MeridianLink (MLNK) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 5.96%
• EPS Growth: 50.29%
• Country: US
• Employees: 682
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 73,874,650
• 10 Day Avg. Volume: 1,835,453
• 30 Day Avg. Volume: 1,028,497
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 21.82
• 1Y Price Target: $20.00
• Price Target Upside: -0.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $21.50 ▲(7.45% Upside)

MeridianLink's overall stock score reflects strong technical indicators and stable financial management, offset by concerns about profitability and valuation. The company's ability to address its negative net income will be crucial for future growth.

Positive Factors

Strong Cash Flow Management

MeridianLink's strong cash flow management, indicated by a robust free cash flow growth rate, ensures the company can invest in growth opportunities and service debt, supporting long-term financial stability.

Low Leverage

A low debt-to-equity ratio indicates financial stability and low leverage, providing MeridianLink with flexibility to navigate market changes and invest in strategic initiatives.

Consistent Revenue Growth

Consistent revenue growth reflects MeridianLink's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability and competitive positioning.

Negative Factors

Negative Profitability

Negative profitability suggests challenges in converting revenue into profit, which could hinder MeridianLink's ability to reinvest in the business and improve shareholder value over time.

Negative Return on Equity

A negative return on equity indicates inefficiencies in generating shareholder returns, which may impact investor confidence and the company's ability to attract long-term capital.

Negative Net Income

Negative net income reflects ongoing challenges in achieving profitability, potentially limiting MeridianLink's capacity to fund growth initiatives and improve financial health.

MeridianLink Business Overview & Revenue Model

Company Description

MeridianLink, Inc., a software and services company, provides software solutions for banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies in the United States. The company offers MeridianLink Consumer, a consumer lending and account opening platform; MeridianLink Opening, an online account opening software that unifies deposit account opening and funding for various channels and products; and MeridianLink DecisionLender, a loan origination software (LOS) for finance companies. It also provides MeridianLink Engage, an end-to-end consumer lending, account, and card marketing automation solution; MeridianLink Mortgage, a SaaS cloud-based end-to-end loan origination software; MeridianLink Collect, a cloud-based debt collection software; and Mortgage Credit Link, a web-based order fulfillment hub. In addition, the company provides solutions, including end-to-end platform, loan origination system, mortgage loan origination system, deposit account opening, data and reporting, collections, and consulting and analysis. MeridianLink, Inc. was founded in 1998 and is headquartered in Costa Mesa, California.

How the Company Makes Money

MeridianLink generates revenue primarily through subscription fees for its software solutions, which are charged on a recurring basis to financial institutions. This subscription model provides a steady stream of revenue as clients utilize the platform for various operational needs. Additionally, the company earns income from transaction-based fees for certain services, such as loan origination and account management. Key partnerships with financial institutions and integrations with third-party services further enhance its offerings and expand its customer base, contributing significantly to its earnings. By continuously innovating and expanding its product suite, MeridianLink aims to capture new clients and increase the value provided to existing customers.

MeridianLink Financial Statement Overview

Summary

MeridianLink exhibits a stable financial position with strong cash flow management and low leverage. However, profitability remains a concern due to negative net income, which needs addressing to enhance shareholder value.

Income Statement

MeridianLink's income statement shows a mixed performance. The company has demonstrated consistent revenue growth, with a TTM growth rate of 1.85%. However, profitability remains a concern, as indicated by the negative net profit margin of -6.90% in the TTM period. The gross profit margin is relatively strong at 66.39%, suggesting efficient cost management. Despite these strengths, the company needs to address its negative net income to improve overall profitability.

Balance Sheet

The balance sheet reflects a solid equity position with a low debt-to-equity ratio of 0.009 in the TTM period, indicating low leverage and financial stability. However, the return on equity is negative at -5.39%, highlighting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure, but the company must focus on improving profitability to enhance shareholder value.

