Alkami Technology (ALKT) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 26.55%
• EPS Growth: 38.37%
• Country: US
• Employees: 938
• Sector: Technology
• Sector Strength: 75
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 103,019,970
• 10 Day Avg. Volume: 991,745
• 30 Day Avg. Volume: 1,278,043
• PEG Ratio: -8.50
• Price to Book (P/B): 9.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 570.48
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 16.10
• Enterprise Value/Ebitda: -24.87
• 1Y Price Target: $39.00
• Price Target Upside: 30.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 63 Neutral
• Price Target: ―

Alkami Technology's strong revenue growth and strategic acquisitions demonstrate potential for future success, but profitability challenges and negative earnings impact its valuation. Technical indicators show mixed signals, reflecting potential resistance ahead. The earnings call provides a positive outlook, yet macroeconomic uncertainties and leadership transitions could pose risks.

Positive Factors

Market Opportunity

Alkami targets a total addressable market of approximately $14 billion, including both credit unions and banks.

Revenue Growth

ALKT's 1Q results topped expectations on all fronts, boosted by 27% subscription revenue growth and expanding margins.

Strategic Acquisitions

The strategic acquisition of MANTL offers cross-sell opportunities and potential for average revenue per user (ARPU) expansion.

Negative Factors

Earnings Downgrade

The MANTL acquisition is expected to be dilutive to adjusted EBITDA in 2025, leading to a reduction in earnings estimates.

Market Skepticism

Stock pressure is attributed to skepticism on the $380 million MANTL acquisition and $345 million convertible note offering, and broader market uncertainty.

Profitability Impact

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

Alkami Technology Business Overview & Revenue Model

Company Description

Alkami Technology, Inc. is a leading provider of cloud-based digital banking solutions. The company serves financial institutions, including banks and credit unions, by offering a comprehensive suite of digital banking services. Alkami's platform is designed to enhance the digital experience of its clients' customers by providing innovative solutions for online and mobile banking, enabling financial institutions to compete effectively in the rapidly evolving digital landscape.

How the Company Makes Money

Alkami Technology generates revenue primarily through the sale of its cloud-based digital banking platform to financial institutions. The company's revenue model includes subscription fees, which are typically based on the number of users or the level of services provided. Alkami also generates income through implementation fees and ongoing support and maintenance services. Key revenue streams include long-term contracts with banks and credit unions that leverage Alkami's technology to improve their digital banking capabilities. Significant partnerships with technology providers and financial institutions further enhance Alkami's earning potential by expanding its reach and integration capabilities.

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
355.56M	333.85M	264.83M	204.27M	152.16M	112.14M
	Gross Profit
210.00M	196.63M	144.11M	108.32M	83.81M	59.16M
	EBIT
-47.52M	-44.63M	-63.44M	-70.22M	-42.92M	-35.10M
	EBITDA
-36.34M	-29.56M	-44.85M	-47.12M	-42.02M	-48.09M
	Net Income Common Stockholders
-37.22M	-40.84M	-62.91M	-58.60M	-46.82M	-51.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
95.30M	115.73M	92.12M	196.35M	308.58M	166.79M
	Total Assets
837.16M	437.28M	399.82M	488.88M	436.51M	249.17M
	Total Debt
413.19M	18.45M	19.26M	104.05M	24.62M	24.88M
	Net Debt
351.53M	-75.91M	-21.67M	-4.67M	-283.96M	-141.91M
	Total Liabilities
503.12M	80.25M	74.88M	154.84M	91.90M	69.43M
	Stockholders Equity
334.04M	357.03M	324.94M	334.05M	344.61M	179.74M
Cash Flow		Free Cash Flow
5.31M	17.40M	-23.79M	-42.49M	-32.66M	-40.29M
	Operating Cash Flow
11.98M	18.60M	-17.50M	-37.79M	-28.96M	-38.15M
	Investing Cash Flow
-373.18M	23.04M	33.91M	-224.01M	-22.02M	-27.22M
	Financing Cash Flow
378.68M	11.79M	-87.82M	61.18M	192.27M	225.05M

Alkami Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.86
• 50DMA: Positive
• 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 29.86 is above the 20-day moving average (MA) of 28.77, above the 50-day MA of 26.81, and below the 200-day MA of 32.50, indicating a neutral trend. The MACD of 1.07 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 34.54 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
PAYO	71 Outperform	$2.60B	23.08	15.97%	―	14.86%	-0.94%
MQ	71 Outperform	$2.44B	51.94	5.01%	―	-8.44%	―
FLYW	69 Neutral	$1.44B	407.09	0.63%	―	20.97%	―
EVCM	68 Neutral	$1.86B	―	-3.09%	―	-1.96%	19.43%
ALKT	63 Neutral	$3.17B	―	-11.33%	―	26.55%	38.37%
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%
SITM	58 Neutral	$4.90B	―	-12.78%	―	65.85%	7.92%

Alkami Technology Corporate Events

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.

Alkami Technology Acquires MANTL for $400 Million

On February 27, 2025, Alkami Technology announced its agreement to acquire MANTL, a company specializing in onboarding and account opening solutions for financial institutions, for $400 million. This acquisition aims to enhance Alkami’s digital banking platform, positioning it as a leading digital sales and service platform in the industry. Additionally, Alkami reported strong financial performance for the fourth quarter of 2024, with significant revenue growth and improved profitability, and expects the acquisition to contribute positively to its financial results in the coming years.