Alkami Technology (ALKT) AI Stock Analysis

• Market Cap: $2.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 30.72%
• EPS Growth: 9.70%
• Country: US
• Employees: 938
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 105,004,010
• 10 Day Avg. Volume: 1,244,160
• 30 Day Avg. Volume: 1,669,528
• PEG Ratio: 2.29
• Price to Book (P/B): 10.16
• Price to Sales (P/S): 10.87
• P/FCF Ratio: 208.45
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 6.98
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: -92.05
• 1Y Price Target: $33.57
• Price Target Upside: 55.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): $443.85M

• Rating: 63 Neutral
• Price Target: $23.00 ▲(6.78% Upside)

Alkami Technology's overall stock score is driven by strong revenue growth and positive earnings call sentiment. However, challenges in profitability, high leverage, and a negative P/E ratio weigh on the score. The technical indicators suggest potential near-term volatility, while the recent CFO appointment supports a positive outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Alkami's digital banking solutions, enhancing its market position and supporting long-term business expansion.

New Client Acquisitions

New client acquisitions, especially significant deals, expand Alkami's customer base and revenue potential, reinforcing its competitive edge in the digital banking sector.

Cash Flow Improvements

Improved cash flow generation enhances Alkami's financial flexibility, allowing for reinvestment in growth initiatives and strengthening its financial health.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could hinder Alkami's ability to sustain operations without external financing, impacting long-term viability.

Increased Leverage

Higher leverage increases financial risk, potentially limiting Alkami's ability to invest in growth and navigate economic downturns.

Client Attrition

Client attrition, though minor, indicates potential challenges in customer retention, which could affect future revenue stability and growth.

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 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 Financial Statement Overview

Summary

Alkami Technology shows strong revenue growth and cash flow improvements, but profitability remains a challenge with negative margins. The increased leverage poses a risk, though the company maintains a stable equity base. Continued focus on operational efficiency and debt management will be crucial for future financial stability.

Income Statement

Alkami Technology shows a positive revenue growth trend with a 7.02% increase in the TTM period. However, the company is still operating at a loss, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at 58.36%, suggesting efficient cost management. The company needs to focus on improving its operational efficiency to turn profitable.

Balance Sheet

The company's debt-to-equity ratio has increased significantly in the TTM period to 1.01, indicating higher leverage. Return on equity remains negative, reflecting ongoing losses. However, the equity ratio is relatively stable, suggesting a solid asset base. Alkami Technology should address its leverage to mitigate financial risk.

Cash Flow

Alkami Technology has shown impressive free cash flow growth of 287.43% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting better cash management. However, the free cash flow to net income ratio indicates that profitability improvements are still needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	412.50M	333.85M	264.83M	204.27M	152.16M	112.14M
Gross Profit	240.73M	196.63M	144.11M	108.32M	83.81M	59.16M
EBITDA	-31.28M	-29.56M	-44.85M	-47.12M	-42.02M	-48.09M
Net Income	-43.85M	-40.84M	-62.91M	-58.60M	-46.82M	-51.35M
Balance Sheet
Total Assets	835.17M	437.28M	399.82M	488.88M	436.51M	249.17M
Cash, Cash Equivalents and Short-Term Investments	90.91M	115.73M	92.12M	196.35M	308.58M	166.79M
Total Debt	378.44M	18.45M	19.26M	123.53M	24.62M	24.88M
Total Liabilities	485.06M	80.25M	74.88M	154.84M	91.90M	69.43M
Stockholders Equity	350.12M	357.03M	324.94M	334.05M	344.61M	179.74M
Cash Flow
Free Cash Flow	29.45M	17.40M	-23.79M	-38.84M	-32.66M	-40.29M
Operating Cash Flow	32.41M	18.60M	-17.50M	-37.79M	-28.96M	-38.15M
Investing Cash Flow	-396.47M	23.04M	33.91M	-224.01M	-22.02M	-27.22M
Financing Cash Flow	340.42M	11.79M	-87.82M	61.18M	192.27M	225.05M

Alkami Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKT, the sentiment is Neutral. The current price of 21.54 is above the 20-day moving average (MA) of 20.77, below the 50-day MA of 22.07, and below the 200-day MA of 25.62, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALKT.

Alkami Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLKB	70 Outperform	$3.05B	―	-78.53%	―	-1.17%	-597.89%
OPFI	68 Neutral	$873.13M	-13.12	9.19%	―	9.63%	-112.71%
ALKT	63 Neutral	$2.26B	―	-12.74%	―	30.72%	9.70%
GBTG	62 Neutral	$4.15B	353.57	0.76%	―	5.71%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	60 Neutral	$3.37B	―	-20.67%	―	22.16%	11.65%
ALIT	45 Neutral	$1.09B	―	-66.86%	7.84%	-12.37%	-754.18%

Alkami Technology Corporate Events

Alkami Technology Appoints New CFO Amid Strong Q3 Results

Alkami Technology announced the appointment of Cassandra Hudson as the new Chief Financial Officer, effective November 1, 2025, succeeding Bryan Hill who will retire on October 31, 2025. The company also reported strong financial results for the third quarter of 2025, with a 31.5% increase in revenue compared to the previous year, and the successful launch of 13 new financial institutions, indicating a positive trajectory in its market positioning.