Cash Flow

Cash flow analysis reveals positive trends, with a free cash flow growth rate of 7.25% in the TTM period. The operating cash flow to net income ratio is strong at 1.40, indicating efficient cash generation relative to net income. Additionally, the free cash flow to net income ratio exceeds 1, suggesting robust cash flow management. These strengths position the company well for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	325.89M	316.30M	303.62M	288.05M	267.68M	199.34M
Gross Profit	216.36M	207.77M	195.13M	181.72M	178.05M	149.86M
EBITDA	74.12M	67.81M	77.39M	83.63M	78.21M	85.83M
Net Income	-22.49M	-29.77M	-42.54M	1.29M	-10.00M	9.15M
Balance Sheet
Total Assets	936.93M	961.33M	996.25M	1.06B	1.03B	963.71M
Cash, Cash Equivalents and Short-Term Investments	91.09M	92.77M	80.44M	55.78M	113.64M	37.74M
Total Debt	467.30M	469.28M	424.82M	426.91M	427.51M	519.83M
Total Liabilities	544.29M	533.84M	488.00M	480.07M	469.62M	670.22M
Stockholders Equity	392.64M	427.49M	508.25M	579.09M	556.28M	293.48M
Cash Flow
Free Cash Flow	95.62M	77.44M	57.77M	65.22M	84.09M	60.72M
Operating Cash Flow	95.95M	77.80M	67.96M	74.59M	89.83M	67.48M
Investing Cash Flow	-7.44M	-7.46M	20.13M	-124.33M	-126.30M	-115.39M
Financing Cash Flow	-90.44M	-58.02M	-63.44M	-8.12M	110.23M	-9.98M

MeridianLink Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLNK, the sentiment is Positive. The current price of 20.01 is above the 20-day moving average (MA) of 19.98, above the 50-day MA of 19.93, and above the 200-day MA of 18.25, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLNK.

MeridianLink Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	―	$1.90B	17.37	23.74%	―	6.08%	153.79%
MLNK	―	$1.48B	―	-5.41%	―	5.96%	50.29%
JAMF	―	$1.41B	―	-6.68%	―	11.36%	46.67%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEMR	―	$1.14B	―	-0.50%	―	22.16%	-107.92%
PD	―	$1.51B	―	-8.04%	―	8.20%	82.75%
AMPL	―	$1.34B	―	-33.99%	―	9.93%	-11.15%

MeridianLink Corporate Events

MeridianLink Stockholders Approve Merger with ML Holdco

On October 21, 2025, MeridianLink‘s stockholders approved a merger agreement with ML Holdco, LLC, resulting in MeridianLink becoming a wholly-owned subsidiary of ML Holdco. The merger proposal received overwhelming support, with 89.46% of eligible shares voting, and is expected to close on or about October 24, 2025, marking a significant step in MeridianLink’s strategic growth and market positioning.

The most recent analyst rating on (MLNK) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on MeridianLink stock, see the MLNK Stock Forecast page.

MeridianLink Faces Legal Challenges Post-Merger Agreement

On August 11, 2025, MeridianLink, Inc. entered into a merger agreement with ML Holdco, LLC, which will result in MeridianLink becoming a wholly owned subsidiary of ML Holdco. However, the merger has led to several legal challenges, with stockholders filing complaints against MeridianLink and its board members for alleged misrepresentation and omission of material information. The company plans to defend against these claims and has voluntarily decided to supplement disclosures to avoid potential delays and expenses, while maintaining that the allegations are without merit.

The most recent analyst rating on (MLNK) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on MeridianLink stock, see the MLNK Stock Forecast page.

MeridianLink’s Q2 2025 Results and Acquisition News

MeridianLink, Inc. is a prominent provider of cloud-based software solutions for financial institutions and consumer reporting agencies, focusing on digital lending, account opening, background screening, and data verification. The company leverages its unified data platform, MeridianLink One, to enhance growth opportunities and compliance for its clients.

MeridianLink Acquired by Centerbridge Partners for $2 Billion

On August 11, 2025, MeridianLink announced its second-quarter financial results, reporting a total revenue of $84.6 million, an 8% increase year-over-year, with lending software solutions revenue growing by 12%. The company also revealed its acquisition by Centerbridge Partners, valuing MeridianLink at approximately $2.0 billion. This acquisition is expected to enhance product innovation and customer experiences, while the company suspends its financial guidance for the full year 2025.

The most recent analyst rating on (MLNK) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on MeridianLink stock, see the MLNK Stock Forecast page.

MeridianLink Acquired by Centerbridge for $2 Billion

On August 11, 2025, MeridianLink, Inc. announced its acquisition by Centerbridge Partners for approximately $2.0 billion, with shareholders receiving $20.00 per share in cash. This transaction, approved by MeridianLink’s Board of Directors, will transition the company into a private entity, aiming to accelerate growth and innovation in digital lending and credit reporting. The acquisition is expected to enhance MeridianLink’s competitive edge in the rapidly evolving finance and technology sectors, with Centerbridge’s support fostering further product innovation and customer experience improvements.

The most recent analyst rating on (MLNK) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on MeridianLink stock, see the MLNK Stock Forecast page.