Alarum Technologies Reports Record Third Quarter Revenue Growth of 81% to $13 Million Driven by Surging Demand from Leading AI Model Developers

Core Insights - Alarum Technologies Ltd. reported significant financial growth in Q3 2025, with revenues reaching $13.0 million, an 81% increase year-over-year, and a net profit of $0.1 million [2][11] - The company is focusing on long-term market leadership in the AI training-data sector, prioritizing infrastructure investments over short-term profitability [2][6] - Strategic investments are expected to pressure gross margins and EBITDA in the near term but are aimed at positioning the company for substantial growth and margin improvement [2][6] Financial Performance - Q3 2025 revenues were $13.0 million, up from $7.2 million in Q3 2024, while total revenues for the first nine months of 2025 were $28.9 million, an 18% increase from $24.5 million in the same period of 2024 [11][10] - Gross profit for Q3 2025 was $7.2 million, compared to $5.2 million in Q3 2024, with a gross margin of 55.6% [10][16] - Adjusted EBITDA for Q3 2025 was $1.2 million, down from $1.4 million in Q3 2024, reflecting increased operating expenses due to infrastructure investments [10][16] Customer and Market Dynamics - The company experienced a 26% increase in paying customers and a 17% rise in average revenue per customer in Q3 2025 [4][8] - New AI-focused products, including DataSets and custom Scrapers, are becoming significant revenue contributors, with triple-digit growth in some areas [8][11] - Alarum's strategic decision to expand capacity and enhance infrastructure is aimed at capturing the growing demand from AI labs and enterprises [5][6] Financial Outlook - For Q4 2025, Alarum anticipates revenues of approximately $12 million, a 63% increase year-over-year, with Adjusted EBITDA expected to be around $1 million [9] - The company expects smoother and more predictable revenue growth patterns as AI models transition into production and fine-tuning cycles [9][11] Balance Sheet and Equity - As of September 30, 2025, Alarum had a robust balance sheet with $24.6 million in cash and no debt, and shareholders' equity increased to $31.1 million from $26.4 million at the end of 2024 [8][16]