Education
About Us
Working with TipRanks
Follow Us
Alkami Technology (ALKT)
NASDAQ:ALKT
Top Page
Alkami Technology
(NASDAQ:ALKT)
Select Model
Select Model
Rating:51Neutral
Price Target:
$16.50
▲(0.79% Upside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak technicals (clear downtrend) and mixed fundamentals: improving cash generation but still negative GAAP profitability and a sharp increase in leverage. The latest earnings call was a notable positive with solid 2026 growth/margin guidance and strong ARR/backlog, but valuation support is limited given ongoing losses and no dividend.
Positive Factors
Recurring revenue quality
A 95% subscription mix creates durable, high-visibility revenue that supports predictable cash flow, higher customer lifetime value and easier capacity planning. This recurring model reduces revenue volatility, enhances margin predictability, and underpins long-term ARR monetization and upsell opportunities.
ARR and backlog momentum
Rapid ARR growth (35%) and a meaningful ARR backlog provide multi-period revenue visibility and an identifiable pipeline. Backlog expected to launch within 12 months supports sustained top-line growth and demonstrates successful cross-sell (DSSP), raising customer stickiness and potential lifetime revenue per client.
Improving cash generation
Positive operating and free cash flow after prior deficits indicates the business is converting growth into liquidity. Improved cash generation reduces reliance on external financing, funds reinvestment in product and M&A, and supports margin expansion targets as operations scale and working capital normalizes.
Negative Factors
Ongoing GAAP losses
Sustained GAAP losses and negative margins limit retained earnings and shareholder returns, constraining reinvestment capacity over time. Even with improving non-GAAP metrics, persistent accounting losses depress ROE and can pressure capital allocation, debt covenants, and investor tolerance for prolonged unprofitability.
Material increase in leverage
A near 1.0 debt/equity ratio is a notable change in capital structure that increases interest and refinancing risk. Higher leverage reduces financial flexibility for strategic investments, elevates fixed costs sensitivity to earnings, and could constrain the company's ability to respond to adverse cycles or pursue opportunistic M&A.
Longer implementation cycles
Extended implementation timelines for integrated DSSP deals delay revenue recognition and extend cash conversion. Longer deployments increase upfront implementation costs and execution risk, make backlog monetization slower, and can compress near-term margins and growth visibility despite stronger deal economics long term.
Alkami Technology (ALKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth30.72%
EPS Growth9.70%
CountryUS
Employees938
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.16
Shares Outstanding105,004,010
10 Day Avg. Volume1,966,535
30 Day Avg. Volume1,939,603
Financial Highlights & Ratios
PEG Ratio-4.12
Price to Book (P/B)6.62
Price to Sales (P/S)5.40
P/FCF Ratio57.95
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue4.53
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda-56.00
Forecast
1Y Price Target
$23.13Price Target Upside41.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.92
Revenue Forecast (FY)$547.55M
Alkami Technology Business Overview & Revenue Model
Company DescriptionAlkami 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 MoneyAlkami Technology generates revenue primarily through subscription-based fees for its digital banking platform. The company charges its clients, which include banks and credit unions, a recurring fee for access to its suite of software solutions, which may include transaction processing, data analytics, and customer engagement tools. Additionally, Alkami earns revenue from implementation services, transaction fees, and professional services such as training and support. Strategic partnerships with various financial institutions and technology providers also contribute to its earnings, allowing Alkami to expand its market reach and enhance its product offerings.
Alkami Technology Key Performance Indicators (KPIs)
Any
Revenue per Registered User
Measures the average revenue generated from each registered user, offering insight into the company's ability to monetize its user base and enhance profitability.
Measures the average revenue generated from each registered user, offering insight into the company's ability to monetize its user base and enhance profitability.
Data provided by:
The Fly
The FlyAlkami Technology Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights strong 2025 operating and financial performance — double-digit revenue growth, materially higher adjusted EBITDA, ARR growth and improved cash flow — plus clear strategic progress from the MANTL acquisition and DSSP cross-sell that drives higher ARPU and contract value. Near-term headwinds are primarily timing and one-time cost related: a projected decline in termination fees, temporary elevated database licensing costs, and longer DSSP implementation cycles that moderate 2026 reported growth and compress near-term margins. Given the substantial positive operating and strategic momentum and management's plans to address temporary cost issues, the positive developments outweigh the near-term challenges.Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Full-year 2025 total revenue of $443.6M, up 33% year-over-year; Q4 2025 revenue of $120.8M, up 35% year-over-year.
Material Profitability Expansion
Adjusted EBITDA more than doubled to $59.1M for 2025 (from $26.9M in 2024); adjusted EBITDA margin expanded 530 basis points to 13.3%; Q4 adjusted EBITDA $19.1M with a 15.8% margin.
ARR and Backlog Momentum
Exited Q4 with ARR of $480M (up 35%); backlog of approximately $71M of ARR pending implementation (42 new clients, ~1.6M digital users) expected mostly to launch within 12 months.
