Alkami Technology (ALKT) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 29.63%
• EPS Growth: 29.87%
• Country: US
• Employees: 938
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 103,019,970
• 10 Day Avg. Volume: 952,171
• 30 Day Avg. Volume: 1,043,506
• PEG Ratio: -7.56
• Price to Book (P/B): 8.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 507.44
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: -21.53
• 1Y Price Target: $39.33
• Price Target Upside: 50.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $28.00 ▲(7.03%Upside)

Alkami Technology's strong revenue growth and robust demand for digital banking are significant strengths, reflected in a high earnings call score. However, ongoing net losses, bearish technical indicators, and unattractive valuation metrics weigh heavily on the overall score. The recent corporate events did not notably alter the already considered earnings call insights.

Positive Factors

Earnings

ALKT's results exceeded expectations, driven by significant subscription revenue growth and expanding margins.

Market Demand

There is strong demand for digital banking software solutions, aiding ALKT in winning new clients and enhancing profitability.

Strategic Expansion

The acquisition of MANTL is viewed positively as it enhances Alkami’s presence with banks and offers strong cross-selling opportunities.

Negative Factors

Market Skepticism

Alkami shares are under pressure due to skepticism surrounding the $393 million MANTL acquisition and $345 million convertible note offering.

Profitability Concerns

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

Valuation Challenges

The target price 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 exhibits strong revenue growth and maintains a solid gross profit margin, but ongoing net losses and negative operating margins pose challenges to profitability. The balance sheet reflects balanced leverage, though the company must work towards a sustainable capital structure. Cash flow improvements are promising, yet consistent cash management strategies are necessary to stabilize financial health.

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	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: 26.16
• 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 26.16 is below the 20-day moving average (MA) of 28.51, below the 50-day MA of 28.92, and below the 200-day MA of 31.88, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.43 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
GBTG	65 Neutral	$3.19B	―	-3.84%	―	4.82%	73.90%
BRZE	63 Neutral	$3.29B	―	-22.82%	―	22.66%	21.20%
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
OPFI	62 Neutral	$944.47M	50.49	-47.39%	―	3.82%	-251.96%
ALKT	61 Neutral	$2.74B	―	-11.47%	―	29.63%	29.87%
BLKB	59 Neutral	$3.13B	78.53	-85.12%	―	0.12%	-817.49%
ALIT	58 Neutral	$2.98B	―	-0.82%	2.23%	-26.04%	85.84%

Alkami Technology Corporate Events

Alkami Technology Reports Strong Q2 2025 Financial Results

On July 30, 2025, Alkami Technology announced its financial results for the second quarter ending June 30, 2025, reporting a 36.4% increase in GAAP total revenue to $112.1 million compared to the previous year. The company also highlighted a significant rise in adjusted EBITDA to $11.9 million and an increase in platform users to 20.9 million. The acquisition of MANTL contributed to the growth, adding 23 new clients in the quarter. Alkami’s strong performance underscores the growing demand for digital transformation among financial institutions, positioning the company as a leader in the digital banking solutions market.

The most recent analyst rating on (ALKT) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Alkami Technology stock, see the ALKT Stock Forecast page.

Alkami Technology Appoints Susanna Morgan to Board

Alkami Technology, Inc. announced the appointment of Susanna Morgan to its Board of Directors, effective July 23, 2025. Ms. Morgan, who has extensive experience in finance and technology sectors, will serve as a Class III director and join the Audit Committee. Her appointment follows a formal search by the Nominating and Corporate Governance Committee, which led to an increase in the Board’s size to nine directors. This strategic move is expected to enhance the company’s governance and operational oversight.

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 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.