Earnings quality is currently strained, as evidenced by a $1.1M negative operating cash flow in 2025Q4 despite the company reporting a net income of $215.0K.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | -1.15M | 8.89M | 4.73M | -8.05M | -9.11M | -6.61M | -6.73M | -8.74M | -5.34M | -3.32M | -2.43M | -2.19M | -1.7M | -115.91K | -295.4K | -455.22K | -103.12K | -22.05K | -13.14K | 275.81K |
| Operating CF Margin % | -2.82% | 27.94% | 17.82% | -43.4% | -94.32% | -135.33% | -205.02% | -595.91% | -487.68% | -393.48% | -340.42% | -411.86% | - | - | -107.12% | -11.22% | -2.53% | -0.52% | -0.32% | 7.69% |
| Operating CF Growth % | -112.92% | 88.09% | 158.71% | 11.59% | -37.72% | 1.8% | 22.93% | -63.44% | -61.14% | -36.28% | -11.29% | -28.43% | -1369.18% | 60.76% | 35.11% | -341.46% | -367.61% | -67.8% | -104.76% | - |
| Net Income | 963K | 5.78M | -5.53M | -13.15M | -13.13M | -7.84M | -13M | -11.75M | -5.31M | -8.92M | -18.2M | -3.69M | -2.1M | -509.28K | 428.43K | -553.01K | -408.4K | -933.75K | 202K | 207.14K |
| Depreciation & Amortization | 1.06M | 912K | 1.15M | 2.04M | 1.78M | 1.36M | 1.12M | 342K | 278K | 280K | 284K | 287K | 25.09K | 0 | 0 | 100.74K | 107.19K | 121.43K | 100.03K | 85.73K |
| Stock-Based Compensation | 3.44M | 2.02M | 933K | 1.68M | 2.36M | 742K | 612K | 381K | 1.32M | 1.82M | 16.39M | 301K | 54.55K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 1.36M | 579K | 2.99M | 1.42M | 60K | -251K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 85.42K | 92.48K | 57.23K |
| Other Non-Cash Items | -1.81M | -323K | 9.43M | -438K | -1.58M | -2.9M | 2.81M | 2.41M | -1.74M | 3.09M | -908K | 810K | 245.46K | 344.62K | -670.17K | 149.24K | 173.9K | 103.56K | -66.44K | -38.6K |
| Working Capital Changes | -4.81M | 505K | -1.26M | 456K | 878K | -957K | 304K | -174K | 367K | 418K | -7K | 107K | 70.91K | 48.75K | -53.66K | -152.19K | 24.19K | 601.28K | -341.21K | -35.68K |
| Change in Receivables | -9.46M | -1.22M | 149K | -294K | -851K | 46K | 240K | -278K | -194K | 385K | -366K | -86K | -96K | 7K | -460.29K | -203.63K | 53.72K | 373.22K | -272.58K | 63.73K |
| Change in Inventory | 0 | 0 | 0 | -492K | 1.71M | -480K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 51.4K | -118K | -1.8M | 948K | 945K | 25K | -36K | -75K | 134K | -46K | -4K | -26K | 0 | 0 | 64.84K | 8.04K | -19.86K | 87.93K | -16.79K | -82.36K |
| Cash from Investing | -658.18K | -9.34M | 592K | 5.04M | -9.8M | -1.19M | -5.6M | -369K | -153K | -52K | 14K | -9K | -212.73K | -1.33M | 1.8M | 95.12K | 19.86K | 29.87K | 98.08K | -128.14K |
| Capital Expenditures | -416.28K | -99K | -55K | -55K | -286K | -141K | -46K | -352K | -132K | -39K | -3K | -23K | -149.46K | 0 | 0 | -31.88K | -42.77K | -60.85K | -52.08K | -147.44K |
| CapEx % of Revenue | 1.02% | 0.31% | 0.21% | 0.3% | 2.96% | 2.89% | 1.4% | 24.01% | 12.04% | 4.63% | 0.42% | 4.33% | - | - | - | 0.79% | 1.05% | 1.42% | 1.27% | 4.11% |
| Acquisitions | 3.02K | 0 | 0 | 16K | -3.7M | -1.07M | -5.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.8M | 0 | 0 | 0 | 25.07K | 40.4K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 772K | 680K | -612K | 198K | 22K | -42K | -17K | -21K | -13K | 17K | 14K | -63.27K | -64.83K | 0 | 0 | -12.48K | -28.47K | 0 | 0 |
| Cash from Financing | -547.31K | 4.69M | 2.21M | 2.6M | 11.64M | 14.71M | 13.11M | 9.36M | 7.45M | 4.59M | 2.17M | 2.48M | 1.94M | 0 | 612.6K | 0 | -11.2K | -29.03K | -64.98K | -169.66K |
| Debt Issued (Net) | -588K | -395K | -2.05M | 2.82M | -275K | -810K | 7.61M | 0 | -63K | -2.18M | 309K | -15K | 0 | 0 | 0 | 0 | -11.2K | -29.03K | 4.14K | -107.05K |
| Equity Issued (Net) | 148.17K | 5.42M | 5.02M | 0 | 9.75M | 15.02M | 5.05M | 9.23M | 5.58M | 5.6M | 750K | 2.5M | 0 | 0 | 612.6K | 0 | 0 | 0 | 3.89K | 4.71K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -73.01K | -67.33K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -107.47K | -334K | -762K | -216K | 2.17M | 500K | 446K | 131K | 1.93M | 1.17M | 1.11M | 0 | 1.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -2.81M | 4.21M | 7.58M | -538K | -7.19M | 6.68M | 624K | 203K | 2.2M | 1.25M | -248K | 289K | 22.91K | 49.48K | 14.13K | -10.6K | -68.35K | 23.88K | 24.54K | 33.92K |
