Highlights 

  • Alarum Technologies reports Q3 2025 revenue up 81% to USD 13 million. 
  • Demand from leading AI model developers drives rapid expansion. 
  • The company prioritizes market share in the AI training data segment over near-term profitability. 
  • AI-focused products deliver triple-digit and high-double-digit growth. 
  • Management expects continued elevated revenue levels to Q4 2025. 

Alarum Technologies Ltd. (NASDAQ:ALAR), a global provider of advanced web data collection infrastructure, reported Q3 2025revenuesof USD 13 million, an 81 percent increaseyear over year. The company emphasized that demand from world-leadingartificial intelligencelabs continues to accelerate, particularly as they require high-quality, hard-to-reach web datasets for training and fine-tuning foundation models. 
CEO Shachar Daniel highlighted that Alarum’s platform is increasingly viewed as critical infrastructure by AI customers who rely on continuous dataset refresh cycles and large-scale collection workloads. The company noted meaningful gains in key customer metrics, including a 26 percent rise in paying customers and a 17 percent increase in average revenue per customer. 

Strategic Capacity Investments to Capture Market Share 

Throughout 2025, Alarum has made deliberate strategicinvestmentsaimed at scaling capacity ahead of expected future demand. This includes premium endpoints, expanded server fleets, and high-throughput data pipelines built specifically for AI training runs. 
These investments temporarily weighed on near-termmargins, with cost of revenue rising to USD 5.8 million andoperating expensesincreasing as the company expanded infrastructure and R&D. Despite this, Alarum posted a positive net profit of USD 0.1 million and adjustedEBITDAof USD 1.2 million for the quarter. 
Management reiterated that the temporary margin compression aligns with a long-term strategy to lock in market share early in an expanding global market. As utilization improves, the company expects meaningful revenue acceleration and margin improvement. 

AI-Centric Products Delivering Fast Growth 

Alarum’s newest AI-focused offerings—DataSets, Website Unblocker, and custom Scraper tools—have become key revenue contributors. DataSets emerged as a material share of Q3 revenue, while Website Unblocker delivered triple-digit quarter-over-quarter growth, and custom Scrapers achieved high-double-digit expansion. 
Most Q3 revenue growth came from existing customers, including a major Asian e-commerce platform that continued scaling usage. The company ended the quarter with USD 24.6 million incash, cash equivalents, and investments, and nodebt. 

Conclusion 

Alarum Technologies’ Q3 2025 performance reflects accelerating demand for enterprise-grade training data solutions as global AI development enters a high-intensity growth phase. By investing strategically in capacity and advanced data products, the company aims to secure long-term leadership in a market that is expanding rapidly. With continued product adoption, repeat orders from major AI labs, and growing datasets activity, Alarum enters Q4 with strong momentum and improved visibility into future scaling opportunities.