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Alkami Technology (ALKT)
NASDAQ:ALKT
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Alkami Technology (ALKT) AI Stock Analysis

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ALKT

Alkami Technology

(NASDAQ:ALKT)

Rating:60Neutral
Price Target:
$23.50
▲(5.43% Upside)
Alkami Technology's strong earnings call and corporate actions are significant positives. However, these are countered by bearish technical indicators and a low valuation score due to profitability challenges, resulting in a moderate overall stock score.
Positive Factors
Acquisition Impact
The acquisition of MANTL is expected to bolster Alkami's presence with banks and open strong cross-selling opportunities.
Financial Performance
ALKT's 2Q results topped expectations on all fronts, boosted by 35% Y/Y subscription revenue growth and expanding margins.
Revenue Growth
Alkami is tracking in line with financial targets, expecting significant revenue growth and high adjusted gross margins.
Negative Factors
Convertible Note Pressure
Stock pressure is attributed to the $345 million convertible note related to the acquisition of MANTL and the pending CFO transition.
Market Skepticism
Alkami shares underperformed, attributed to skepticism on the $393 million MANTL acquisition and $345 million convertible note offering, alongside broader market pressure.
Valuation Concerns
The target is being lowered to $40 to reflect lower valuations for financial SaaS stocks.

Alkami Technology (ALKT) vs. SPDR S&P 500 ETF (SPY)

Alkami Technology Business Overview & Revenue Model

Company DescriptionAlkami Technology (ALKT) is a leading provider of cloud-based digital banking solutions, primarily serving banks and credit unions in the United States. The company's platform offers a suite of digital banking services, including online and mobile banking, bill pay, person-to-person payments, and other financial management tools. Alkami aims to enhance the digital banking experience for its clients by delivering innovative and user-friendly solutions that help financial institutions compete in an increasingly digital world.
How the Company Makes MoneyAlkami 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -14.79%|
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 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
72
Positive
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
65
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue385.46M333.85M264.83M204.27M152.16M112.14M
Gross Profit227.21M196.63M144.11M108.32M83.81M59.16M
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 Assets840.39M437.28M399.82M488.88M436.51M249.17M
Cash, Cash Equivalents and Short-Term Investments87.11M115.73M92.12M196.35M308.58M166.79M
Total Debt353.31M18.45M19.26M104.05M24.62M24.88M
Total Liabilities496.37M80.25M74.88M154.84M91.90M69.43M
Stockholders Equity344.02M357.03M324.94M334.05M344.61M179.74M
Cash Flow
Free Cash Flow7.60M17.40M-23.79M-42.49M-32.66M-40.29M
Operating Cash Flow12.59M18.60M-17.50M-37.79M-28.96M-38.15M
Investing Cash Flow-391.59M23.04M33.91M-224.01M-22.02M-27.22M
Financing Cash Flow370.00M11.79M-87.82M61.18M192.27M225.05M

Alkami Technology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.29
Price Trends
50DMA
26.59
Negative
100DMA
27.03
Negative
200DMA
30.78
Negative
Market Momentum
MACD
-1.36
Negative
RSI
40.00
Neutral
STOCH
70.16
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 22.29 is below the 20-day moving average (MA) of 23.13, below the 50-day MA of 26.59, and below the 200-day MA of 30.78, indicating a bearish trend. The MACD of -1.36 indicates Negative momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 70.16 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$3.76B-4.72%3.61%-44.99%
63
Neutral
$2.85B-22.82%22.66%21.20%
60
Neutral
$2.34B-11.47%29.63%29.87%
60
Neutral
$863.46M50.49-209.49%6.79%-593.75%
57
Neutral
HK$14.80B10.64-0.76%4.27%6.99%-31.80%
53
Neutral
$3.13B78.53-85.12%0.11%-817.49%
46
Neutral
$2.08B-29.09%3.15%-19.48%-398.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALKT
Alkami Technology
23.70
-8.18
-25.66%
BLKB
Blackbaud
65.11
-14.37
-18.08%
ALIT
Alight
3.81
-3.06
-44.54%
OPFI
OppFi
9.58
5.15
116.25%
GBTG
Global Business Travel Group
7.90
0.96
13.83%
BRZE
Braze
25.54
-17.93
-41.25%

Alkami Technology Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Alkami Technology Reports Strong Q2 2025 Financial Results
Positive
Jul 30, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Alkami Technology Appoints Susanna Morgan to Board
Positive
Jun 30, 2025

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.

Executive/Board ChangesShareholder Meetings
Alkami Technology Confirms Director Elections at Annual Meeting
Neutral
May 15, 2025

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.

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.Date of analysis: Aug 05, 2025