The strong revenue beat and raised Q2 guidance (+39% YoY) reinforce the AI data infrastructure growth narrative. However, gross margin compression and NRR below 1.0 warrant monitoring for margin stabilization in coming quarters. The stock's small cap and low liquidity could amplify moves — watch for post-call volatility.
Price Chart
Executive Summary
Alarum reported Q1 2026 revenue of $11.7M (+64% YoY) and GAAP EPS of $0.03, beating the $0.02 consensus. The company guided Q2 2026 revenue to ~$12.2M (+39% YoY) and adjusted EBITDA of ~$1.8M. Despite strong top-line growth, gross margin compressed to 61.7% from 67.5% a year ago, and net revenue retention fell below 1.0 at 0.93, reflecting a strategic shift toward larger AI accounts.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $11.7M, +64% YoY from $7.1M
- GAAP EPS $0.03 vs consensus $0.02 (50% beat)
- Gross margin 61.7% vs 67.5% in Q1 2025 and 53.8% in Q4 2025
- Adjusted EBITDA $2.1M vs $1.3M in Q1 2025
- Q2 2026 revenue guidance ~$12.2M (±5%), representing 39% YoY growth
- Net retention rate 0.93, below 1.0, reflecting shift to larger AI accounts
- Cash and equivalents $24.2M, up from $22.5M at year-end 2025
- AI/LLM workloads remain the primary growth driver; traffic >50 petabytes/month
Financial Impact
Revenue grew 64% YoY to $11.7M; EPS beat consensus by $0.01; Q2 guidance implies ~$12.2M revenue
Risk Factors
- Gross margin declined to 61.7% from 67.5% YoY, driven by infrastructure investment costs
- Net retention rate of 0.93 indicates existing customer revenue contraction, partially offset by new large AI accounts
- Q2 guidance implies sequential revenue growth of ~4%, decelerating from 64% YoY in Q1
- Small market cap ($56M) and low analyst coverage (1 analyst) increase stock volatility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3302811 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | 6-K | $1.65 $1.71 | ▼ −3.64% | ▼ −4.14% | $1.74 (−5.45%) |
Aug 17, 2026 6w ago | Press Release | $1.75 $2.14 | ▼ −22.29% | ▼ −24.03% | $1.74 (+0.57%) |
Aug 13, 2026 7w ago | 6-K | $1.81 $2.19 | ▼ −20.99% | ▼ −22.99% | $1.74 (+3.87%) |
Jul 22, 2026 10w ago | 6-K | $1.94 $1.68 | ▲ +13.40% | ▲ +16.71% | $1.74 (+10.31%) |
Jul 13, 2026 11w ago | 6-K | $2.12 $1.86 | ▲ +12.26% | ▲ +15.45% | $1.74 (+17.92%) |
Jul 6, 2026 12w ago | 6-K | $3.08 $1.68 | ▲ +45.45% | ▲ +44.89% | $1.74 (+43.51%) |
Jul 6, 2026 12w ago | 6-K | $3.08 $1.68 | ▲ +45.45% | ▲ +44.89% | $1.74 (+43.51%) |
Jul 2, 2026 13w ago | Press Release | $6.35 $1.67 | ▼ −73.70% | ▼ −73.29% | $1.74 (−72.60%) |
Jun 8, 2026 16w ago | EFFECT | $9.60 $3.08 | ▲ +67.92% | ▲ +69.55% | $1.74 (+81.87%) |
May 28, 2026 18w ago | 6-K | $10.11 $7.90 | ▼ −21.86% | ▼ −18.71% | $1.74 (−82.79%) |
US Market Status
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