0001213900-26-031556
SEC filingAlarum Technologies Ltd. reported FY 2025 revenue of $40.8 million, up 28% from $31.8 million in FY 2024, driven by strong demand in web data collection solutions including IPPN at $29.2 million, data collection tools at $6.1 million, and new datasets at $5.0 million. Gross profit was $23.8 million (58% margin), down slightly from $23.9 million (75% margin) due to higher network/server costs ($6.7 million) and subcontractors ($4.0 million). Operating profit fell to $207K from $6.7 million, reflecting increased R&D ($7.5 million, +67% YoY), sales/marketing ($9.1 million, +30%), and G&A ($7.0 million, +23%). Net profit was $963K, down from $5.8 million, with financial income net at $1.3 million aiding results. EPS was $0.01 basic/diluted vs. $0.09 prior year. Balance sheet strengthened with total assets at $45.9 million (up from $34.8 million), equity $32.1 million. Operating cash flow was negative $2.0 million due to receivables growth ($8.6 million). Forward-looking, focus on AI-driven data collection growth amid competitive pressures.
Alarum Technologies achieved FY 2025 revenue of $40.8 million, a 28% increase from $31.8 million in 2024, primarily from web data collection expansion. Gross profit held at $23.8 million despite margin compression to 58% from 75%, due to elevated infrastructure costs. Operating profit declined sharply to $207K from $6.7 million amid higher expenses: R&D up 67% to $7.5 million, sales/marketing +30% to $9.1 million. Net profit fell to $963K from $5.8 million, offset by $1.3 million net financial income. Basic EPS was $0.01 vs. $0.09. Total assets grew to $45.9 million, equity to $32.1 million. Operating cash flow turned negative at -$2.0 million from receivables surge.
Revenue breakdown: IPPN solutions $29.2 million (-4% YoY), data collection solutions $6.1 million (+954% YoY), datasets $5.0 million (new). Geographic mix: China 29% ($11.9M), U.S. 18% ($7.2M), Europe 14% ($5.8M). Growth driven by AI model training demand and new products, with top 6 customers at 49% of revenue. Contract liabilities indicate recurring SaaS strength.
Gross margin slipped to 58% from 75% on network/server costs ($6.7M) and subcontractors ($4.0M). Operating margin near breakeven at 0.5% vs. 21% prior, pressured by payroll/share-based compensation across functions. No goodwill impairment; intangible amortization $667K.
Operating cash -$2.0M (vs. +$8.9M), hit by $8.6M receivables and $2.3M taxes. Investing +$314K (interest inflows). Financing -$636K (leases). Cash $12.3M, total liquidity ~$22.5M incl. investments. Debt cleared; liabilities $13.8M, equity $32.1M.
Management highlights AI vertical growth offsetting NRR decline to 0.83. Risks: customer concentration (49% top 6), competition, geopolitical tensions. PTE tax benefits through 2028 support profitability.