Alarum Technologies entered 2026 as one of the quieter success stories of the AI infrastructure trade: an Israeli web-data-collection firm whose NetNut subsidiary supplies the proxies, unblockers, and datasets that foundation-model labs pull public web text through. The numbers backed the narrative. Revenue grew 64% in the first quarter to $11.7 million, IFRS net income was positive at $0.6 million, and management guided the second quarter to roughly $12.2 million. Then, in the first week of July, the story collapsed in a way no income statement could have foreshadowed: the FBI seized domains associated with NetNut's residential proxy network, the company paused traffic through the affected services, and the shares fell from the low-$8s to the low-$1.60s in under a month, losing roughly three-quarters of their value between the July 2 announcement and the late-July low.
The report that follows is written from a strange vantage: the freshest audited financial data on record is a year old, the freshest reported quarter is the strong Q1 2026 print from late May, and the dominant fact is a post-filing enforcement event whose financial magnitude no filing yet quantifies. The central question is therefore not how the trailing numbers look, but whether the company's core revenue engine survives the seizure, the litigation, and the deliberate downsizing that followed. As of mid-August the market has effectively priced the equity below the cash on its own balance sheet: a roughly $13 million market capitalization against roughly $24 million of cash and investments. That is a market that has stopped paying for the business and is arguing over what the cash is worth after the legal overhang is paid for.