Alarum Technologies (ALAR) investor relations material

Executive summary

• Q2 2025 revenue reached $8.8M, net profit was $0.3M, and adjusted EBITDA was $1M, reflecting stabilization and renewed growth momentum after a prior market-driven decline and exceeding upgraded guidance.

• Strong performance was driven by surging demand for large-scale AI training data, with new projects and strategic collaborations from major tech and e-commerce customers.

• Strategic focus on investing in infrastructure, R&D, and talent to support growth and long-term positioning in the AI sector.

• Management emphasizes the volatile and nascent nature of the AI data market, urging investors to assess progress over multiple quarters.

Financial highlights

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

• 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 $5.4M from $4.2M, mainly due to increased R&D hiring.

• Non-IFRS net profit was $0.3M, reversing a $0.4M loss in Q2 2024; adjusted EBITDA was $1M, down from $3.4M.

• Shareholders' equity reached $29.1M, with cash and investments stable at $25M as of June 30, 2025.

Outlook and guidance

• FY 2025 revenue is projected at $12.8M (±7%), a 78% year-over-year increase, with adjusted EBITDA expected around $1.1M (±$0.5M).

• Guidance includes a $3M revenue contribution in Q3 from a new large-scale AI data project, though near-term profitability will be limited.

• Management expects further gross margin pressure in Q3 due to the ramp-up of this project.

• Management anticipates continued strong demand and strategic positioning in the evolving AI market, but notes potential for short-term revenue volatility.