Alarum Technologies Q1 Earnings Call Highlights

Alarum Technologies (NASDAQ:ALAR) reported sharply higher first-quarter 2026 revenue and a modest increase in profitability, as management said demand from artificial intelligence and enterprise data workloads continued to drive usage of the company’s data infrastructure platform.

Chief Executive Officer Shachar Daniel said revenue for the quarter ended March 31, 2026, reached $11.7 million, up 64% from the year-earlier period. The company also reported IFRS net income of $0.6 million and adjusted EBITDA of $2.1 million, while continuing to invest in infrastructure scale and product expansion.

“We believe the first quarter demonstrated the operating leverage potential of the AI data infrastructure platform we built throughout 2025,” Daniel said on the call. He added that the company continues to view the market as “highly dynamic” and in relatively early stages, with Alarum prioritizing long-term infrastructure leadership over short-term profitability optimization.

AI Data Demand Drives Infrastructure Growth

Daniel said demand for large-scale public web data infrastructure is expanding rapidly, particularly for AI and agentic training, fine-tuning, retrieval systems, inference optimization and continuous model updating. He also said public web environments are becoming more complex, increasing the technological barriers required to reliably collect data at scale.

During the first quarter, Alarum’s infrastructure handled an average of more than 50 petabytes of monthly data traffic and tens of billions of requests, supported by more than 80 million IP addresses worldwide. Daniel said the company maintained success rates above 85%. That compares with approximately five petabytes of monthly traffic at the end of 2024.

Daniel said Alarum has evolved from a traditional proxy-focused provider into a broader AI data infrastructure platform. The platform now includes global proxy infrastructure, Website Unblocker self-solutions, AI-ready datasets and planned agentic workflow capabilities, which the company expects to gradually introduce to customers in the second half of 2026.

Management said AI-related workloads remain a major growth driver, but Alarum is also expanding across other enterprise use cases, including e-commerce, sales intelligence, digital monitoring, data enrichment and broader enterprise workloads.

Margins Improve Sequentially as Utilization Rises

Chief Financial Officer Shai Avnit said first-quarter revenue rose to $11.7 million from $7.1 million a year earlier, primarily due to continued demand from large-scale AI-related customers, as well as growth across other enterprise workloads and products.

Gross margin was 61.7%, compared with 67.5% in the first quarter of 2025 and 53.8% in the prior quarter. Avnit said the sequential improvement reflected better infrastructure utilization, operating leverage and efficiency initiatives. He also noted that the improvement came despite the depreciation of the U.S. dollar against the Israeli shekel, which created an additional foreign exchange headwind because most operating expenses are denominated in shekels.

Operating expenses rose to $6.4 million from $4.5 million a year earlier, mainly due to payroll and other employee-related costs, primarily in research and development. Avnit said those investments are part of Alarum’s strategy to improve the quality of its infrastructure and capacity while maintaining discipline in capital allocation.

IFRS net income was approximately $0.6 million, compared with $0.4 million in the first quarter of 2025 and $0.2 million in the prior quarter. Adjusted EBITDA was approximately $2.1 million, compared with $1.3 million a year earlier and $1 million in the prior quarter.

Balance Sheet Remains Debt-Free

Alarum ended the quarter with no financial debt. Cash, cash equivalents and debt investments totaled $24.2 million as of March 31, 2026, up from $22.5 million at the end of 2025.

Shareholders’ equity increased to $33.4 million from $32.1 million at Dec. 31, 2025, primarily reflecting the company’s net profit for the quarter. Avnit said the company had approximately 72.6 million ordinary shares outstanding as of March 31, representing 7.3 million Nasdaq-listed ADSs.

Second-Quarter Guidance Calls for Continued Growth

For the second quarter of 2026, Alarum expects revenue of approximately $12.2 million, plus or minus 5%. Avnit said that represents approximately 39% year-over-year growth at the midpoint.

The company also guided for adjusted EBITDA of approximately $1.8 million, plus or minus $500,000. Avnit initially appeared to be cut off while giving the EBITDA guidance, and Daniel asked him to repeat the projection. Avnit then clarified the adjusted EBITDA range.

Management said the guidance is based on current visibility into customer activity, existing workloads and consumption patterns. Daniel cautioned that the data infrastructure market remains dynamic, and that large AI customers may adjust consumption based on training cycles, model releases, dataset refreshes, inference optimization or internal infrastructure decisions.

Management Discusses Agentic Workflows and Customer Demand

During the question-and-answer session, Canaccord Genuity analyst Kingsley Crane asked about Alarum’s planned agentic workflow product. Daniel said he could not provide many commercial details, but described the product as a layer designed to simplify how customers choose products, geographies, domains, data structures and other service parameters.

“Agentic is just a layer above the product in order to make the life of our customers much more simple,” Daniel said. He added that the product could support upsell opportunities and attract new customers, but said it is not intended to be a standalone revenue-generating product.

Crane also asked about challenges in web scraping as web environments become more difficult to access. Daniel said the company’s ability to collect public data at scale depends partly on the size and diversity of its network, including geographic reach and different types of IPs. He said Alarum’s Website Unblocker and SERP Scraper API are designed to address anti-bot and similar barriers.

Asked about the durability of AI-related customers, Daniel said data remains essential to both AI training and production use cases. He said AI customer retention appears strong from a logo perspective, though revenue can be volatile because consumption may fluctuate by quarter depending on customer use cases.

Daniel closed the call by saying the quarter reflected progress in Alarum’s evolution into a scaled AI data infrastructure platform, with the company remaining focused on long-term execution, operational discipline and sustainable growth.

About Alarum Technologies (NASDAQ:ALAR)

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers.

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