MeridianLink (MLNK) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 420.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 5.15%
• EPS Growth: 28.27%
• Country: US
• Employees: 682
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 77,190,414
• 10 Day Avg. Volume: 479,335
• 30 Day Avg. Volume: 420,583
• PEG Ratio: -7.60
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.94
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 5.32
• 1Y Price Target: $17.00
• Price Target Upside: 5.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $19.00 ▲(17.87%Upside)

MeridianLink's overall score reflects strong revenue growth and cash flow generation, offset by operational inefficiencies and declining margins. The technical indicators suggest a potential consolidation, while the negative P/E ratio reflects ongoing unprofitability. The earnings call provided optimistic guidance, but challenges remain in specific revenue streams and macroeconomic conditions.

Positive Factors

Financial Performance

While revenue growth has been sluggish, profitability has improved significantly; adjusted EBITDA margins were 41% in 2024, and the midpoint of 2025 guidance implies about 41% margins.

Growth Initiatives

Cross-selling via the MeridianLink One platform remains a key growth initiative, with the typical customer using about 4.5 of 14 modules.

Leadership Changes

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

Customer Contracts

Many of MeridianLink’s customer contracts include minimum volume commitments, which may slow down revenue upside despite lower rates.

Interest Rates

Higher for longer interest rates delaying growth recovery.

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 demonstrates solid revenue growth and cash flow generation capabilities. However, persistent net losses and declining margins pose profitability challenges. Improved financial leverage is a positive, yet the company needs to address operational inefficiencies to enhance overall financial health.

Income Statement

MeridianLink shows moderate revenue growth with a 1.16% increase in TTM compared to the previous year. However, the company is experiencing negative net income, resulting in negative net profit margins. The gross profit margin remains strong at 62.63%, but declining EBIT and EBITDA margins suggest operational challenges.

Balance Sheet

The debt-to-equity ratio has improved significantly due to a reduction in total debt, indicating better financial leverage management. However, stockholders' equity has decreased over the years, suggesting potential risks. The equity ratio remains stable at 43.75% in TTM, showing a balanced asset structure.

Cash Flow

The company exhibits strong operating cash flow to net income ratio due to significant cash generation from operations. Free cash flow has grown, indicating effective capital expenditure management. However, the negative net income could affect future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	319.97M	316.30M	303.62M	288.05M	267.68M	199.34M
Gross Profit	200.38M	207.77M	195.13M	181.72M	178.05M	140.99M
EBITDA	52.55M	67.81M	77.39M	83.63M	78.21M	85.83M
Net Income	-29.15M	-29.77M	-42.54M	1.29M	-10.00M	9.15M
Balance Sheet
Total Assets	986.96M	961.33M	996.25M	1.06B	1.03B	963.71M
Cash, Cash Equivalents and Short-Term Investments	128.90M	92.77M	80.44M	55.78M	113.64M	37.74M
Total Debt	3.68M	469.28M	424.82M	426.91M	427.51M	519.83M
Total Liabilities	555.02M	533.84M	488.00M	480.07M	469.62M	670.22M
Stockholders Equity	431.94M	427.49M	508.25M	579.09M	596.54M	-30.34M
Cash Flow
Free Cash Flow	90.97M	77.44M	57.77M	65.22M	84.09M	60.72M
Operating Cash Flow	91.11M	77.80M	67.96M	74.59M	89.83M	68.06M
Investing Cash Flow	-7.25M	-7.46M	20.13M	-124.33M	-126.30M	-115.39M
Financing Cash Flow	-17.26M	-58.02M	-63.44M	-8.12M	110.23M	-9.98M

MeridianLink Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 16.12 is below the 20-day moving average (MA) of 16.60, below the 50-day MA of 16.67, and below the 200-day MA of 19.75, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLNK.

MeridianLink Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	69 Neutral	¥228.25B	14.58	7.64%	2.72%	9.09%	8.36%
PRCH	67 Neutral	$1.12B	―	75.95%	―	-6.81%	85.11%
MLNK	63 Neutral	$1.24B	―	-6.49%	―	5.15%	28.27%
ALKT	63 Neutral	$3.02B	―	-11.33%	―	26.55%	38.37%
ONTF	58 Neutral	$230.22M	―	-24.47%	―	-8.39%	7.79%
BLND	57 Neutral	$829.86M	―	-93.00%	―	-0.40%	63.36%
OCFT	47 Neutral	$283.20M	50.30	-24.43%	―	-45.80%	-13.09%

MeridianLink Corporate Events

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.

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 Announces CEO Transition and Leadership Updates

On May 9, 2025, MeridianLink announced that Nicolaas Vlok will resign as CEO effective October 1, 2025, and will be succeeded by current President Laurence E. Katz. Vlok will remain on the board of directors, and the transition plan includes a compensation arrangement for Vlok and an amended employment agreement for Katz. The company also announced updates to its executive leadership team, including the appointment of Troy Coggiola as Chief Strategy Officer and Kayla Dailey as Chief Administrative Officer. These changes aim to drive the next phase of growth for MeridianLink, which has significantly increased its revenue under Vlok’s leadership.

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.