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Alkami Technology (ALKT)
NASDAQ:ALKT
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Alkami Technology
(NASDAQ:ALKT)
Rating:69Neutral
Price Target:
$28.00
▲(11.16% Upside)
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market presence and effective client acquisition, supporting long-term business sustainability and competitive positioning.
Subscription Revenue
High subscription revenue provides predictable cash flow and strengthens customer relationships, enhancing financial stability and growth potential.
MANTL Acquisition
The successful integration of MANTL expands client base and product offerings, driving revenue growth and reinforcing strategic market positioning.
Negative Factors
Profitability Challenges
Ongoing profitability challenges indicate difficulty in converting revenue to profit, which can hinder long-term financial health and investor confidence.
Cash Flow Volatility
Volatile cash flow growth can impact the company's ability to fund operations and investments, posing risks to financial stability and growth prospects.
Dilution from Acquisition
Dilution from acquisitions can affect profitability metrics, potentially impacting investor perception and the company's ability to leverage acquisitions effectively.
Alkami Technology (ALKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.62B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth29.63%
EPS Growth29.87%
CountryUS
Employees938
SectorTechnology
Sector Strength87
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding104,083,140
10 Day Avg. Volume1,122,094
30 Day Avg. Volume1,719,495
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue8.90
Enterprise Value/Gross Profit15.11
Enterprise Value/Ebitda-80.30
Forecast
1Y Price Target
$37.75Price Target Upside49.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Alkami Technology Business Overview & Revenue Model
Company DescriptionAlkami 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 MoneyAlkami 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 Key Performance Indicators (KPIs)
Alkami Technology Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant revenue growth, increased user base, and successful integration of the MANTL acquisition. Despite some concerns about revenue recognition timing and initial dilution from the MANTL acquisition, the positive highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Alkami achieved total revenue of $112.1 million in Q2 2025, representing a year-over-year growth of 36% and organic growth of 28%.
Increase in Registered Users
The company exited the quarter with 20.9 million registered users on the Alkami Platform, up 2.3 million from the prior quarter.
Successful MANTL Acquisition
MANTL added 39 new clients in the first half of 2025, with 14 being Alkami digital banking clients. The acquisition contributed over $10 million in revenue for Q2.
Improved Profitability
Adjusted EBITDA improved to $11.9 million compared to $4.6 million in the year-ago quarter, representing an adjusted EBITDA margin of 10.6%.
ARR Growth
Annual Recurring Revenue (ARR) increased by 32%, exiting the quarter at $424 million.
High Retention and Low Churn
Client churn total expected to be 4 clients in 2025, representing less than 1% of ARR.
Negative Updates
Revenue Recognition Timing
Termination fees represented 70% of the revenue beat, indicating timing issues that might affect future quarters.
Dilution from MANTL Acquisition
The MANTL acquisition was 190 basis points dilutive to adjusted EBITDA margin.
Company Guidance
During the Alkami Technology's Second Quarter 2025 Financial Results Conference Call, guidance was provided for the upcoming fiscal periods. Alkami achieved a total revenue of $112.1 million in Q2 2025, reflecting a 36% year-over-year increase with an organic growth rate of 28%. The company reported an adjusted EBITDA of $11.9 million and noted subscription revenue accounted for 95% of total revenue, growing by 35% from the previous year. Alkami's Annual Recurring Revenue (ARR) increased by 32%, reaching $424 million, with a backlog of approximately $68 million. The company guided for Q3 2025 revenue to range between $112.5 million and $114 million, with adjusted EBITDA expected to be between $13 million and $14 million. For the full year 2025, Alkami projected revenue between $443 million and $447 million, with adjusted EBITDA ranging from $51.5 million to $54 million, marking an upward revision from previous guidance. The MANTL acquisition was highlighted as a significant contributor to growth, adding 39 new clients in the first half of 2025 and contributing over $10 million in revenue during the quarter.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.72
Positive
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.65
Positive
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.68
Positive
| 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
Negative
25.19
Price Trends
25.56
Negative
27.06
Negative
29.92
Negative
Market Momentum
0.23
Negative
53.01
Neutral
70.15
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 25.19 is above the 20-day moving average (MA) of 24.35, below the 50-day MA of 25.56, and below the 200-day MA of 29.92, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKT.
Alkami Technology Risk Analysis
Alkami Technology disclosed 54 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.62B | ― | -11.47% | ― | 29.63% | 29.87% | |
68 Neutral | $3.80B | ― | -4.72% | ― | 3.61% | -44.99% | |
64 Neutral | $3.34B | ― | -20.67% | ― | 22.16% | 11.65% | |
62 Neutral | $889.65M | 50.49 | -209.49% | ― | 6.79% | -593.75% | |
61 Neutral | $36.58B | 11.16 | -10.43% | 1.86% | 8.71% | -7.09% | |
53 Neutral | $3.33B | 78.53 | -85.12% | ― | 0.11% | -817.49% | |
46 Neutral | $1.93B | ― | -29.09% | 4.47% | -19.48% | -398.43% |
* Technology Sector Average
Performance Comparison
ALKT
Alkami Technology
25.19
-4.43
-14.96%
BLKB
Blackbaud
70.17
-11.88
-14.48%
ALIT
Alight
3.58
-3.38
-48.56%
OPFI
OppFi
10.19
5.93
139.20%
GBTG
Global Business Travel Group
8.32
1.18
16.53%
BRZE
Braze
30.88
-3.67
-10.62%
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.