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Alkami Technology
(NASDAQ:ALKT)
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Rating:59Neutral
Price Target:
$21.50
▲(6.81% Upside)
Action:Reiterated
Date:07/30/26
ALKT scores in the upper-mid range driven primarily by improving fundamentals—strong revenue growth and a clear inflection to positive operating/free cash flow—supported by upbeat guidance for continued growth and adjusted EBITDA margin expansion. Offsetting this are elevated balance-sheet leverage while GAAP earnings remain negative, plus only mixed technical positioning (still below the 200-day moving average) and limited valuation support given negative earnings and no dividend.
Positive Factors
Recurring revenue and customer expansion
Subscription revenue concentration and 21% ARR growth increase revenue visibility. The expanding recurring base, registered-user growth and backlog support durable customer adoption and provide a foundation for continued platform expansion.
Negative Factors
Elevated balance-sheet leverage
The sharp increase in leverage raises refinancing and interest-related risk while GAAP profitability remains negative. Debt obligations could limit flexibility for product investment or acquisitions if growth or cash conversion weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and customer expansion
Subscription revenue concentration and 21% ARR growth increase revenue visibility. The expanding recurring base, registered-user growth and backlog support durable customer adoption and provide a foundation for continued platform expansion.
Read all positive factors
Alkami Technology Key Performance Indicators (KPIs)
Any
Revenue per Registered User
Measures the average revenue generated from each registered user, offering insight into the company's ability to monetize its user base and enhance profitability.
Measures the average revenue generated from each registered user, offering insight into the company's ability to monetize its user base and enhance profitability.
Data provided by:
The Fly
The FlyAlkami Technology (ALKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth27.05%
EPS Growth-12.95%
CountryUS
Employees1,225
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.43
Shares Outstanding106,941,980
10 Day Avg. Volume1,057,712
30 Day Avg. Volume1,825,286
Financial Highlights & Ratios
PEG Ratio-4.11
Price to Book (P/B)6.62
Price to Sales (P/S)5.40
P/FCF Ratio57.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$22.25Price Target Upside10.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.79
Revenue Forecast (FY)$529.90M
Alkami Technology Business Overview & Revenue Model
Company Description
Alkami Technology, Inc. specializes in delivering a cutting-edge, cloud-based digital banking platform throughout the United States. This innovative platform is designed to empower financial institutions by streamlining customer acquisition and en...
How the Company Makes Money
Alkami makes money by selling subscription-based software and related services to financial institutions that use its cloud digital banking platform. Its core revenue model is recurring SaaS/platform fees (typically contracted and recognized over ...
Alkami Technology Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call highlights strong recurring revenue growth, a major ARR milestone ($512M), improving profitability (adjusted EBITDA expansion and operating cash flow recovery), and tangible product-market traction (DSSP, bank expansion, AI-enabled products). Management provided confident 2026 guidance that aligns with earlier multi-year targets. Near-term headwinds include quarter-to-quarter revenue timing (termination fees), a Q2 gross margin step-down, normalization of ARPU after MANTL timing effects, and the deliberate deferral of a database consolidation project into 2027. Overall, the positive indicators (scale, ARR momentum, margin expansion, product adoption) materially outweigh the operational and timing lowlights, supporting a constructive outlook.Positive Updates
Revenue Growth Ahead of Expectations
Q2 revenue of $129.8M, up 15.9% year-over-year; subscription revenue grew 16.2% and represented 95% of total revenue.
Negative Updates
Gross Margin Variability and Q2 Step-Down
Q2 non-GAAP gross margin was 63%, pressured by lower termination fee revenue and timing of direct costs; management expects margin improvement in back half but quarter-to-quarter variability exists.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Ahead of Expectations
Q2 revenue of $129.8M, up 15.9% year-over-year; subscription revenue grew 16.2% and represented 95% of total revenue.
