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Alkami Technology
(NASDAQ:ALKT)
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Rating:59Neutral
Price Target:
$20.00
▲(12.17% Upside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by improving cash flow quality and a positive forward outlook from management guidance, partially offset by continued GAAP losses and increased leverage. Technicals are neutral and valuation is harder to justify given the negative P/E and no dividend support.
Positive Factors
Recurring ARR and Backlog
High ARR ($494M) and a sizable ARR backlog (~$71M) provide multi-period revenue visibility typical of enterprise SaaS. Strong subscription mix and contracted backlog support predictable renewal-driven cashflows and enable planning for investments, cross-sell and margin expansion over the next 2–6 months.
Negative Factors
Ongoing GAAP Losses and Leverage
Persistent GAAP losses and elevated leverage (debt ≈ equity) increase financial risk. Until sustained GAAP profitability and further deleveraging occur, capital flexibility is constrained, interest and covenant risk rise, and the company may prioritize cash preservation over growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring ARR and Backlog
High ARR ($494M) and a sizable ARR backlog (~$71M) provide multi-period revenue visibility typical of enterprise SaaS. Strong subscription mix and contracted backlog support predictable renewal-driven cashflows and enable planning for investments, cross-sell and margin expansion over the next 2–6 months.
Read all positive factors
Alkami Technology Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down Alkami Technology's revenue across different business areas, highlighting which segments are driving growth and where strategic focus may be needed.
Breaks down Alkami Technology's revenue across different business areas, highlighting which segments are driving growth and where strategic focus may be needed.
Data provided by:
The Fly
The FlyAlkami Technology (ALKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)1.63M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth32.73%
EPS Growth-27.71%
CountryUS
Employees938
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.47
Shares Outstanding107,019,170
10 Day Avg. Volume1,599,361
30 Day Avg. Volume1,626,903
Financial Highlights & Ratios
PEG Ratio-4.11
Price to Book (P/B)6.62
Price to Sales (P/S)5.40
P/FCF Ratio57.95
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit7.13
Enterprise Value/Ebitda-225.55
Forecast
1Y Price Target
$21.83Price Target Upside22.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.78
Revenue Forecast (FY)$529.65M
Alkami Technology Business Overview & Revenue Model
Company Description
Alkami Technology, Inc. specializes in delivering a cutting-edge, cloud-based digital banking platform throughout the United States. This innovative platform is designed to empower financial institutions by streamlining customer acquisition and en...
How the Company Makes Money
Alkami primarily makes money by selling access to its cloud-based digital banking platform to financial institutions under recurring SaaS/commercial agreements. The company’s revenue model is generally driven by (1) subscription and platform fees ...
Alkami Technology Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call was largely positive: management reported strong Q1 revenue (+29%), robust adjusted EBITDA and margin expansion, healthy ARR and backlog growth, solid user growth and ARPU improvement, effective MANTL integration and early traction with the Digital Sales & Service Platform (DSSP), plus a $100M buyback signaling confidence. Headwinds are mostly temporary or execution-related—Q2 comparability impact from a prior termination fee, elevated database costs expected to normalize, shareholder-related defense expenses, and unresolved AI commercialization/pricing. Structural market limits mean new-logo acceleration is constrained, so future growth emphasis is on cross-sell and expansion within the installed base. Overall, positives materially outweigh the manageable and mostly temporary negatives.Positive Updates
Strong Top-Line Growth
Q1 revenue of $126.1M, up 29% year-over-year; subscription revenue up 30% and represented 96% of total revenue.
Negative Updates
Termination Fee Comparability Headwind
Q2 revenue growth outlook is impacted by a sizable termination fee recognized in Q2 2025 that creates an approximate ~3 percentage point headwind to year-over-year growth in Q2 2026; company expects a meaningful decline in termination fee revenue in 2026 that will reduce reported growth by a few percentage points.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 revenue of $126.1M, up 29% year-over-year; subscription revenue up 30% and represented 96% of total revenue.