| Free Cash Flow | -1.29M | 8.79M | 4.67M | -8.11M | -9.38M | -6.75M | -6.78M | -9.09M | -5.54M | -3.36M | -2.44M | -2.21M | -1.85M | -115.91K | -295.4K | -487.1K | -145.89K | -82.91K | -65.22K | 128.37K |
| FCF Margin % | -3.17% | 27.63% | 17.62% | -43.7% | -97.19% | -138.21% | -206.43% | -619.92% | -505.29% | -398.1% | -340.84% | -416.2% | - | - | -107.12% | -12.01% | -3.58% | -1.94% | -1.59% | 3.58% |
| FCF Growth % | -114.71% | 88.18% | 157.64% | 13.61% | -38.95% | 0.38% | 25.41% | -64.1% | -65.02% | -37.71% | -10.27% | -19.31% | -1498.11% | 60.76% | 39.36% | -233.88% | -75.96% | -27.12% | -150.81% | - |
| FCF per Share | -0.17 | 1.29 | 1.13 | -2.59 | -3.46 | -3.72 | -40.56 | -893.70 | -2402.60 | -2330.56 | -2953.94 | -4291.26 | -3596.82 | -115910.00 | -295400.00 | -487100.00 | -14589.00 | -8291.00 | -6522.00 | 11670.00 |
| FCF Conversion (FCF/Net Income) | -1.19x | 1.54x | -0.86x | 0.61x | 0.69x | 0.84x | 0.52x | 0.74x | 1.01x | 0.37x | 0.13x | 0.59x | 1.52x | 0.23x | -0.69x | 0.82x | 0.25x | 0.02x | -0.06x | 1.32x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
ISP partnership dependency
According to the 2025Q4 financial statements, Alarum reported a net income of $215.0K while simultaneously generating a negative operating cash flow of $1.1M, highlighting a significant disconnect between accounting profitability and the actual cash-generating capacity of the underlying business model.
The stark divergence between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items or aggressive accrual accounting. Investors should monitor whether this negative conversion is a temporary byproduct of scaling or a structural issue where the company's growth requires more cash than it can internally generate.
As reported in the most recent quarterly data, Alarum's free cash flow margin plummeted to -10.9% in 2025Q4, indicating that the company is currently consuming rather than generating cash to support its ongoing operations and infrastructure requirements.
The transition to negative free cash flow suggests that the company's current growth phase is capital-intensive and not yet self-sustaining. This trajectory warrants caution, as it implies that the firm may need to rely on external financing or further equity dilution to maintain its current operational pace.
Based on the 2025Q4 cash flow statement, a working capital outflow of $4.8M significantly pressured the company's liquidity, suggesting that the firm is struggling to efficiently manage its cash conversion cycle as it scales its proxy network operations.
This substantial working capital drain appears to be the primary driver behind the negative operating cash flow observed in the latest quarter. It suggests that either accounts receivable are ballooning or that the company is facing timing mismatches in its usage-based billing model that require immediate management attention.
Analysis of recent filings reveals that stock-based compensation reached $2.9M in 2025Q4, a figure that dwarfs the reported net income and suggests that the company's profitability is heavily reliant on non-cash equity incentives rather than core operational efficiency.
The reliance on stock-based compensation to manage cash expenses may be masking the true economic cost of talent acquisition and retention. Investors should consider the dilutive impact of these incentives, as they effectively shift the burden of operational costs from the cash flow statement to the shareholders.
Quick answers to the most common questions about buying ALAR stock.
Alarum Technologies Ltd. (ALAR) generated $-1.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alarum Technologies Ltd. (ALAR) reported negative free cash flow of $1.3M in 2025, indicating capital requirements exceeded cash from operations.
Alarum Technologies Ltd. (ALAR) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.