Alkami Technology, Inc. (ALKT) | Investment Case

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.

Show Full description

1.b. Last Insights on ALKT

Alkami Technology's recent performance has been negatively impacted by investigations into possible violations of federal securities laws, with Levi & Korsinsky and Pomerantz Law Firm launching probes. Additionally, activist investor Jana Partners has urged the company to explore a sale, citing potential undervaluation. According to Marketbeat, the company has a "Moderate Buy" consensus rating, with one analyst issuing a sell recommendation.

1.c. Company Highlights

Last Price	17.36
Change Percentage	-13.14%
Open	19.61
Previous Close	19.98
Market Cap ( Millions)	1822
Volume	2119603
Year High	36.35
Year Low	17.3
M A 50	21.78
M A 200	24.76

FCF Yield	1.62%
Dividend Yield	0.00%
ROE	-12.66%
Debt / Equity	108.09%
Net Debt / EBIDTA	-1026.52%
Price To Book	5.17
Price Earnings Ratio	-41.29
Price To FCF	61.89
Price To sales	4.42
EV / EBITDA	-68.52

2. Alkami's Q3 2025 Earnings: Strong Revenue Growth and Expanding Margins

Alkami reported a robust third quarter in 2025, with revenue growing 31% year-over-year, and adjusted EBITDA reaching $16 million. The company's registered users on the Alkami platform stood at 21.6 million, up 2.1 million from the prior year quarter. Earnings per share (EPS) came in at $0.13, slightly below estimates of $0.15. The company's adjusted EBITDA margin expanded to 14.1% in Q3, demonstrating its ability to scale operations efficiently.

Publication Date: Nov -06

                                    📋 Highlights
                                    Revenue Growth::
                                                Q3 revenue increased 31% year-over-year with adjusted EBITDA reaching $16 million.
MANTL Expansion::
                                                Added 29 new MANTL clients (15 new to Alkami) and achieved 68 cross-sell logos year-to-date.
New Client Acquisition::
                                                Secured 10 new digital banking clients, including a top-20 credit union with 450,000 digital users.
Financial Guidance::
                                                Q4 revenue projected at $119.6–$121.1 million (22% growth) and adjusted EBITDA of $16.1–$17.1 million.
Product Development::
                                                Launched design phase for digital sales/service platform, with a dedicated team and client demos planned for spring 2026.

                                

Revenue Growth and Client Acquisition

The company added 10 new clients on its digital banking platform, including six credit unions and four banks, with one client being the largest new logo transaction in its history. The MANTL business delivered a strong quarter, with 29 new clients, 15 of which were new to Alkami. This underscores the success of Alkami's cross-sell efforts, with MANTL adding 68 new logos year-to-date, including 29 existing Alkami clients.

Operational Highlights and Guidance

Alkami guided revenue for Q4 2025 in the range of $119.6 million to $121.1 million, representing organic growth of 22%. Adjusted EBITDA is expected to be between $16.1 million and $17.1 million. For the full year 2025, the company expects revenue to be between $442.5 million and $444 million, with adjusted EBITDA in the range of $56 million to $57 million. Analysts estimate revenue growth of 23.8% for the next year, indicating a consistent trajectory.

Valuation and Future Prospects

With a P/S Ratio of 4.86 and an EV/EBITDA of -74.33, Alkami's valuation reflects its growth profile. The company's ability to innovate and expand its offerings, such as through the integration of MANTL and the development of AI-driven solutions, positions it well for future growth. As Alkami continues to execute on its strategy, its financial performance and guidance suggest a positive outlook for shareholders. The upcoming integration of Cassandra Hudson as CFO is expected to further enhance the company's financial management and strategic direction.

3. NewsRoom

Alkami Identifies the Top Trends Shaping Business and Commercial Banking in 2026

Jan -27

Source: prnewswire.com

Algebris UK Ltd. Acquires New Stake in Alkami Technology, Inc. $ALKT

Jan -26

Source: defenseworld.net

The Atlantic Federal Credit Union Becomes First Credit Union to Go Live with MANTL Loan Origination

Jan -22

Source: prnewswire.com

Grow Financial Credit Union Chooses MANTL to Elevate the Member Experience

Jan -21

Source: prnewswire.com

Harvard Federal Credit Union Unifies the End-to-End Member Experience with the Alkami Digital Sales & Service Platform

Jan -15

Source: prnewswire.com

This Niche Tech Stock Dropped 50%, but Its Revenue Model Means It's Poised for a Comeback

Jan -14

Source: fool.com

Citizens State Bank Partners with MANTL to Unify and Modernize Deposit Account Opening Across All Banking Channels

Jan -14

Source: prnewswire.com

Alkami Technology, Inc. (NASDAQ:ALKT) Receives $36.00 Consensus Price Target from Brokerages

Jan -14

Source: defenseworld.net

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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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

1-Year Total Return ->

PTC

A-Score: 5.1/10

Value: 2.1

Growth: 8.3

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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

1-Year Total Return ->

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

1-Year Total Return ->

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 ->

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 ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.65%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.94%

Alkami Technology, Inc. - US01644J1088

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ALKT

1.c. Company Highlights

Strong Momentum

Average Yield

Average Growth

Earnings Beats

Fairly Valued

Medium Volatility

Revenues Beats

Revenues Miss

Lower Quality

Average Quality

Stable Momentum

Weak Momentum

Earnings Miss

2. Alkami's Q3 2025 Earnings: Strong Revenue Growth and Expanding Margins

Revenue Growth and Client Acquisition

Operational Highlights and Guidance

Valuation and Future Prospects

3. NewsRoom

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%

Implementation

Expected Growth: 14.07%

Other

Expected Growth: 14.07%

7. Detailed Products

Digital Banking Platform

Origination Platform

Account Opening Platform

Digital Payment Platform

Data Analytics and Insights

8. Alkami Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.35$

Current Price

17.36$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA