Alarum Technologies (ALAR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $13 million, up 81% year-over-year, driven by surging demand from AI customers and strong adoption of new AI-centric products.

• Paying customers grew by 26%, with a 17% increase in average revenue per customer; growth was broad-based and mostly from existing customers.

• Achieved $36.3 million in LTM revenues to Q3 2025, with $4.9 million in LTM Adjusted EBITDA, reflecting strong growth in data collection for AI and enterprise clients.

• Completed transition to a pure data collection company, divesting cybersecurity and scaling down consumer activities, with a strategic focus on AI and e-commerce sectors.

• Significant traction was seen in global e-commerce platforms in Asia, with repeat and expanding orders.

Financial highlights

• Q3 2025 revenue was $13 million, up from $7.2 million in Q3 2024, an 81–84% year-over-year increase; nine-month 2025 revenue was $28.9 million.

• Non-IFRS gross margin was 56% in Q3 2025, down from 74% in Q3 2024, due to higher upfront costs and lower unit pricing for large AI customers.

• Net profit for Q3 2025 was $0.1 million, compared to $4.2 million in Q3 2024; Adjusted EBITDA was $1.2 million, slightly down from $1.4 million in Q3 2024.

• Cash, cash equivalents, and investments stood at $24.6 million as of September 30, 2025; shareholders' equity was $31.1 million.

• Operating expenses rose to $7.4 million from $4.1 million year-over-year, mainly due to increased R&D and sales-related compensation.

Outlook and guidance

• Q4 2025 revenue is expected to be around $12 million, ±7%, representing 62–63% year-over-year growth.

• Full-year 2025 revenue is projected at approximately $41 million, up nearly 30% year-over-year.

• Adjusted EBITDA for Q4 2025 is expected to be around $1 million, with a ±$500,000 range.

• Management anticipates smoother, more predictable revenue growth as AI models move into structured production cycles.

• Plans to expand infrastructure, network coverage, and endpoints, and to penetrate new sectors including Fortune 500 companies.