Alarum Technologies (ALAR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 64% year-over-year to $11.7 million, driven by strong AI and enterprise data workload demand.

• Net income reached $0.6 million, with adjusted EBITDA of $2.1 million, reflecting improved operating leverage.

• Maintained a debt-free balance sheet with $24.2 million in cash and $33.4 million in equity as of March 31, 2026.

• Continued investment in infrastructure and platform expansion to support long-term leadership in AI data infrastructure.

• Platform is evolving from proxy-focused to broader AI data infrastructure, with agentic workflow capabilities launching in H2 2026.

Financial highlights

• Q1 2026 gross margin was 61.7%, up from 53.8% in Q4 2025 but down from 67.5% in Q1 2025.

• Operating expenses were $6.4 million in Q1 2026, mainly due to R&D and payroll.

• Cash, cash equivalents, and debt investments totaled $24.2 million as of March 31, 2026.

• Shareholders’ equity was $33.4 million as of March 31, 2026.

• Basic earnings per ADS were $0.08 in Q1 2026.

Outlook and guidance

• Q2 2026 revenue expected at $12.2 million ±5%, representing 39% year-over-year growth at midpoint.

• Adjusted EBITDA guidance for Q2 2026: $1.8 million ±$500,000.

• Strategic roadmap focuses on scaling infrastructure, operational efficiency, and launching AI-native products.