Recurring, High-Quality Revenue Mix
Subscription revenue represented 95% of total revenue and grew 32% year-over-year for the full year, demonstrating a highly recurring revenue base.
User Growth and Monetization
22.4M registered users at year-end, up 12% YoY (added 2.4M users); revenue per user (RPU) rose 20% to $21.44 year-over-year.
Cash Flow and Balance Sheet Improvement
Operating cash flow of $42.9M in 2025 (up from $18.6M in 2024) and free cash flow of $34.2M; ended quarter with ~$99.1M in cash and marketable securities and repaid $45M on revolver.
Successful MANTL Integration and DSSP Traction
MANTL performance accelerated post-acquisition: record MANTL new logos and a record Q4 revenue activation quarter; MANTL origination now live at 161 clients and powering 1,000+ branches. DSSP (Digital Banking + Origination + Data & Marketing) grew from 11 clients at acquisition to 45 clients by year-end; 58% of new digital banking deals in H2 became DSSP deals and DSSP purchases yield ~30% ARR uplift.
Improving Gross Margins and Operating Leverage
Full year non-GAAP gross margin expanded to 64.1% (up ~140 bps YoY); Q4 gross margin 63.4% (up 30 bps YoY). Company expects further margin expansion in 2026 (approx. 65% gross margin) and back-half adjusted EBITDA margin north of 19%.
AI and Product Innovation
Investments in AI show early operational leverage (developer productivity +18% in December; reduced engineering questions by 29%; ~2 hours/day saved per implementation team member) and product initiatives (Segmint AI, fraud AI, Alkami Code Studio, 18-month data lake) that create potential new revenue/opportunity streams.
Negative Updates
2026 Revenue Growth Deceleration
Full-year 2026 revenue guidance of $525.5M–$530.5M implies growth of 18.5%–19.6%, a meaningful deceleration versus 33% growth in 2025 (guidance impact from MANTL timing and other factors).
Significant Drop in Termination Fee Revenue
Company expects a ~75% decline in termination fee revenue in 2026, which will reduce reported growth by a few percentage points compared with 2025 results.
Implementation Timing for DSSP May Delay Revenue Recognition
DSSP deployments are being modeled with longer implementation cycles (closer to ~12 months) versus ~6 months for stand-alone origination/Data & Marketing, shifting some revenue out by a few quarters in the near term.
Temporary Increase in Database Technology Costs
Q4 expansion in operating costs partly driven by higher database technology costs (described as a "couple million dollars"), including a vendor license that roughly doubled and compressed near-term margins; company plans to convert off this database to normalize costs.
Operating Expense Expansion
Q4 operating expenses were $57.9M or 48% of revenue, representing a 420 basis point year-over-year expansion (primarily R&D and G&A) as the company scales.
Near-Term Margin Headwinds and Elevated Stock-Based Compensation
While margin expansion is targeted long-term, 2026 guidance includes stock-based compensation of 14%–15% of revenue (higher near-term SBC) and modeling assumptions that moderate near-term growth; management notes some conservatism/timing effects in 2026 guide.
Company Guidance
Alkami guided Q1 2026 revenue of $124.7M–$125.7M (growth 27.5%–28.5% YoY) and adjusted EBITDA of $21.1M–$21.9M (~17.2% margin at midpoint; MANTL timing adds ~8 pts of Q1 YoY growth), and full‑year 2026 revenue of $525.5M–$530.5M (growth 18.5%–19.6%) with adjusted EBITDA $93.5M–$97.5M (≈18.1% margin at midpoint). Management expects full‑year non‑GAAP gross margin ≈65%, back‑half adjusted EBITDA margin north of 19% (weighted to Q4), stock‑based compensation of 14%–15% of revenue, and a ~75% decline in termination fee revenue that modestly reduces reported growth; growth comparability improves in Q2 as MANTL timing effects roll off. Operationally they highlighted exit ARR of $480M (ARR +35%), revenue per user $21.44 (+20% YoY), ~ $71M of ARR backlog (~1.6M digital users) expected to largely launch within 12 months, remaining performance obligations ≈ $1.7B (3.6x live ARR), and Digital Banking churn <1% with four client churns expected in 2026 (<1% ARR). Long‑term targets reiterated include achieving a Rule of 45 by 2030, non‑GAAP gross margin approaching 70%, ~300 bps annual average adjusted EBITDA margin expansion, stock‑based comp declining to ~10% of revenue, dollar churn ~2%–3% per year, and ~90% free cash flow conversion by 2030.Alkami Technology Financial Statement Overview
Summary
Cash flow quality is improving with positive operating cash flow and free cash flow in 2024–2025 and strong 2025 FCF growth, but GAAP profitability remains negative (net margin still meaningfully below zero) and balance-sheet risk increased sharply with a much higher debt-to-equity in 2025.Income Statement
