Alarum Technologies (ALAR) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue reached $40.7 million, up 28% year-over-year, with Q4 revenue at $11.8 million, up 60% year-over-year, driven by AI-focused products and new product adoption.

• Net profit for FY 2025 was $1.0 million and adjusted EBITDA was $4.4 million, despite significant investments in infrastructure, R&D, and talent.

• AI-focused products accounted for 30% of 2025 revenues, up from 4% the previous year, reflecting a strategic shift to AI data infrastructure.

• The company transitioned from a proxy-focused business to a diversified data infrastructure platform, expanding enterprise relationships and product offerings.

• Expanded customer base across AI, e-commerce, travel, brand protection, and other sectors.

Financial highlights

• FY 2025 gross margin was 58.5%, down from 75.1% in 2024; Q4 2025 gross margin was 53.8%.

• Operating expenses rose to $23.6 million in 2025 from $17.2 million in 2024, mainly due to R&D and sales/marketing investments.

• Net profit declined to $1.0 million in 2025 from $5.8 million in 2024; Q4 net profit was $0.2 million, down from $0.4 million in Q4 2024.

• Adjusted EBITDA for 2025 was $4.4 million, down from $9.4 million in 2024.

• Cash, cash equivalents, and debt investments totaled $22.5 million at year-end 2025; shareholders' equity increased to $32.1 million.

Outlook and guidance

• Q1 2026 revenue expected at approximately $11.0 million (±7%), representing 46–54% year-over-year growth; adjusted EBITDA forecasted at $1.4 million (±$0.5 million).

• Management expects margin improvement as operating leverage increases and third-party costs decrease.

• Anticipates smoother, more predictable revenue growth as customer base diversifies and AI models mature.

• Targeting deeper penetration into major AI and LLM players and expanding global IP network.

• Market for data collection and labeling projected to reach $17B by 2030, with a 28% CAGR from 2024-2030.