Alkami Technology (ALKT) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: N/A
• Average Volume (3M): 916.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 26.55%
• EPS Growth: 38.37%
• Country: US
• Employees: 938
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 103,019,970
• 10 Day Avg. Volume: 913,779
• 30 Day Avg. Volume: 916,768
• PEG Ratio: -0.98
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.23
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: -9.73
• 1Y Price Target: $37.80
• Price Target Upside: 41.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $30.00 ▲(12.44%Upside)

Alkami Technology's overall score is driven primarily by strong financial performance in terms of revenue growth and gross margins. The technical analysis presents a neutral outlook, while valuation is hampered by ongoing net losses. The positive sentiment from the earnings call, focusing on growth and strategic acquisitions, provides a boost to the overall assessment.

Positive Factors

Acquisition Synergies

The acquisition of MANTL is seen as positive, as it strengthens Alkami’s presence with banks and offers strong cross-selling opportunities.

Financial Performance

ALKT's 1Q results topped expectations on all fronts, boosted by 27% subscription revenue growth and expanding margins.

Revenue Model

The company's mission-critical SaaS solutions, highly visible revenue stream, and improving margin profile create a compelling case for investing in ALKT.

Negative Factors

Market Skepticism

Alkami shares underperformed, attributed to skepticism on the $393 million MANTL acquisition and $345 million convertible note offering, alongside broader market pressure.

Profitability Concerns

The acquisition of MANTL is expected to negatively impact EBITDA by $5 million, affecting short-term profitability.

Valuation Pressure

The target is being lowered to $40 to reflect lower valuations for financial SaaS stocks.

Alkami Technology Business Overview & Revenue Model

Company Description

Alkami Technology, Inc. offers a cloud-based digital banking platform in the United States. The company's platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, multi-tenant architecture. It offers an end- to- end set of software products, which include Alkami Platform, Retail Banking Solutions, Business Banking Solutions, and The Alkami Difference. It serves community, regional, credit unions, and retail and business banking. Alkami Technology, Inc. was founded in 2009 and is headquartered in Plano, Texas.

How the Company Makes Money

Alkami Technology generates revenue primarily through a subscription-based model. Financial institutions pay recurring fees for access to Alkami's digital banking platform, which is typically based on the number of end-users or accounts served. Additionally, the company may earn revenue from implementation and professional services fees related to the setup and customization of its platform for new clients. Alkami also benefits from strategic partnerships with other fintech companies and technology providers, which can enhance its service offerings and expand its market reach. These partnerships may contribute to Alkami's revenue through collaborative projects or integrated solutions that drive additional client engagement.

Alkami Technology Financial Statement Overview

Summary

Alkami Technology shows strong revenue growth and a healthy gross profit margin, yet faces challenges with ongoing net losses and negative operating margins. The balance sheet indicates balanced leverage, but improvements are needed for a sustainable capital structure. Cash flow improvements are promising, though consistent management strategies are necessary.

Income Statement

Alkami Technology demonstrates strong revenue growth, with a significant increase of 74% from 2020 to 2025. However, the company is yet to achieve profitability, reflected in negative net profit margins for the TTM period. Gross profit margin remains healthy at approximately 59% for the TTM, indicating efficient cost management at the production level. The negative EBIT and EBITDA margins underscore ongoing operating challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.06, reflecting a balanced capital structure but with considerable liabilities. The equity ratio of 39.9% indicates a solid equity base, although there is room for improvement. Return on Equity is negative due to net losses, indicating inefficiencies in generating returns from equity.

Cash Flow

Alkami Technology's cash flow position shows improvement, with a positive free cash flow in the latest TTM period. Operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite reporting net losses. However, the high volatility in cash flows remains a concern, demanding better cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
355.56M	333.85M	264.83M	204.27M	152.16M	112.14M
	Gross Profit
210.00M	196.63M	144.11M	108.32M	83.81M	59.16M
	EBIT
-47.52M	-44.63M	-63.44M	-70.22M	-42.92M	-35.10M
	EBITDA
-36.34M	-29.56M	-44.85M	-47.12M	-42.02M	-48.09M
	Net Income Common Stockholders
-37.22M	-40.84M	-62.91M	-58.60M	-46.82M	-51.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
95.30M	115.73M	92.12M	196.35M	308.58M	166.79M
	Total Assets
837.16M	437.28M	399.82M	488.88M	436.51M	249.17M
	Total Debt
413.19M	18.45M	19.26M	104.05M	24.62M	24.88M
	Net Debt
351.53M	-75.91M	-21.67M	-4.67M	-283.96M	-141.91M
	Total Liabilities
503.12M	80.25M	74.88M	154.84M	91.90M	69.43M
	Stockholders Equity
334.04M	357.03M	324.94M	334.05M	344.61M	179.74M
Cash Flow		Free Cash Flow
5.31M	17.40M	-23.79M	-42.49M	-32.66M	-40.29M
	Operating Cash Flow
11.98M	18.60M	-17.50M	-37.79M	-28.96M	-38.15M
	Investing Cash Flow
-373.18M	23.04M	33.91M	-224.01M	-22.02M	-27.22M
	Financing Cash Flow
378.68M	11.79M	-87.82M	61.18M	192.27M	225.05M

Alkami Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKT, the sentiment is Negative. The current price of 26.68 is below the 20-day moving average (MA) of 29.39, below the 50-day MA of 27.61, and below the 200-day MA of 32.29, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 9.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKT.

Alkami Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	73 Outperform	$2.35B	21.77	15.97%	―	14.86%	-0.94%
FLYW	71 Outperform	$1.30B	379.43	0.63%	―	20.97%	―
MQ	68 Neutral	$2.52B	53.64	5.01%	―	-8.44%	―
ALKT	64 Neutral	$2.75B	―	-11.33%	―	26.55%	38.37%
EVCM	64 Neutral	$1.72B	―	-3.09%	―	-1.96%	19.43%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
SITM	60 Neutral	$4.99B	―	-12.78%	―	65.85%	7.92%

Alkami Technology Corporate Events

Alkami Technology Confirms Director Elections at Annual Meeting

On May 14, 2025, Alkami Technology, Inc. held its Annual Meeting of Stockholders, where several key proposals were voted on. The election of three Class I directors was confirmed, with Maria Alvarez, Raphael Osnoss, and Joseph Payne being duly elected. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified. Stockholders also approved the compensation of the company’s named executive officers and recommended an annual frequency for future advisory votes on executive compensation.

The most recent analyst rating on (ALKT) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Alkami Technology stock, see the ALKT Stock Forecast page.

Alkami Technology Reports Strong Q1 2025 Financial Results

Alkami Technology announced the planned retirement of its Chief Financial Officer, Bryan Hill, who will transition to a consulting role to assist with the succession process. The company also reported strong financial results for the first quarter of 2025, with a 28.5% increase in revenue and a significant rise in adjusted EBITDA, highlighting its continued growth and market expansion, including the acquisition of MANTL.