBITDA was $1 million, down from $3.4 million.

Outlook and guidance

• Q3 2025 revenue is projected at $12.8 million (±7%), a 78% year-over-year increase, driven by a new large-scale AI Data Collector project with a major customer.

• Adjusted EBITDA for Q3 2025 expected around $1.1 million (±$0.5 million), with lower gross margins anticipated due to early-stage project costs.

• Near-term profitability will be limited as infrastructure and cost structures are optimized for new projects, and management notes potential for short-term revenue volatility.