Read all positive updates
Company Guidance
Alkami provided Q2 guidance of $128.0M–$129.0M in revenue (growth of 14.2%–15.1%, noting a ~3 ppt year‑over‑year headwind from a sizable Q2 2025 termination fee) and adjusted EBITDA of $17.9M–$18.7M (about a 14.3% margin at the midpoint); full‑year 2026 guidance is $527.1M–$530.9M revenue (18.8%–19.7% growth) and $94.9M–$97.9M adjusted EBITDA (18.2% margin at the midpoint), with an expected full‑year non‑GAAP gross margin of ~65% and adjusted EBITDA margin north of 19% in the back half (weighted to Q4); management expects ~500 basis points of margin expansion in 2026, high single‑digit ARPU growth, a meaningful decline in termination‑fee revenue (partially offset by MANTL), stock‑based compensation of ~14% of revenue for the year, and longer‑term targets including Rule of 45 by 2030, non‑GAAP gross margin approaching 70%, ~300 bps of annual adjusted EBITDA margin expansion, stock‑based comp declining to ~10% of revenue, and total dollar churn of ~2%–3% annually (about half from digital banking), while noting Q1 exits: ARR of $494M, $71M ARR backlog (40 clients, ~1.4M users), remaining performance obligations of ~$1.7B, and a $100M share repurchase authorization.Alkami Technology Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 471.94M | 443.64M | 333.85M | 264.83M | 204.27M | 152.16M |
| Gross Profit | 271.00M | 256.60M | 196.63M | 144.11M | 108.32M | 83.81M |
| EBITDA | -8.57M | -22.56M | -29.56M | -44.85M | -47.12M | -42.02M |
| Net Income | -49.80M | -47.65M | -40.84M | -62.91M | -58.60M | -46.82M |
Balance Sheet | ||||||
| Total Assets | 829.34M | 847.23M | 437.28M | 399.82M | 488.88M | 436.51M |
| Cash, Cash Equivalents and Short-Term Investments | 77.65M | 99.09M | 115.73M | 92.12M | 196.35M | 308.58M |
| Total Debt | 358.21M | 368.55M | 18.45M | 19.26M | 104.05M | 24.62M |
| Total Liabilities | 458.69M | 485.18M | 80.25M | 74.88M | 154.84M | 91.90M |
| Stockholders Equity | 370.65M | 362.05M | 357.03M | 324.94M | 334.05M | 344.61M |
Cash Flow | ||||||
| Free Cash Flow | 44.22M | 41.36M | 17.40M | -23.79M | -38.84M | -32.66M |
| Operating Cash Flow | 45.67M | 42.91M | 18.60M | -17.50M | -37.79M | -28.96M |
| Investing Cash Flow | -12.40M | -397.59M | 23.04M | 33.91M | -224.01M | -22.02M |
| Financing Cash Flow | -54.52M | 323.79M | 11.79M | -87.82M | 61.18M | 192.27M |
Alkami Technology Technical Analysis
Positive
17.83
Price Trends
16.53
Positive
16.63
Positive
19.39
Negative
Market Momentum
0.41
Negative
70.84
Negative
93.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKT, the sentiment is Positive. The current price of 17.83 is above the 20-day moving average (MA) of 15.98, above the 50-day MA of 16.53, and below the 200-day MA of 19.39, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 93.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALKT.
Alkami Technology Risk Analysis
Alkami Technology disclosed 56 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.44B | 4.20 | 134.28% | ― | 12.95% | ― | |
69 Neutral | $2.68B | -21.26 | -20.29% | ― | 26.95% | -11.66% | |
63 Neutral | $1.38B | 10.03 | 179.00% | ― | -0.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $4.90B | 59.64 | 5.79% | ― | 20.67% | ― | |
59 Neutral | $2.04B | -40.16 | -13.96% | ― | 32.73% | -27.71% | |
47 Neutral | $383.05M | -0.12 | -171.94% | 8.12% | -3.15% | -6679.57% |
* Technology Sector Average
ALKT
Alkami Technology
19.02
-11.24
-37.14%
BLKB
Blackbaud
30.09
-35.66
-54.24%
ALIT
Alight
14.26
-102.06
-87.74%
OPFI
OppFi
9.96
-4.27
-30.01%
GBTG
Global Business Travel Group
9.40
3.01
47.10%
BRZE
Braze
23.81
-4.97
-17.27%
Alkami Technology Corporate Events
Executive/Board ChangesShareholder Meetings
Alkami Technology Shareholders Approve Directors and Governance Items
Positive
May 20, 2026
Alkami Technology, Inc. held its 2026 Annual Meeting of Stockholders on May 19, 2026, with 71.87% of eligible shares represented in person or by proxy. Shareholders elected three Class II directors—Charles Kane, Alex Shootman and Brian R. Sm...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Alkami Technology Amends Credit Agreement to Enable Buybacks
Positive
May 6, 2026
On May 1, 2026, Alkami Technology, Inc. entered into a Fifth Amendment to its Amended and Restated Credit Agreement with Silicon Valley Bank, a division of First-Citizens Bank Trust Company, and other lenders. The amendment allows Alkami to use u...
Business Operations and StrategyStock BuybackFinancial Disclosures
Alkami Technology Reports Strong Q1 Growth and Outlook
Positive
Apr 29, 2026
On April 29, 2026, Alkami Technology reported first-quarter 2026 results showing GAAP revenue of $126.1 million, up 28.9% year over year, with non-GAAP gross margin steady at 64.4% and adjusted EBITDA rising to $22.3 million despite a wider GAAP n...
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.