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1. Company Snapshot

1.a. Company Description

Alkami Technology, Inc.offers a cloud-based digital banking platform in the United States.The company's platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, multi-tenant architecture.


It offers an end- to- end set of software products, which include Alkami Platform, Retail Banking Solutions, Business Banking Solutions, and The Alkami Difference.It serves community, regional, credit unions, and retail and business banking.Alkami Technology, Inc.


was founded in 2009 and is headquartered in Plano, Texas.

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1.b. Last Insights on ALKT

Alkami Technology, Inc.'s recent performance was impacted by its Q4 2025 earnings release, which showed a GAAP total revenue of $120.8 million, up 34.7% year-over-year. However, the company's GAAP net loss widened to $(11.4) million. Despite this, several brokerages have a "Hold" or "Moderate Buy" rating on the stock, with a price target of $28.57-$36.00. Additionally, institutional investors such as Irenic Capital, Long Path Partners, and Envestnet Asset Management Inc. have increased their stakes in the company. The company also introduced new product enhancements, including Automated Stage Match in its SDK Wizard.

1.c. Company Highlights

2. Alkami Technology's Strong Q4 and Full-Year 2025 Results Exceed Expectations

Alkami Technology reported robust fourth-quarter and full-year 2025 results, with revenue growing 35% to $120.8 million and adjusted EBITDA reaching $19.1 million in Q4. For the full year, revenue was $443.6 million, up 33%, and adjusted EBITDA more than doubled to $59.1 million. The company's actual EPS came out at $0.1, slightly below estimates of $0.15. The strong financial performance was driven by the acquisition of 16 new digital banking clients and 33 new MANTL clients in Q4.

Publication Date: Mar -01

📋 Highlights
  • Strong Revenue Growth:: Q4 revenue reached $120.8 million (+35% YoY), with full-year revenue hitting $443.6 million (+33% YoY).
  • EBITDA Surge:: Full-year adjusted EBITDA more than doubled to $59.1 million, up from $22.8 million in 2024.
  • Client Expansion Momentum:: Acquired 16 new digital banking clients and 33 MANTL clients in Q4, with 58% of new digital banking deals tied to DSSP.
  • 2026 Guidance:: Revenue projected at $525.5–530.5 million (+18.5–19.6% growth), and adjusted EBITDA of $93.5–97.5 million (500 bps margin expansion to 19%).
  • 2030 Strategic Targets:: Aiming for 70% non-GAAP gross margin, 300 bps annual adjusted EBITDA margin expansion, and 90% free cash flow conversion.

Guidance and Outlook

The company expects 2026 revenue of $525.5-530.5 million, representing 18.5-19.6% growth, and adjusted EBITDA of $93.5-97.5 million. The outlook assumes continued cross-sell momentum, high single-digit ARPU growth, and a 75% decline in termination fee revenue. Alkami aims to achieve a Rule of 45 by 2030, driven by revenue growth, RPU expansion, and dollar churn of 2-3% per year. Analysts estimate next year's revenue growth at 17.3%, aligning with the company's guidance.

Valuation and Metrics

Alkami's current valuation metrics show a P/S Ratio of 3.92 and an EV/EBITDA of -74.68. The company's ROE is -13.71%, and ROIC is -5.71%. With a significant runway for growth, Alkami targets 90% free cash flow conversion by 2030. The 2030 financial framework implies mid- to high-teen revenue growth, driven by a durable business model with long-term contracts, a sticky product, and expanding margins.

Business Fundamentals and Growth Drivers

Underlying demand trends remain strong, driven by a robust pipeline, particularly in the bank market, where Alkami sees a 50-50 credit union and bank split. The company expects high-digit growth in revenue per user (RPU) in 2026, which should translate to ARR growth. Alkami's growth in the credit union space is driven by its modern platform and track record of successful conversions, which helps build confidence in the conversion process.

MANTL Acquisition and Cross-Selling

The MANTL acquisition has contributed to growth, and the company expects a 30% uplift in ARR when clients buy DSSP. Alkami has seen progress in cross-selling activity between MANTL and its digital banking client base, with the MANTL loan origination system (LOS) currently targeting retail and HELOC loan origination.

Capital Allocation Priorities

The company focuses on paying down debt and opportunistically assessing M&A opportunities and share buybacks. With a strong financial performance and a clear growth strategy, Alkami is well-positioned to achieve its long-term goals.

