MeridianLink (MLNK) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: N/A
• Average Volume (3M): 987.56K
• 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: 83
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 74,094,300
• 10 Day Avg. Volume: 882,097
• 30 Day Avg. Volume: 987,558
• 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: 1.10
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 21.82
• 1Y Price Target: $19.25
• Price Target Upside: -2.97% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $21.00 ▲(5.85% Upside)

MeridianLink's overall stock score is driven by its stable financial position and strong cash flow management. The bullish technical indicators suggest positive market sentiment, but the negative P/E ratio and absence of a dividend yield weigh on the valuation. The earnings call provided a balanced view with notable revenue growth but highlighted challenges in specific revenue streams and customer retention.

Positive Factors

Acquisition

The agreement to be acquired by Centerbridge for approximately $2 billion reflects a 26% premium to the prior closing price.

Strategic Leadership

Senior leadership changes include Larry Katz becoming CEO and Troy Coggiola joining as chief strategy officer, which could bring strategic benefits given Katz's extensive experience.

Negative Factors

Market Performance Downgrade

The downgrade to Market Perform reflects limited potential for incremental upside in the absence of a higher bid.

Revenue Growth

MeridianLink’s tepid revenue growth has been primarily driven by sluggish consumer lending activity and mortgage origination volume.

MeridianLink Business Overview & Revenue Model

Company Description

MeridianLink, Inc. (MLNK) is a leading provider of cloud-based software solutions for financial institutions, including banks, credit unions, mortgage lenders, and consumer loan providers. The company offers a comprehensive suite of software products designed to streamline and automate a wide range of financial processes, such as loan origination, account opening, and digital lending. MeridianLink's solutions enable financial institutions to improve efficiency, enhance customer experiences, and drive growth in an increasingly digital landscape.

How the Company Makes Money

MeridianLink generates revenue primarily through the sale of its software-as-a-service (SaaS) solutions to financial institutions. The company employs a subscription-based pricing model, where clients pay recurring fees for access to its software platform and related services. Additional revenue streams include professional services for implementation and integration, as well as ongoing customer support and system upgrades. MeridianLink's earnings are bolstered by strong client relationships and partnerships with key players in the financial services industry, which enhance its market reach and drive adoption of its solutions.

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: 19.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 19.84 is above the 20-day moving average (MA) of 18.47, above the 50-day MA of 17.28, and above the 200-day MA of 18.73, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 74.30 is Negative, neither overbought nor oversold. The STOCH value of 59.80 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
ALKT	67 Neutral	$2.58B	―	-11.47%	―	29.63%	29.87%
MLNK	63 Neutral	$1.47B	―	-5.41%	―	5.96%	50.29%
PRCH	63 Neutral	$1.65B	34.20	75.95%	―	-7.41%	―
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
ONTF	54 Neutral	$233.11M	―	-22.60%	―	-6.88%	15.83%
BLND	50 Neutral	$899.85M	―	-93.00%	―	-4.76%	67.62%
OCFT	44 Neutral	$287.00M	50.30	-24.21%	―	-48.61%	-2291.48%

MeridianLink Corporate Events

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.

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.

MeridianLink Holds Annual Stockholder Meeting, Elects Directors

On June 5, 2025, MeridianLink, Inc. held its annual meeting of stockholders where key decisions were made. Stockholders elected three Class I directors to serve until 2028 and ratified the appointment of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.