Revenue growth remains positive over time (2025: 7.5% after stronger growth in prior years), and gross margin is healthy and fairly steady (~58% in 2025 vs ~53–59% historically). However, profitability is still the core issue: 2025 net margin is -10.7% with negative EBIT/EBITDA, indicating the business has not yet scaled to consistent operating earnings despite improving loss levels versus earlier years.44
Neutral
Balance Sheet
Equity remains solid in absolute dollars ($362M in 2025), but leverage increased materially: debt-to-equity rose to ~0.98 in 2025 from ~0.05 in 2024, a meaningful shift in financial risk profile. Returns on equity are still negative (2025 ROE about -13%), reflecting ongoing net losses and limiting balance-sheet quality despite asset growth.41
Neutral
Cash Flow
Cash generation improved notably: operating cash flow turned positive in 2024–2025 (to $43M in 2025) after negative operating cash flow in 2020–2023, and free cash flow was positive in 2024–2025 ($41M in 2025) with strong growth in 2025 (+40.5%). A key watch item is that operating cash flow remains below accounting losses in magnitude (2025 operating cash flow to net income ~0.48), though the overall direction is constructive.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 443.64M | 333.85M | 264.83M | 204.27M | 152.16M |
| Gross Profit | 256.60M | 196.63M | 144.11M | 108.32M | 83.81M |
| EBITDA | -53.64M | -29.56M | -44.85M | -47.12M | -42.02M |
| Net Income | -47.65M | -40.84M | -62.91M | -58.60M | -46.82M |
Balance Sheet | |||||
| Total Assets | 847.23M | 437.28M | 399.82M | 488.88M | 436.51M |
| Cash, Cash Equivalents and Short-Term Investments | 99.09M | 115.73M | 92.12M | 196.35M | 308.58M |
| Total Debt | 353.55M | 18.45M | 19.26M | 104.05M | 24.62M |
| Total Liabilities | 485.18M | 80.25M | 74.88M | 154.84M | 91.90M |
| Stockholders Equity | 362.05M | 357.03M | 324.94M | 334.05M | 344.61M |
Cash Flow | |||||
| Free Cash Flow | 41.36M | 17.40M | -23.79M | -38.84M | -32.66M |
| Operating Cash Flow | 42.91M | 18.60M | -17.50M | -37.79M | -28.96M |
| Investing Cash Flow | -397.59M | 23.04M | 33.91M | -224.01M | -22.02M |
| Financing Cash Flow | 323.79M | 11.79M | -87.82M | 61.18M | 192.27M |
Alkami Technology Technical Analysis
Negative
16.37
Price Trends
20.30
Negative
21.07
Negative
23.98
Negative
Market Momentum
-1.26
Negative
38.89
Neutral
26.37
Neutral
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 16.37 is below the 20-day moving average (MA) of 17.61, below the 50-day MA of 20.30, and below the 200-day MA of 23.98, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKT.
Alkami Technology Risk Analysis
Alkami Technology disclosed 54 risk factors in its most recent earnings report. Alkami Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alkami Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $785.04M | -12.12 | 9.19% | ― | 9.63% | -112.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.67B | 24.47 | 0.76% | ― | 5.71% | ― | |
60 Neutral | $1.94B | -15.92 | -22.05% | ― | 22.95% | 3.12% | |
56 Neutral | $2.17B | 20.09 | -78.53% | ― | -1.17% | -597.89% | |
51 Neutral | $1.64B | -38.49 | -12.74% | ― | 30.72% | 9.70% | |
44 Neutral | $409.55M | -0.13 | -114.93% | 8.12% | -12.37% | -754.18% |
* Technology Sector Average
ALKT
Alkami Technology
16.37
-12.59
-43.47%
BLKB
Blackbaud
47.84
-17.29
-26.55%
ALIT
Alight
0.79
-5.71
-87.86%
OPFI
OppFi
9.34
-0.79
-7.80%
GBTG
Global Business Travel Group
5.26
-2.85
-35.14%
BRZE
Braze
17.59
-18.73
-51.57%
Alkami Technology Corporate Events
Business Operations and StrategyFinancial Disclosures
Alkami Technology Posts Strong Q4 Growth Amid Wider Loss
Positive
Feb 25, 2026
On February 25, 2026, Alkami Technology reported fourth-quarter 2025 revenue of $120.8 million, up 34.7% year over year, with GAAP gross margin of 57.2%, a widened GAAP net loss of $11.4 million, and adjusted EBITDA nearly doubling to $19.1 million. For full-year 2025, revenue rose 32.9% to $443.6 million while the GAAP net loss deepened to $47.7 million, but non-GAAP profitability improved, highlighting stronger operational leverage.
Management cited robust client demand and the impact of its Digital Sales & Service Platform as key drivers, noting 39 new client logos in 2025, higher win rates across digital banking, MANTL and data and marketing, and a 35% increase in annual recurring revenue to $480.3 million. With 22.4 million digital banking users, revenue per user up 20%, and remaining performance obligations at $1.7 billion, Alkami signaled growing scale and visibility that reinforce its competitive position despite ongoing GAAP losses.
The most recent analyst rating on (ALKT) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Alkami Technology stock, see the ALKT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.