Read all positive updates
Company Guidance
Alkami guided Q3 2026 revenue of $132.7M–$134.2M (up 17.5%–18.9%) and adjusted EBITDA of $23.5M–$24.3M (≈17.9% margin at the midpoint), and full‑year 2026 revenue of $528M–$531M (up 19%–19.7%) with adjusted EBITDA of $96M–$98M (≈18.3% margin at the midpoint). Management expects back‑half adjusted EBITDA margin north of 19%, to exit 2026 with non‑GAAP gross margin nearing 65% (about 500 basis points of margin expansion for the year), mid‑to‑high single‑digit ARPU growth, annual dollar churn of 2%–3% (roughly half tied to digital banking), stock‑based compensation below 14% of revenue for 2026 (targeting ~10% longer term), and continued ARR and backlog momentum (ARR ~$512M, ~$61M ARR backlog from 37 clients, and RPO ~$1.7B or 3.4x live ARR) as they pursue Rule of 45 by 2030.Alkami Technology Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
43
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 489.73M | 443.64M | 333.85M | 264.83M | 204.27M | 152.16M |
| Gross Profit | 279.20M | 256.60M | 196.63M | 144.11M | 108.32M | 83.81M |
| EBITDA | -8.59M | -22.56M | -29.56M | -44.85M | -47.12M | -42.02M |
| Net Income | -45.11M | -47.65M | -40.84M | -62.91M | -58.60M | -46.82M |
Balance Sheet | ||||||
| Total Assets | 831.08M | 847.23M | 437.28M | 399.82M | 488.88M | 436.51M |
| Cash, Cash Equivalents and Short-Term Investments | 80.95M | 99.09M | 115.73M | 92.12M | 196.35M | 308.58M |
| Total Debt | 358.16M | 368.55M | 18.45M | 19.26M | 104.05M | 24.62M |
| Total Liabilities | 468.40M | 485.18M | 80.25M | 74.88M | 154.84M | 91.90M |
| Stockholders Equity | 362.68M | 362.05M | 357.03M | 324.94M | 334.05M | 344.61M |
Cash Flow | ||||||
| Free Cash Flow | 65.10M | 41.36M | 17.40M | -23.79M | -38.84M | -32.66M |
| Operating Cash Flow | 66.53M | 42.91M | 18.60M | -17.50M | -37.79M | -28.96M |
| Investing Cash Flow | -9.80M | -397.59M | 23.04M | 33.91M | -224.01M | -22.02M |
| Financing Cash Flow | -63.64M | 323.79M | 11.79M | -87.82M | 61.18M | 192.27M |
Alkami Technology Technical Analysis
Positive
20.13
Price Trends
18.26
Positive
17.45
Positive
18.49
Positive
Market Momentum
0.61
Positive
62.67
Neutral
46.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKT, the sentiment is Positive. The current price of 20.13 is above the 20-day moving average (MA) of 19.85, above the 50-day MA of 18.26, and above the 200-day MA of 18.49, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALKT.
Alkami Technology Risk Analysis
Alkami Technology disclosed 57 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $4.05B | 44.38 | 14.49% | ― | 13.90% | 1906.95% | |
73 Outperform | $2.27B | 75.23 | 3.36% | ― | 8.57% | ― | |
71 Outperform | $2.30B | 21.76 | 10.59% | ― | 5.44% | ― | |
68 Neutral | $1.17B | 31.97 | 8.99% | ― | 2.98% | -48.40% | |
66 Neutral | $3.43B | 17.43 | 49.22% | ― | 3.78% | 60.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $2.18B | -47.33 | -12.48% | ― | 27.05% | -12.95% |
* Technology Sector Average
ALKT
Alkami Technology
20.35
-5.34
-20.79%
QTWO
Q2 Holdings
65.68
-13.15
-16.68%
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47.96
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NCNO
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23.32
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-27.35%
DBD
Diebold Nixdorf Inc
67.68
5.28
8.46%
NATL
NCR Atleos, LLC
46.01
6.17
15.49%
Alkami Technology Corporate Events
Business Operations and StrategyFinancial Disclosures
Alkami Technology Posts Strong Q2 Growth and Guidance
Positive
Jul 29, 2026
On July 29, 2026, Alkami Technology reported second-quarter 2026 results showing GAAP revenue of $129.8 million, up 15.9% year over year, with GAAP gross margin slipping to 56.8% but GAAP net loss narrowing to $8.9 million. Adjusted EBITDA rose to...
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.