3. NewsRoom

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Clear Mountain Bank Launches Alkami's Digital Banking Platform and Expands Partnership with Alkami's Data & Marketing Solution

Mar -19

Source: prnewswire.com

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Austin Telco Federal Credit Union Partners with MANTL to Modernize Retail Account Opening Across All Banking Channels

Mar -17

Source: prnewswire.com

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Insiders Are Buying These 3 Beaten-Down Stocks. Should You Follow?

Mar -16

Source: 247wallst.com

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Alkami Technology, Inc. $ALKT Shares Bought by General Atlantic L.P.

Mar -14

Source: defenseworld.net

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First Look: Oil at $100, Fed Cut Odds Fade; LCID, RIVN

Mar -13

Source: gurufocus.com

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Market Today: Oil shock, TEAM cuts, LCID robotaxi plans

Mar -12

Source: gurufocus.com

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Empower Federal Credit Union Expands Partnership with Alkami by Selecting MANTL to Power Omnichannel Growth

Mar -12

Source: prnewswire.com

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First Look: Oil Surge, Tech Cuts, Cyberattack Hits Stryker

Mar -12

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.50%)

6. Segments

Software-as-a-Service Subscription

Expected Growth: 13.47%

Alkami Technology, Inc.'s 13.47% growth in Software-as-a-Service (SaaS) subscriptions is driven by increasing demand for digital banking solutions, expansion into new markets, and strategic partnerships. The company's cloud-based platform provides scalability and flexibility, attracting more financial institutions. Additionally, the shift towards online banking and mobile payments fuels growth, as Alkami's SaaS model offers a cost-effective and efficient solution for clients.

Implementation

Expected Growth: 14.07%

Alkami Technology, Inc.'s 14.07% growth is driven by increasing adoption of its cloud-based digital banking platform, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer experience, and operational efficiency has enabled it to capitalize on the growing demand for digital banking solutions, resulting in accelerated revenue growth.

Other

Expected Growth: 14.07%

Alkami Technology's 14.07% growth is driven by increasing adoption of its cloud-based digital banking platform, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer experience, and operational efficiency has enabled it to capitalize on the growing demand for digital transformation in the financial services industry.

7. Detailed Products

Digital Banking Platform

A cloud-based digital banking platform that provides a seamless and personalized banking experience for customers

Origination Platform

A digital lending platform that streamlines the loan origination process for banks and credit unions

Account Opening Platform

A digital account opening platform that enables customers to open accounts online or through mobile devices

Digital Payment Platform

A digital payment platform that enables person-to-person (P2P) payments, bill pay, and account-to-account (A2A) transfers

Data Analytics and Insights

A data analytics platform that provides insights and data visualization for financial institutions

8. Alkami Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alkami Technology, Inc. operates in a niche market, providing digital banking solutions to financial institutions. While there are some substitutes available, they are not as comprehensive or tailored to the specific needs of community banks and credit unions. Therefore, the threat of substitutes is moderate.

Bargaining Power Of Customers

Alkami Technology, Inc.'s customers are primarily community banks and credit unions, which have limited bargaining power due to their smaller size and limited resources. This gives Alkami Technology, Inc. an upper hand in negotiations.

Bargaining Power Of Suppliers

Alkami Technology, Inc. relies on a few key suppliers for its technology and infrastructure. While these suppliers have some bargaining power, Alkami Technology, Inc. has diversified its supply chain to mitigate this risk.

Threat Of New Entrants

The digital banking solutions market is rapidly evolving, and new entrants are emerging with innovative solutions. Alkami Technology, Inc. faces a high threat from new entrants, which could potentially disrupt its market share.

Intensity Of Rivalry

The digital banking solutions market is highly competitive, with several established players vying for market share. Alkami Technology, Inc. faces intense competition from rivals, which could lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.59%
Debt Cost 5.94%
Equity Weight 94.41%
Equity Cost 5.94%
WACC 5.94%
Leverage 5.93%

11. Quality Control: Alkami Technology, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Zoom Video

A-Score: 5.5/10

Value: 3.6

Growth: 8.1

Quality: 8.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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PTC

A-Score: 5.1/10

Value: 2.1

Growth: 8.3

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

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Alarm.com

A-Score: 4.9/10

Value: 5.3

Growth: 8.2

Quality: 6.2

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

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Progress Software

A-Score: 4.2/10

Value: 4.4

Growth: 6.4

Quality: 5.9

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

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Elastic

A-Score: 3.8/10

Value: 3.2

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

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Alkami Technology

A-Score: 3.5/10

Value: 4.6

Growth: 7.1

Quality: 4.1

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.82$

Current Price

16.82$

Potential

-0.00%

Expected Cash-Flows