Alarum Technologies Grows Revenue 64% as AI Infrastructure Scale Drives Margin Expansion
AI-Powered Business Model Accelerates Revenue Growth and Margin Efficiency
Alarum Technologies (NASDAQ: ALAR, TASE: ALAR) reported a powerful start to 2026, with revenues climbing 64% year-over-year in the first quarter to $11.7 million. This surge comes on the back of sharply rising demand for AI data infrastructure and large-scale public web data, particularly from foundation model labs and enterprise customers needing capabilities for training and optimizing large language models (LLMs).
The company’s expansion showcases more than just top-line growth. Gross margin for the quarter landed at 61.7%, improving both sequentially and versus prior year, with adjusted EBITDA reaching $2.1 million—more than double the prior quarter. Alarum highlighted that ongoing investment in infrastructure and innovation is buttressing operating scale, allowing the company to support over 50 petabytes of monthly data traffic across a global network of 80 million IPs and success rates above 85%.
Operational Improvements Lead to Stronger Profitability and Customer Base Expansion
Alarum's Q1 2026 operating leverage is evident in both profitability trends and customer metrics. Net profit rose to $0.6 million—up from $0.4 million a year ago—while adjusted EBITDA nearly doubled over the same period. Customer retention and transition toward higher-value segments reveal that Net Retention Rate (NRR) as of March 31, 2026, was 0.93, reflecting a pivot to strategic accounts involved in AI infrastructure and reduced exposure to legacy segments. The base now covers over 850 active clients spanning industries from eCommerce to digital media monitoring.
Investment in R&D, up notably year-over-year, signals Alarum’s focus on strengthening platform capabilities. New products like Website Unblocker and SERP solutions are gaining traction, contributing to gross profit growth and higher-margin revenue streams.
Key Financials: Scale and Efficiency Highlighted in Q1 Performance
| Metric | Q1 2026 | Q1 2025 | FY 2025 |
|---|---|---|---|
| Revenue ($M) | 11.7 | 7.1 | 40.7 |
| Gross Profit ($M) | 7.2 | 4.8 | 23.8 |
| Gross Margin (%) | 61.7 | 67.5 | 58.5 |
| Adjusted EBITDA ($M) | 2.1 | 1.3 | 4.4 |
| Net Profit ($M) | 0.6 | 0.4 | 1.0 |
| Non-IFRS Gross Margin (%) | 66.5 | 69.4 | 60.4 |
| Cash, Cash Equivalents, and Debt Investments ($M, as of Q1 2026) | 24.2 | ||
| Shareholders' Equity ($M, as of Q1 2026) | 33.4 | ||
Infrastructure Investments and Broader AI Platform Position Alarum for Continued Growth
Management commentary emphasized the demand from AI and LLM workloads as a transformative force, not just for revenue, but also for operational resilience and customer value. Alarum continues to prioritize long-term leadership through scale and capability investments, viewing the AI data infrastructure market as both dynamic and in its early innings. The company’s addressable market could expand further as planned agentic workflow capabilities—slated for release in the second half of 2026—go live.
The company’s outlook for Q2 2026 remains strong, with projected revenue of approximately $12.2 million (plus or minus 5%), up 39% year-over-year, and expected adjusted EBITDA around $1.8 million (+/-$0.5 million). Though short-term fluctuations are expected as the market matures, Alarum is positioned to benefit from increasing enterprise adoption of AI and a growing appetite for robust, large-scale data solutions.
Takeaway: Alarum’s Scalable AI Data Infrastructure Drives Both Top-Line and Margin Expansion
With 64% annual revenue growth, robust margin performance, and a pivot to high-value AI infrastructure, Alarum Technologies is establishing itself as a critical enabler at the center of the data-driven AI economy. Investors and market watchers may want to track how the company leverages new product launches and continues to scale its AI infrastructure platform through the rest of 2026.
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