Alarum Technologies Updates Second Quarter 2025 Revenue and Adjusted EBITDA Outlook

Rhea-AI Summary

Alarum Technologies (NASDAQ: ALAR) has revised its Q2 2025 financial outlook upward due to increased customer demand and product usage. The company now projects Q2 2025 revenue of approximately $8.8 million (±3%), up from the previous estimate of $7.9 million (±3%). Adjusted EBITDA expectations have also been raised to $1.0-1.5 million, compared to the previous guidance of $0.5-0.8 million. The increase is attributed to enhanced momentum and higher consumption of Alarum's web data collection solutions by existing customers. However, the company notes that the market remains highly dynamic and unpredictable, with potential for continued volatility.

Positive

• Revenue guidance increased by approximately 11.4% to $8.8 million (±3%) for Q2 2025
• Adjusted EBITDA guidance significantly raised to $1.0-1.5 million from $0.5-0.8 million
• Enhanced momentum and increased demand from existing customers
• Higher consumption of company's data collection products and services

Negative

• Market remains highly dynamic and unpredictable with potential high volatility
• Unable to provide reconciliation of adjusted EBITDA to net profit due to uncertainty in timing and impact of expenses

Insights

Financial Analyst

Alarum raises Q2 2025 guidance substantially, with revenue up 11.4% and adjusted EBITDA potentially doubling on increased customer demand.

Alarum Technologies has significantly raised its second quarter 2025 outlook, signaling accelerating growth momentum. The company now projects $8.8 million in revenue (±3%), representing an 11.4% increase from its previous estimate of $7.9 million. More impressively, adjusted EBITDA guidance has been raised to $1.0-1.5 million from $0.5-0.8 million - potentially doubling at the high end.

This improved outlook stems directly from increased consumption of Alarum's data collection products by existing customers, indicating strengthening relationships and product stickiness rather than just new customer acquisition. The magnitude of this guidance increase (11.4% for revenue) is particularly noteworthy since we're already partway through Q2, suggesting the company has high confidence in this improved performance trajectory.

While encouraging, Alarum appropriately cautions that its market remains dynamic and unpredictable with potentially high volatility. This transparency acknowledges both the opportunity and risks in the still-developing web data collection sector. The company's formal policy of updating guidance when quarterly revenue outlook deviates by 10% or more demonstrates disciplined financial communication practices.

The most compelling aspect is the disproportionate EBITDA improvement relative to revenue growth, suggesting either improved operational efficiency or favorable pricing dynamics. With potential adjusted EBITDA margins now approaching 11-17% (versus previous 6-10%), Alarum is demonstrating meaningful progress toward profitability and operational scale.

TEL AVIV, Israel, June 09, 2025 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of web data collection solutions, today announced an update to its revenue and Adjusted EBITDA outlook for the second quarter ending June 30, 2025, driven by enhanced momentum and demand from several existing customers since the previous guidance date, which has led to a significant increase in usage - resulting in higher-than-anticipated consumption of Alarum’s data collection products and services.

The Company now estimates to report second quarter 2025 revenue of approximately $8.8 million ±3%, compared to its previous estimate of $7.9 million ±3%. In addition, the Company now expects to report adjusted EBITDA ranging from $1.0 million to $1.5 million, compared to $0.5 million to $0.8 million.  As previously highlighted, the market in which the Company operates is still taking shape and at this point continues to be highly dynamic and unpredictable. Volatility may remain high, and the Company is planning accordingly.

The Company is unable to present a reconciliation of its estimated adjusted EBITDA to net profit as it is unable to predict with reasonable certainty, and without unreasonable effort, the impact and timing of certain expenses on the Company’s net profit. The financial impact of these expenses is uncertain and is dependent on various factors, including timing, and could be material to the Company’s consolidated statements of profit or loss and other comprehensive income (loss).

This update is provided in accordance with the Company’s internal policy of  issuing an update as its current quarterly revenue outlook is expected to deviate by at least 10% from the previously announced average of the outlook.  

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Alarum is using forward-looking statements in this press release when it provides updated estimates regarding second quarter 2025 revenues and Adjusted EBITDA, whether the recent surge in usage will continue in subsequent periods and potential volatility. Because such statements deal with future events and are based on Alarum’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Alarum could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Alarum’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 20, 2025, and in any subsequent filings with the SEC. Except as otherwise required by law, Alarum undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Alarum is not responsible for the contents of third-party websites.

The Company is providing revenue and adjusted EBITDA estimates in this press release, rather than final amounts, primarily because the financial closing process and review are not yet complete and, as a result, the Company’s final results upon completion of its closing process and review may vary from these preliminary estimates.

INVESTOR RELATIONS CONTACT:

investors@alarum.io

FAQ

What is ALAR's updated revenue guidance for Q2 2025?

Alarum Technologies updated its Q2 2025 revenue guidance to approximately $8.8 million (±3%), increased from the previous estimate of $7.9 million (±3%).

How much did Alarum Technologies (ALAR) increase its Q2 2025 EBITDA guidance?

Alarum increased its Q2 2025 adjusted EBITDA guidance to $1.0-1.5 million, up from the previous guidance of $0.5-0.8 million.

What drove the increase in ALAR's Q2 2025 guidance?

The increase was driven by enhanced momentum and demand from existing customers, resulting in higher consumption of Alarum's data collection products and services.

What are the main risks mentioned in ALAR's guidance update?

The company highlighted that the market remains highly dynamic and unpredictable with potential high volatility, and they cannot predict with certainty the timing and impact of certain expenses on net profit.

When does Alarum Technologies (ALAR) issue guidance updates?

According to their internal policy, Alarum issues updates when current quarterly revenue outlook is expected to deviate by at least 10% from the previously announced average outlook.