Alkami Technology (ALKT) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 29.63%
• EPS Growth: 29.87%
• Country: US
• Employees: 938
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 104,083,140
• 10 Day Avg. Volume: 814,774
• 30 Day Avg. Volume: 1,044,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 8.90
• Enterprise Value/Gross Profit: 15.11
• Enterprise Value/Ebitda: -80.30
• 1Y Price Target: $37.75
• Price Target Upside: 61.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: $27.00 ▲(15.53% Upside)

Alkami Technology's overall stock score is driven by strong earnings call performance and robust revenue growth, despite challenges in profitability and valuation concerns. The company's strategic initiatives, such as the MANTL acquisition, contribute positively to its growth outlook. However, the negative P/E ratio and lack of dividend yield weigh on the valuation score.

Positive Factors

Revenue Growth

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

Successful Acquisition

The successful integration of MANTL strengthens Alkami's product offerings and client base, driving future revenue growth and competitive advantage.

High Retention and Low Churn

Low client churn reflects strong customer satisfaction and loyalty, ensuring stable recurring revenue and enhancing long-term financial stability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could hinder Alkami's ability to reinvest in growth opportunities and improve shareholder returns over the long term.

Cash Flow Volatility

Volatile cash flow growth may limit Alkami's ability to fund operations and strategic initiatives, impacting financial flexibility and long-term growth.

Dilution from Acquisition

Dilution from the MANTL acquisition could pressure margins and profitability, potentially affecting financial performance and investor confidence.

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 a solid equity structure but faces challenges in profitability and cash flow consistency. The company needs to address recurring net losses and improve cash flow sustainability for long-term financial health.

Income Statement

Alkami Technology shows strong revenue growth, with a TTM increase of 15.4% from the previous year. However, profitability metrics such as the net profit margin and EBIT margin remain negative, indicating ongoing challenges in achieving profitability. The gross profit margin remains healthy at 59% for TTM, showcasing operational efficiency, but the persistent net losses are a concern.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 1.03 for TTM, highlighting a balanced capital structure. The equity ratio is relatively strong at 40.9%, implying a solid equity base. However, the negative return on equity of -11.2% indicates inefficiencies in generating profits from shareholder investments.

Cash Flow

Alkami Technology demonstrates positive free cash flow for TTM, a notable improvement from prior periods. The operating cash flow to net income ratio of 0.33 suggests some ability to cover net losses with operational cash flows. However, the free cash flow growth rate of -56.3% indicates volatility, and the overall cash flow stability could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	385.46M	333.85M	264.83M	204.27M	152.16M	112.14M
Gross Profit	227.21M	196.63M	144.11M	108.32M	83.81M	59.16M
EBITDA	-42.74M	-29.56M	-44.85M	-47.12M	-42.02M	-48.09M
Net Income	-38.49M	-40.84M	-62.91M	-58.60M	-46.82M	-51.84M
Balance Sheet
Total Assets	840.39M	437.28M	399.82M	488.88M	436.51M	249.17M
Cash, Cash Equivalents and Short-Term Investments	87.11M	115.73M	92.12M	196.35M	308.58M	166.79M
Total Debt	353.31M	18.45M	19.26M	104.05M	24.62M	24.88M
Total Liabilities	496.37M	80.25M	74.88M	154.84M	91.90M	69.43M
Stockholders Equity	344.02M	357.03M	324.94M	334.05M	344.61M	179.74M
Cash Flow
Free Cash Flow	7.60M	17.40M	-23.79M	-42.49M	-32.66M	-40.29M
Operating Cash Flow	12.59M	18.60M	-17.50M	-37.79M	-28.96M	-38.15M
Investing Cash Flow	-391.59M	23.04M	33.91M	-224.01M	-22.02M	-27.22M
Financing Cash Flow	370.00M	11.79M	-87.82M	61.18M	192.27M	225.05M

Alkami Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 23.37 is below the 20-day moving average (MA) of 23.83, below the 50-day MA of 24.38, and below the 200-day MA of 27.74, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.21 is Neutral, 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
ALKT	65 Neutral	$2.48B	―	-11.47%	―	29.63%	29.87%
GBTG	64 Neutral	$3.89B	―	-4.72%	―	3.61%	-44.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	60 Neutral	$3.14B	―	-20.67%	―	22.16%	11.65%
OPFI	57 Neutral	$870.44M	―	-209.49%	―	6.79%	-593.75%
BLKB	55 Neutral	$3.13B	-11.18	-85.12%	―	0.11%	-817.49%
ALIT	46 Neutral	$1.65B	―	-29.09%	5.16%	-19.48%	-398.43%