Alarum Technologies Ltd.

First-quarter 2026 revenue was $11.7 million, up 64% from $7.1 million in Q1 2025. Gross margin was 61.7% versus 67.5% a year ago and 53.8% in the prior quarter. IFRS net income was approximately $0.6 million versus $0.4 million last year, and adjusted EBITDA was approximately $2.1 million versus $1.3 million last year. Operating expenses were $6.4 million versus $4.5 million a year ago. Cash, cash equivalents and debt investments were $24.2 million as of March 31, 2026, with no financial debt. For Q2 2026, management expects revenue of approximately $12.2 million, plus or minus 5%, and adjusted EBITDA of approximately $1.8 million, plus or minus $0.5 million; this implies about 39% year-over-year revenue growth at the midpoint.

Shachar Daniel framed the quarter as evidence that Alarum is scaling into a broader AI data infrastructure platform, not just a proxy provider. He emphasized strong demand from AI and enterprise data workloads, said the company is seeing operating leverage from prior investments, and repeated that the market is still early and dynamic. His tone was optimistic but cautious, stressing long-term infrastructure leadership over short-term margin maximization.

Shai Avnit highlighted the hard numbers: $11.7 million in revenue, 61.7% gross margin, $6.4 million of operating expenses, $0.6 million of net income, and $2.1 million of adjusted EBITDA. He said the margin improvement came from better infrastructure utilization, operating leverage and efficiency initiatives, despite a foreign exchange headwind from a weaker U.S. dollar versus the NIS. He also noted a strong balance sheet with $24.2 million in cash, cash equivalents and debt investments, no financial debt, and shareholder equity of $33.4 million, while reiterating discipline on operational efficiency and capital allocation.

Analysts focused on the upcoming agentic workflow product, the durability of Alarum’s scraping moat, gross margin sustainability, and the lumpiness of NRR. Management said the agentic layer is intended to make customer workflows simpler and create upsell opportunities, but is not expected to be a standalone revenue product. On moat and competition, management argued that larger network scale, more IPs and geographies, and tools like Unblocker and SERP API help maintain high success rates as anti-bot defenses evolve. On NRR, management said its 4-quarter measurement method makes the metric look lumpier, and that AI customer retention is strong even though revenue can swing quarter to quarter.